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LT Group profit hits P6.5B 

LT Group, Inc. (LTG) reported that its attributable net income grew 0.61% to P6.53 billion in the first quarter of the year, with its tobacco business contributing the biggest share.

In a statement, the holding firm of Lucio C. Tan’s diversified investments, said its tobacco business accounted for P4.21 billion or 64% to the total.

“The industry’s volume was estimated at 15.6 billion sticks, 19% higher over the same period last year, primarily due to the easing of COVID-19-related restrictions,” LT Group said in a statement.

Despite the higher volume, the business segment’s first-quarter net income came in lower at P4.22 billion from P5.02 billion previously.

The company said that since there was no price increase implemented in 2021 and most of the first quarter, the lower profit can be attributed to the P5 increase in excise taxes that PMFTC, Inc. had to absorb starting Jan. 1, 2022.

PMFTC is the Philippine affiliate of Philip Morris International and is jointly owned by LT Group.

Meanwhile, LT Group’s banking unit contributed P1.61 billion or 25% to the total net income.

Publicly listed Philippine National Bank (PNB) reported that its net income jumped 57% to P2.86 billion. The bank’s net interest income rose by 3% to P8.53 billion while net service fees and commission income ended lower by 3% to P1.25 billion.

Tanduay Distillers, Inc. contributed 5% or P330 million to LT Group’s total earnings for the first quarter. Its net profit was up 42% to P333 million.

“Liquor volume was slightly higher while bioethanol volume had a higher growth of over 60%,” the firm added.

Eton Properties Philippines, Inc. contributed P127 million or 2% to the total. It reported a bottom line of P128 million in the first quarter, 15% lower than the level recorded a year earlier.

Projects in the pipeline include Eton City Square in Sta. Rosa, Laguna that will add 5,824 square meters (sq.m.) of net leasable space. The residential component of Blakes Tower will also add 13,900 sq.m. of leasable area.

Eton Properties currently has a leasing portfolio of 237,000 sq.m.

Meanwhile, Asia Brewery, Inc. accounted for P80 million or 1% of the total, with its net profit for the first quarter dropping by 62% to P80 million from P211 million.

“Despite the higher volumes for its products, higher raw material, fuel and other costs resulted in lower profits,” LT Group said.

Of its products, Cobra energy drink remained the market leader with a 58% market share in the first quarter.

In March, the company declared a total of P0.30 per share dividends, regular and special, or P3.246 billion, which was paid on April 12. This is equivalent to 16% of LT Group’s 2021 attributable net income.

At the stock exchange on Friday, LT Group shares dropped by 2.29% or P0.19 to close at P8.10 apiece — Luisa Maria Jacinta C. Jocson

Letran beats Mapua, 67-62, in Game 1

TRAILING most of the game and with their top gun Rhenz Abando taken out after tweaking an ankle, Letran was left with nothing but pray that its perfect season remain unblemished.

The heavens answered by sending in an unlikely hero in Brent Paraiso.

Filling in the void left by a grimacing Abando, Paraiso played the game of his life as he helped power the Knights to a come-from-behind 67-62 win over the upset-conscious Mapua Cardinals yesterday to move on the verge of crowning themselves NCAA Season 97 champions.

When the chips were down, it was Paraiso, a transferee from University of Santo Tomas like Abando minus the hype, who sparked their fourth quarter fight back that resulted to Letran seizing a 1-0 lead in their best-of-three title series.

Paraiso finished with 14 points, some of which came in the critical stretch in the final canto, to go with five rebounds and the same number of assists, enough to plug in the holes left by the much-hyped Abando, was sprained his left ankle after landing on a foot by teammate Louie Sangalang and was taken out late in the third period.

The MVP leader finished with just 13 points.

Good thing Paraiso played heavenly.

“I thank my coaches and teammates for trusting me, it was a team game,” said Paraiso.

Letran, which seeks its 19th crown, could complete a seasons sweep with another victory in Game Two set Sunday also in San Juan.

