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Ease of doing business: The BIR 2028 DX Roadmap

IN BRIEF:

• The BIR’s Digitalization Program aims to modernize and enhance the efficiency, transparency, and effectiveness of tax administration and revenue collection processes.

• The BIR envisions taxpayers as customers, adopting taxpayer-centric views in their services. Completed projects reflecting this approach include the Online Registration Update System (ORUS), Enhancement of the Electronic One-Time Transaction (eONETT) System, and the Optimized Knowledge Management System for Chatbot Revie.

• Despite foreseeable challenges such as increased security risks and budget constraints, the BIR is prepared to address them by focusing on system upgrades, modernization, and adhering to its vision of collecting taxes through the just enforcement of tax laws.

Change is inevitable in today’s dynamic environment. To keep pace with rapid modernization, organizations must evolve their offerings to meet public needs. On Jan. 8, a key official of the Bureau of Internal Revenue (BIR) shared insights at the 3rd Tax Symposium of SGV, discussing how the BIR is adapting to modernization and transforming its services to meet the evolving needs of taxpayers.

EVOLUTION OF THE BIR DX ROADMAP
The BIR revitalized its digital transformation journey with the issuance of Revenue Memorandum Order (RMO) No. 27-2020, known as the BIR Digital Transformation (DX) Roadmap 2020-2030. This initiative was pursued in compliance with Republic Act No. 11032 or the Ease of Doing Business and Efficient Government Service Delivery Act of 2018, which requires government offices to assess and improve their transaction systems and procedures. The DX Roadmap is built around three core principles: adopting a people-first approach, instituting a process perspective, and embracing digital technology, with a digital transformation mindset as its foundation.

Recognizing the need for a more comprehensive and updated roadmap, the BIR issued RMO No. 48-2024, known as the Adoption of the New BIR Digital Transformation Roadmap for CY 2025-2028. This initiative aligns with Section 43 of RA No. 11976, or the Ease of Paying Taxes Act, which requires the BIR to adopt an integrated digitalization strategy by providing automated end-to-end solutions for taxpayers. The roadmap also reflects BIR Aspiration 2028, which envisions the BIR as highly digital and propelled by empowered revenue officers with integrity, providing excellent services aligned with international tax standards.

PROJECT UPDATES
The speaker emphasized that despite recent legislation requiring the digital transformation of BIR services, the BIR has long been committed to making its services convenient and efficient for the public. This commitment is evident in the expansion of eServices and the leveraging of technology for a robust tax administration.

It was highlighted that during the time when the world stood still due to the COVID-19 pandemic, the BIR’s Electronic Filing and Payment System (eFPS), e-BIR Forms, and electronic payment facilities were already in place. This allowed taxpayers to efficiently comply with their filing and payment duties.

A report on the status of projects under the BIR DX Program for CY2024 as of Nov. 30, 2024 was also presented. There are eight completed projects and eight ongoing projects.

Completed projects include the Online Registration Update System (ORUS), Enhancement of the Electronic One-Time Transaction (eONETT) System, Optimized Knowledge Management System for Chatbot Revie, Property Management System (PMS) (National Office Phase), Expansion of Digital Platform and Tools, Establishment of a Command Center with IT Operations Center, Enterprise Risk Management (ERM), and Enhanced Monitoring and Managing Administrative Cases (EMMAC).

Meanwhile, ongoing projects include the Project 230X, Electronic Tax Clearance System (eTCS), Electronic Invoicing/Receipting and Sales Reporting System (EIS/SRS), eAppointment (BIR Services under Assessment and Collection Service, Development of Cloud Based Electronic Documentary Stamp Tax (eDST) System, Document Tracking Management System (DTMS), Cybersecurity Program and Internal Revenue Integrated System (IRIS).

Eleven other projects under the DX Program are in varying stages of project planning and execution. These include taxpayer-facing projects as well as projects for internal customers.

