A SUPERMARKET-DEPARTMENT store was ordered closed by authorities for operating since 2012 without a wastewater clearance and discharge permit. The Laguna Lake Development Authority and Pasig River Coordinating and Management Office, following an inspection in January this year, said the establishment had been directly discharging untreated wastewater to the public drainage leading to Estero de Valencia, which leads to the Pasig River.
PEOPLE line up inside the Quezon City Science High School on Sept. 20 as they await their turn to register at a Commission on Elections (Comelec) office nearby. Comelec has said that there will be no extension to the Sept. 30 deadline for registration nationwide. The filing of certificates of candidacy starts Oct. 1.
THE DEPARTMENT of Information and Communications Technology (DICT) has asked Congress to clarify through the agency budgets which organization is ultimately responsible for directing the effort to digitize government processes.
Testifying before the Senate in a budget hearing, Undersecretary Emmanuel Rey R. Caintic said the DICT has encountered resistance from various agencies when it sought to coordinate the digitization program, and asked for clarification of its authority by giving it much of the funding for digitization.
The DICT’s Palace-approved proposed budget for 2022 is P9.06 billion. The department had originally proposed P34.63 billion.
If budgets for remaking government processes are to remain with the individual agencies, Mr. Caintic asked that the DICT be provided “more power to intervene and hold (agencies) to account for where that ICT (information and communications technology) connectivity budget is being applied.”
He added that under the current arrangements, its interventions are viewed as unwarranted intrusions on decision-making by the individual agencies.
Senator Francis N. Tolentino noted during the hearing Monday “the apparent non-cooperation or inability of other agencies to realize and comprehend that they should coordinate with DICT.”
In some cases, the DICT’s role has been limited to improving the internet connection, because the individual agencies tend to hire their own information technology personnel, Secretary Gregorio B. Honasan II said at the hearing, but when problems arise, the DICT is the first to be blamed.
Senator Maria Lourdes Nancy S. Binay-Angeles said there appear to be “turf wars” surrounding the digitization effort, adding that the DICT “should always be on top of digital technology under the government because they are the ones with the core competence.”
She added that other departments should always obtain clearance from the DICT on their digitization initiatives.
Mr. Honasan said that appreciation for connectivity was limited within the government, adding that vested interests may be throwing obstacles in front of efforts to streamline government processes.
“We want to digitize, but there are some groups who don’t want this to happen,” he said.
“How we wish the DICT to lead instead of supporting,” said Mr. Caintic, noting the need for the Congress to clarify the department’s role. — Alyssa Nicole O. Tan
LEGISLATORS unanimously approved on Monday a House bill on third reading which seeks to make the creative industry more competitive in Southeast Asia.
Voting 175-0 with 0 abstentions, the chamber approved House Bill 10107, or the proposed Philippine Creative Industries Development Act, on third reading.
The measure seeks to establish the Philippine Creative Industry Development Council under the Department of Trade and Industry that will be responsible for promoting the development of creative content and protecting creators from intellectual property rights encroachment.
The council will have 17 members, nine from the private sector and eight from various government agencies. It will draft a Philippine Creatives Industries Development Plan.
The bill, if passed, will also establish a Creative Industry Development Fund for research and development, and trade promotion. It will set up one-stop registration centers for micro, small, and medium creative enterprises to avail of government services.
The following creative industries are covered by the bill: audio and audiovisual media; digital interactive media; creative services; design; publishing and printed media; performing arts; visual arts; traditional cultural expressions; and cultural sites.
The bill was approved by the House Committees on the Creative Industry and Performing Arts, Appropriations, and Ways and Means on Aug. 30 and was passed on second reading Sept. 13.
The measure was declared a priority measure by Speaker Lord Allan Jay Q. Velasco at the opening of the third regular session on July 26. It was also supported by business groups such as the American Chamber of Commerce of the Philippines.
“As more and more creatives are able to break through with their God-given talent, strong governmental support can really turn the tide for the sector and allow our creative industries to reach their full potential,” he said in a statement Monday.
A counterpart bill is currently pending at committee level in the Senate. — Russell Louis C. Ku
LEGISLATORS from the minority Makabayan bloc filed a wealth tax bill in the House Monday for individuals with taxable assets of over P1 billion.