A decider, if necessary, is on May 29 at the MOA Arena in Pasay City.

Drawing strength from their tough defense and clutch shooting, the Cardinals, playing their first finals in 31 years, controlled the tempo for most part of the game and appeared headed to a massive upset especially after Abando went down.

Mapua though couldn’t sustain its controlled play collapsed in the end, allowing Letran to snatch the season opener.

It was a highly-physical and emotional game from the onset as it saw referees handing out a total of four technical fouls, including one on Letran coach Bonnie Tan, and two flagrant fouls from Mapua’s Jasper Selanga early in the game that led to his ejection. — Joey Villar

The scores:

Letran 68– Paraiso 14, Sangalang 14, Abando 13, Yu 6, Ambohot 6, Reyson 6, Javillonar 4, Caralipio 3, Mina 2, Olivario 0, Fajarito 0

Mapua 63– Bonifacio 10, Gamboa 10, Agustin 9, Hernandez 8, Lacap 7, Nocum 6, Mercado 5, Pido 5, Garcia 3, Salenga 0

Quarterscores: 15-24; 32-39; 49-54; 68-63

PHL Go miss her bronze bid landed fourth in women’s golf

VINH PHUC. — Lois Kaye Go fell short in her bronze medal bid Sunday, closing out with a 70 for 215 and ending up fourth in women’s individual play in the 31st SEA Games at the Heron Lake Golf Course.

Thai Natthakritta Vongtaveelap cruised to the gold medal with a four-under 68, capping her brilliant 54-hole performance she spiked with back-to-back 67s for a whopping 14-under 202 total.

Singapore’s Aloysa Atienza Mabutas provided the final day fireworks as she scorched the par-72 layout with a tournament-best 65 to rally from joint fourth and snatch the silver medal on a 209 total that included a 74 and 70.

Malaysia’s Jeneath Wong fired a 69 for the bronze with 209.

Ms. Go wound up six strokes farther back at fourth at 215, her bid stymied by a shaky 76 in the first round. She bounced back strong with a second-round 69 but failed to sustain her charge in the last 18 holes and settled for a two-undercard.

Mafy Singson, who also fought back with a 70 Saturday, struggled with a 73 and finished with 219 while ICTSI teammate Rianne Malixi finally broke par but her 71 could only net her a total of 221, marred by a 76 and 74.

The Thais are all poised to sweep the individual gold medals with Asit Areephan leading at press time in men’s play. He led the field at 138 after 36 holes with compatriot Weerawish Narkprachar in second with 140 and Ratchanon Chantananuwat in fourth at 142 behind Vietnam’s Minh Nguyen Anh and Indonesia’s Amadeus Susanto, who both had 141s.

The chase for team gold starts Monday with the quarterfinals, also at the Heron Lake layout, where seedings are based on the players’ finishes in individual play.

The semis will be held Tuesday with the gold and bronze medal matches set for Wednesday.

SEAG serves as exposure for Asian Games, Olympics

HANOI — The 31st Southeast Asian Games

After almost two years of generally no competitions due to the pandemic, the Hanoi Southeast Asian Games is serving its purpose as a springboard for Filipino athletes to warm up for the 2023 Hangzhou Asian Games and the 2024 Paris Olympics.

“We are expecting that the SEA Games will be a great exposure for our athletes going to the Asian Games up to the Olympics just like what we did last time,’’ said Philippine Sports Commission chair William Ramirez yesterday.

That is the reason the sports-funding agency has given its full financial backing to the country’s participation not just in the Hanoi Games where it released over P230 million to fuel the country’s campaign but also the 2023 edition in Phnom Penh, Cambodia.

This was the formula used in the past that resulted to the country delivering its breakthrough Olympic gold in Tokyo last year courtesy of lifter Hidilyn Diaz.

“Our medalists who will go through qualification for the 2024 Olympics will get the preparation that they need here in the SEA Games, in the Asian Games and other high-level international games,’’ said Mr. Ramirez.