A notable highlight of the DX project is the EIS/SRS Program. Republic Act No. 10963 or the Tax Reform for Acceleration and Inclusion Law (TRAIN Law) authorized the establishment of a system capable of storing and processing the required data within five years from the effectivity of the Law. Republic Act No. 12066 or the CREATE MORE Law removed the five-year implementing period. In terms of updates, out of the 100 Pilot Taxpayers, 63 are currently transmitting their sales data.

The ongoing Tax Modernization Feasibility Study Project will determine the best way forward for the EIS/SRS program. The study’s result will be out towards the end of the first quarter of 2025. By then, the Bureau can provide firmer guidelines and timelines regarding the EIS/SRS implementation.

Further, under the CREATE MORE Law, taxpayers under the jurisdiction of the Large Taxpayer Service and exporters are still covered both by the requirement of issuing electronic invoices (EIS) and electronic reporting of their sales (SRS) data to the Bureau. What was amended is that those engaged in e-commerce are only required to comply with the EIS, but it is not mandatory for them to comply with the SRS program. Instead, they may opt to voluntarily comply.

Meanwhile, other taxpayers may voluntarily issue electronic invoices and use an SRS. Those who volunteer will be granted incentives, specifically an additional deduction from taxable income of 100% total cost for setting up an EIS/SRS for taxpayers classified as micro and small and an additional 50% for medium and large, which can only be availed of once.

MODERNIZING TAX SERVICES
Transformation is not just about modernization. It aims to establish a more efficient, transparent, and responsive tax administration capable of addressing the changing needs of the public.

As the BIR strives for transformative and modernized services for taxpayers, it acknowledges foreseeable challenges such as increased security risks, budget constraints, customer/taxpayer readiness, among others. Nonetheless, the BIR is prepared to address these challenges.

These developments in the BIR’s DX Program give taxpayers a renewed optimism recognizing the significance of its successful implementation in improving tax processes towards realizing BIR’s vision of a modern, efficient, and technology-driven tax system that benefits both the taxpayers and government.

This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinions expressed above are those of the authors and do not necessarily represent the views of SGV & Co.

 

Thyrza F. Marbas is a tax partner and Rule Amethyst L. Oporto is a tax senior manager of SGV & Co.

Philippines and US hold joint maritime exercises in disputed South China Sea

PHILIPPINE COAST GUARD PHOTO

THE PHILIPPINES and the US held joint maritime exercises for a fifth time in the South China Sea, Manila’s armed forces said on Sunday, in a move that could irk China.

The Philippine military said in a statement it held a “maritime cooperative activity” with the US on Friday and Saturday, its first for the year and fifth overall since launching the joint activities in 2023.

Security engagements between the two allies have soared under Philippine President Ferdinand R. Marcos, Jr., who has pivoted closer to Washington, allowing the expansion of military bases that American forces can access, including facilities that face Taiwan.

The joint maritime activity included the US’ Carl Vinson Carrier Strike Group, two guided missile destroyers, two helicopters and two F-18 Hornet aircraft.

The Philippine side deployed its Antonio Luna frigate, Andres Bonifacio patrol ship, two FA-50 fighter jets and search and rescue assets of the air force.

The activities “reinforced bilateral maritime cooperation and interoperability,” the Philippine armed forces said.

Their joint activity came at a time when the Philippines had called out China over the presence of Chinese coast guard vessels inside its maritime zone, including the 165-meter-long ship that it describes as “the monster” for its size.

The Chinese Embassy in Manila did not immediately respond for a request for comment at the weekend.

Meanwhile, the Philippine Coast Guard (PCG) vowed to prevent China from normalizing its ship deployments within Manila’s exclusive economic zone (EEZ) in the South China Sea.

In a statement on Saturday night, the agency said its vessel BRP Gabriela Silang was “actively monitoring and challenging the unlawful presence” of Chinese Coast Guard vessel 5901 or its so-called monster ship.

