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PHL to export okra to South Korea soon

THE PHILIPPINES will soon start exporting okra to South Korea after the completion of requirements for shipping the commodity set by both countries, according to the Department of Agriculture (DA).

Agriculture Secretary William D. Dar said the okra harvested in the 2021-2022 season will be subject to export, after an official notification was received from South Korea’s Ministry of Agriculture, Food, and Rural Affairs (MARFA).

“The Philippine government has been requesting market access since 2014 and finally it was granted. This is a milestone for us considering we are still in the midst of the global pandemic,” Mr. Dar said in a statement Monday.

Mr. Dar said the okra exports will be initially sourced from four farms and packing houses in Tarlac province: Jelfarm Fresh Produce Enterprise, Greenstar Produce Philippines, Inc., AAMC Foods Corp., and Hi-Las Marketing Corp.

“The entry of Philippine okra into the Korean market is a welcome development to boost not only the livelihood and incomes of our farmers, but also pave way to other potential export crops, thus invigorating the agriculture sector,” Mr. Dar said.

Aleli Maghirang, the DA agriculture attaché in Seoul, said the Philippines was granted market access after the South Korean government completed ruling processing the request for access.

Ms. Maghirang said MARFA’s Animal and Plant Quarantine agency asked the Philippine Bureau of Plant Industry to perform investigations and submit inspection reports in lieu of the mandatory on-site survey by South Korean representatives of the four farms in Tarlac.

She said okra is mainly available in South Korea in frozen or dried form, with most of the processed okra products sourced from China.   

“Once the requirements are complied with, the okra exports will commence,” Ms. Maghirang said.

“Okra is not as mainstream as radish, cabbage, cucumber, potato and sprouts, which are part of many Korean dishes. Most Koreans eat okra as a side dish,” she added.

On Sept. 29, the DA announced that the Philippines began exporting okra to Japan grown by 300 farmers across 14 barangays in Tarlac. — Revin Mikhael D. Ochave

CREATE: Questions left unanswered

Being in the public practice for almost seven years now, I can say that this years’ tax filing season has been one of the busiest and most dreadful. Due to the pandemic, government-imposed community quarantines, and the signing of the CREATE Law, it has indeed been a rollercoaster ride. 

We may now heave a sigh of relief and think that the busy tax season is finally over, but the reality is, there are still issues hounding taxpayers and accountants. Some provisions of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law remain unclear. Taxpayers are still baffled about the tax treatment that would apply on certain transactions, including the following: 

VAT-EXEMPT THRESHOLD ON SALE OF REAL PROPERTY
The CREATE Law provided for the increase in the threshold of Value-Added Tax (VAT) exemption for residential dwellings to P4.2M. However, this was among the provisions vetoed by the President.

Because of the veto of this specific provision, we have to look at the original applicable provision. It can be recalled that under the Tax Reform for Acceleration and Inclusion or TRAIN Law, beginning Jan. 1, 2021, for sale of residential properties, only the sale of houses and lots and other residential dwellings with selling prices not exceeding P2 million were VAT-exempt. Three years thereafter, the P2 million VAT exemption threshold was to be adjusted using the Philippine Statistics Authority’s Consumer Price Index (CPI). The Bureau of Internal Revenue (BIR), in 2018, released Revenue Regulation 13-2018, which states that sale of houses and lots and other dwellings valued at P2.5 million reflect adjustments using the 2010 CPI values.

However, the BIR subsequently issued RR 04-2021 saying that the P2 million threshold must be adjusted using the 2010 Consumer Price Index values.

Now, the question is, what is really the adjusted amount of the VAT-exempt threshold on the sale of residential dwellings? What really is the amount based on the CPI values? Is the P2 million value based on the adjusted present value using the PSA’s published CPI  applicable for the year 2021 or should it still be adjusted?

