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Footloose and fancy free

FORMER teen stars Hillary Duff, Emma Roberts, and Claire Danes have one more thing in common, apart from growing up under the Hollywood spotlight. They’ve all been seen wearing sandals from Freedom Moses (at least according to People magazine). Because the brand just arrived in Philippine shores last July, you too can snag a star-worthy pair, for the price of P2,495.

At a launch on Sept. 8 in Bonifacio Global City, Freedom Moses founder and Creative Director Sarah Gurt talked about the brand, which she founded in 2014 in Tel-Aviv, which she called her adopted home, through a pre-recorded video. She studied fashion design in Paris, and practiced her profession in Los Angeles and New York before moving to Israel. “My life completely changed from (fast)-paced Manhattan to the beachy relaxed vibes of Tel-Aviv,” she said. “The name ‘Moses’ came from a vision I had of Moses walking into the desert wearing colorful slides, leading people to freedom.”

According to her, the sandals (which resemble double-strapped Birkenstocks) are “ageless, genderless,” and vegan, “which is extremely important to me.”

The products are approved by animal rights group PETA (People for the Ethical Treatment of Animals).

Still, just because something does not contain animal-derived materials does not mean it’s completely safe for the environment.  The sandals are made from a plastic alternative, polycarbonate urethane, which according to Freedom Moses Assistant Brand Manager Luigi Wilwayco, has as its ingredients oil and rock salt. “It’s a greener option compared to your typical plastic PVC,” he explained. The sandals are completely recyclable (though the brand’s sandal recycling drives have not arrived to the Philippines yet). In the Philippines, they’ve settled with packaging the sandals a biodegradable material. “We ensure that it’s a sustainable process for the product,” said Mr. Wilwayco.

The brand is available in over 50 countries and has partnerships with brands and stores Shopbop, J.Crew, Saks Fifth Avenue, Anthropologie, Neiman Marcus. In the Philippines, the brand is distributed by Tykes Trading, Inc., which also distributes Melissa shoes.

The brand’s motto is “Just Chill,” and Ms. Gurt says, “What does chill mean to me? The art of feeling relaxed. I think it’s about not taking ourselves too seriously. It doesn’t matter how busy we are. We can always feel more relaxed when we feel comfortable.”

Freedom Moses has a store in Trinoma, and is available in select Shoe Salon and The Playground Store shops located in Shangri-La Plaza, Robinsons Magnolia, and Trinoma Mall. The brand is due to arrive in Rustan’s and an online store is up and running at www.freedomoses.com.ph. JL Garcia

PremiereREIT’s IPO in Nov. faces mixed sentiments

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VILLAR-LED Premiere Island Power REIT Corp. is likely to push through with its initial public offering (IPO) in November as the market conditions should have improved by then, an analyst said, but others have doubts about its timing.

The firm, also known as PremiereREIT, earlier this month disclosed details of its maiden offer at a time when rising inflation and interest rates added to uncertainties faced by investors.

“We think PremiereREIT’s IPO is likely to push through in November considering that market climate may have already started to improve by then,” AP Securities, Inc. Equity Research Analyst Carlos Angelo O. Temporal said in a Viber message.

“Inflation rate [is] expected to peak in October while the market may have already bottomed out towards November after pricing in much of the interest rate uncertainties,” Mr. Temporal added.

However, Timson Securities, Inc. Head of Online Trading Marc Kebinson L. Lood said that “PremiereREIT and other companies planning to go public in the remainder of the year will have a difficult time raising capital in the equity markets.”

He said that because of the current high-interest rate environment, investors are more interested in bond offerings.

“Although PremiereREIT has a bullish outlook [for the Philippine energy sector], with a comprehensive project pipeline and a sizable asset portfolio, valuations are currently quite low, which may explain why some companies have deferred listing this year,” Mr. Lood said in a Viber message.

PremiereREIT, a power and infrastructure real estate investment trust, recently filed the registration statement of its P3.2-billion IPO with the Securities and Exchange Commission with its target listing date set in November.

The company, which is led by Manuel Paolo A. Villar, plans to offer up to 1.4 billion secondary common shares with an over-allotment option of up to 210 million secondary common shares at a maximum offer price of P2.00 per share.

The company’s offer shares will be sold by the subsidiaries of its sponsor, Prime Asset Venture, Inc., such as S.I. Power Corp. and Camotes Island Power Generation Corp.

Recently, Upson International Corp. deferred its IPO from October to the first quarter of next year while North Star Meat Merchants, Inc. deferred its IPO amid concerns about market volatility and inflationary pressures in June.

