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Typhoon damage to farms initially estimated at P141.38 million

THE damage caused by Super Typhoon Karding (international name: Noru) to the agriculture industry has been initially estimated at P141.38 million, which is expected to rise, the Department of Agriculture (DA) said.

In its bulletin issued midday Monday, the DA said the typhoon affected 16,229 hectares of farmland and 740 farmers and fisherfolk, leading to the loss of 5,886 metric tons (MT) of produce.

“Based on initial assessments, damage and losses have been reported in the Cordillera Administrative Region (CAR), Ilocos Region, Central Luzon and Calabarzon,” the DA said.

“Affected commodities include rice, corn and high-value crops. These values are subject to validation. Additional damage and losses are expected in areas affected by Karding,” it added.

Damage to rice was estimated at P107.6 million on volume losses of 5,877 MT. The storm affected 15,363 hectares of farmland.

Losses of high-value crops amounted to P24.55 million with volume losses estimated at 760 MT across 88 hectares of farmland.

Corn losses were valued at P9.22 million with lost volume of 10 MT of and affected farmland 776 hectares.

“The DA, through its regional field offices, is conducting assessment of damage and losses brought by Karding in the agri-fisheries sector,” according to the bulletin.

In a news conference, National Irrigation Administration (NIA) Administrator Benny D. Antiporda reported no damage to the irrigation infrastructure, citing initial reports from the agency’s field offices.

Mr. Antiporda added that Bulo Dam in Bulacan had to release water after exceeding its capacity of 76 meters.

He added that one gate of Magat Dam in Isabela was opened two days prior to the storm’s landfall to regulate the water level, while Bustos Dam in Bulacan had to release water after water levels rose to 17.08 meters, beyond its spilling level of 17 meters.

“The agency ensured that residents and all stakeholders were properly and immediately informed with the scheduled dam water release,” the NIA said in a statement, referring to the area around Bulo dam. — Revin MIkhael D. Ochave

Working from home, fiscal incentives, and transferring from PEZA to the BoI

At the onset of the COVID 19-pandemic, working from home (WFH) was a temporary solution for businesses trying to survive. This setup was not widely used in the Philippines prior to the crisis, and many business entities grappled with how to continue operations with the whole world on lockdown. At the height of the lockdowns, the government, for safety reasons, allowed companies to adopt WFH, while still enjoying the tax incentives that they had been granted on the condition that they operate within economic zones.

While WFH raised various issues like the blurring of boundaries between work and home, this arrangement has apparently become the norm. People are starting to get the hang of WFH. Remaining unresolved is whether WFH can be permanently adopted by Information Technology (IT) companies that are registered business enterprises (RBEs) regulated by the Philippine Economic Zone Authority (PEZA).

Per MC No. 2021-049, in relation to Fiscal Incentives Review Board (FIRB) Resolution No. 19-2021, PEZA initially allowed IT RBEs to operate outside the economic zone on the condition that only up to 90% of the employees work from home between Sept. 13, 2021 and Dec. 31, 2021. This ratio fell to 75% between Jan. 1 and March 31. PEZA subsequently asked the FIRB to exempt its RBEs from the 90% WFH cap. The FIRB rejected this request in Resolution No. 23-21, noting the need for expanded onsite work in conformity with the government’s plan to gradually and safely open the economy.

On March 10, PEZA issued MC No. 2022-018 informing all IT RBEs that the FIRB denied the request to extend the work-from-home arrangement beyond March 31. MC No. 2022-018 cited Section 309 of the National Internal Revenue Code (NIRC) as amended by the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law, which it deems to be in force as of April 1. Section 309 essentially provides that a qualified registered project or activity under an Investment Promotion Agency (IPA) administering an economic zone or freeport must be conducted within that zone to avail of incentives.

Once again, IT RBEs grappled to comply, weighing the penalties for violating the conditions laid down in the MCs. Many investors worried about getting to 100% onsite work. Feedback from the business community indicates that many employees prefer the convenience of WFH. Executives at IT RBEs started to weigh the advantages and disadvantages of maintaining RBE status vis-à-vis the risk of losing employees to companies with permanent WFH arrangements.