ZERO-RATED SALES TO PEZA ENTITIES
Under the CREATE Law, the VAT zero-rating on local purchases by registered business enterprises only applies to goods and services directly and exclusively used in registered projects or activities. These refer to raw materials, supplies, goods, services, and other expenditures necessary for the production and maintenance of good quality control of goods and completion of services for export, without which the registered project or activity cannot be carried out.

Considering this provision, sale of goods and services like messengerial, repairs, and advertising services performed for entities registered under the Philippine Economic Zone Authority which are not directly and exclusively used in the registered activity may no longer be qualified for VAT-zero rating.

However, under the Destination Principle, the transaction is taxed in the country where they are consumed or destined.

In 2016, the Supreme Court held that under the old rule, particularly in Section 23 of Republic Act No. 7916, the determination of whether sales to PEZA-registered entities are VAT-exempt depends on the type of fiscal incentives availed of by the enterprises. The old VAT rule for PEZA-registered enterprises was based on their choice of fiscal incentives, including: (1) if the PEZA-registered enterprise chose the 5% preferential tax on gross income, in lieu of all taxes, as provided by R.A. No. 7916, as amended, then it would be VAT-exempt; (2) if the PEZA-registered enterprise availed of the income tax holiday under Executive Order No. 226, as amended, it shall be subject to VAT. Such distinction was abolished by Revenue Memorandum Circular No. 74-99, which categorically declared that all sales of goods, properties, and services made by a VAT-registered supplier from the Customs Territory to an Ecozone enterprise shall be subject to VAT, at 0% rate, regardless of the latter’s type or class of PEZA registration, thus, affirming the nature of a PEZA-registered or an Ecozone enterprise as a VAT-exempt entity. 

Further, Section 8 of R.A. 7916 provides that ecozones shall be operated and managed as a separate customs territory. Accordingly, the sales made by suppliers from a customs territory to a purchaser located within an Ecozone will be considered exports. Following the Philippine VAT system’s adherence to the Cross Border Doctrine and Destination Principle, the VAT implications are that “no VAT shall be imposed to form part of the cost of goods destined for consumption outside of the territorial border of the taxing authority.”

Now, how will the BIR align the CREATE Law and the Supreme Court’s decision? With the Destination Principle on hand and ecozones being considered separate customs territories, is it correct to say that sales of goods and services by local suppliers to registered enterprises located in the ecozones, even though not directly used in the registered product/activity, but are consumed within the ecozone, should be considered indirect export subject to 0% VAT?

We do hope that the BIR will soon clarify these matters. An issuance of the implementing rules and regulations and further clarification can help and enlighten concerned taxpayers in the preparation of their tax returns.

Many taxpayers are still struggling with the completion of their 2020 annual income tax returns and their required attachments. Good news is probably what they need.

 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.

 

Junaleen M. Magno is a senior in charge from the Tax Advisory & Compliance division of P&A Grant Thornton, the Philippine member firm of Grant Thornton International Ltd.

pagrantthornton@ph.gt.com

Gilas Pilipinas 3×3 squad out to finish OQT preparation strong

RONNIE MAGSANO/PHILIPPINE SPORTS COMMISSION FB PAGE
THE Gilas Pilipinas 3×3 men’s team is girding for the homestretch of its preparation before flying to Austria for the FIBA 3×3 Olympic Qualifying Tournament from May 26 to 30. — RONNIE MAGSANO/PHILIPPINE SPORTS COMMISSION FB PAGE

By Michael Angelo S. Murillo, Senior Reporter

THE Gilas Pilipinas 3×3 men’s team temporarily broke camp at the weekend to work on the documents needed for its participation in the FIBA Olympic Qualifying Tournament (OQT) but it is out to finish its training strong when it resumes this week.

Set to see action in the 3×3 OQT in Austria later this month, the national team, composed of the country’s top 3-on-3 players and Philippine Basketball Association stars, spent eight straight days in its training “bubble” at the INSPIRE Sports Academy in Calamba, Laguna, before taking a break.

It treks back to camp in the middle of this week to wrap up its preparation before flying to the tournament in Graz where it goes for one of the three Olympic tickets up for grabs.