Mr. Lood said that “it is advantageous for companies to delay the issuance to give investors more time to digest what is happening in the market.”

“Year 2023 would be a better and strategic move to proceed with the IPOs so investors would see complete 2022 figures, which is also good for the firms considering the reopening theme,” Mr. Lood added.

Mr. Temporal said investors are likely to look forward to the second half of 2023 to 2024 as they have already priced in local curbed growth.

“2023 is expected to have normalizing macroeconomic conditions such as easing inflation rates and interest rate concerns and this should be able to bring in a better market climate toward IPOs,” he said.

“We also note that [the] Philippines still stands to remain in its reopening narrative, which could pave the way for upward re-rating of multiples and therefore bolster market sentiment for IPOs further,” Mr. Temporal added.

In terms of PremiereREIT’s success, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said that “market conditions globally and locally would be a consideration to maximize the selling price of the shares as well as the proceeds to be raised.”

“The renewable power lease or rental income component of the REIT would be a potential differentiating factor, somewhat similar to Citicore Energy REIT Corp. (CREIT),” Mr. Ricafort said in a Viber message.

“Market is likely to weigh on its valuation by comparing projected dividend yield with that of CREIT, its nearest comparable which currently offers an estimated dividend yield of 8.4% at last traded price,” Mr. Temporal said.

“Investors are likely to seek higher dividend yields for PremiereREIT than that of CREIT given the poor performance of Villar’s recent IPOs. Market appetite therefore will be very much guided by its final offer price and projected yield,” Mr. Temporal added.

Mr. Villar is the eldest son of real estate tycoon and former Senate President Manuel B. Villar, Jr., and is also the president and chief executive officer of Vista Land & Lifescapes, Inc. — Justine Irish D. Tabile

The basics of creating a makeup routine

By Zsarlene B. Chua

MAKEUP is a fun way to express oneself: how one feels, their creativity, etc. It can also be very complicated, especially with the sheer number of brands, products, and options available in the market today.

So, if you’re a newbie who wants to build your own makeup stash, or someone who just wants to have the basics, here are some products and tips that can help you create your own beauty bag.

• Remember that good skincare is what makes a good makeup day

Yes, makeup can do magic: it can enhance and hide features but it can only go so far when you have a less-than-ideal skincare routine. I’ve noticed that putting makeup on without prepping my skin not only makes everything I put on fade faster, it also does not apply well (especially for face makeup like foundation and concealer), and sometimes makes my skin break out.

That’s why before anything else, ensure that your face is clean and prepped — this means putting on your moisturizer and sunscreen.

If you’re unsure what to include in your skincare routine, I’ve previously written a guide here: https://www.bworldonline.com/arts-and-leisure/2022/09/12/473719/how-to-build-your-own-skincare-routine/ .

• Start with a good base

I love hardworking multi-use products or products that simplify everything because they have more than one purpose. This is why I love tinted sunscreens or base makeup with SPF.

Tinted sunscreens like Belo Sun Expert Tinted Sunscreen (P450/50ml), Sunglow by Fresh Tinted Sunscreen (P329/50ml), blk cosmetics Universal Skin Tint SPF 30 (P499/30ml) are great options because not only do they provide sun protection, they also offer light coverage which is perfect for day use. Of course, if you’re someone who needs full coverage, there are also foundations that offer SPF.

• To conceal or not to conceal

A great concealer can fool everyone — even yourself — into thinking that you’ve had a full night’s sleep. It’s great for under eyes and skin concerns like pimples and hyperpigmentation. Such a concealer should be light enough and have enough staying power to last through the day.

My favorite concealers are from Maybelline because they tick all the boxes I want from my concealer. There’s the Maybelline Instant Age Rewind Eraser (P299/6.8ml) that does wonders for my often tired and dark under eyes. The Maybelline Fit Me Flawless Concealer (P249/6.8ml) meanwhile is more lightweight but provides decent all-day coverage.

• Pretend you’re wide awake with mascara

Mascara is one of my non-negotiables when it comes to makeup. A single swipe of a good mascara like Maybelline Hypercurl (P249/9.2ml) and the Vice Cosmetics x Anne Clutz SuperMegaUltraCurl (P295/8g) makes me look wide awake even when I’m really not and provides me the volume and length my Asian genes, unfortunately, didn’t give me. Mascaras are lifesavers.