House Bill 10253 or the proposed Super-Rich Tax Act of 2021 will impose a tax of 1-3%, depending on the extent the assets exceed P1 billion.
As drafted, the bill proposes a 1% rate on taxable assets exceeding P1 billion; a 2% rate on assets above P2 billion; and a 3% rate on assets above P3 billion.
The bill proposes an effectivity date for the tax of Jan. 1, 2022, if passed.
Revenue from the tax is to be used for medical assistance and investment in education, employment, social protection, and housing for poor families.
“This tax would further help shift the burden away from regressive consumption taxes towards the handful of the wealthiest who are capable of contributing more,” according to the bill, whose proponents are mainly from party-list organizations in Congress.
According to Forbes, the 50 richest families and individuals in the Philippines saw their collective wealth rise 30% to $79 billion (P3.94 trillion) during the pandemic. — Russell Louis C. Ku
THE INSURANCE Commission has ordered car insurers to sell coverage that aligns with the automobile’s registration date, in order to make registration transactions more streamlined.
Insurance Commissioner Dennis B. Funa issued Circular Letter No. 2021-54 on Sept. 16 laying out the rules for synchronizing registration dates with the start of coverage periods.
The circular requires insurers to align the coverage period of all motor car insurance policies containing compulsory third-party liability insurance (CTPL) cover with the month the car’s registration. The rule applies for both stand-alone CTPL or comprehensive motor car insurance with CTPL provisions.
“The circular aims to ensure efficiency in the registration or renewal of registration of motor vehicles, as well as to avoid redundancy in the coverage of motor car insurance policies,” Mr. Funa was quoted as saying.
CPTL is a prerequisite for registering a vehicle with the Land Transportation Office. Comprehensive insurance is not mandatory but offers more options for car protection.
Mr. Funa said the new guidelines were drafted in response to the concerns raised by the Anti-Red Tape Authority, which noted the possibility of a car covered with a comprehensive policy having to be covered with a CTPL if coverage periods are not aligned. — Beatrice M. Laforga
SAN MIGUEL Holdings Corp. and its partner Philippine National Construction Corp. are set to sign a supplemental toll operations agreement with the Toll Regulatory Board (TRB) today, Sept. 21, for the 19.37-kilometer Pasig River Expressway (PAREX).
The Department of Transportation announced the signing in an advisory. The agreement will be concluded more than a year after the TRB declared the P95.40-billion elevated expressway project a toll road.
The road is intended as a direct link between western and eastern Metro Manila.
PAREX is a six-lane, all elevated expressway traversing the river, which runs from Rizal to Manila Bay.
“The project starts from Radial Road 10 (R-10) in the City of Manila and shall terminate at a connection to the South East Metro Manila Expressway at Circumferential Road 6. The Project will connect and utilize a 2.7-kilometer portion of Skyway Stage 3 from Nagtahan to Plaza Azul,” the Department of Public Works and Highways said on its website.
The expressway is expected to aid in decongesting R-10, Epifanio de los Santos Avenue, and Circumferential Road 5 by providing connectivity among toll roads and freeways of the capital.
In January, San Miguel Corp. President Ramon S. Ang said in a statement that the project “can be completed by 2023.”
Former TRB Executive Director Abraham P. Sales said in August last year that the construction of the project was being targeted to start within the remaining two years of the government’s term. — Arjay L. Balinbin
THE DEPARTMENT of Agriculture (DA) said it created a greenhouse gas team to review the greenhouse gas emissions of the livestock sector.
DA Special Order No. 683 signed on Sept. 17 formed the team, which is tasked with studying ways to reduce the industry’s greenhouse gas emissions.
“In support of the implementation of the Philippine Nationally Determined Contribution (NDC) commitment of 75% projected cumulative greenhouse gas emission reduction and avoidance from the business-as-usual scenario submitted to the United Nations Framework Convention on Climate Change (UNFCCC) on February 2021, the DA Greenhouse Gas Team for the Livestock Sector is hereby created,” Agriculture Secretary William D. Dar said in the order.
According to the US Environmental Protection Agency, cattle produce methane during their digestive processes. It added that the manner of managing manure from livestock has an impact on methane and nitrous oxide emissions.
In April, President Rodrigo R. Duterte approved the country’s first NDC, part of a broader effort to reduce greenhouse gas emissions by 75% by 2030.