So far, team coach Ronnie Magsanoc shared that they are satisfied with the way things have panned out for them in the training bubble despite not having the full complement of their roster.

Incoming PBA rookie Alvin Pasaol (Meralco) failed to join his teammates, namely, Joshua Munzon (Terrafirma), CJ Perez and Mo Tautuaa (San Miguel), and reserves Leonard Santillan (Rain or Shine) and Karl Dehesa, in the first part of their training as he was not able to clear health and safety protocols on time.

But the country’s number two 3×3 player is now a go when training resumes, the team said.

Mr. Magsanoc lauded the players’ efforts to make up for lost time in preparation and commitment to their Olympic push.

“They’ve been off the court for the past six weeks because of the community quarantine, so we had to be patient until they got their legs underneath them. But so far, we like what we see and we’ll take what we can get,” the national 3×3 coach was quoted as saying by the official PBA website.

“With their commitment and sacrifice, I can say that the players are really all-in.”

Mr. Magsanoc, who is also Samahang Basketbol ng Pilipinas (SBP) 3×3 program director, went on to say preparations will pick up as their departure nears and that they are looking to have the possible representation come tournament time.

He added the SBP has been fully supportive of the team and what it wants to accomplish.

“The SBP did its part to provide us with everything we needed including a safe training environment in the bubble and the team did its best to maximize the great opportunity to train and be together,” said Mr. Magsanoc.

In the OQT, the nationals play in the tough Pool C, which also has Slovenia (Europe Cup 2016 winner), France (second at Europe Cup 2019), Qatar (2014 World Champ), and the Dominican Republic.

Tournament format calls for each team playing the other four in their respective pools. The top two teams from each pool qualify for the crossover quarterfinals and then play knockout games all the way to the semifinals.

The semifinals and the third-place games will be known in the FIBA 3×3 OQT as the Olympic Ticket games.

Gilas Pilipinas 3×3 will first play Qatar on May 26 at 8 p.m. (Manila time) to be followed by the game against Slovenia at 9:45 p.m.

It will take a break the following day before resuming its campaign on May 28 against the Dominican Republic at 6 p.m. and France at 8 p.m.

Rower Cris Nievarez earns spot at Tokyo Summer Olympics

NATIONAL rowing team member Cris Nievarez earned a spot in the rescheduled Olympic Games this year where he will be competing in the men’s single sculls. — ICON FORNEA/CRIS MARASIGAN NIEVAREZ FB PAGE

MAKE it eight Filipino athletes now representing the country in the Tokyo Olympics later this year.

This, after national rowing team member Cris Nievarez earned a spot in the rescheduled Games where he will be competing in the men’s single sculls.

The welcome news was announced by the Philippine Rowing Association (PRA) on Monday after getting official communication from the World Rowing Federation.

“We are happy to share that the Philippine Rowing Association received confirmation from World Rowing that we have qualified for the Men’s Single Sculls (M1x) for the Tokyo Olympic Games. Congratulations, Cris!” wrote the PRA on its official Facebook page.

It will mark the first time in 21 years that Philippine rowing will be represented in the Olympic Games.

Benjamin Tolentino, who also competed in the men’s single sculls event, was the last one who represented the Philippines in the sport at the 2020 Olympics in Sydney, Australia.

Mr. Nievarez, 21, a Southeast Asian Games gold medalist in 2019, joined pole-vaulter EJ Obiena, gymnast Caloy Yulo, boxers Eumir Felix Marcial, Irish Magno, Nesthy Petecio and Carlo Paalam, and weightlifter Hidilyn Diaz as Filipino athletes who have qualified for Tokyo so far.

The now-Olympic bound rower recently competed in the 2021 World Rowing Asia Oceania Continental Qualification Regatta in Tokyo.

He placed ninth overall in the tournament, but still found himself in the running for an Olympic spot with other events considered as well.

Meanwhile, upon hearing the news, Philippine Sports Commission Chairman William extended his congratulation to Mr. Nievarez and the rest of the Philippine rowing team.