Subsequently, on April 6, PEZA issued Board Resolution (BR) No. 22-052, allowing all kinds of RBEs to adopt WFH arrangements for up to 30% of their workforce. Thereafter, the FIRB issued Resolution No. 17-2022 recognizing the contribution of the IT-BPM (Business Process Management) sector as a key employment generator, and that the adoption of WFH in that industry has contributed to the creation and preservation of jobs during the pandemic. In the same Resolution, the FIRB said that as a temporary measure under Rule 23 of the CREATE Act IRR, RBEs of the IT-BPM industry are allowed to continue implementing WFH arrangements without adversely affecting their fiscal incentives under the CREATE Act between April 1 and Sept. 12. Per FIRB Advisory 007-2022, the 30% WFH cap was provisionally extended.

And yet, many IT RBEs are still considering the possibility of deregistering from PEZA. The possible transfer of certain IT RBEs from PEZA to the Board of Investments (BoI) has been explored for some time. The BoI is an incentive-granting IPA but is not restricted by a particular zone or geographical boundaries. Hence, when investors explore setting up companies, the BoI option has opened up as a possibility. On the other hand, PEZA IT RBEs are considering the transfer to the BoI even in the absence of guidelines on how to execute such a transfer without adversely affecting incentives.

Recently, Finance Secretary Benjamin E. Diokno announced that with the FIRB seeking a more permanent solution to the WFH dispute, IT-BPM enterprises will be allowed to continue availing of fiscal incentives without violating Section 309 of the NIRC as amended. Many will certainly be expecting the FIRB to formulate clear guidelines to facilitate the smooth transition of IT RBEs which intend to transfer their registration from PEZA to the BoI. Needless to say, clarity in the guidelines will help resolve the concerns of both existing and potential investors in making business decisions that would ultimately affect the Philippine economy.

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.

 

Gemmalu O. Molleno-Placido is a senior manager from the Tax Advisory & Compliance division of P&A Grant Thornton, the Philippine member firm of Grant Thornton International Ltd.

pagrantthornton@ph.gt.com

Gatchalian seeks to restore NBI budget cut, including for anti-cybercrime ops 

NBI FACEBOOK PAGE

SENATOR Sherwin T. Gatchalian wants to restore the budget cut imposed on the National Bureau of Investigation’s (NBI) proposed 2023 funding, noting the need to support the government’s cybercrime prevention operations.  

The agency’s proposed budget under the National Expenditure Program (NEP) for 2023 was trimmed to P1.8 billion from the current P2.3 billion.   

The reduction includes the anti-cybercrime enforcement unit’s allocation, which was decreased to P21.2 million from P26.4 million.   

“Cybercrimes are flourishing in many territories including the Philippines. I would like to see that the NBI is fully equipped and has the necessary resources, especially in its fight against cybercrimes,” he said in a statement on Monday.  

The senator said a decrease in funds could adversely affect the agency’s anti-cybercrime operations at a time when illegal activities are prevalent, citing identity theft, credit card fraud, and spam and phishing messages.  

At least 25 business groups in the Philippines last year said the impact of cybercrime could hit up to $10.5 trillion annually by 2025, as the use of online platforms for financial transactions continues to grow.  

In 2021, the Bankers Association of the Philippines said unauthorized withdrawals and transfers reached more than P1 billion for that year, amid a rise in cybercrime along with the rise in digital transactions due to the pandemic.    

A higher budget for the NBI is also necessary as Congress seeks to pass the Subscriber Identity Module (SIM) Card Registration Act.  

Under the bill, telecommunication companies are tasked with the safekeeping of information gathered during the registration process. No data may be divulged except in compliance with laws, upon a court order or with the written consent of the subscriber.    

Any breach of confidentiality will be punishable with imprisonment or a fine of as much as P1 million.    

The passage of the proposed measure will enable the NBI to effectively implement its anti-cybercrime campaign, Mr. Gatchalian said, leading to a substantial reduction in cybercrime cases in the country which will enhance digital revolution and support economic recovery.  

“We will do our best to reinstate the amount that was cut in the budget proposal,” he said. — Alyssa Nicole O. Tan 

Solon wants more funds for tourism-related infrastructure 

A LAWMAKER on Monday said the Department of Tourism’s (DoT) 2023 budget should include funds for capital outlays.  

