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GOCC dividends in 2021 exceed pre-pandemic levels

DIVIDENDS remitted to the Treasury by government-owned or -controlled corporations (GOCCs) totaled P57.55 billion in 2021, exceeding the pre-pandemic performance of P52.59 billion posted in 2019, the Department of Finance (DoF) said in a statement on Monday.

The 2021 dividends were however much lower than the 2020 performance of P135.08 billion, with the government leaning heavily on GOCCs to remit more of their profits to help fund the pandemic response.

The P135.08 billion in 2020 includes dividends the government chose to forego from the two major state-owned banks which needed to build up their capital, the DoF Corporate Affairs Group (CAG) said in its report to Finance Secretary Carlos G. Dominguez III.

Excluding the dividends that would have been paid by Land Bank of the Philippines and the Development Bank of the Philippines, GOCC remittances were P84.72 billion in 2021.

The Dividends Law, or Republic Act No. 7656, requires GOCCs to remit at least 50% of their net earnings to the National Government.

CAG projects further collections of P32 billion from GOCCs by the end of June, Assistant Secretary Soledad Emilia F. Cruz of CAG said.

“The CAG, headed by Finance Undersecretary Antonette C. Tionko, used the web-based GOCC Liabilities and Monitoring System (GLAMS) to check on the financial status of GOCCs,” the DoF said.

“Formerly known as the GOCC Debt Reporting and Monitoring System (GDRAMS), the GLAMS was transferred by the Governance Commission for GOCCs (GCG) to the DoF in July 2021, and relaunched with enhanced features in August 2021.”

Ms. Cruz said that the CAG in 2021 was successful in implementing globally accepted insurance accounting standards, the Philippine Financial Reporting Standards, at government insurance institutions, which include the Social Security System (SSS), the Government Service Insurance System (GSIS), and the Philippine Health Insurance Corp. (PhilHealth).

Mr. Dominguez called reforms pushed by CAG to be continued into the next administration.

“Continuity is the important thing in these programs that we all started to ensure that they are not just going to fall by the wayside, but will be institutionalized, because you guys have done a terrific job,” Mr. Dominguez said. — Tobias Jared Tomas

PPA sees 31 more port projects done before Duterte leaves

PHILIPPINE PORTS AUTHORITY

THE Philippine Ports Authority (PPA) said on Monday that it hopes to complete and inaugurate 31 more port projects before President Rodrigo R. Duterte’s term ends on June 30.

“Katulong ng Department of Transportation (DoTr), so far, since 2016, nakatapos na ang PPA at DoTr ng 585 port projects, malaki at maliit (With the aid of the DoTr, so far since 2016, we have completed 585 port projects, large and small),” PPA General Manager Jay Daniel R. Santiago said at a televised news briefing.

“Meron pa tayong hinahandang pasisinayaan at matatapos bago matapos ang termino ng ating Pangulo sa June 30 na nasa 31 port projects (We expect to complete and launch before the President ends his term on June 30, 31 more port projects),” he added.

These port projects, according to the agency, include Currimao Port in Ilocos Norte.

The Currimao Port is “more than ready to handle bigger, more sophisticated cruise ships,” the PPA said in a statement.

Another project to be inaugurated is Bulan Port in Sorsogon, which will provide an alternative jump-off point to Masbate and Cebu.

Also to be inaugurated before June 30 are Banago Port in Negros Occidental, the Ports of Baybay and Palompon in Leyte, and the completion of the passenger terminal buildings in Batangas and Calapan ports, “which will be… two of the biggest terminals in the country.”

“The projects that were completed also prepared the country to take in the shipping and logistical demand both from local and international players in the short- to mid-term as the world transitions to the (new) normal,” Mr. Santiago said.

Between 2016 and 2021, the PPA transferred P43.98 billion to the Treasury from taxes collected, paid and dividends remitted.

“The amount is P12.93 billion or 41.64% higher compared to the total contribution paid to the government from 2010 to 2015,” it said.

It said it incurred P19.87 billion in expenses to complete 240 port projects between 2016 and 2021. These 240 are part of the 585 port projects completed under the administration’s infrastructure program.