The Philippine NDC is part of its commitment under the Paris Agreement on Climate Change, which aims to keep the rise in global temperature to 1.5 degrees Celsius. — Revin Mikhael D. Ochave
Having connections with a wide array of business partners can go a long way to help your business survive, expand, or even thrive. With work-from-home setups in place, the use of technology is bringing global businesses or entities together in a smaller circle. One way or another, you may find your company associating with a non-resident foreign corporation (NRFC).
As a taxpayer, what should you look out for when dealing with NRFCs? Let’s have a quick look at some of them.
First, an NRFC is taxable on its income from Philippine sources. If you deal with them, take note that for such income, you are responsible for withholding taxes thereon. An NRFC is generally taxable at 25% final withholding tax (FWT) and at 12% final withholding value-added tax (FWVAT). It is vital that you, as the withholding agent, perform your role, as the Bureau of Internal Revenue (BIR) can run after you, and not after the NRFC, to check up on your withholding tax compliance. Failure to comply may result in deficiency tax assessments and penalties.
Second, there are tax treaty preferential rates and exemptions from FWT available to NRFCs to address the issue of double taxation between a foreign jurisdiction and the Philippines. Guidelines and procedures have been issued by the BIR to streamline the availment of tax treaty benefits under Revenue Memorandum Order (RMO) No. 14-2021.
The application for tax treaty rates may be more beneficial in cases of NRFCs that regularly transact with Philippine companies, or in cases of NRFCs that, although occasionally, transact with Philippine companies in huge amounts. In these cases, if you were a Philippine entity transacting with an NRFC, you may want to initiate the discussion with the NRFC to help reduce the tax cost of the transactions.
In availing of tax treaty benefits, your company, as the withholding agent, may file with the International Tax Affairs Division (ITAD) of the BIR a request for confirmation on the correctness of the preferential withholding tax rates applied. As clarified under Revenue Memorandum Circular (RMC) No. 77-2021, the request for confirmation is to be filed any time after the transaction for capital gains and any time after the close of the taxable year for other types of income but not later than the last day of the fourth month following the close of the taxable year. On the other hand, for those income payments to NRFCs in 2020 and prior years but with no previous tax treaty relief application nor a previous certificate of residence for tax treaty relief, the filing of request for confirmation should be done on or before the last working day of the year.
Third, an NRFC may possibly be a related party. As such, you could face transfer pricing issues. The past few years have seen developments in the transfer pricing guidelines and requirements in the Philippines. Certain taxpayers are required to file information returns disclosing all their related party transactions (RPTs), while others are even further required to have their own transfer pricing documentation (TPD). You must be particularly aware of Revenue Regulation (RR) No. 2-2013, Transfer Pricing Guidelines, Revenue Audit Memorandum Order (RAMO) No. 1-2019, Transfer Pricing Audit Guidelines, and other related BIR issuances to avoid possible disputes with the agency in future BIR audits.
In a BIR audit involving transfer pricing issues, should you have been found to have charged revenue to your NRFC-related party below the arm’s length standard, the BIR may come to a finding of additional taxable income. On the other hand, for related party expenses which are found to be above the arm’s length standard, the BIR may disallow your deductions or portions of your deductions to arrive at an income tax deficiency assessment.
Further, another item to look out for is when your revenue for services rendered to NRFCs is subject to zero-rated value-added tax (VAT). In qualifying for VAT zero-rating, some taxpayers fail to observe the requirements provided under the Tax Code and other relevant VAT issuances. Some of the requirements pertain to the proof of inward remittances of foreign currencies and proof of non-residency of the NRFCs. At a glance, these requirements seem simple enough. However, they are often overlooked by taxpayers due to the tediousness of obtaining and monitoring the needed documents. Nonetheless, preparedness beats the possible hassle come BIR audit in the future. Thus, ensure that you maintain the proper documentation to support your VAT zero-rated revenue transactions.
Indeed, the advent of modern technology and enhanced online communication platforms have further made networking easier. Despite the miles, connecting with NRFCs has become simpler and thus, more global transactions are expected to transpire. Winning international business proposals and securing contracts, or even becoming part of a multinational group, may be the main reasons for connecting with NRFCs, and it would also be prudent to know how to deal with them taxwise.