The monster ship was last seen 60-70 nautical miles from the Zambales coastline, it said.

The PCG crew conducted a radio challenge to remind the Chine Coast Guard of their “unlawful actions, particularly regarding their claims of conducting maritime patrols.”

The 83-meter French-built BRP Gabriela Silang was “boldly asserting its stance against any attempts to legitimize illegal activities in the West Philippine Sea,” the PCG said, referring to parts of the South China Sea within the Philippine EEZ.

“By confronting the presence of Chinese Coast Guard vessel 5901, the PCG sends a clear message: the normalization of unlawful deployments will not be accepted or tolerated,” it added.

The PCG noted that under the United Nations Convention on the Law of the Sea, freedom of navigation for foreign-flagged vessels does not extend to patrols within the EEZ of other states.

“The PCG stands firm in its dedication to ensuring that no unlawful actions by the China Coast Guard in the West Philippine Sea go unchallenged.”

The Philippines last week accused China of intimidating Filipino fishermen near Scarborough Shoal and normalizing its “illegal presence” after Beijing sent its biggest coast guard ship into the Philippine EEZ.

The monster ship was first spotted within the Philippine EEZ on Jan. 4, prompting the dispatch of the PCG’s largest ship.

A United Nations-backed tribunal based in the Hague in 2016 voided China’s expansive claims in the South China Sea for being illegal, as it ruled Scarborough Shoal, which Beijing has controlled since 2012, is a traditional fishing ground for Filipino, Chinese and Vietnamese fishermen.

The shoal, which Manila calls Bajo de Masinloc, is 241 kilometers off Zambales and is within the Philippines’ 200-nautical mile EEZ.

PCG spokesman Jay Tristan Tarriela last week said the monster ship’s presence near the Zambales coast could not be considered an innocent passage and does not fall under the principle of freedom of navigation because its movement is “not continuous and it is not expeditious.”

“Meaning, it has erratic movements — sometimes it goes up, goes down, turns left, turns right arbitrarily. There is no specific reason why they are doing that,” he noted. — Kyle Aristophere T. Atienza with Reuters

Congressmen told not to politicize oversight power before midterm elections

By Kenneth Christiane L. Basilio, Reporter

THE House of Representatives should not abuse its oversight powers for political purposes, a political analyst said, as the chamber vowed to continue congressional investigations before midterm elections in May.

Speaker and Leyte Rep. Ferdinand Martin G. Romualdez last week said the chamber would exercise oversight by continuing inquiries of pressing issues including food smuggling and expensive power prices.

“The oversight function of the Legislature, like holding committee hearings in aid of legislation, is also prone to being politicized by a faction,” Arjan P. Aguirre, who teaches political science at the Ateneo de Manila University, said in a Facebook Messenger chat. “It can be instrumentalized to malign or demonize rivals in the government.”

The House of Representatives has launched high-profile investigations of issues from Vice-President Sara Duterte-Carpio’s alleged misuse of secret funds to persistently steep rice prices.

The chamber also formed a joint committee to look into ex-President Rodrigo R. Duterte’s bloody drug war and operations of illegal online casinos.

“Recent investigations involving the unexplained spending and the drug war can easily be criticized for singling out the Dutertes,” Mr. Aguirre said.

The House could have expanded the scope of its investigations more by focusing on “important issues about our institutions” rather than concentrating on personalities, such as the Dutertes, he added.

The Duterte camp has had a falling out with the government of President Ferdinand R. Marcos, Jr. due to policy differences including on foreign policy and the President’s push to boost security ties with the US.

Tensions between the two camps boiled over last year, when Ms. Carpio publicly lashed against Mr. Marcos, calling him a weak leader and issuing threats against the Marcos family.

The House will continue its investigation of issues that hounded the Duterte presidency next week, scheduling a hearing into illegal Philippine Offshore Gaming Operators, drug killings and concerns over the influx of Chinese nationals into the country, according to the House website.