“I would like to manifest my support to increase the budget of the (DoT) and to include appropriations for capital expenditures,” Cebu Rep. Vincent Franco D. Frasco said during plenary.   

Mr. Frasco, husband of Tourism Secretary Ma. Esperanza Christina G. Frasco, said the tourism department needs to be equipped with the means to aid in the country’s economic recovery.   

Under the 2023 National Expenditure Program, the DoT will receive no funds for capital outlays.   

“The country’s tourism portfolio is at par with our ASEAN (Association of Southeast Asian Nations) competitors; however, to further promote our tourist destinations, there is a need to further improve gateway access and other infrastructure for ease and convenience of travel,” said Isabela Rep. Faustino V. A. Dy, sponsor of the DoT’s budget proposal.   

The department has a proposed budget of P3.573 billion next year, 30.3% higher than this year’s budget. 

Under the plan, P2.828 billion will go to maintenance and other operating expenses, P687.083 million to personnel services and P3.58 million to financial expenses.  

Representatives Arlene D. Brosas of Gabriela, Gabriel H. Bordado, Jr. of Camariñes Sur, France L. Castro of ACT-Teachers, and Mujiv S. Hataman of Basilan expressed support for the proposed increase. 

“We are delighted that all of the interpellators supported the increase in the budget appropriation of the department, having seen the importance of DoT as a major component in the country’s move towards economic recovery that has been devastated by the COVID pandemic,” Ms. Frasco said in a separate statement. — Matthew Carl L. Montecillo 

PHL tallies over 17,000 COVID cases in past week 

PHILIPPINE STAR/ MICHAEL VARCAS

THE PHILIPPINES posted 17,891 new coronavirus infections in the past week, with a daily average of 2,556 cases, the Department of Health (DoH) said on Monday. 

The daily average from Sept. 19 to 25 rose by 22% from a week earlier, it said in a bulletin. 

DoH said it had verified 242 deaths in the past week, 29 of which happened from Sept. 12 to 25. 

The Health department noted that 576 of 2,514 intensive care unit (ICU) beds had been used as of September 25, while 5,859 of 21,078 non-ICU beds were occupied.  

There were 790 severe and critical admissions, it added.  

The government has fully vaccinated over 73 million people, 19 million of whom have received booster shots, said the DoH. — John Victor D. Ordoñez 

Private sector leaders laud Marcos US trip   

OFFICE OF THE PRESS SECRETARY

THE PRIVATE Sector Advisory Council (PSAC) on Monday said President Ferdinand R. Marcos, Jr’s recent trip to the United States was a “resounding success,” citing the prospect of new investments to boost economic recovery. 

“This trip was a resounding success. We have a true statesman in President Marcos. He represented our country with pride, diplomacy, professionalism, and an honest intention to strengthen our partnership with the US and secure their commitment to transforming the lives of all Filipinos by directly investing in our economy,” PSAC head Sabin M. Aboitiz, chief executive officer of Aboitiz Equity Ventures, Inc., said in a statement.  

Last week, Cabinet members along with Philippine businessmen attended an economic forum at the New York Stock Exchange.   

The President encouraged the American business community to invest in key economic sectors in the Philippines as the country has improved its ease of doing business policies. 

“Bouncing back from the pandemic, the Philippine economy has seen robust growth since last year and has returned to its path toward upper middle-income country status, achievable, we believe, within the next few years,” he said at the forum.  

The private sector delegation was composed of Jaime Augusto Zobel de Ayala of Ayala Corp., Ramon S. Ang of San Miguel Corp., and Lance Y. Gokongwei of Cebu Pacific Air, Inc.  

The President also met with US President Joseph R. Biden during his trip, where the two discussed issues such as human rights and the South China Sea tensions. — John Victor D. Ordoñez 

US concludes two-year training with PHL security, maritime forces  

US EMBASSY PHOTO HANDOUT

THE UNITED States has concluded a two-year training with Philippine security and maritime forces, aimed at enhancing capability to counter criminal and terrorist networks that threaten peace and security in the southeast Asian country, the US Embassy in Manila said.  