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.
Ajeth A. Calabano is a senior in-charge of Tax Advisory & Compliance division of P&A Grant Thornton, the Philippine member firm of Grant Thornton International Ltd.
By Michael Angelo S. Murillo, Senior Reporter
THE Philippine Basketball Association (PBA) Philippine Cup is now down to the final week of elimination play at the Don Honorio Ventura State University Gym in Bacolor, Pampanga, and it is set to be a competitive one with the final positioning in the playoffs still needs to be settled.
As things stand after Sunday’s matches, the TnT Tropang Giga (10-1) are already assured of the top seed in the quarterfinals and will enjoy a twice-to-beat advantage over the number eight team while the Blackwater Bossing (0-11) are already eliminated from the running.
The Meralco Bolts (7-2), Magnolia Hotshots Pambansang Manok (8-3), San Miguel Beermen (6-4), and Rain or Shine Elastopainters (6-5) are already qualified for the next round.
Meralco has the inside track for the number two seed and the twice-to-beat incentive that goes with it with two matches left in its schedule. If it sweeps or splits its remaining games it claims the number two spot since ending up tied with Magnolia it will take the tie-break having beaten the Hotshots in the eliminations.
But if unfortunately the Bolts lose back-to-back this week, they drop to third spot and will battle the number six team in a best-of-three quarterfinal series.
The bottom half though has been rendered tricky.
Six teams are still in contention for the remaining three quarterfinal spots, namely: Northport Batang Pier (5-5), NLEX Road Warriors (5-5), Barangay Ginebra San Miguel Kings (4-6), Phoenix Super LPG Fuel Masters (4-7), Terrafirma Dyip (4-7), and the Alaska Aces (3-6).
The Batang Pier, Road Warriors and Kings have a game each left in the elimination round while the Aces have two.
Phoenix and Terrafirma have finished their elimination assignments and are just waiting the final standings to know their fate.
If Northport and NLEX win their matches they automatically book a spot in the quarterfinals, but it is going to be easier said than done as they will take on teams which are looking to solidify their positions as well in the next round.
Northport will play Alaska and NLEX takes on Meralco. If the Batang Pier and Road Warriors wind up losing all is not lost for them, but it will more complicated as they can easily drop to the eight spot and have to play for their playoff lives.
Barangay Ginebra, for its part, has to win against Meralco in its last game to fan its push for the tailend of the playoff picture. With five wins, the defending champion earns at least a playoff for the eighth spot in the quarterfinals if not direct entry to the next phase.
In the event it falls to a three-way tie with Phoenix and Terrafirma at 4-7, the Kings and Fuel Masters battle for the final spot on the strength of a better quotient over the Dyip.
If the Kings do not manage to enter the quarterfinals, however, they will become the first defending champion not to advance to the playoffs in its title-defending season since the Shell team in 2000.
Alaska, meanwhile, needs to win in its last two matches to be on a firmer footing to assert its claim for a spot in the quarterfinals.
After the elimination round, the eight remaining teams slug it out in the quarterfinals with the top teams having a twice-to-beat advantage over teams eight and seven, respectively, while #3 and #6 and #4 and #5 collide in a best-of-three series.
The semifinals and the finals will be a best-of-seven affair.
The PBA will release the schedule of matches this week on Tuesday.
FILIPINO cue artist Carlo Biado added a significant cap to his stellar career by winning the US Open Pool Championship title, something he attributes to his experience playing in top-level competitions and having a go-getting mindset.
Speaking to Radyo Pilipinas 2 following his victory in the prestigious US nine-ball tournament, 13-8, over Singapore top player Aloysius Yapp on Sunday, 37-year-old Mr. Biado said he is happy to have claimed one of his dream titles and thankful for the opportunity given to him.
The Nueva Ecija native showed unflappable grit and determination to buck being down, 3-8, at one point early in the championship match and turn things around en route to the huge victory over Mr. Yapp in the competition held from Sept. 13 to 18 at the Harrah’s Resort in Atlantic City.
With the win, he became the first pool player from the Philippines to win the prestigious tournament since Filipino legend Efren “Bata” Reyes in 1994.
Mr. Biado pocketed the top prize of $50,000, or around P2.5 million.