• Get your hands on a hardworking multi-use palette

I’ve mentioned my love for multi-use makeup products — they’re great for simplifying routine and perfect for trips or in-office days when you want to bring products for a midday touchup but don’t want to bring the entire kit and caboodle.

Enter multi-use palettes. These are either eyeshadow palettes or face palettes. What I’ve learned recently is that eyeshadow palettes are very versatile: a basic palette like Squad Cosmetics Squadlet in Sneaky (P99) which has four eyeshadow colors can function as eyeshadow, bronzer, and even eyeliner and eyebrow powder in a pinch. The best part is it’s very affordable and small enough to fit even in tiny makeup pouches.

Face palettes like Careline Glow Getter Palette (P285) provide a bronzer, highlighter, and blush in one convenient palette. These colors are also great as eyeshadows. You can also get the whole shebang in palettes like the Careline Play to Slay (P320) or the PSJ x BYS Complexion Palette (P599) that already has eyeshadows and blush.

• Multi-use stains and tints for that effortless look

Complete your makeup look with a cute lip, plus points if the cute lip products are also multi-use. On a recent trip to the beach, I fully embraced the convenience and benefits of having multi-use tints and stains in my arsenal — they’re perfect if you’re going for that natural, effortless look (though it’s anything but effortless).

Generation Happy Skin Kiss & Bloom Water Lip & Tint (P399) and blk Cosmetics Water Blur Tint (P379) are mouthfuls to say but are the perfect products to use for that glow-from-within look. Just make sure you use the product sparingly and blend fast and thoroughly like your life depends on it, otherwise if you wait too long (like I did), you’ll end up with splotchy and patchy cheeks and lips.

(If you want something simpler, your regular lipstick also works as blush and I’ve even used mine as eyeshadow.)

• Start with a clean face, end with a clean face

The final tip I have is to thoroughly clean your face after a full day of makeup. No, a single face wash does not remove all the makeup and dirt that’s on your face. This is where you’ll need to double cleanse with cleansing oil or balm like the Biore Cleansing Oil (P349/150ml) or a micellar water cleanser like the Garnier Micellar Cleansing Water (P114/125ml) on a cotton pad before going in with your facial cleanser.

 

Zsarlene B. Chua is a former BusinessWorld reporter who is now a fledgling PR girl. She’s all about skincare, makeup, and video games. None of these products recommended are the writer’s clients. These are all independently reviewed and acquired products unless stated.

Meralco sales seen up in third quarter as businesses reopen

MANILA Electric Co. (Meralco) said indication of its electricity sales in the third quarter showed a 6% growth, an official of the power distributor said.

“Energy sales growth is between 6-8% per month,” Meralco Chief Commercial Officer Ferdinand O. Geluz told reporters on Friday.

He said that the main driver of the projected growth is the resumption of many businesses in August.

“This is driven by [the] commercial [segment]. Our commercial segment is bouncing back, and commercial is very important and within recovery though still below the 2019 level,” he said.

Mr. Geluz said that Meralco is also expecting its electricity sales to grow in November and to stabilize next year.

“We are seeing it to stabilize next year, and maybe to return to the 2019 level,” he added.

In the second quarter, Meralco posted P7.56 billion in net income, a 34.5% increase compared with the P5.62 billion recorded a year ago, driven by strong energy sales.

Meanwhile, Meralco’s wholly owned subsidiary MSpectrum, Inc., or Spectrum, is targeting to expand its installed capacity by yearend.

Spectrum Chief Operating Officer Patrick Henry T. Panlilio told reporters that to date, the company has installed solar panels with a total capacity of 43 megawatts (MW).

“By the end of the year, we’re hoping to reach 50 MW, at least for solar rooftop,” he said.

Mr. Panlilio said that for 2023, Spectrum is targeting to install an additional 20 MW of solar rooftop projects.

In terms of capital expenditures, he said that for every megawatt installed, the company estimates to spend around P45 million.

“The cost of a 1 MW installation usually amounts to P45 million with the current prices, maybe it could up to P50 million with foreign exchange now,” Mr. Panlilio said.

He also said that Spectrum is planning to grow the operations and maintenance side of the business.

“This is one activity or niche of ours, being a Meralco subsidiary. That’s why we are expanding this because not all of those who install solar panels are capable to maintain. Some are just doing it to sell,” Mr. Panlilio said.

Renewable energy firm Spectrum provides tailor-fit solutions for industrial, commercial, and residential customers through an in-depth understanding of energy consumption behavior. It is backed by Meralco’s energy expertise and proven safety track record.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Ashley Erika O. Jose

Access roads for upland farms completed in Ifugao province

PHILIPPINE STAR/ ANDY ZAPANTA, JR.

