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Alec Baldwin was aiming at camera when gun discharged — affidavit

Alec Baldwin in Live from New York! (2015)

SANTA FE, N.M. — Alec Baldwin was drawing a revolver across his body and pointing it at a camera during rehearsal on the set of Rust when the weapon fired and struck the cinematographer in the chest, according to an affidavit released on Sunday.

The affidavit provided additional details about Thursday’s accidental shooting in New Mexico that killed 42-year-old Halyna Hutchins and wounded director Joel Souza. Mr. Baldwin had been handed the prop gun and told it was unloaded, authorities in Santa Fe have said in court documents.

“Joel stated that they had Alec sitting in a pew in a church building setting, and he was practicing a cross draw. Joel said he was looking over the shoulder of (Ms. Hutchins), when he heard what sounded like a whip and then loud pop,” the affidavit read.

Ms. Hutchins was shot in the chest area, the document said.

“Joel then vaguely remembers (Ms. Hutchins) complaining about her stomach and grabbing her midsection. Joel also said (Ms. Hutchins) began to stumble backwards and she was assisted to the ground,” the affidavit adds.

Ms. Hutchins said she could not feel her legs, Reid Russel, a cameraman who was standing next to her at the time of the shooting, told officials.

A distraught Mr. Baldwin, 63, was photographed on Saturday outside a hotel in Santa Fe embracing and talking with Matt Hutchins, the husband of Halyna Hutchins, and their nine-year-old son. In a statement read to a candlelight vigil on Saturday, Mr. Hutchins called his wife’s death “an enormous loss.”

No one has been charged in the fatal incident during a rehearsal on Thursday at the Bonanza Creek Ranch outside Santa Fe as the sheriff’s office continues its investigation.

Multiple media and social media reports have raised concerns about safety protocols on the set of the low-budget movie. Both Mr. Souza and Mr. Russel described a walk-out by a camera crew before the accident.

“Reid stated that the camera crew was having issues with production involving payment and housing,” the affidavit reads, adding that Mr. Russel had said six individuals had walked out.

Serge Svetnoy, chief electrician for Rust, said in a Facebook post on Sunday that he had held Ms. Hutchins in his arms while she was dying and blamed “negligence and unprofessionalism” for her death.

Celebrity website TMZ.com, citing unidentified sources connected to the production, said the gun handed to Mr. Baldwin had previously been used by crew members for target practice off-set, using real bullets.

Reuters could not verify the report and police in Santa Fe did not respond to inquiries on Sunday.

According to the Los Angeles Times, more than a week ago Mr. Baldwin’s stunt double accidentally fired two rounds from a prop firearm after being told it was “cold,” an industry term meaning a weapon is not loaded with ammunition, including blanks.

Rust Movie Productions said last week that although they “were not made aware of any official complaints concerning weapon or prop safety on set, we will be conducting an internal review of our procedures while production is shut down.”

According to court documents, the prop gun was handed to Mr. Baldwin by the film’s assistant director, Dave Halls, who has more than 20 years’ experience in the business.

Mr. Halls did not respond to requests for comment on Sunday. Also involved in the sheriff’s probe is the movie’s chief armorer, Hannah Gutierrez. She could not be reached for comment. —  Reuters

Court acquits GMA execs accused by ABS-CBN of copyright infringement

LISTED broadcast company GMA Network, Inc. announced on Monday that a Quezon City regional trial court had acquitted its two executives of copyright infringement charges filed by ABS-CBN Corp.

“The Quezon City Regional Trial Court (RTC) Branch 93 acquitted Grace Dela Peña-Reyes and John Oliver T. Manalastas, who were then GMA Network’s news operations head and news program manager, respectively,” the media company said in an e-mailed statement.

ABS-CBN filed a copyright infringement complaint against GMA in 2004 for the latter’s coverage of the homecoming of overseas worker and hostage victim Angelo dela Cruz that year.

“ABS-CBN allowed Reuters Television Service (Reuters) to air the footages it had taken earlier under a special embargo agreement,” the Court of Appeals said in its summary, as cited by the Supreme Court in a 2015 decision, where ABS-CBN’s petition to sue Ms. Dela Peña-Reyes and Mr. Manalastas was granted.

GMA said the complaint stemmed from the “alleged unauthorized and illegal use and broadcast of ABS-CBN’s footage.”