“When I went down 3-8, I did not lose hope. I said to myself once I get the break, I will take full advantage of it. So I stayed relaxed and played my game,” said Mr. Biado in Filipino of his mindset during the final.
“I think it helped as well that I have played in high-level competitions against the best players in the world and knew how to handle it,” added the Philippine bet, who also won the world nine ball championship in 2017.
He went on to share that initially he had second thoughts of going to the United States, but in consultation with his wife, he made the decision to proceed and play abroad.
“My wife urged me to go here and play since there was not much action happening in the Philippines because of the pandemic. Good thing I followed her advice,” Mr. Biado said.
In the US Open, the path was not easy for Mr. Biado, which saw him hit a setback early on, falling to the loser’s bracket in preliminary play after losing to Spain’s David Alcaide Bermudez.
It was a wake-up call for him, and from there he worked on his game and made the necessary adjustments.
He was able to exact payback on Mr. Bermudez, defeating the latter, 11-10, in the last 16. Mr. Biado then edged out compatriot Johann Gonzales Chua, 11-10, in the quarterfinals, and Japanese Naoyuki Oi, 11-9, in the semifinals.
Against Mr. Yapp in the final, Mr. Biado found the going tough at the start as the Singaporean raced to an 8-3 advantage.
In the 12th game, he was given an opening when Mr. Yapp missed the nine ball which could have extended the latter’s lead further.
From there, Mr. Biado won 10 straight racks to complete the come-from-behind win.
“This is one of the toughest events I’ve competed in. It presented a different challenge. Competition was very crowded,” Mr. Biado said.
Mr. Biado and his wife will stay for another week in the States before coming back to the country after four months of being away.
He is currently contemplating whether to compete in the US International Open in Virginia in October.
Mr. Biado, also a Southeast Asian Game gold medalist, also expressed his readiness to represent the national team in international competitions in the future. — Michael Angelo S. Murillo
HAVING done professional wrestling for half a decade now and accomplished quite a lot in the process, World Wrestling Entertainment (WWE) star Matt Riddle shared that he is not about done and more is in store from him.
Speaking to Filipino sports journalists in a round table discussion last Thursday, 35-year-old Mr. Riddle, the Original Bro, said he is enjoying what he is doing and is thankful for the opportunity that the WWE has given him.
“You know, I think it’s still the beginning of my run and I think I have done a lot of great stuff, a lot of cool things. I’ve been the United States champion already and now I’m RK-Bro with Randy Orton and we’re the current WWE RAW Tag Team Champion. I mean, the crowd is loving it, I’m loving the reaction we’re getting. I’m pretty juicy about how everything is going so far, but I’m always wanna shoot for the stars,” the former Ultimate Fighting Championship (UFC) fighter-turned-pro wrestler said.
“I love working at WWE. I’ve loved every opportunity… I love it all. I really enjoy my job. I couldn’t be more happy working for the WWE. I’m stoked,” he added.
Mr. Riddle made his pro wrestling debut in February 2015, but before that he spent time doing mixed martial arts (MMA) in the UFC and Titan Fighting Championship, compiling an overall record of eight wins and three losses.
He said he enjoyed his time doing MMA and believes “I’m really good at it,” but it is in pro wrestling that he has found his true passion.
“What goes on with me is it’s real, it’s natural, I’m really enjoying myself and I think it’s contagious,” said Mr. Riddle, one of the fan favorites in RAW.
And the learning continues for him, especially from tag team partner and veteran Randy Orton, something he said he looks forward to moving forward.
“Working with Randy, I’ve learned a lot in a short amount of time. The one thing I learned is Randy is extremely cool and laid back. In a sense, I’m kind of like that. But Randy, even though he’s been doing this for years he still makes sure he takes care of every little thing he has to take care of every single week. He doesn’t make mistakes and even when he does, you can’t tell because he’s Randy Orton,” he said.
Adding, “That’s something I’ve learned. Just being in the moment, doing the right thing, and just crossing those T’s and dotting those I’s. Make sure you don’t leave any loose ends.”
RK-Bro won the RAW Tag Team Championship in SummerSlam in August, beating AJ Styles and Omos.
For more information on the WWE, please wwe.com or follow WWE on its social media pages: Facebook (facebook.com/WWE) | Twitter (twitter.com/WWESEAsia). — Michael Angelo S. Murillo