“We… increased the percentage of the dividend remittance from 57% in 2020 to 60% in 2021 to help the government in its (coronavirus) response,” Mr. Santiago said, adding that the ports were sufficiently flexible in delivering services as the recovery from the pandemic gained momentum, Mr. Santiago noted. — Arjay L. Balinbin

PSA liberalization seen stunting domestic firms

A GROUP of scientists said on Monday that the loosening of foreign investment restrictions resulting from the amendment of the Public Service Act (PSA) will hamper the development of some domestic industries and make the economy more reliant on imports.

In a statement, the Advocates of Science and Technology for the People (AGHAM) said Republic Act (RA) No. 11659, which amends the 85-year-old PSA, heralds “the incessant erosion of our economic and industrial capacities and will only deepen our dependence on an import-driven economy.”

AGHAM said the amendments are not expected to effect a sustainable economic recovery, noting that trade and investment liberalization have prevented the Philippines from developing its own industries.

AGHAM said manufacturing has not posted any significant growth since tariffs were lowered on imports to 5% from 70% starting in the 1980s. “This was also the case in the 1990s to 2000 with a slow pace of growth (of between) 2.5% to 3.5%.”

The agriculture sector’s contribution to the economy has dwindled from 21% in 1980 to 19% in 2000 due to the tariff reform program and other trade liberalization policies, it added.

RA No. 11647 excludes telecommunications, domestic shipping, railways and subways, airlines, expressways and tollways, and airports from the public utility category. This means they will no longer be subject to the 40% foreign ownership cap for public utilities under the Constitution.

The law also bars foreign nationals from owning more than 50% of public services engaged in the operation and management of critical infrastructure, unless the foreign nationals’ government accords reciprocal rights to Filipino nationals.

Foreign state-owned enterprises are also prohibited from investing in any public service classified as a public utility or critical infrastructure.

The government is hoping the measure will help the economy recover from the pandemic by attracting foreign direct investment that creates new jobs.

AGHAM said the Philippines has the capacity to spur its own economic growth because it has all the prerequisites for industrialization.

Citing data from the World Bank, AGHAM said the Philippines has productive agricultural land, which consisted of about 41.72%  of the country’s total land area as of 2018.

“The country is also endowed with mineral resources, and according to the 2014 data of the Philippine Statistics Authority, the estimated metallic and non-metallic mineral reserves that we have are around 7 billion metric tons and 50 billion metric tons, respectively,” it said. “Copper, an important component in electrical wiring and industrial machinery, is the topmost metallic mineral resource followed by nickel.”

AGHAM added: “We have an expansive resource potential attributed to the 16 sedimentary basins that (are) more than 700,000 sq. km. This is in addition to the  4,777 million barrels of oil equivalent of oil and gas reserves.”

“We call on the government to prioritize the development of our own resources, allowing farmers to enhance our agricultural land through genuine agrarian reform, and providing a thriving environment for the establishment of Filipino-owned national industries,” AGHAM said. — Kyle Aristophere T. Atienza

E-commerce startup GrowSari raises $77.5 million in funding round 

E-COMMERCE startup GrowSari said it raised $77.5 million in its latest funding round, in partnership with the International Finance Corp. (IFC).

The company, which hopes to supply tools that will help digitalize small businesses in the Philippines, said the total is the largest ever raised in the Philippines and Southeast Asia in the business-to-business and micro-, small-, and medium-sized enterprises (MSME) space.

“We are very grateful for the confidence shown by existing and new investors as we try to transform MSMEs in the Philippines,” GrowSari Chief Executive Officer Reymund Rollan said.

Other investors in the funding round were KKR and the Pavilion Capital unit of Singapore’s Temasek Group.

The startup was founded in 2016 to provide technical tools for managing mom-and-pop stores, small catering businesses, pharmacies, and market shops. It offers telco load and bill payment channels for stores and provides credit to ease working capital constraints.

GrowSari hopes to use the funds to expand nationally. To date, it serves more than 100,000 small retail stores in 220 municipalities across Luzon, a major expansion from the 1,000 stores in three cities in 2018.

“We have already launched in the Visayas, with Iloilo as the first city, and we will launch in Mindanao soon. We also have the largest B2B fulfillment network and will have 50-plus fulfillment centers nationwide,” said GrowSari Co-founder and Chief Technology Officer Siddhartha Kongara.

The IFC helped the startup develop a credit-scoring mode to help spur financial inclusion and promote gender inclusivity, after finding that more than 75% of store owners are female.