“In the Sept. 29, 2021 decision penned by Presiding Judge Arthur O. Malabaguio, the court sided with Dela Peña-Reyes and Manalastas, citing ‘the failure of the prosecution to prove their guilt beyond reasonable doubt,’” GMA said.

“GMA’s use of the said footage was done under a valid subscription agreement with Reuters and CNN, which allows it to air and re-broadcast these video feeds,” GMA also said, citing Ms. Dela Peña-Reyes and Mr. Manalastas.

ABS-CBN was sought for comment through its head of corporate communications. — Arjay L. Balinbin

SMDC holds live-selling events

SM DEVELOPMENT Corp. (SMDC) is now holding online live selling events for its ready-for-occupancy (RFO) units, tapping celebrities such as Sarah Geronimo-Guidicelli and Alex Gonzaga to entice new customers.

In a statement, SMDC said customers can go on a virtual tour of its residential communities on its Facebook and YouTube channels.

“Say Mine to Your Dream Condo — a RFO digital selling event, which will be aired every weekend of October and November, allows home hunters to tour SMDC properties, as well as score amazing deals for their new SMDC unit,” the developer said.

The live-selling show features five developments — Trees Residences (Novaliches, Quezon City), Air Residences (Makati), South Residences (Las Piñas), Grass Residences (Quezon City), and Fame Residences (Mandaluyong).

DMCI Homes unveils new features in QC project

DMCI PROJECT DEVELOPERS, Inc. (DMCI Homes) said it is introducing new features in its new condominium development along Aurora Boulevard, Quezon City.

The residential arm of listed DMCI Holdings, Inc. said for The Oriana, customers may choose a unit with a daybed, an alternative to units with balcony that it usually offers.

“Units with daybed are ideal for those who intend to use the dynamic piece of furniture as an extension of their bedroom. Aside from maximizing the living space, the daybed concept creates an illusion of protrusions in The Oriana’s facade, providing some variety to the texture and profile in the building design,” DMCI Homes said in a statement.

Units at the Oriana’s North Tower will be ready for occupancy by April 2026.

The Oriana will also have a garbage chute feature; provision for split-type air-conditioning unit; a flexible coworking space; among others.

It will also have a Sky Bridge that will connect the two towers, so residents can share roof-deck amenities. There are also plans to have a community shuttle service for residents.

BDO’s net income down 10.6% in Q3

BW FILE PHOTO

BDO Unibank, Inc. recorded a lower net profit in the third quarter due to increased expenses and as its net interest income slipped amid lower rates.

The bank’s net earnings in the July to September period went down by 10.6% to P11.033 billion from P12.346 billion a year earlier, based on its quarterly financial report released on Monday.

This brought BDO’s net income for the first nine months to P32.484 billion, jumping 95.7% from the P16.598 billion logged in the same period in 2020. The bank said in a statement that its profit for the period was back to its pre-pandemic level on the back of its “resilient business franchise and normalized provisions.”

Return on average common equity improved to 10.72% as of end-September from 5.97% a year earlier. Return on assets also rose to 1.26% from 0.68%.

BDO’s net interest income slipped by 0.96% to P33.108 billion in the third quarter from P33.43 billion in the same period a year ago, its financial statement showed.

The bank attributed the drop to the decline in lending rates as well as the cap on credit card fees. Net interest margin stood at 4.05% as of end-September from 4.36% a year earlier.

Interest income on loans and other receivables dropped by 8.18% to P31.192 billion in the third quarter from P33.972 billion a year earlier.

However, this was partially offset by its interest earnings from trading and investment securities, which improved by 31% to P5.067 billion from P3.86 billion.

Meanwhile, BDO’s non-interest income in the July to September period increased by 20% to P14.778 billion from P12.332 billion. This was backed by higher commission fees, foreign exchange gains, and insurance premiums, which offset the bank’s net loss from trading.

On the other hand, operating expenses rose 7% year on year to P29.914 billion in the third quarter from P27.951 billion, driven by higher compensation and occupancy expenses as well as the increase in costs related to its insurance business.

“The bank sustained investments in its IT/digital infrastructure and expanded its digital capabilities to further elevate customer experience and raise productivity,” BDO said.

The bank set aside P3.659 billion for impairment losses in the third quarter, surging by 162% from the P1.392 billion a year ago. However, as of end-September, these provisions were 56% lower year on year at P10.44 billion from P23.826 billion.