“We are proud of the participants’ accomplishments in gaining a diverse set of analytic and critical thinking approaches to counter these complex networks,” said Defense Threat Reduction Agency (DTRA) Partner Engagement Division Educational Strategies Lead Mila Nieves.  

“They are well prepared to pass these skills on to their counterparts.”  

The Counter Threat Network operational exchange and capacity building program included six analytic workshops and exchanges, participated in by intelligence personnel from the Armed Forces Philippines, the Philippine National Police, and the National Coast Watch Center (NCWC). 

“With this activity, participants were able to establish networks and exchange knowledge and skills in achieving a common goal,” said NCWC Coast Guard Chief Petty Officer Jeffrey Abasolo.   

The training covered best practices on understanding and engaging networks of violent extremist organizations, insurgent groups, and criminal entities.   

The US Embassy said “these efforts are part of a broader security cooperation agreement established to enhance the integration of intelligence and operations against threat networks in a multidomain environment.”  

“After six different workshops and over one hundred student interactions, we can say that we have shared a mutually beneficial learning experience where both countries have gained from the interaction and improved their ability to operate together to prevent and reduce threats,” DTRA Partner Engagement Division Chief Steve Greene said.  

“We look forward to continued opportunities for collaboration,” he added. — Alyssa Nicole O. Tan 

Judges condemn labeling of colleague by ex-gov’t official 

PHILIPPINE STAR/ MICHAEL VARCAS

PHILIPPINE judges on Monday collectively condemned the labeling of one of their own as a communist by a former government task force official, citing the potential dangers posed by such arbitrary tagging.   

“The Philippine Judges Association (PJA) deplores in no uncertain term the undeserved vilification, red-tagging and life-endangerment of a member of the judiciary,” the group said in a statement.   

Last week, Manila Court Judge Marlo A. Magdoza-Malagar ruled that the Communist Party of the Philippines and it’s armed wing, the New People’s Army, were not formed to engage in terrorist acts based on their platform.   

She was tagged as a Red supporter over the weekend by former anti-communist task force spokesperson Lorraine Marie T. Badoy.  

The association called on President Ferdinand R. Marcos, Jr. to declare that “in no time under the (administration’s) watch, will democracy be imperiled by an irresponsible and unfounded assault on a trial judge.”   

“The PJA upholds the rule of law and not the rule of men. We remind everyone that individuals, including judges, have protected constitutional rights, and personal attacks and threats against them and the judiciary should never be tolerated,” it said.   

The Integrated Bar of the Philippines (IBP), the official organization of the country’s lawyers, also issued a statement on the red-tagging of Ms. Malagar.   

“These capricious and dishonest statements go beyond reasonable discussion. They ferment vitriol and hate against our judges,” the IBP said. — Matthew Carl L. Montecillo 

Lawmaker cheers lifting of order vs supposedly subversive books 

A MINORITY lawmaker on Monday cheered the language commission’s resolution to rescind an earlier order condemning the publication and distribution of books tagged as subversive.   

Last month, the Komisyon ng Wikang Filipino (KWF) released a memorandum that banned five books that supposedly “incite to commit terrorism.”   

“We welcome KWF Resolution 27 series of 2022 which stated the withdrawal of signatures by some KWF commissioners from their earlier orders that condemned the publication and distribution of so-called ‘subversive’ books,” ACT-Teacher Party-list Rep. France L. Castro said in a statement.   

Ms. Castro, also House deputy minority leader, said the memorandum “violated academic freedom, freedom of expression, and other rights of the people.”   

She said the books that were affected by the commission’s proclamation should be printed and distributed.   

“We urge the Filipino people to stay vigilant in the attempts of the state to attack academic freedom, press freedom, and the people’s right to free speech,” Ms. Castro said. — Matthew Carl L. Montecillo 

World’s Tiafoe steals Federer’s spotlight to seal first Laver Cup

US’ Frances Tiafoe beats Stefanos Tsitsipas to give Team World their first Laver Cup title. — REUTERS

LONDON — Frances Tiafoe returned to haunt Team Europe with a dazzling win over Stefanos Tsitsipas to give Team World their first Laver Cup title on Sunday, ending Roger Federer’s hopes of finishing his career by lifting another trophy.