THE Japan International Cooperation Agency (JICA) and Department of Environment and Natural Resources (DENR) have completed and turned over new access roads in Banaue, Mayoyao, and Lagawe in Ifugao province to support upland farmers.

“The roads are critical to helping upland farmers transport their agroforestry goods easily, find new markets, and for people to access basic services such as hospital care and schools,” JICA and the DENR said in a statement.

The roads were funded by a P1.8-billion cooperation project targeted at building or rehabilitating agroforestry support facilities under the umbrella of the Forestland Management Project (FMP).

Since 2012, the FMP has rehabilitated over 70,000 hectares of forest land across 24 sub-watersheds in Ifugao, Quirino, Nueva Vizcaya, Nueva Ecija and Iloilo provinces.

“JICA and DENR have partnered to save critical watershed systems in the Philippines as a move to address climate change and improve the livelihood of farmers and grassroots communities dependent on forest resources,” it added.

According to the DENR, the Philippines has more than 130 watersheds supplying water for irrigation, domestic, and industrial use.

The JICA-DENR partnership also implements conservation efforts at the river basins in Upper Magat and Cagayan, Upper Pampanga, and Jalaur on Panay.

“We join the Philippine government in their self-help efforts to sustainably manage the Philippines’ natural resources for the greatest good of the greatest number of people in the long-term. Conserving vital forest resources such as watersheds is critical to mitigating climate change risks and giving Filipinos opportunities to improve their livelihood through sustainable forestland management,” JICA Philippines Chief Representative Sakamoto Takema said.

Mr. Takema said access roads help upland communities implement sustainable community-based forest management activities, protect and maintain a total of nearly twenty thousand hectares of forest in Ifugao. — Luisa Maria Jacinta C. Jocson

From Leslie to Lucy: Collaborations the focus in Bench Fashion Week

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HOMEGROWN brand Bench will be back on the runway this weekend with a presentation of Suyen Corp.’s brands. From Sept. 30 to Oct. 2 at the Playground of Bench Tower, the clothing conglomerate is showing off its Holiday 2022 collections at Bench Fashion Week with its flagship brand, Bench, but also Human, Kashieca, Assembly, and Australian brand Cotton On (which they distribute in the Philippines) showing their styles.

The featured brands will also show collaborations with designers and some familiar names. Friday’s show will see a collection by Human and Jenni Contreras, as well as by Antonina Abad Amoncio. Ms. Amoncio was a winner of the Bench Design Awards. Meanwhile, in 2018, Ms. Contreras was included in Vogue Italia’s Vogue Talents List.

On Saturday, heiress and actress-turned politician Lucy Torres-Gomez is showing her collaboration with Kashieca, followed by a show by Martin Bautista, who was nominated in the Best Upcoming Fashion Designer category of the Fashion Asia Awards in 2014. He has dressed celebrities including Pia Wurtzbach, Kathryn Bernardo, Anne Curtis, Georgina Wilson, Liza Soberano, Solenn Heussaff, Bianca Gonzalez, and Janine Gutierrez.

The show series is rounded out by Europe-based Filipino designer Lesley Mobo, a recipient of the Emilio Pucci and the Diesel Award in Italy, and a red-carpet favorite with socialites and celebrities alike. His work has appeared in various editions of Vogue (from the US magazine to the editions in Portugal, Australia, and Italy, among others) and Vanity Fair. His Holiday 2022 collection is a “celebration of abundant rural life in the Philippines and its rich cultural and agricultural heritage.”

Toyota Corolla Cross 1.8 V Hybrid: Rock ‘n’ Corolla

Sheetmetal creases and lines provide a sense of dynamism without going overboard. — PHOTO BY KAP MACEDA AGUILA

This child of the pandemic is a deservedly popular crossover choice

THE ONSET of the COVID-19 pandemic was not a sucker punch to humanity; with pervasive media coverage, we actually saw it coming almost in real time. That we couldn’t really stop it and curtail the rapid spread was probably the bigger news.

Having said that, life inexorably had to go on even if at times it seemed like it was impossible to see the light at the end of the tunnel. We had to “shelter in place” and figure out how to survive, be productive, and, well, live cloistered in our own homes.