“By supporting the entire delegation, you are also giving the opportunity for non-medalists to become outstanding athletes in the future,’’ he added.

Mr. Ramirez has again expressed his gratitude to President Duterte, the House of Representatives and the Senate, the Philippine Amusement and Gaming Corporation and the Philippine Charity Sweepstakes Office for providing full backing to the SEA Games campaign.

“The President has been very supportive while our lawmakers helped us with the budgetary constraints in the SEA Games,’’ said Mr. Ramirez.

“We were also very fortunate that despite the pandemic, we were able to save from the NSDF (National Sports Development Fund) that came from PAGCOR and the PCSO. We gathered the available funds and instead of just sending 300 medalists, we were able to send all of them,’’ he said. — Joey Villar

Farr, Gardoce settle for cycling bronze medals

Naomi Gardoce (left) and Lea Denise Belgira strike a pose with games mascot Sao La.

HANOI — John Derick Farr and Naomi Gardoce clinched bronze medals in cycling’s downhill events in the 31st Southeast Asian Games on Sunday as Lea Denise Belgira’s hopes of retaining her gold medal went down with a flat tire.

Farr, gold medal winner in 2019, clocked three minutes and 13.138 seconds over the 2.0-km track carved over a hill in Hao Dinh City’s outskirts that’s not more than 300 meters in elevation and never close to technical courses that defined previous SEA Games downhill courses.

Thailand’s Methasit Boonsane won the men’s gold in 3:06.27 with Indonesia’s Andy Prenoga bagging silver after completing the ride three seconds slower than the Thai.

Tiara Andino Priastika ruled the women’s race in 3:31.531, beating Thai Vipavee Deekaballes by 10 seconds Thai Vipavee Deekaballes (3:42.337).

Gardoce made the podium with a time of 3:44.722.

But it was Belgira’s disappointing run that ruined her shot at a second consecutive SEA Games gold medal.

“I got the flat tire right in the first drop,” said Belgira, of Guimaras. “I felt the thud and I knew it…I tried to ride flat but to no avail.”

After her front tire got busted in the first drop — some 400 meters from the start and about eight feet high — Belgira still got on the saddle and completed the course, receiving a loud and appreciative applause from the relatively big crowd that gathered at the start/finish area.

“It’s okay, Naomi has a bronze medal and it’s a success already for the team,” she added.

“I feel surprised by the bronze, I wasn’t expecting to make the podium because the pandemic really cluttered my training,” Gardoce said.

Mountain bike action resumes starting at 9 a.m. on Monday with the cross country races for men and women. On Tuesday, the mixed relay cross country event will make its debut in the SEA Games.

This is the Landspeeder you’ve been looking for

The set is comprised of 1,890 pieces.

CALL IT a tribute to the ultimate means of mobility for one Luke Skywalker.

Now available in the Philippines is the Star Wars Luke Skywalker Landspeeder set. The latest addition to the Lego Ultimate Collector Series (UCS) is a recreation of Luke’s battered yet trusty vehicle. The recreation is a 1,890-piece model, and a sure must-have for Star Wars and Lego fans alike.

The X-34 Landspeeders were typical civilian transports, first seen in Star Wars: A New Hope, where Luke used the vehicle extensively as part of his farm work, traveling across Tatooine’s deserts. Notably, Luke was accompanied by droid C-3PO to locate R2-D2, when he was discovered by Obi-Wan Kenobi. The Landspeeder was also the vehicle they were aboard when Obi-Wan used a Jedi mind trick to get past stormtroopers guarding entry into Mos Eisley. Luke eventually sold the Landspeeder to pay for his transport to the planet Alderaan.

When assembled, the Lego Star Wars Luke Skywalker Landspeeder building set is 49 centimeters long and features the familiar two-seater cockpit, the turbine engine without a cover, cockpit windscreen, plus an exclusive C-3PO minifigure (with 2K molded legs and a side print). Of course, it also has a Luke minifigure — complete with lightsaber.