“Our investment will enable GrowSari to expand digital adoption and financial services for MSMEs, which is critical to keep them competitive, and for a resilient and inclusive recovery,” Stephanie von Friedeburg, IFC senior vice-president, operations.

MSMEs employ 63% of the Philippine workforce. However, the sector was among the hardest hit by the pandemic, and requires assistance in modernizing. — Luz Wendy T. Noble

BoI approves P61.8-M Pampanga hog breeding facility

REUTERS

THE Board of Investments (BoI) said on Monday that it approved the registration of a P61.8-million hog breeding facility in Pampanga, adding to the industry’s capacity and ensuring the steady flow of meat products into the market.

“The new plant was approved under the Agriculture, Fishery, and Forestry sector of the Investment Priorities Plan, functioning as the transitional Strategic Investment Priorities Plan of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act or Republic Act No. 11534,” the BoI said in a statement.

Zashi Hog Farm, Inc. is located in San Ildefonso, Magalang, Pampanga.

“The new project is adjacent to its existing pork production project. The new one (operates with a) Hog Breeding Agreement (and features a) gestating building and farrowing facility specifically for the breeding, growing and raising of piglets with a standard weight of nine kilograms per head,” the BoI said.

BoI Managing Head Ceferino S. Rodolfo said the new facility supports the hog industry, which was severely hit by the African Swine Fever, or ASF.

“With its own in-house breeding facility, the company has ensured the safety of piglets and as they grow, they will ensure a steady supply to its partner’s grow-out farm,” he said.

According to the BoI, ASF was present in 13 regions, 51 provinces, 676 municipalities and 3,626 barangays as of the end of January.

“The country’s hog inventory dipped by about three million as of early 2021,” it noted, citing the Philippine Statistics Authority (PSA).

Citing data from both the Department of Agriculture and the PSA, the investment promotion agency said the hog industry is a P245-billion market, “accounting for 44% of the livestock and poultry sector.”

“As of 2020, the Philippines was the 14th largest pork producer in the world, and was the second largest producer in Southeast Asia, next only to Vietnam,” it added.

Executive Order (EO) No. 133 issued in May 2021 temporarily raised the pork import quota, known as the minimum access volume, to 254,210 metric tons from 54,210 to address increasing pork prices.

The hog and meat industry had opposed the proposed extension of the EO, asking the government to instead support domestic producers to improve supply.  — Arjay L. Balinbin

JICA supplies P46M in lab gear to tropical medicine institute

RITM

THE Japan International Cooperation Agency (JICA) said it provided laboratory equipment worth P46 million to the Research Institute for Tropical Medicine (RITM), the Philippines’ primary coronavirus disease 2019 (COVID-19) testing site.

In a statement on Monday, JICA said the turnover of the equipment took place on March 24.

In attendance were Health Secretary Francisco T. Duque III, RITM Director Cecilia C. Carlos, the Japanese Ambassador to the Philippines Koshikawa Kazuhiko, and JICA Philippines Chief Representative Sakamoto Takema.

The equipment includes a pharmaceutical refrigerator, an automated immunoassay analyzer, and a deep freezer.

“This assistance complements our other support to Philippine COVID-19 recovery efforts including the grant finance and technical cooperation for cold chain storage and logistics as well as Rapid Antigen Test Kits to be distributed to the Department of Health in the coming weeks.” Mr. Sakamoto said. “JICA hopes to make a certain contribution to a resilient healthcare system in the Philippines.”

The National Capital Region and 47 other locations have been placed under the Alert Level 1 quarantine setting, in which businesses and government agencies are allowed to operate at 100% capacity.

“JICA’s assistance will further strengthen the laboratory capacity of the RITM, which is vital to the country’s COVID-19 response: the Prevent-Detect-Isolate-Treat-Reintegrate + Vaccine or the PDITR+V strategy,” Mr. Duque said.

The PDITR+V strategy focuses on early detection by actively seeking out cases, isolating them, and administering aid as needed, according to the Department of the Interior and Local Government.

In 2020, JICA lent P22 billion for the COVID-19 Response Emergency Support, and also provided a P22-billion Post-Disaster Standby Loan Phase 2, the statement said.