Two days after he and Jack Sock beat Mr. Federer and Rafa Nadal in a tearful farewell for the Swiss great at the O2 Arena, American showman Mr. Tiafoe saved four match points against Mr. Tsitsipas before roaring to a 1-6 7-6(11) 10-8 victory.

Mr. Tiafoe’s win, worth three points for his team, gave John McEnroe’s Team World an unassailable 13-8 lead, having started the day trailing 8-4 and staring at a fifth straight defeat in the event co-founded by Mr. Federer.

Team World enjoyed a super Sunday as Canadian young gun Felix Auger-Aliassime stunned 21-time Grand Slam champion Novak Djokovic 6-3 7-6(3). Earlier, Auger-Aliassime had partnered American Sock to a 2-6 6-3 10-8 win against Briton Andy Murray and Italian Matteo Berrettini.

Mr. Tsitsipas had the chance to take the match to a deciding singles match, but Mr. Tiafoe showed tremendous guts to save four match points in a gripping second-set tiebreak.

The American had the pro-Europe crowd in raptures, and his team mates off their feet, with some extraordinary shot-making in the so-called Laver Breaker.

And when Mr. Tsitsipas hit the net on match point, Mr. Tiafoe collapsed to the court and was immediately buried under a pile of his red-shirted team mates and captain McEnroe.

“It’s an unbelievable feeling,” Mr. Tiafoe, who reached the US Open semi-final said on court. “Jonny Mac was dropping F bombs all week saying we need to get it down this year.

“It wasn’t just me but I showed a lot of heart to get this done. I was getting my ass kicked for a while but I kept going. This is big, we’re going to celebrate big tonight.”

Mr. McEnroe was ecstatic at finally getting his hands on the trophy and getting one over old rival Bjorn Borg who was captain of a Team Europe side that were big favorites.

“No one beats Team World five times in a row,” the American said. “Felix stepped up big time.

“Frances is prime time, we saw that at the US Open. This is an incredible team event and I’m loving every second of it.”

It was not the ending Federer had dreamed of in the last event of his 24-year professional career.

Apart from playing his last-ever competitive match, he had sat at courtside in every match here, offering his words of wisdom and support to his team mates.

“Of course I’m disappointed,” 20-time Grand Slam champion Mr. Federer told reporters at the end of an emotional weekend.

“I was on the team. Almost lost my voice. My hands hurt from clapping. Told Andy (Murray) in the locker room, I don’t like losing. It’s not fun.

“This weekend has been all over the place for me. I enjoyed it, but it’s unfortunate that we couldn’t get the win tonight.”

Mr. Tiafoe, beaten heavily by Mr. Djokovic the previous evening, was making no apologies to Mr. Federer for being the pantomime villain.

“Absolutely not. I’m not going to apologize to him. He’s got a lot to apologize after the last 24 years after beating everybody on the tour,” Mr. Tiafoe, clutching a beer, said.

“But I will say thank you for having me in this amazing event, for what he’s done for the game. He’s a class act. Happy to know him, happy to call him friend, happy to call him a colleague, and best wishes in his second act.”

Team World will be aiming to retain their title next year when the event takes place in Vancouver. — Reuters

Letran, Mapua battle it out for survival in Season 98

LETRAN Knights rekindle rivalry with Mapua. — NCAA/SYNERGY/GMA

Game Today
(Filoil EcoOil Centre)
3 p.m. — Letran vs Mapua

Letran and Mapua rekindle their budding rivalry borne out of their title clash from a season ago as the two collide today in the NCAA Season 98 resumption at the Filoil EcoOil Centre.

But instead of the championship, the Knights and the Cardinals will battle it out for survival following a surprising poor start by these same pair of teams tipped to reprise their title showdown.

Letran, still the team to beat despite losing Season 97 rookie MVP Rhenz Abando and former captain Jeo Ambohot to the pros, had a rough, tumbling start before recovering ground with an 81-75 win over previously unbeaten College of St. Benilde Friday.

That win sent the three-peat seeking champions back to the magic four with a 2-1 slate.