Loans stood at P2.365 trillion as of end-September, with customer credit starting to pick up, BDO said. Its gross nonperforming loan (NPL) ratio was at 3.1% and its NPL coverage ratio was at 101% in the same period.

On the funding side, total deposits reached P2.734 trillion as of end-September. BDO said its current account, savings account deposits rose 14% year on year, making up 85% of the total.

The bank’s capital base stood at P422.3 billion as of September, with its common equity Tier 1 well above the regulatory requirement at 13.8%. Capital adequacy ratio was also higher than the regulatory requirement at 14.87%, up from 14.34% a year prior, amid increased capital that outpaced growth in risk-weighted assets.

BDO has over 1,500 branches and 4,400 automated teller machines nationwide.

The Sy-led lender’s shares went up by P1 or 0.78% to close at P129 apiece on Monday. — Luz Wendy T. Noble

Competition body ‘not notified’ of Udenna-SPEx deal

THE Philippine Competition Commission (PCC) on Monday said it was not notified of the deal between a unit of Udenna Corp. and Shell Philippines Exploration B.V. (SPEx), which holds a 45% stake in the Malampaya deepwater gas-to-power project.

“In Udenna’s transaction to take over controlling stake in Malampaya from Shell this year, this was not notified to PCC due to the increase in notification threshold to P50 billion under the Bayanihan II,” PCC Chair Arsenio M. Balisacan said in an emailed statement on Monday.

However, the PCC said it was notified of the deal between another Udenna unit and Chevron Malampaya LLC, which earlier sold its 45% stake in the offshore Palawan project.

In May this year, Shell Petroleum N.V said that it had signed with Udenna unit Malampaya Energy XP Pte. Ltd. for the sale of its 100% shareholding in SPEx, which holds a 45% operating interest in Service Contract (SC 38) that includes the Malampaya gas field.

The deal — valued at a base consideration of $380 million plus additional payments of up to $80 million — is in line with group’s upstream portfolio transition. The transaction’s effective date started on Jan. 1, 2021.

The other firms with interest in SC 38 are Udenna unit UC38 LLC with 45%; and state-led Philippine National Oil Co. Exploration Corp. (PNOC-EC) with 10%. UC38 acquired its stake in March last year from Chevron.

Mr. Balisacan added that the body also only looks at the competition side of transactions and defers other aspects, such as firms’ capability to operate, to sector regulators.

As such, he said the PCC “found no competition issue” in the transaction of Udenna to buy all the shares of Chevron as “Udenna was not engaged in the natural gas business.”

The statement came after Senate energy committee chair, Senator Sherwin T. Gatchalian, held that the Energy department’s approval of the deal between Udenna and Chevron was “defective” and is therefore “invalid.”

In the Senate energy committee’s budget hearing on Thursday, Mr. Gatchalian again questioned the said deal between Udenna and Chevron as under Presidential Decree 87, sale transactions involving oil exploration require prior approval from the government, which in this case is the DoE.

The DoE had earlier claimed that it was not informed of the transaction and that it did need to approve the agreement as it was an agreement between two private companies.

However, during the hearing on Thursday, Energy Secretary Alfonso G. Cusi said the DoE did approve the sale through a “farm-in process,” but Mr. Gatchalian said the new process used was not stated in any of the documents submitted by the DoE on the Malampaya buyout.

The Malampaya gas field covers an area of about 830 square kilometers. It provides up to 20% of the Philippines’ energy requirements and reduces its oil imports. — Bianca Angelica D. Añago

2GO Travel says 5 destinations grant easier entry to fully vaccinated passengers

2GO Group, Inc.’s 2GO Travel said the cities of Bacolod, Butuan, Cagayan de Oro, Iloilo, and the province of Cebu are now granting entry to fully vaccinated travelers without the need for reverse transcription-polymerase chain reaction (RT-PCR) tests.

“Fully vaccinated passengers bound for Bacolod, Butuan, Cagayan de Oro, and Iloilo can easily apply for their travel coordination permit via S-PaSS,” 2GO Travel said in a statement e-mailed to reporters recently.

S-PaSS is a travel management system developed by the Department of Science and Technology.

“Meanwhile, all passengers are welcome to Cebu province by simply presenting a medical certificate issued within 24 hours before arrival,” 2GO Travel added.