JICA’s 60 active programs in the Philippines were valued at P115 billion in 2020. — Tobias Jared Tomas

PEZA: Raise the white flag

The pressures companies have had to confront during the pandemic highlighted the importance of keeping the workforce happy and productive. When employees are trusted and engaged, yields rise. Conversely, when people feel unmotivated or undervalued, the company suffers. Studies show that employees deeply invested in their work commit fewer mistakes, do better, and are more eager to embrace change.

Keeping employees happy is hard work in light of the changes imposed on the workplace by COVID-19. Studies have found that up to 82% of respondents prefer working from home to onsite work, which managers must come to grips with as employees begin to trickle back to the office after two years of remote work.

On March 10, 2022, the Fiscal Incentives Review Board (FIRB) issued Memorandum Circular 2022- 018, denying a request by the Philippine Economic Zone Authority (PEZA) to extend the government’s authorization of remote work for Information Technology-Business Process Management (IT-BPM) companies. Incentives enjoyed by IT-BPM companies located in economic zones are conditional on a proportion of the workforce carrying out their duties onsite. These rules were relaxed for safety reasons during the pandemic, when companies were allowed to have up to 90% of staff on remote-work arrangements. However, the offsite-work amnesty will not be extended beyond March 31.

Economic managers and business leaders believe that more onsite work will help revive the economy by boosting the prospects of businesses that depend on foot traffic from office workers, though some IT-BPM workers have also cited the need to shield them from high fuel prices, which they will have to absorb if they must commute to work.

Failure to observe the new onsite work rules puts companies at risk of losing their tax perks, a consideration which must be balanced against the need to retain staff who have grown accustomed to working from home.

IN-SITU
PEZA-registered IT-BPM companies, also known as the business process outsourcing (BPO) industry, are required to revert to onsite work at the start of April. No further work-from-home (WFH) arrangements are authorized by PEZA, be they hybrid, staggered, or phased return-to-office); companies that defy the return-to-work rules run the risk of losing their tax breaks.

Moreover, no WFH arrangement in whatever form (hybrid, staggered, temporary or phased-in RTO) shall be authorized by PEZA pursuant to Section 30 of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.

REGISTERED ACTIVITIES
Section 309 of the CREATE Law regulates registered activities; it stipulates that a qualified project or activity registered with an Investment Promotion Agency (IPA) administering an economic zone or Freeport must be exclusively conducted or operated within the geographical boundaries of the zone or Freeport.

A registered business, however, may conduct or operate more than one qualified registered project or activity within the same zone or Freeport under the same IPA. However, any project or activity conducted or performed outside the geographical boundaries of the zone or Freeport is not entitled to tax incentives, unless the project or activity is registered with another IPA.

WHITE FLAG
High employee turnover is costly for any business. Sometimes, when employees choose to resign, their reasons for quitting stem from internal factors at work. Therefore, it is important for management to consider employee welfare in making any decision. After all, people are a company’s greatest asset. We can only hope that the government and PEZA-registered entities can untangle the WFH dilemma in a manner that is beneficial to both parties.

Legislators and the IT-BPM industry must work hand-in-hand to give due weight to each other’s views on how to bring about a recovery. The various measures required to revive the economy are not always obvious, but they certainly are connected.

Let’s Talk Tax is a weekly newspaper column of P&A Grant Thornton that aims to keep the public informed of various developments in taxation. This article is not intended to be a substitute for competent professional advice.

 

Grace L. Turqueza is an associate from the Tax Advisory & Compliance division of P&A Grant Thornton, the Philippine member firm of Grant Thornton International Ltd.

pagrantthornton@ph.gt.com

Canada beats Jamaica to end 36-year World Cup finals drought

TORONTO — Canada qualified for the World Cup finals for just the second time on Sunday, beating Jamaica 4-0 to book their ticket to Qatar and end 36 years of failure and heartache.

While Canada celebrated, Mexico and the United States will have to wait to learn their fate despite picking up wins along with Costa Rica, who also kept their Qatar hopes alive.

The United States got a hat trick from Chelsea midfielder Christian Pulisic as they romped to a 5-1 home win over Panama while Mexico needed a 70th minute goal from Edson Alvarez to win 1-0 and avoid a humiliating draw with winless Honduras.

The victory for Canada puts the leaders on 28 points in the CONCACAF qualifying group, three points ahead of the United States and Mexico, with Costa Rica, who beat El Salvador 2-1, a further three points back.