Filipino will choose a new set of congressmen for the House and 12 of the 24-member Senate on May 12, apart from other local government officials.

Congressional investigations “appeal to voters as they are televised, gaining wide public attention,” according to Jean S. Encinas-Franco, a University of the Philippines political science professor.

But lawmakers should not only focus on exercising oversight. “To focus only on this aspect would make legislators remiss in their jobs,” she said in a Viber message.

Edmund S. Tayao, president of Political Economic Elemental Researchers and Strategists, said exercising oversight over laws and government activities is a constitutional mandate for Congress and should not be treated separately from the lawmaking process.

“It is a fundamental function of the Legislature, especially of the House of Representatives, given that they have the ‘power of the purse,’” he said in a Viber message. “It is the Legislature’s duty to exercise it. It’s not something it can just choose not to exercise.”

“The exercise of oversight functions doesn’t mean it’s entirely different and separate from pending initiatives. It is in fact complimentary,” he added.

Congressional oversight functions include reviewing government programs, conducting inquiries recommending measures to enhance government efficiency, Mr. Tayao said.

“[These are done] with the end in view of promoting transparency, public participation, and democracy.”

Philippine natgas law seen attracting more investors

BW FILE PHOTO

By John Victor D. Ordoñez, Reporter

THE NEWLY signed Philippine Natural Gas Industry Development Act, which seeks to promote natural and liquefied natural gas (LNG) as fuel sources to fast-track the country’s shift to renewable energy, would likely lure more investors, according to a Philippine senator.

“High energy cost is one of the stumbling blocks for foreign and local investors to do business in the country,” Senator Joseph Victor G. Ejercito told BusinessWorld in a Viber message.

“With this new law, we expect that there will be more investments in local gas resources and infrastructure, more employment opportunities and will attract more foreign investments,” he added.

Philippine President Ferdinand R. Marcos, Jr. on Jan. 15 signed into law a bill that seeks to develop the country’s natural gas (natgas) industry as the Philippines seeks to diversify its power mix and fast-track its transition to renewable energy (RE).
Republic Act (RA) No. 12120 or the Philippine Natural Gas Industry Development Act seeks to promote natural gas as a “cost-effective source of energy and an indispensable contributor to energy security.”

Under the law, an entity may hold an interest in upstream and downstream natural gas facilities as well as the supply of natural gas, but this will be subject to competition laws.

The Department of Energy will evaluate, approve and issue permits for natural gas facilities and craft a regulatory and legal framework for the downstream natural gas industry.

The law also seeks to make Manila an LNG trading and transshipment hub in the Asia-Pacific region.

The Malampaya gas field, the Philippines’ sole indigenous source of gas, is expected to run out of easily recoverable gas using current techniques by 2027.

The country is trying to raise the share of RE in the country’s energy mix to 35% by 2030 and to 50% by 2040 from 22% now.

“A more immediate question is why there is a need for a transition fuel before the full-blown adoption of renewable energy,” Leonardo A. Lanzona, who teaches economics at the Ateneo de Manila University, said in a Facebook Messenger chat. 

“Given the pressing need to address climate change, direct transitions to clean energy are often more aligned with global sustainability goals.”

Energy Undersecretary Sharon S. Garin earlier told senators the government wants more battery system companies to do business in the country to meet its RE goals.

She said battery technology is evolving quick enough to make the country’s 2050 RE goals feasible.

Last year, Mr. Marcos said his government might explore gas reserves in nonconflict areas within the country’s exclusive economic zone in the South China Sea to boost the country’s power generation capabilities.

PXP Energy Corp.’s exploration work at Reed Bank, another potential source of gas in disputed waters, remains suspended due to tensions with China.

China claims more than 80% of the South China Sea, seen as a substantial source of oil and gas deposits and where over $3 trillion worth of trade passes through each year.