Other sets in the Lego Star Wars Ultimate Collector Series are the Millennium Falcon, the A-Wing, the Republic Gunship, and the recently released AT-AT.

“It’s been an amazing adventure creating Luke Skywalker’s Landspeeder in Lego brick form. It is such an iconic vehicle in the Star Wars saga. We’ve ensured no detail has been forgotten and have even included some of the scratches. The finished product makes an incredible display and is the perfect addition to the UCS collection,” said Lego set designer César Carvalhosa Soares, who interpreted the iconic vehicle into a Lego set.

The Lego Star Wars Landspeeder set is available at Lego Certified Stores (LCS) and through www.bankeebricks.ph with a recommended retail price of P11,999. For more information, follow Lego on its official Facebook and Instagram pages.

Carbon footprint labels aim to steer green buying

REUTERS

WASHINGTON — Nutritional breakdowns, ethical trade branding, recycling information — and now estimates of a product’s climate impact.

Consumers across the globe are starting to see a new kind of information on goods packaging, indicating the level of planet-heating gases emitted by making the items they are buying.

This fresh wave of efforts at carbon footprint labeling is being praised by some as empowering consumers to help tackle climate change — but criticized by others as confusing at best, and greenwashing at worst.

Danielle Nierenberg, co-founder of Food Tank, a US-based think-tank, said a carbon-labeling system has “been in the works for a while” but companies needed time to research it properly, “so we’re just seeing it now.”

Numi Organic Tea, a California-based company that sources 130 ingredients from 26 countries, will start putting carbon labels on its teas this summer, after tracking their emissions since 2015.

Figuring out the teas’ carbon footprint required studying farm management practices, processing equipment, energy use along the supply chain and more, said Jane Franch, company vice-president for strategic sourcing and sustainability.

“That was the first step in our journey — wrapping our minds around what is the impact, and looking for places where we can reduce (it),” she told the Thomson Reuters Foundation.

The effort has included pushing tea factories to start using cleaner energy and more energy-efficient equipment, she explained.

Numi packaging will carry a label that includes a single, product-specific number: a kilogram of carbon-dioxide equivalent, broken down by ingredients, transport, packaging and even the energy required to boil water at a tea-drinker’s home.

“Now is the time — consumers are interested,” Franch said. “Even if they don’t know what a gram of carbon is, it begins to develop the carbon literacy in our consumers and in society writ large.”

Numi joins a growing group of companies that have begun carbon labeling, particularly in the US and Europe — from brands including plant-based-meat producer Quorn to electronics maker Logitech and household goods giant Unilever.

There are also broader efforts, such as a global push announced in February for the cosmetics industry, which includes Estee Lauder Companies, Johnson & Johnson Consumer Health, L’Oreal Group and 33 others. Some even want a system that is obligatory for all.

Publishing the climate impact of food products should be mandatory and standardized, just as with nutrition labels, said a spokesperson for Swedish oat milks producer Oatly, which is leading a petition to the German government on the issue.

Denmark and France are already looking at creating their own consumer carbon labels, while the European Union is aiming to come up with a draft for a broader eco-label by 2024.

The food and beverage industry is at the center of the push for carbon labeling, given its outsize climate impact. The global food system accounts for about a third of carbon emissions, according to the UN Food and Agriculture Organization.

But until recently, most efforts to reduce food-related emissions focused on production, said Edwina Hughes, head of the Cool Food Pledge at the World Resources Institute (WRI). “We’ve made loads of progress in the last 50 years, but we haven’t looked at consumption as much. That’s pretty significant — if you don’t look at shifting diets, you won’t get where you need to be” in terms of curbing climate change, she said.

Some simple interventions appear to offer great potential. For instance, adding messages at the top of menus nearly doubled the proportion of diners choosing plant-based dishes, according to WRI research published in February.