The top three teams earn automatic places in November’s World Cup with the fourth-place finisher facing an Oceania team in an intercontinental playoff for another berth.

Mexico will host El Salvador on Wednesday, the United States travel to San Jose to take on Costa Rica and Canada wrap up their campaign against Panama. Both Mexico and the United States require only a draw to seal an automatic berth.

After failing to clinch a finals spot with a 1-0 away loss to Costa Rica on Thursday, Canada returned home with renewed purpose and a chance to complete the job in front of a frenzied, red-clad, flag-waving, sold-out crowd of nearly 30,000 at BMO Field.

“I’m just so pleased we didn’t win in Costa Rica,” said Canada coach John Herdman. “This is how it was meant to be, I know why the football gods wouldn’t let us score, it was for tonight.

“We just qualified for the World Cup, this is a legit football country.”

There would be no blown second opportunity as Cyle Larin and Tajon Buchanan netted in the first half and Junior Hoilett added another after the break with Adrian Mariappa’s own goal rounding off the scoring.

Canada will play at the World Cup for the first time since 1986 in Mexico, where they lost all three games and failed to score a goal.

“I think this country never believed in us because we’ve given them nothing to believe in,” said Herdman. “They believe now.

“This is the time for everyone to get behind football and unite because we can be a powerhouse.”

It was a warm welcome home on a biting cold afternoon, making it the classic Canadian stage to take on a Jamaican side anchored near the bottom of the eight-team group in seventh, with one win and no hope of getting to Qatar.

There was a time during their 36-year quest to return to a World Cup finals that playing at home was no different than away for Canada, with as many fans supporting the visitors as the home side.

But there were no split allegiances on Sunday in a lopsided contest Canada dominated from start to finish. — Reuters

Atthaya Thitikul shoots 64, wins JTBC Classic in playoff

THAI 19-year-old Atthaya Thitikul defeated Denmark’s Nanna Koerstz Madsen on the second playoff hole to win her first Ladies Proffesional Golf Association (LPGA) Tour title at the JTBC Classic on Sunday in Carlsbad, CA.

Thitikul fired an 8-under-par 64 in the final round to catch Madsen and force the playoff. It was the lowest round at Aviara Golf Club all week.

Madsen entered on Sunday with a three-stroke lead but only managed a 2-under 70. Her birdie at the par-5 17th hole moved her into sole possession of the lead at 17 under, but she bogeyed the par-4 18th to fall back into a tie with Thitikul at 16 under.

They replayed No. 18 twice. After both parred the first time through, Madsen’s second shot on the second playoff hole found the water, leading her to a double bogey.

Thitikul tapped in a short bogey putt to win, becoming the youngest winner on tour since Canadian star Brooke Henderson won the 2016 Cambria Portland Classic as an 18-year-old.

“Anyone (who comes) here, they want to win,” Thitikul said. “I want to win as well, but didn’t expect (it would) come really fast, in my rookie year as well. It’s just crazy in my mind right now. I cannot believe that I became an LPGA winner.”

Thitikul’s round featured nine birdies and just one bogey. Five birdies came on the back nine, including at Nos. 16 and 17.

It was just the fifth start of Thitikul’s rookie season, though the youngster had previous success in Europe, winning Player of the Year honors on the Ladies European Tour last season.

Madsen earned her maiden win on tour at the Honda LPGA Thailand earlier this month and was vying for back-to-back titles.

“It wasn’t a very good playoff,” Madsen said. “Yeah, I played a good week and I’m happy with the game. I could have maybe have done a little better today, but it was what I could do.”

Na Rin An of South Korea carded a final-round 68 to finish 15 under, alone in third. Thailand’s Pajaree Anannarukarn, Canada’s Maude-Aimee Leblanc and world No. 1 Jin Young Ko of South Korea all shot 68 and tied for fourth at 14 under.

Charley Hull (69) was seventh at 12 under, and defending champion Inbee Park of South Korea (68) and Lilia Vu (70) tied for eighth at 11 under. — Reuters

Sinner survives five match points in Miami Open thriller; Gauff, Norrie advance

JANNIK Sinner saved five match points to advance past Spain’s Pablo Carreno Busta 5-7, 7-5, 7-5 in a sensational display in the third round of the Miami Open on Sunday.