“This new law will help ensure that gas and energy prices and supply will be stabilized in the event where there are international conflicts or war,” Mr. Ejercito said.

Stricter enforcement of Labor Code pushed amid dim Philippine employment outlook

Workers are seen at a manufacturing facility in Santa Rosa, Laguna. — PHILIPPINE STAR KRIZ JOHN ROSALES

By Chloe Mari A. Hufana, Reporter

A STRICTER monitoring and enforcement mechanism to ensure compliance with labor standards is needed amid a “dim” employment outlook, particularly in the country’s service and agriculture sectors, a labor leader said.

A recent International Labour Organization (ILO) report on insufficient global employment growth mirrors the situation in the Philippines, where persistent decent work deficits in the service and agriculture sectors are attributed by the Federation of Free Workers (FFW) to rampant contractualization, low wages, and unsafe working conditions.

“The outlook remains dim, particularly when considered alongside the International Monetary Fund’s (IMF) recent report. It estimates that 14% of the workforce — around 5 million Filipino workers — are at risk of displacement this year due to artificial intelligence (AI) and climate change,” FFW President Jose Sonny G. Matula told BusinessWorld in a Viber message over the weekend.

The ILO’s World Employment and Social Outlook: Trends 2025, released last week, found employment growth globally remained “too weak” to significantly impact lingering decent work deficits.

While employment growth remains steady, various factors are testing the resilience of labor markets worldwide, it added.

“The lack of faster global productivity growth is partly linked to the failure of structural change to move people out of agriculture into manufacturing and services,” it noted.

“Given the poor working conditions in much of farming outside advanced economies, this also means that working poverty and informality have not benefited from people moving out of agriculture to better-paying jobs in industry and services,” it added.

Individuals in informal employment, particularly in agriculture and other sectors like wholesale and retail trade, often face irregular income and lack access to social protection, it added.

“In this context, the vigorous exercise of the Department of Labor and Employment’s (DoLE) inspection and visitorial powers under the Labor Code is essential,” Mr. Matula said.   

“Strengthened monitoring and enforcement mechanisms will ensure that employers comply with labor standards, while the Employment Plan should adapt to rapidly changing labor market dynamics, including those influenced by technology and climate change,” he added.

In 2024, global employment grew alongside the expanding labor force, maintaining the global unemployment rate at a steady 5%, consistent with the level recorded in 2023, the ILO noted.

However, this growth remains insufficient to address persistent decent work deficits as young workers continue to face high unemployment rates, around 12.6%, with little sign of improvement, it added.

Labor Secretary Bienvenido E. Laguesma said the department conducted “extensive national consultations,” culminating in the upcoming 10-year Trabaho Para sa Bayan (TPB) Plan to address weak job growth.

“Through these initiatives, we have identified several key areas of intervention that align with the goals of the TPB Plan and aim to address the challenges of regional employment disparities, particularly in rural areas,” he told BusinessWorld in a Viber message over the weekend.

“Agriculture remains a cornerstone of rural employment, and we are committed to transforming this sector to boost productivity and job creation,” he added.

He noted the Labor department aims to introduce technology-enabled farming practices, climate-resilient methods and value-added processes into agribusiness through the Agricultural Competitiveness Enhancement Fund.

“These initiatives will not only create more jobs but also enhance the sustainability and profitability of rural livelihoods,” he said.

According to the Philippine Statistics Agency’s (PSA) November 2024 Labor Force Survey, the agriculture sector experienced the highest year on year job loss, with 1.99 Filipinos leaving the sector.

The agency attributed the loss to typhoons.

RURAL WORKFORCE
According to Mr. Laguesma, DoLE is empowering local government units (LGUs) to spearhead rural development by supporting them with investment strategies, microfinance for micro, small and medium enterprises (MSMEs) and infrastructure projects under the Build Better More program.

“These initiatives will ensure that rural areas become hubs for inclusive economic activity,” he added.