And figure stuff out we did. Even auto companies, with their physical launches, exhibits, and mall tours scuttled, soon learned to hold Zoom meetings and, eventually, stage online launches. That was a supreme show of confidence and grit, especially since even dealership operations were curtailed and limited at the height of the pandemic.

Truth be told, it was an injustice for vehicles like the Toyota Corolla Cross to have to endure the indignity of an online reveal here in the country. But I digress; it was a middle finger to the virus, while respecting the fact that it was waiting to prey on the unprotected and careless.

Even from behind a laptop or desktop screen, the Corolla Cross had looked good — worthy of the iconic Corolla name; certainly worthy to take the badge into SUV (well, okay, crossover) territory. Platformed on the same TGA-C bones of the Toyota C-HR and the premium Lexus, Toyota positions the Corolla Cross as a “stylish urban vehicle,” melding its signature “QDR” (quality, durability, and reliability) with style and functionality.

But perhaps Toyota didn’t really need to do a lot of marketing speak; people truly gravitated to the new model. Despite a Q3 launch during the pandemic year, 598 units were sold by the end of 2020. In 2021, 1,539 people brought home a Corolla Cross. YTD 2022, that number is around 1,500 units. The compact crossover has clearly won a following. In fact, word has it that units are a little hard to secure these days as Toyota has also been negatively impacted by parts supply issues and the much ballyhooed chip shortage hounding not just itself but all brands to some degree.

For crossover seekers, it’s imperative to include the Corolla Cross in your consideration set. You’re doing yourself a disservice if you don’t. To be fair, I’ve realized how it may be a little polarizing with its looks. But if you like it, you’ll love it.

Let’s start with the double trapezoid front grille, which helps to make the vehicle appear wider than it actually is, along with giving it an almost RAV4-like countenance. The hybrid variant is easy to spot as it bears a blue hue on its Toyota logo and even the bi-beam LED headlamps — not to mention the brand on the engine cover itself. Viewed from the side, the crossover is sleek and moderately muscular with just the right amount of crimping. Black plastic cladding on the lower part of its body also serves to visually raise the automobile from the ground.

The most significant thing about this variant is, of course, the fact that it is a hybrid. The price of admission versus the non-hybrid is an additional P362,000 for a P1.665-million tag.

Under the hood of the hybrid is a 1.8-liter engine with Atkinson Cycle (delivering 142Nm at 3,600rpm, and an electric motor to bump up the total system output to 120hp). Three driving modes (Eco, Power, and EV) give drivers their druthers on response and fuel efficiency. The 1.8 G CVT, on the other hand, gets a 16-valve four-cylinder, DOHC chain drive with dual VVT-I serving up 138hp and 172Nm (at 4,000rpm).

Aside from the powertrain differences, the HEV gets 225/50 R18 alloys versus the standard 215/60 R17s on the G CVT. However, you do lose a standard spare tire in favor of a “space saver” one to accommodate the hybrid battery.

By opting for the hybrid trim, you also get, among other niceties, rain-sensing front wipers, LEDs with line guide and bulb in the rear combo lamp, a digital/analog meter cluster, seven-inch TFT multi-information display, and more functions on the steering wheel switch set. The rearview mirror is also auto-dimming, and a cabin lighting system includes illumination for the cupholder, front door trim, and center tray — as well as the basic “room lamp.”

Significantly, Toyota further embraces its hybrid cred — doubling down via a hybrid trim in pursuit of realizing its “vision of sustainable mobility and makes self-charging hybrid technology more accessible to Filipinos,” according to a release. The air-conditioning system for the hybrid is also a dual-zone one. As for the infotainment display, the hybrid gets an eight-inch display versus the 6.9 inches of the exclusively petrol-powered variant.

And when you pony up the premium for a hybrid, Toyota will also throw in its suite of safety features which it calls Toyota Safety Sense. These include a pre-collision system, automatic high beam, lane tracing assist, lane departure alert, and dynamic radar cruise control. The last feature employs cameras to adjust the vehicle speed to keep a preset distance from the automobile in front. These features are added to the standard blind spot monitor, rear cross traffic alert, SRS air bags, anti-lock brakes, vehicle stability control, and hill start assist.

In a teaser ahead of its 2020 reveal, Toyota called the model “the Corolla we all know and love, now also in a new exhilarating form factor.” The vehicle is certainly that, and delivers elegant, cohesive, and tasteful styling as well. And I think that this vehicle is keenly intended for those who are still on the fence about hybrid electric vehicles, and found the poster child for hybrids (yes, the Prius) a little too funky or intimidating to the palate.