Carreno Busta had Sinner on the ropes in the 10th game of the second set, nearly breaking him for the match before the Italian recovered to hold his serve and converted on a chance in the next game.

They traded breaks in the third before a marathon 10th game in which the Spaniard nearly broke his opponent for the win four times.

The world number 11 Sinner, who launched 15 aces across the net across the entire match, survived and converted on a chance in the next game to seize the advantage.

Serving for the match, he clinched the affair with a forehand winner as the crowd at Miami leapt to its feet and cheered.

The 2021 runner-up next faces Australian Nick Kyrgios, who put in a clinical performance to down Italian Fabio Fognini 6-2, 6-4, dropping just five first-serve points.

GAUFF ADVANCES
Elsewhere in the day’s action, American Coco Gauff kept alive her bid for a maiden WTA 1000 title, firing off five aces to overcome China’s Zhang Shuai 7-6(1), 7-5 in a tightly fought contest.

“I just kind of mentally was hanging in there. I wasn’t playing my best. She’s a tough player to play,” Gauff told reporters. “I knew it was going to be a tough match, and I was glad that I was able to pull it out today.”

British number one Cameron Norrie overcame a false start to keep his hopes of winning a second Masters 1000 title alive, beating Frenchman Hugo Gaston 6-3, 7-5.

Norrie, who triumphed at Indian Wells last year and won at Delray Beach five weeks ago, opened the contest by dropping his serve but kept his nerve as three break points went begging in the next game before he finally converted the fourth.

Norrie fired down his seventh ace on his eighth match point to set up a meeting with world number eight Casper Ruud, who has beaten the Briton on both of their previous meetings.

The in-form Ruud dispatched Alexander Bublik 6-3, 6-2 in less than an hour and had the best seat in the house when his Kazakh opponent produced a highlight-reel-worthy shot in the fifth game of the second set. Bublik flipped his racquet over and tapped an overhead shot with the handle.

“You will be on Tennis TV like always,” Ruud quipped to Bublik after the match.

Spanish fifth seed Paula Badosa put up a pristine performance to topple Kazakhstan’s Yulia Putintseva 6-3, 6-2. Putintseva was so frustrated with her error-filled display that she slammed her racquet with such force to the ground that it flew back up and almost hit her.

Badosa, who won last year’s Indian Wells, next faces 16-year-old Czech wild card Linda Fruhvirtova, who advanced after former world number one Victoria Azarenka abruptly retired midway through the second set of their contest.

Fruhvirtova was leading 6-2, 3-0 when Azarenka, who pulled out of Doha last month with an injury, informed the chair umpire that she was done and briskly walked off the court.

“I don’t even know how to describe it. It’s what I’ve always dreamed of, playing in these big stadiums in front of so many people,” Fruhvirtova said courtside.

“It’s definitely a dream come true.” — Reuters

Brandon Ingram returns for Pelicans, fuels win over Lakers

BRANDON Ingram returned from a 10-game absence to score 26 points and the host New Orleans Pelicans overcame a 23-point deficit to beat the Los Angeles Lakers 116-108 on Sunday night.

The Lakers (31-43) led by 23 in the second quarter and by 20 at half time, but rookie Trey Murphy III, who finished with 21 points, led a third-quarter comeback before Ingram, who had been sidelined by a hamstring strain, took over in the fourth.

Jonas Valančiūnas added 19 points and 12 rebounds, CJ McCollum scored 18 and Herbert Jones, Jr. had 16 points and a season-high six steals for the Pelicans (32-43), who moved a half-game in front of the Lakers into ninth place in the Western Conference.

The comeback was one point short of the largest ever for New Orleans, which clinched the season series against the Lakers with one game remaining April 1 in Los Angeles.

LeBron James scored 39 points, Malik Monk added 23 and Russell Westbrook had 18 for the Lakers, who were outscored 67-39 in the second half.

Monk’s 3-pointer cut the lead in half, but Valančiūnas made a layup and McCollum added a basket via a goaltending call on James. That gave New Orleans a 115-108 lead with 29.5 seconds left.

James made two 3-pointers and two more baskets as the Lakers scored the first 12 points of the game and took a 31-23 lead at the end of the first quarter. They held a 69-49 half time lead.