It also launched a P99 promo inclusive of 50-kilogram baggage allowance and free unlimited rebooking.

2GO Travel announced recently that it was offering a “free room upgrade” to fully vaccinated individuals.

“[2GO believes] that the key to local tourism recovery is for us to achieve herd immunity by getting vaccinated,” it said in an advisory.

2GO Travel is 2GO Group’s brand for its passage business. — Arjay L. Balinbin

Squid Game mania has shoppers snapping up Vans’ white slip-on shoes

Netflix

WHITE slip-on shoes are becoming a hot commodity thanks to the wildly popular South Korean survival drama Squid Game, with sneaker maker VF Corp. reporting a small increase in demand for its Vans brand.

The series, which became a global sensation and the No.1 program on Netflix, shows hundreds of cash-strapped players competing in hyperviolent games, sporting shoes resembling Vans’ all-white slip-ons.

“We saw a nice spike — well, I’d call it a small spike, but I’ll promise this is not a damned annual event,” VF Chief Financial Officer Matt Puckett said on Friday, adding the apparel maker would use this moment to build on Vans’ connection to pop culture.

VF Corp. missed Wall Street estimates for quarterly revenue and profit on Friday due to global supply chain disruptions and production shortfalls in Vietnam.

The “Made in Korea” green tracksuits and pink boiler suits worn by characters in the show have proven a pre-Halloween bright spot for the South Korean garment industry struggling during the health crisis. — Reuters

NGO flags non-compliance with lead paint phase-out

INDUSTRIAL PAINTS with high lead concentrations remain available on the market despite a phase-out of the products starting last year, a non-government organization (NGO) said.

“As some of the extremely leaded industrial paints found were produced during the phase-out period, we urge concerned manufacturers to initiate a systematic retrieval of such paints to stop their sale and use,” EcoWaste Coalition Chemical Safety Campaigner Thony Dizon said in a statement Monday, citing a study conducted by the coalition with Sweden’s International Pollutants Elimination Network (IPEN) on 68 solvent-based industrial paints.

The study found that 21 bright-colored paints or 31% of the sample contained lead concentrations above the maximum limit of 90 parts per million (ppm) stipulated as the ceiling by Department of Environment and Natural Resources Administrative Order 2013-24.

Of the 21 paints, 13 contained extremely high levels of lead concentration at or above 10,000 ppm. The highest concentration was at 220,000 ppm detected in a yellow epoxy paint.

To address the problem of lead paint, the EcoWaste and IPEN recommended that the National Government review and strengthen their monitoring and enforcement measures and conducting random inspections, penalizing manufacturers and traders that continue to produce and sell such paints.

The two groups also for support from public health groups to eradicate lead paint and for consumers to seek out paints with compliant lead levels.

“While citing different reasons why lead was detected in their analyzed products, the companies signified their commitment to abide by the country’s lead paint regulation,” EcoWaste said.

Lead is toxic when used beyond the threshold 90 ppm, harming both public health and the environment. — Bianca Angelica D. Añago

National government fiscal performance (in billion pesos)

THE NATIONAL Government’s deficit widened in September as spending outpaced a smaller increase in revenue collection, the Bureau of the Treasury (BTr) reported. Read the full story.

Sustainable houses to rise in Rejoice Village

BASE BAHAY Foundation, Inc. has partnered with humanitarian organization 4P for People to create a sustainable community for vulnerable Filipinos in Nasugbu, Batangas.

In a statement, Base Bahay Foundation said Rejoice Village will have children’s homes and affordable houses made of bamboo, agricultural infrastructure and livelihood activities.

Base Bahay Foundation General Manager Pablo Jorillo said they want to showcase the possibilities of using bamboo for different kinds of structures, and to help the community.

The first beneficiaries of Rejoice Village will be from Happyland in Tondo, Manila.

The “children’s village” or the orphanage will be built using Base Bahay’s cement bamboo frame technology. Thirty houses are also currently being built within the village. The bamboo being used for the structures are sourced and treated in Nasugbu through Base Bahay’s supply partner.

“The construction industry is one of the biggest contributors to climate change, and to create an impact, sustainability issues must be addressed. Through our partnership with 4P, we can now see a sustainable future that in-cludes better infrastructure and better living conditions for the most underprivileged members of society,” Mr. Jorillo said

Balancing WFH compliance and tax incentives for PEZA IT-BPM entities

Amid new government issuances and pandemic constraints, flexible work arrangements, especially remote work or “work-from-home” (WFH) setups as we call them, continue to be implemented by businesses. Government orders allowing only essential businesses to keep their physical locations open forced unprepared employers to adopt flexible work options on the fly.