In addition, DoLE is collaborating with the Technical Education and Skills Development Authority (TESDA) and local institutions, prioritizing tailored skills training.

Programs will focus on green skills development, digital upskilling and vocational training to prepare rural workers for opportunities in sustainable agriculture, eco-tourism, and renewable energy, he noted.

“Our Public Employment Service Offices (PESOs) are key to facilitating job placement and matching in rural areas,” he added, noting that digitalization and enhancing labor market intelligence.

“We aim to make employment services more accessible and effective, enabling rural job seekers to connect with opportunities tailored to their skills and aspirations,” he noted.

The labor chief also added the department is committed to fostering sustainable job opportunities in agriculture, eco-tourism and clean energy. These green initiatives will ensure long-term job creation while protecting environmental resources.

Social safety nets for rural workers are critical, he noted, adding the ILO has been helping DoLE in achieving these initiatives.

“We will broaden coverage of social protection programs to include informal workers, addressing vulnerabilities and providing stability during economic transitions,” he added.

“By prioritizing rural job creation and addressing regional disparities, we aim to build a resilient and equitable labor market where every Filipino has access to quality employment.”

Nearly 200 Afghans in PHL fly to US

ALMOST 200 Afghan nationals who had stayed in the Philippines while awaiting resettlement in the United States have left the country after finishing their special immigrant visa applications, according to the US Embassy in Manila.

In a Viber message to reporters, US Embassy spokesperson Kanishka Gangopadhyay said that from 300 Afghan nationals initially slated to participate in the special immigrant visa program, about 100 dropped out due to medical concerns, among other factors.

“It’s natural to have some attrition for immigration programs due to long timelines,” he said. “All departed the Philippines for immigration to the United States aboard commercial flights between Jan. 15 and 17.”

Last year, Manila and Washington agreed to allow a limited number of Afghan nationals to temporarily stay in the Southeast Asian nation while waiting for the approval of their special immigrant US visas.

Afghan applicants would only be allowed to stay in Manila for 59 days, Philippine Foreign Affairs spokesperson Ma. Teresita C. Daza told reporters in a WhatsApp message in August.

During President Ferdinand R. Marcos, Jr.’s state visit to Washington in May 2023, US President Joseph R. Biden floated the idea of sheltering Afghan nationals for a limited time while they await their visas.

“The government of the United States extends deep appreciation to the government of the Philippines for their cooperation and support for US efforts to assist Afghan Special Immigrants,” US embassy spokesman said. — John Victor D. Ordoñez

House urged to act on VP ouster

VICE-PRESIDENT SARA DUTERTE-CARPIO — PHILIPINE STAR/ RYAN BALDEMOR

THE House of Representatives must expedite the impeachment complaint against Vice-President (VP) Sara Duterte-Carpio by next week and let the Senate deal with the time constraints, a lawmaker said on Sunday.

“If we can secure the 103 endorsers next week, it will be immediately passed to the Senate, and there will be no need to worry about the number or attendance of congressmen because the Senate will handle it,” Deputy Minority Leader and Party-list Rep. France L. Castro said in a statement in Filipino.

“The Senate can then promptly tackle this or call for a special session, if necessary,” she added.

Minority lawmakers and opposition groups are pressing the Philippine Congress to fast-track ouster complaints against Ms. Duterte, who is facing a slew of impeachable allegations against her at the House. They accused her of corruption, bribery and betrayal of public trust.

Moves seeking her impeachment come as the 19th Congress is set to conclude. Lawmakers will go on a four-month break starting in February to give way for the 2025 midterm election, when Filipinos will choose a new set of congressmen for the House and 12 of the 24-member Senate. — Kenneth Christiane L. Basilio

New deal inked for corn farmers

REUTERS

THE Department of Agriculture (DA) said that it has partnered with San Miguel Foods, Inc. to provide market access to corn farmers.