You might be a little perplexed by the left-hand circular gauge on the instrument cluster though. Despite its location and appearance, it’s not a typical rev counter. Rather than give you a real-time revolutions-per-minute report, it shows you how you’re doing in terms of extracting power and charging the hybrid battery. And because it’s a Toyota, an “eco” zone also lets you know when you’re being a conscientious, light-on-the-throttle driver.

There’s nothing bewildering or overwhelming about the Corolla Cross, powertrain-wise, and that’s a good thing. Think of it as a regular internal combustion engine (ICE)-equipped crossover with a very helpful supplemental electric motor which you absolutely won’t have to worry about because the hybrid battery charges as needed and without intervention. The result? Without even half trying, I eked out 17.5kpl from the front-wheel-driven crossover. Whenever possible, the motor engages to take some of the burden from engine.

As for the cabin, it’s a surprisingly spacious, non-descript one — with seats swathed in leather in the hybrid. The second row also provides ample leg and elbow room for occupants therein, A/C vents, and two USB-A charging sockets.

All told, the Corolla name is obviously a hallowed name for Toyota, and it’s easy to see how this engaging, well-mannered incursion into the crossover format earns the right to use that moniker. It’s solid like, you know, a rock.

CTA drops tax evasion charges vs oil firm exec

CTA.JUDICIARY.GOV.PH

THE Court of Tax Appeals (CTA) has acquitted the president of COSCO Petroleum Co., Inc. of tax evasion charges stemming from deficiency taxes worth P23.9 million in 2008.

In a 23-page decision, the CTA First Division ruled that the tax assessment against Michael C. Cosay was void since the revenue officer who conducted the audit was not authorized through a letter of authority (LoA).

It added that an LoA with a different revenue officer named was initially issued to audit Mr. Cosay’s and the oil firm’s books of accounting.

“A tax is considered delinquent when an assessment for deficiency tax has become final, executory, and demandable, and the taxpayer has not paid the same within the period given in the notice of assessment,” Associate Justice Marian Ivy F. Reyes-Fajardo said in the ruling.

The judge noted that since the assessment was void, the taxes against the oil firm executive cannot be considered delinquency taxes.

The court ordered Mr. Cosay’s release and the cancellation of his P60,000 bail bond. The accused is the president of an oil firm based in Pili, Camarines Sur.

An LoA is a document that grants authority to a revenue officer to examine a taxpayer’s books of accounting and tax liabilities.

The tax court noted that there was no evidence that COSCO received the Bureau of Internal Revenue’s final letter of demand in 2013.

The revenue officers claimed that a certain employee received the demand letter for the oil firm.

COSCO’s lawyer argued that the person the tax officers cited was not an authorized representative of the company.

Under the country’s revenue code, a formal letter of demand calls for the payment of a taxpayer’s deficiency taxes and is issued by the internal revenue commissioner or his duly authorized representative.

The tribunal said it cannot order Mr. Cosay to pay the subject tax deficiency since the tax assessment “bears no valid fruit.”

“All these veer towards a single conclusion — COSCO or its duly authorized representative did not actually receive the formal letter of demand dated January 9, 2013, violative of its right to due process on assessment,” it added. — John Victor D. Ordoñez

Gov’t securities may fetch higher rates after policy hikes

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RATES of government securities (GS) on offer this week could rise amid continued monetary policy hikes from central banks in the past week and a weakened peso.

The Bureau of the Treasury (BTr) will offer P15 billion in Treasury bills (T-bills) on Monday, made up of P5 billion each in 91-, 182-, and 364-day debt papers.

On Tuesday, the BTr will auction off reissued 20-year Treasury bonds (T-bonds) with a remaining life of 16 years and four months.

Traders expect T-bill and T-bond yields to move higher at this week’s auction as central banks hiked their respective rates in the past week to combat elevated inflation.

“There was a slew of rate hikes from various central banks this week and it seems like there will be more to come; that’s why sentiment for bonds remains bearish,” a trader said.

The trader expects T-bill rates to rise by 15-20 basis points (bps) from last week’s awarded yields and sees the 20-year paper to be quoted at 7.25% to 7.50%.

A second trader said that T-bill rates should be higher by 25-50 bps on the back of the Bangko Sentral ng Pilipinas’ (BSP) latest policy move, while T-bonds might range between 7.25% and 7.50% “to test if the Bureau of the Treasury will award at those levels.”

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said that rates could still be higher in view of a depreciated peso.