Despite the challenges that the business sector faces today, it is refreshing to see that the information technology-business process outsourcing (IT-BPO) industry is showing growth.  IT-BPO firms are generally registered with the Philippine Economic Zone Authority (PEZA), and given the realities on the ground, the Fiscal Incentives Review Board (FIRB), under Resolution No. 19-21, approved the extension of WFH arrangements for enterprises registered with the Information Technology-Business Process Management (IT-BPM) until March 31, 2022.

The resolution was reproduced in PEZA Memorandum Circular (MC) No. 2021-049.  In the resolution, instead of the previous revenue threshold, the threshold for WFH arrangement shall now apply to the total workforce under the following conditions:

  • From Sept. 13, 2021 to Dec. 31, 2021, the total number of employees in WFH arrangements may not exceed 90%. For PEZA-registered IT enterprises, this is to be on a per-site basis;
  • Reduction to 75% of the total workforce between Jan. 1, 2022 and March 31, 2022, except in cases where the government declares a state of calamity, in which case the sector will revert to the 90% cap;

[The government has declared that the country will be under a state of calamity until Sept. 12, 2022.]

  • The number of laptops/other equipment of the RBE outside the ecozone should not exceed the number of its employees who are under WFH arrangements;
  • Bonds are to be posted for all equipment deployed by the RBE to ensure payment of taxes and duties if any such equipment is not returned to the site of the registered business enterprise after the WFH arrangement; and
  • Revenue from exports will be maintained with no reduction of workforce even with a majority of employees under WFH arrangements.

For PEZA IT-BPM entities, the above conditions mean that they will be required to maintain at least 10% of their workforce onsite while complying with the reportorial, inspection, and bond requirements corresponding to employees who are under WFH arrangements. This is different from the previous situation in which PEZA IT-BPM entities are allowed to operate 100% under WFH arrangements, although only 90% of the total revenue of their registered activity is subject to incentives.

All PEZA IT-BPM entities are expected to strictly comply, as any violation of the above conditions may result in suspension, withdrawal, or cancellation of their tax incentives.  Thus, what are at stake here include the following tax incentives:

  • Income Tax Holiday (ITH) and/or Special Income Tax rate of 5% of gross income, as applicable;
  • A special tax rate of 5% of gross income after ITH, in lieu of all national and local taxes, except real property taxes;
  • Tax-free and duty-free importation of machinery, raw materials, and equipment that are directly and actually needed and will be exclusively used for the registered operations;
  • VAT zero-rating of local purchases of goods and services, under certain conditions;
  • Exemption from wharfage dues on import shipments of equipment; and
  • Exemption from expanded withholding tax.

The management of a PEZA IT-BPM entity thus faces the need to balance the health and safety of its personnel while remaining eligible for the tax incentives. Without the incentives, the income generated by IT-BPM entities will be subjected to the 25% regular corporate income tax which could amount to millions in taxes.

According to recent news reports, PEZA IT-BPM entities and PEZA itself are still trying to appeal to the FIRB to adopt their proposal to use the revenue threshold instead of the threshold based on number of workers.

It is thought that the revenue-based threshold affords more protection to employees, as it places more importance on their health and safety. Further, with the existing threat of being infected with the COVID-19 virus, employees will be reluctant to report onsite. In addition, the implementation of the new threshold will entail major adjustments to PEZA IT-BPM entities in terms of retrofitting and/or renovation works in their offices.

On the other side of the argument, it is also thought that the return to the revenue-based threshold is not consistent with the economic strategy of the government to gradually and safely reopen the economy.

In conclusion, it appears that a balance is needed between compliance with government rules and eligibility for incentives on the one hand, and the various practical innovations the private sector has adopted to deal with the pandemic. While the IT-BPO industry is currently growing, the government should continue to work hand in hand with stakeholders to ensure that concerns regarding WFH compliance and tax-incentive eligibility are fully addressed.

 

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.

 

Leula Dianne Cantos-King is an associate of Tax Advisory & Compliance division of P&A Grant Thornton, the Philippine member firm of Grant Thornton International Ltd.

pagrantthornton@ph.gt.comç