Murphy led a third-quarter charge by the Pelicans, who got within two points twice before Westbrook’s layup gave Los Angeles a 94-90 lead at the end of the period. Murphy scored 16, making all three of his 3-point attempts, as the Pelicans outscored the Lakers 41-25 in the period. — Reuters

Tribunal asked to clarify Marcos estate tax case

PHILSTAR

A RIVAL political party has asked the Supreme Court to issue a “certificate of finality” on a decades-old lawsuit that upheld the government’s estate and income tax assessments on the heirs of the late dictator Ferdinand E. Marcos.

In a letter to the tribunal’s deputy clerk of court, Aksyon Demokratiko Chairman Ernesto M. Ramel, Jr. sought the certificate to establish that the case had long been resolved and could now be enforced, contrary to the claim of the Marcos family.

“The purpose of the requested certificate of finality is to establish the above cited case is in fact final and executory and had been entered in the book of judgments,” he said. Aksyon Demokratiko is the party of Manila Mayor Francisco “Isko” M. Domagoso, who is running for president this year.

He cited a March 3 statement by Victor D. Rodriguez, lawyer of former Senator Ferdinand “Bongbong” R. Marcos, Jr. that the tax case had not been resolved with finality. The dictator’s namesake and only son is the top contender for president, based on various opinion polls.

Mr. Rodriguez did not immediately reply to a Viber message seeking comment.

Mr. Ramel earlier said the P23-billion estate tax had ballooned to P203.8 billion due to interests and penalties after the Marcos family refused to pay it.

He separately asked the Bureau of Internal Revenue and Presidential Commission on Good Government (PCGG) this month to clarify whether the Marcos heirs had paid the taxes.

Mr. Marcos on March 16 cited “fake news” surrounding their unsettled estate taxes. “Let’s leave it to the lawyers to discuss it because the so-called facts that they quote are not facts at all,” he told a news briefing. “Whatever the court orders me to do, I will do.”

This contradicted what the tax agency and PCGG said in reply to Aksyon Demokratiko.

“The Bureau of Internal Revenue did send a written demand letter to the Marcos heirs on Dec. 2, 2021 regarding their tax liabilities,” Internal Revenue Commissioner Caesar R. Dulay said in a letter to Aksyon Demokratiko on March 14.

PCGG, the agency tasked to recover ill-gotten wealth of the dictator and his cronies, in a separate letter said the tax agency in 1991 assessed the estate of Ferdinand Marcos P23.29 billion in estate taxes, P184.16 million in unpaid income taxes of Mr. Marcos and his wife Imelda for 1985 and 1986 and P20,410 in unpaid income taxes against the dictator for 1982 to 1985.   

In 1993, BIR levied and sold 11 Marcos properties in Tacloban after the family failed to file an administrative protest. The lots were awarded to the state in the absence of bidders, PCGG said.   

The Supreme Court in 1997 denied a plea by Marcos, Jr. to void the levies as it ruled the tax assessments had become final and unappealable.   

Mr. Ramel in a separate statement warned that the debt could get erased if the tax agency fails to collect the tax by June 30, in case Mr. Marcos wins the election.   

“The P203 billion that belongs to the Filipino people will disappear like a bubble if Marcos, Jr. lucks out,” he said in Filipino.

Mr. Ramel on Sunday slammed Mr. Marcos’s spokesman for saying that his rivals were using the tax issue to score political points for the May 9 elections.

Meanwhile, opposition coalition 1Sambayan said Mr. Rodriguez’s claim last week that the Marcos family’s estate tax liability is still pending in court is “the worst kind of propaganda.”

“With all due respect to Mr. Rodriguez, there is no pending case,” it said in a statement. “Alleging that the case is still pending without specifying the actual case details sounds like fake news and — if it turns out to be untrue — the worst kind of black propaganda.”

It said Filipinos could not afford to have a president who had been convicted for tax evasion.

The dictator stole as much as $10 billion (P521 billion) from the Filipino people, according to government estimates, earning him a Guinness World Record for the “greatest robbery of a government.” PCGG has recovered about P171 billion.

Mr. Domagoso earlier vowed to use the tax payment to help drivers, farmers and jobless Filipinos if he becomes president. — Jaspearl Emerald G. Tan and Kyle Aristophere T. Atienza

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