“New record [low] for the peso exchange rate could lead to higher import prices and overall inflation, as well as increasing the odds of [a] further local policy rate hike,” said Mr. Ricafort. “A surprise [or] off-cycle local policy rate hike to help stabilize the peso cannot be ruled out.”

The Federal Reserve hiked its policy rates by another 75 bps last week while signaling larger increases to come as inflation is still way above its 2% target at 8.3% as of August. The central bank has raised key rates by 300 bps since March, including two other 75-bp moves in June and July.

At home, the BSP increased its benchmark interest rates by 50 bps to 4.25% on Thursday, as predicted by 11 of 15 analysts in a BusinessWorld poll last week. It has hiked borrowing costs by 225 bps since May to rein in rising prices.

The consumer price index climbed to 6.3% year on year in August from the nearly four-year high of 6.4% a month earlier and 4.4% a year ago. It was the fifth straight month that inflation exceeded the BSP’s 2-4% target this year.

BSP Governor Felipe M. Medalla said last month that the Fed’s aggressive tightening also poses an additional risk to domestic prices due to its effect on the peso.

The peso closed at an all-time low of P58.50 per dollar on Friday, losing one centavo from its P58.49 finish on Thursday, Bankers Association of the Philippines data showed.

The peso has weakened by 14.71% or P7.5 this year from its P51-a-dollar close last year.

“The intention is not to target a particular level for the exchange rate,” BSP Deputy Governor Francisco G. Dakila, Jr. told a news briefing after the rate hike decision. “That is not the policy objective. In deciding on the appropriate stance of monetary policy, the priority is to bring inflation back to within the target band over the medium term.”

At the secondary market on Friday, the 91-, 182-, and 364-day T-bills were quoted at 2.7762%, 3.7042%, and 3.9280%, respectively, based on the PHP Bloomberg Valuation Reference Rates published on the Philippine Dealing System’s website.

Meanwhile, the 20-year bond was quoted at 7.2329%.

Last week, the Treasury partially awarded its T-bill offer, only accepting bids for the six-month debt, even as total demand reached P16.288 billion, above its P15-billion offer.

The Treasury borrowed just P3.162 billion via the 182-day securities, even as bids reached P7.123 billion. The average rate of the tenor went up by 17.6 basis points (bps) to 3.810% and accepted rates ranged from 3.700% to 3.900%.

Meanwhile, the government rejected all bids for 91-day T-bills on Monday, even as tenders for the tenor hit P5.965 billion, above the P5-billion program. Had it been awarded, the average rate of the three-month paper would have gone up by 159.4 bps to 3.912% from the 2.318% fetched in its last successful awarding on Sept. 5.

The BTr also refused to award 364-day debt papers, with demand only reaching P3.2 billion versus the P5 billion on the auction block. Had the government accepted all bids, the debt paper’s average rate would have climbed by 110.8 bps to 4.890% from 3.782% fetched for the tenor on Aug. 22, which was the last successful award.

Meanwhile, the reissued 20-year bonds to be offered on Tuesday were last auctioned off on Nov. 26, 2019, where the BTr partially awarded the papers at P12.271 billion against a P20-billion offering.

The papers were awarded an average rate of 5.341% at that auction, lower by 140.9 bps versus the 6.75% coupon fetched for the bonds when they were offered for the first time on Jan. 22, 2019.

The BTr wants to raise P200 billion from the domestic market this month, or P60 billion through T-bills and P140 billion via T-bonds.

The government borrows from local and external sources to help fund a budget deficit capped at 7.6% of gross domestic product this year. — Diego Gabriel C. Robles

Agrarian reform beneficiaries to get aid in accessing markets

DAR.GOV.PH

THE Department of Agrarian Reform (DAR) said it is planning to strengthen the links between agrarian reform beneficiaries (ARBs) and their markets, particularly for those growing rice, corn, coconut, and livestock.

In a statement, the DAR said it also plans to digitize its land database.

“It’s about time that we further strengthen market linkage for our ARBs through the value chain so that they will be fairly compensated for their investments in farming,” Agrarian Reform Secretary Conrado M. Estrella III said.

Mr. Estrella said that helping the members of ARB organizations sell their harvests directly to the market or institutional buyers will maximize their earning potential and keep food production sustainable.

The digitalization project will cover the ARB registry, land grants, the status of land being subject to conversion, data mapping, and the profiling of the farmers’ crops.

“The improved database will serve as the repository of various information pertaining to agrarian reform program implementation where stakeholders can access official data as a reference,” the department said.