The Cool Food program runs a carbon labeling initiative that includes a badge on menu items, indicating that they meet nutritional standards and have a smaller carbon footprint than researchers say is needed to achieve key climate goals.

Panera Bread, which has 2,100 North American locations focusing on business lunches, was the first restaurant chain to adopt the badge, in 2020. The company had measured its carbon footprint since 2016, but that information was not reaching consumers, said Sara Burnett, its vice-president of food beliefs and sustainability.

“We know there are two sides to this coin — what we choose to put on the menu, how we source. But the flip-side is consumers: they really impact our business significantly by what they choose,” she added. About half of Panera’s online menu options carry the badge, with a goal of raising that to 60% by 2025, including by working with supply chain vendors and developing new products.

“This is no longer something that is just the niche green consumers looking for responsibly sourced and raised products,” Burnett said. “It’s the everyday consumer that is now looking for that.”

And consumers are starting to take notice, said Carmen Castillo, assistant general manager at MOM’s Organic Market in Rockville, Maryland, near Washington DC. “It’s a newer label, and it creates conversation — people want to know what it means, if it’s real and how it affects them,” she added.

Little is yet known about how consumers react to carbon labels, although globally 54% of respondents to a 2021 survey by environmental consultancy Carbon Trust said they would be more likely to pick a product with such a label over a similar one without.

Burnett said Cool Food-branded meals have sparked a particularly positive response on social media. Yet some worry the flurry of efforts could muddy the waters. “This is a confusing time for consumers because there are all of these labels,” said Food Tank’s Nierenberg. Many labels and certifications “put so much onus on the consumers” to understand and act, she said, warning of an increased risk of greenwashing or “climate-washing.”

According to the European Commission, there are more than 450 environmental labels in use globally today, including about 80 reporting initiatives and methods for carbon emissions.

“Some of these … are reliable, some not,” it said in an online policy document. Brands, too, are expressing concern. “What we need is the adoption of a harmonized, global standard for eco-labeling so people don’t get information overload,” said Archana Jagannathan, senior director of sustainability for PepsiCo Europe, in e-mailed comments.

But too much focus on how labeling shapes buying behavior may be missing the point, warned Michael P. Vandenbergh, director of the Climate Change Research Network at the Nashville-based Vanderbilt Law School.

As carbon labeling sees substantial growth worldwide, there is evidence it works “even if consumer responses are limited,” he noted. Amid rising pressure from investors, governments, employees and clients, simply having a label can push companies to find efficiencies that reduce their carbon footprint, he said.

Already 80% of the biggest firms in seven of the largest global sectors — including retail stores, auto manufacturing and lumber production — put environmental requirements in their supply-chain contracting, he added.

Carbon labeling is not a panacea, Vandenbergh said. “But (it) is a piece of a much larger system that can function even if the national government process is inadequate — which it is,” he added. — Thomson Reuters Foundation

Peso may rise on remittance data

BW FILE PHOTO
THE PESO may strengthen further on expectations of strong March remittances. — BW FILE PHOTO

THE PESO may appreciate further versus the dollar this week in anticipation of strong remittance data, but risk-off sentiment may be seen as the market awaits clearer economic plans from the next administration.

The local unit closed at P52.45 per dollar on Friday, gaining 4.5 centavos from its P52.495 finish on Thursday, based on Bankers Association of the Philippines data.

It also strengthened by 31 centavos from its P52.19 finish a week earlier.

The peso opened Friday’s session at P52.43 against the dollar. Its weakest showing was at P52.48, while its intraday best was at P52.39 versus the greenback.

Dollars exchanged declined to $978.4 million on Friday from $1.08 billion on Thursday.

The peso strengthened versus the dollar on Friday following stronger-than-expected economic growth in the first quarter, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Philippine gross domestic product (GDP) expanded by a better-than-expected 8.3% in the first quarter, the Philippine Statistics Authority reported on Thursday. This is a turnaround from the 3.8% contraction in the same period of 2021 and faster than the 7.8% growth in the October to December period.