In a statement on Sunday, the DA said that it had signed a Memorandum of Understanding with San Miguel Foods to provide corn growers with direct access to a market for their crops.

“This partnership offers farmers direct access to buyers, but we must also invest in postharvest facilities to ensure high-quality crops that meet market demands,” Agriculture Undersecretary Roger V. Navarro said.

The agency added that the partnership also aims to resolve supply chain issues currently faced by corn growers.

“The agreement ensures farmers will receive secure and timely payments through bank transfers, addressing one of the sector’s key pain points,” the agency added.

The DA said that it was looking to expand its network of post-harvest facilities as part of its strategy to mitigate crop losses.

“This infrastructure is expected to complement the marketing channels created under the partnership,” the agency added.

Earlier, the DA said it is seeking to increase the production of corn crops to meet at least 81% of domestic demand.

Yellow corn, feed wheat, soybeans, and sorghum are raw materials for animal feed. These materials are imported when domestic output cannot meet demand. White corn is used for human consumption.

The DA’s National Corn Program is seeking to increase yellow corn yields to 5.17 metric tons (MT) per hectare this year, with the target set at 2.29 metric tons per hectare for white corn. — Adrian H. Halili

Levi Strauss wins P138-M tax case

THE Court of Tax Appeals (CTA) ruled in favor of Levi Strauss (Phil.) Inc. II, canceling taxes worth over P138 million issued by the Bureau of Internal Revenue (BIR) for 2012, citing a violation of the company’s right to due process during the tax assessment process.

The court’s Second Division said that upon review, the Formal Letter of Demand (FLD) and attached Details of Discrepancies merely copied the discussion of what was already written in the Preliminary Assessment Notice (PAN) and the attached Details of Discrepancies, without adding more by addressing any of Levi Strauss’ defenses in its reply to the PAN.

“In other words, when the respondent perfunctorily and hastily issued the subject FLD on December 27, 2017, even after receiving [a] reply to the PAN merely five (5) days before, on December 22, 2017, [the] respondent (BIR) did so without considering the points raised by the petitioner,” the 18-page ruling penned by Associate Justice Ma. Belen M. Ringpis-Liban read.

“The FLD did not even acknowledge or mention [the] petitioner’s submission of the reply to the PAN, which is another clear sign that the same was totally ignored by the BIR,” it added in the decision publicized on Jan. 15, 2025.

The tribunal said that Section 228 of the National Internal Revenue Code (NIRC) and Revenue Regulations (RR) No. 12-99 mandate that taxpayers must be informed in writing of the facts and laws on which an assessment is based.

The FLD-FAN did not acknowledge or address the arguments made by Levi Strauss in its reply, it noted.

The court added that the FLD-FAN did not make any rebuttals or references to the arguments and evidence provided by the petitioner in its reply to the PAN.

It cited a Supreme Court decision ruling that the Tax Code and revenue regulations allow a taxpayer to file a reply or otherwise to submit comments or arguments with supporting documents at each stage in the assessment process.

“Due process requires the BIR to consider the defenses and evidence submitted by the taxpayer and to render a decision based on these submissions,” the tax court cited.

“Thus, failure to adhere to these requirements constitutes a denial of due process and taints the administrative proceedings with invalidity,” it added.

The CTA had reversed and set aside the Final Decision on Disputed Assessment (FDDA) dated May 20, 2020, and Assessment Notices, assessing Levi Strauss for deficiency income tax, final withholding value-added tax (FWVAT), expanded withholding tax (EWT), value-added tax (VAT) and improperly accumulated earnings tax (IAET), worth more than P138.77 million.

The case stemmed from the assessment of Levi Strauss, a clothing manufacturer and seller, for deficiency income tax, FWVAT, EWT, VAT and IAET, totaling the disputed amount, inclusive of penalties and interests.

The BIR issued a Letter of Authority (LoA) in May 2014 to examine the company’s books from Dec. 1, 2011, to Nov. 30, 2012.