It also hopes to offer product development and standards training for agrarian reform communities to make their produce more commercially viable. — Luisa Maria Jacinta C. Jocson

Betty White’s belongings being auctioned for the public to take home

One of the items up for auction this week. — JULIENSLIVE.COM
One of the items up for auction this week. — JULIENSLIVE.COM

OVER 1,600 belongings from the late American actress Betty White will be up for auction this week, from her old TV and Disney VHS collection to her Cadillac.

Taking place both online and in-person, the auction at Julien’s Auctions in Beverly Hills from Sept. 23 to Sept. 25 also includes her dining room table, a blue ceramic horse, and her leather baby shoes. The list goes on.

More personalized items include Ms. White’s oil painting of herself as a young woman, monogrammed towels, and some handwritten personal notes from famous names like Lily Tomlin and Alex Trebek.

Ms. White’s diamond wedding band and the wedding band her third and last husband, Allen Ludden, wore are standout items. Mr. Ludden was noted for having worn the band around his neck with a chain for three months to remind Ms. White about his many wedding proposals to her, and it worked. They were married until he died in 1981. Ms. White died in December 2021 at 99 after a remarkable television career that lasted over seven decades, with beloved roles on The Golden Girls, The Mary Tyler Moore Show and many more.

Not all her belongings will be sold. Many items were donated to the National Comedy Center in September and are on show at its museum in Jamestown, New York. Visiting fans can see Ms. White’s five Emmy statuettes, including one for The Golden Girls in 1986 and another for Saturday Night Live in 2010.

Visitors can also see on display her tracksuit from Hot in Cleveland, her sweater from The Golden Girls, and hand-annotated scripts. — Reuters

Lexus Philippines adds another hybrid variant to ES line

PHOTO FROM LEXUS PHILIPPINES

LEXUS PHILIPPINES is growing the number of its ES sedan offerings by one, as it introduces the hybrid electric ES 300h Luxury variant. Priced at P4.218 million, the trim takes its place in the middle of range between the ES 300h Executive (P3.838 million) and the ES 350 Premier (P4.828 million).

In a release, the company said, “Buyers will find that the current ES models are more spacious, (and are) quieter and safer than ever before, while a new generation of customers will find a saloon with sharp performance, class-leading safety technology, and a level of craftsmanship rarely found in this market segment.”

The ES banners the Lexus Driving Signature philosophy which gives it more balance while affording the driver more refined control and confidence — owing to linear steering, brake response, and optimized handling with exceptional ride quality. A rear suspension member brace further improves torsional rigidity, handling stability, and ride comfort.

Regenerative and hydraulic brake control characteristics of the electronically controlled brake system on the hybrid models enhance the pedal feeling when it is released.

On its exterior, the current ES has an updated front grille and headlamps, while the interior has adopted colors similar with the Premier variant. The ES 300h Luxury bears similarities to the range-topping ES 350 Premier, such as a 235/45R18 wheel-and-tire combination, rain-sensing wipers, smooth leather seats, 10-way power adjustment with memory for the driver’s seat, front passenger seat with eight-way power adjustment, kick sensor for the automatic trunk; and a 12.3-inch Electro Multi-Vision touch display.

The Lexus ES 300h Luxury also gets the Lexus Safety Sense (LSS) suite of advanced safety features. The list includes a pre-collision system, adaptive high beam system, automatic high beam system, lane tracing assist, lane departure alert, and dynamic radar cruise control. Aside from getting upgrades, the LSS features have also been tuned to operate in a way that feels more natural to the driver. Lexus maintained that, with this evolution, Lexus Safety System moves to the next level as a personal driving partner.

Powering the ES 300h Luxury is a 2.5-liter inline-four engine delivering 178hp and 221Nm. Together with an electric motor, the total system output is 218hp. The ICE gets laser-clad intake valve seats, which permit increased airflow into the cylinder and an intake port shape that increases the tumble-flow turbulence of incoming air and fuel for high-speed combustion. The engine also achieves superior thermal efficiency, combining robust power delivery with response to deliver heightened fuel efficiency.

The miserly fuel consumption is also due to a hybrid transaxle with improved efficient internal power flow and a higher-efficiency power control unit. The compact hybrid battery of the ES is located beneath the rear seats, contributing to ideal weight balance and low center of gravity, while enlarging cargo space.

Equipped with a fourth-generation hybrid battery, the new ES hybrid variants now come with an eight-year HEV battery warranty, along with a standard drivetrain warranty of three years or 100,000 kilometers.