Socioeconomic Planning Secretary Karl Kendrick T. Chua said the first-quarter growth print has surpassed the pre-pandemic GDP level. Economic managers had expected this rebound to happen in the second half of the year.

Meanwhile, UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in an e-mail that the market also factored in hawkish signals from the US Federal Reserve.

Last week, Federal Reserve Bank of Atlanta President Raphael Bostic said they may consider bigger moves in increasing interest rates to manage growth if inflation remains persistently elevated, Bloomberg reported.

“If inflation stays at high levels or levels that are too high — by too high, it’s really not moving back towards our 2% target — then I am going to be supporting moving more,” Mr. Bostic said.

For this week, Mr. Ricafort said the market will monitor March remittance data expected to be released on Monday, May 16.

Cash remittances increased in February by 1.3% to $2.509 billion, but this was the slowest pace in 13 months. Analysts said this reflected the impact of rising infections in many host countries.

Mr. Ricafort said the central bank’s policy-setting meeting on Thursday may also affect peso-dollar trading.

A BusinessWorld poll held last week showed 9 out of 17 analysts expect the central bank to keep its key rates at record lows, while eight see a possibility of a 25-basis-point (bp) rate hike at the BSP’s meeting.

A slim majority of analysts said the BSP may choose to hold fire as it waits for more evidence that economic recovery is already entrenched, while some are pricing in a rate increase due to stronger-than-expected first-quarter growth that could further stoke inflation.

The central bank has not touched borrowing costs since slashing rates by a total of 200 bps in 2020.

Another factor that could drive market sentiment this week is clarity on the economic team and plans of the presumptive President-elect Ferdinand R. Marcos, Jr., Mr. Asuncion said.

For this week, Mr. Asuncion gave a forecast range of P52.20 to P52.70, while Mr. Ricafort expects the local unit to move within P52.25 to P52.55 per dollar. — L.W.T. Noble

Stocks to move sideways ahead of BSP meeting

BW FILE PHOTO

SHARES may move sideways this week ahead of the Bangko Sentral ng Pilipinas’ (BSP) policy meeting and as investors await the incoming administration’s economic plans.

The benchmark Philippine Stock Exchange index (PSEi) plunged by 153.13 points or 2.34% to close at 6,379.17 on Friday, while the broader all shares index sank by 59.81 points or 1.70% to close at 3,457.40.

Week on week, the PSEi also dropped by 380.73 points from its close of 6,759.90 on May 6.

“The local bourse was tinged red [last] week amid a combination of post-election jitters and global economic uncertainties, shrugging off a better-than-expected 1Q2022 GDP (gross domestic product),” 2TradeAsia.com said in a report.

“GDP printed at a much higher figure than market consensus at 8.3% in the first quarter versus the 3.8% contraction during the same period last year, but got buried under the market’s knee-jerk reaction to a Marcos administration come next quarter,” it said. “Anxiety may be stemming from policy uncertainties, heading into a fragile global economy that is very much different from the baton pass the market saw in 2016.”

For this week, 2TradeAsia.com said investors will focus on the BSP Monetary Board’s meeting on May 19, noting the market is “expecting a parallel hawkish move from the US Federal Reserve” in line with regional central banks that adjusted their own policy settings last week.

A BusinessWorld poll held last week showed 9 out of 17 analysts expect the central bank to keep its key rates at record lows, while eight see a possibility of a 25-basis-point (bp) rate hike at the BSP’s meeting.

A slim majority of analysts said the BSP may choose to hold fire as it waits for more evidence that economic recovery is already entrenched, while some are pricing in a rate increase due to stronger-than-expected first-quarter growth that could further stoke inflation.

The central bank has not touched borrowing costs since slashing rates by a total of 200 bps in 2020.

The market will also monitor the incoming administration’s statements on economic policy, analysts said.