Mapua, for its part, was worse and fell into ravine following a 1-3 start, which was good for ninth spot, or second to last.

The Cardinals will try to rebound from a 79-77 setback to the University of Perpetual Help Altas Friday and avenge their two-game title sweep at the hands of the Knights in last May that denied the former their first crown in more than three decades.

Game time is at 3 p.m.

Fran Yu is expected to star anew for the Knights after a Herculean effort in the win over CSB where he had 12 points, nine rebounds, six assists and the same number of steals.

Mr. Yu, however, stressed team effort as the key.

“We won because of team effort,” said Mr. Yu, who got help from Brent Paraiso’s 25-point performance, 23 of which came in the first half. — Joey Villar

US wins Presidents Cup; International goes down fighting

TEAM US showing their trophy. — REUTERS

CHARLOTTE, NC — The United States was forced to work harder than expected to earn a ninth consecutive Presidents Cup on Sunday, taking down a scrappy International team that vowed to fight until the final bell.

Robbed of top players who defected to the Saudi-backed LIV Golf Series, the depleted Internationals were expected to be easy pickings for an American squad packed with nine players in the world’s top 15.

But the biennial showdown was far from the blowout predicted ending in a respectable 17-1/2 to 12-1/2 scoreline.

“They were fighting. Man, they were fighting,” said International captain Trevor Immelman. “I hope fans out there really do appreciate.

“These guys have got massive hearts. Massive hearts.

“And I’ll go to battle with them any day.”

The Internationals, with a record eight Presidents Cup debutants in their 12-man squad, kept the outcome in doubt until late into Sunday’s singles when Xander Schauffele beat Canada’s Corey Conners 1-up to register the winning point.

Needing 4-1/2 points from 12 singles matches to reach the winning total of 15-1/2, the US got the job done with five contests to spare sparking early celebrations among the 40,000 mostly American supporters at the Quail Hollow Club in Charlotte.

“We just wanted to get it done,” said Mr. Schauffele. “It’s always hard to win.

“It’s not about me, you know.

“Everyone else got their points up on the board.”

“It was close. It was stressful.”

Unable to match the US depth and quality Mr. Immelman challenged his player to go down fighting a call to action they took to heart.

What had looked like a rout after the US steamrolled through the opening two sessions on Thursday and Friday turned into a tight contest after the Internationals hit back in stunning style on a marathon Saturday, splitting the morning foursomes (2-2) and then taking three of four points in the afternoon fourballs.

While it was an inspiring performance from the Internationals, they still entered Sunday’s singles facing a daunting challenge of overhauling a US team with a comfortable four-point edge.

Still, the Internationals had the momentum going into the day, having planted the seeds of concern in the heads of their opponents, some of whom were spotted on the practice green late into the evening working on their putting under golf cart lights.

No one was more aware of the dangers lurking than US captain Davis Love III, who was also leader of the American squad at the 2012 Ryder Cup at Medinah when the Europeans climbed out of a similar four-point hole on the final day to snatch the trophy in what is still regarded as one of the greatest comebacks in golfing history.

I’ve been a part of, unfortunately, a lot of losing teams,” said Mr. Love. “There was a lot of different reasons to have pressure.

“But being the big, big, big favorite carries a little bit of weight. I’m glad they ignored it and just played great.”

Not wanting a repeat of that, Mr. Love opted to go for the early knockout top-loading his lineup with his best performers.

Justin Thomas and Jordan Spieth, who formed a perfect partnership going 4-0-0, were at the top of the order.

Thomas, who won his first of two PGA Championships at Quail Hollow in 2017, was first off to chants of “USA, USA” taking on South Korea’s Kim Si-woo.

But it was multiple major winner Mr. Spieth putting the first American point on the board the three-time major winner easing to a 4&3 win over Australian Cam Davis.

In the end, the early hole the Internationals had dug for themselves proved too big to escape Tony Finau taking down Canada’s Taylor Pendrith 3&1 to put the US on 14-1/2.

That left it to Olympic champion Mr. Schauffele to seal the deal, who drained a six-foot par putt on the 18th hole to clinch the Cup. — Reuters

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