It then issued a PAN on Dec. 7, 2017, with attached Details of Discrepancies, finding Levi Strauss liable for more than P198.7 million in deficiency taxes.

The clothing brand filed a reply to the PAN, but the BIR issued an FLD with an Audit Result/Assessment Notice on Dec. 27, 2017, assessing the same amount of over P198.7 million.

The company filed a protest, but the BIR issued an FDDA on May 20, 2020, assessing a total of P138.77 million.

Levi Strauss then filed a Petition for Review with the CTA on Aug. 20, 2020. — Chloe Mari A. Hufana

Support sought for idle parent bill

STOCK PHOTO | Image by jcomp from Freepik

A CONGRESSMAN on Sunday urged the House of Representatives to support his bill imposing penalties against fathers refusing to provide financial support to children, ahead of its scheduled panel deliberation next week.

“We urgently need this law. Fathers who refuse to support their children, especially after abandoning their families, must be punished,” Party-list Rep. Erwin T. Tulfo said in a statement.

House Bill (HB) No. 8987, filed by lawmakers headed by Party-list Rep. Erwin T. Tulfo, and approved by the House children welfare committee in March 2024, aims to mandate that at least 10% of a father’s salary be allocated for child support.

“We thank our colleagues in Congress for advancing this bill, but we hope it can be expedited further to hold heartless fathers who abandoned their own children accountable,” Mr. Tulfo added.

About 15 million Filipinos are solo parents, with 95% being single mothers, according to the bill’s explanatory note.

Fathers who fail to pay child support for one year, or accrued P50,000 of unremitted financial support, will be held liable under the Anti-Violence Against Women and Their Children Act of 2004. — Kenneth Christiane L. Basilio

Baguio City records first MPOX case

AN ILLUSTRATION of mpox virus particles. — FRED HUTCH CANCER CENTER/HANDOUT VIA REUTERS

BAGUIO CITY — Baguio City Mayor Benjamin B. Magalong signaled an alert on Saturday night after public health officials confirmed the city’s first case of monkeypox (MPOX) case here.

Advising everyone to observe health precautions, Mr. Magalong said “there is no cause for panic or a lockdown.” But it is advised to be careful and to follow the usual health protocols like the use of face masks and observance of physical distancing, hand and personal hygiene, and proper ventilation, the mayor said.

The Baguio City Health Services Office led by City Health Officer Dr. Celia Flor Brillantes said the first case here involved a 28-year-old male. His infection was caused by the less severe Clade II mpox virus type and not Clade I which is considered deadly.

MPOX is a viral disease often characterized by rashes or blisters.

The patient had completed isolation and was cured on Jan. 17. — Artemio A. Dumlao

Seven missing off Cagayan Island waters found

BAGUIO CITY — All seven villagers reported missing off the Calayan Island waters in Cagayan province on Wednesday last week were found safe Friday afternoon.

The Cagayan Public Information Office said Calayan Cagayan Municipal Disaster Risk Reduction and Management Officer Joe Robert Arirao vowed the seven, five crew members of sea vessel Ren-Zen 2 and two passengers, including a Philippine Coast Guard personnel, were given immediate medical care.

The sea vessel was reportedly located Friday afternoon in Dalupiri Island.

Mr. Arirao reportedly also assured the seven are only waiting for favorable weather conditions before heading to mainland Calayan.

Crew of the sea vessel Ren-Zen 2 reportedly told authorities in Dalupiri that they experienced problems with Ren-Zen 2 between Calayan and Dalupiri prompting them to go ashore Dalupiri Island to fix their vessel with the help of local villagers.

Crew members also reported that they could not immediately seek help because there was no cellular phone signal in the area.

The seven left Claveria, Cagayan 4:30 a.m. early Wednesday morning (Jan. 15) and were bound to Dilam, Calayan. — Artemio A. Dumlao

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