“In view of the transition phase before the new administration takes office on June 30, the financial markets and general public are still waiting for additional details on the new administration’s economic team and Cabinet members, continuity narrative, reform measures, and other policy priorities for the coming weeks,” Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said in an e-mail.

Presumptive Philippine president Ferdinand “Bongbong” R. Marcos, Jr. said he is looking to build a Cabinet that will steer the economy by boosting jobs, managing food and fuel prices and pushing more infrastructure projects, Bloomberg reported.

For the coming week, 2TradeAsia.com placed the PSEi’s immediate support at 6,200 to 6,300 and resistance at 6,500.

Meanwhile, RCBC’s Mr. Ricafort put support from 6,100 to 6,200 and immediate resistance between 6,560 and 6,670. — Luisa Maria Jacinta C. Jocson with Bloomberg

Grand Santacruzan opens Bb Pilipinas 2022 activities

TRADITIONAL Binibining Pilipinas activities kicked off with a Grand Santacruzan parade on May 14 around Araneta City in Quezon City. The Santacruzan saw 40 Bb. Pilipinas 2022 candidates, the Binibining Pilipinas 2021 queens, and Miss International 2005 Lara Quigaman in a colorful religious procession. A tradition held every May, the Santacruzan tells the story of how Queen Helena, the mother of Eastern Roman Emperor Constantine, found the Holy Cross during a pilgrimage to the Holy Land. The procession depicts Queen Helena (or Reina Elena) holding a crucifix and accompanied by her young son. They are joined in the procession by other women who represent other important biblical characters like Queen Esther, Veronica, Mary Magdalene, and others. The procession is also a way for fashion designers to show both their chops and their religious devotion. Among the many designers who dressed the Bb. Pilipinas contestants in elaborate Filipiniana-inspired gowns for the event were Eric Pineda and Renee Salud.

CTA grants review of tax ruling on property leasing firm

THE Court of Tax Appeals (CTA) has granted the appeal of the internal revenue commissioner to review a previous decision partially granting New Farmer’s Plaza, Inc.’s alleged tax liabilities amounting to P142.6 million of deficiency taxes for the calendar year 2007, inclusive of penalties.

In a 20-page resolution dated May 6, the CTA full court ruled that its first division’s decision made an error in canceling the tax assessment since the company did not file any protest against the tax assessment conducted by the revenue bureau.

“In this present case, it was never disputed and, in fact, respondent (New Farmer’s Plaza) readily admitted in its petition for review that when it received the letter of demand dated 2011, it did not file any protest thereto,” according to a copy of the ruling written by CTA Associate Justice Maria Belen M. Ringpis-Liban.

The petitioner is the commissioner of internal revenue, who leads the government agency responsible for collecting all national internal revenue taxes.

The respondent is a domestic corporation engaged in the business of buying and selling realty in a shopping complex located in Quezon City.

Under the country’s revenue code, taxpayers must file administrative protests or requests for reconsideration within 30 days of receiving the assessment, which the company did not do, the tax court noted.

The CTA added that due to the company not filing the necessary protests or motions, the commissioner’s prior assessment becomes final, executory, and demandable.

“Respondent’s failure to comply with the 30-day statutory period barred the appeal and deprive this Court of its jurisdiction to entertain and determine the correctness and/or validity of the assessment,” the tax tribunal said.

The law requires an assessment to first be disputed by the taxpayer for the tax court to have jurisdiction over the issue.

Under the country’s revenue code, the CTA’s judicial authority is defined as “administrative adjudicatory power or quasi-judicial function in adjudicating the rights and liabilities of persons under the tax code.”

The case was remanded to the court in the division to reassess the company’s tax liabilities. — John Victor D. Ordoñez

Analysts’ expectations on policy rates (May 19)

THE BANGKO SENTRAL ng Pilipinas (BSP) could still keep rates steady on Thursday as it waits for more proof of a robust economic recovery, although some analysts said a rate hike is likely after the strong first-quarter print.  Read the full story.

Analysts’ expectations on policy rates (May 19)

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