“I know that Cris and the entire rowing team worked hard for this. It is well-deserved. The PSC will keep supporting him as much as we can on this quest,” said Mr. Ramirez.

Also expressing praise and extended support was the MVP Sports Foundation, Inc. (MVPSF), which is a sponsor of Mr. Nievarez and PRA.

“The next step now is to help our Olympian and his coaches prepare the best way they can…” said MVPSF President Al Panlilio in a statement. — Michael Angelo S. Murillo

Derrick Rose stars in NY Knicks’ upset of LA Clippers

NEW YORK KNICKS FB PAGE
DERRICK Rose led the New York Knicks with 25 points and eight assists off the bench en route their upset of the Los Angeles Clippers (106-100) on Sunday. — NEW YORK KNICKS FB PAGE

BUOYED by the three-point shooting of Reggie Bullock and playmaking ability of Derrick Rose, the New York Knicks ran past the Los Angeles Clippers (106-100) on Sunday afternoon at Staples Center.

Rose led the Knicks with 25 points and eight assists off the bench. Bullock finished with 24 points on 5-for-12 shooting from behind the arc. RJ Barrett added 18 points and seven rebounds and Julius Randle chipped in 14 points and 14 rebounds.

The Knicks finished a perfect 9-for-9 from the free-throw line. New York played solid perimeter defense, holding the NBA’s top three-point shooting team to just 12 of 35 (34.3%) from beyond the arc.

Kawhi Leonard topped the Clippers with 29 points, four rebounds and three assists. However, Leonard struggled finding his shooting stroke, finishing 9-for-26 (34.6%) from the field.

Paul George contributed 18 points and eight rebounds, while Reggie Jackson totaled 12 points. Nicolas Batum added 13 points off the bench.

With the win, New York (38-30) remained the No. 4 seed in the Eastern Conference, pushing their record to 3-2 on a six-game road trip that finishes with a contest against the Los Angeles Lakers (LA) on Tuesday.

The Clippers (45-23) maintained their grip on the No. 3 seed in the Western Conference with the loss, a game ahead of the No. 4 seed, the Denver Nuggets (44-24).

The Clippers ended a four-game homestand at 2-2 and now finish the regular season with four games on the road.

Los Angeles led by as many as 10 points in the opening quarter and led 29-26 at the end of the first. However, the Knicks outscored LA (30-25) in the second quarter to take a 56-54 lead into half time.

The Knicks extended that lead to five points by the end of the third quarter. The Clippers managed to cut New York’s edge to three points in the fourth quarter, but could get no closer the rest of the way. — Reuters

Osaka: Staging of Olympics must be carefully weighed

NAOMI OSAKA FB PAGE
WORLD number two player Naomi Osaka of Japan said staging the Olympic Games should remain a topic of discussion as long as the subject was “making people very uncomfortable.” — NAOMI OSAKA FB PAGE

BENGALURU — Japan’s Naomi Osaka said on Sunday that while she has spent her entire life waiting to compete at the Olympics, the risks of holding the Tokyo Games amid the raging coronavirus pandemic should continue to be carefully discussed.

Opinion surveys have shown that most Japanese oppose holding the Games this summer due to worries about the coronavirus, and Tokyo itself is currently under a state of emergency to tame a rise in infections.

Osaka, the world number two women’s tennis player and one of Japan’s top athletes, said staging the Games should remain a topic of discussion as long as the subject was “making people very uncomfortable.”

“Of course, I want the Olympics to happen, but I think there’s so much important stuff going on, especially the past year,” she told a news conference ahead of the Italian Open. “A lot of unexpected things have happened.

“For me, I feel like if it’s putting people at risk… then it definitely should be a discussion, which I think it is as of right now. At the end of the day, I’m just an athlete, and there is a whole pandemic going on, so, yeah.”

Japan has recorded more than 600,000 coronavirus cases and more than 10,500 deaths, but its inoculation campaign has been relatively slow so far, with only about 2% of the population of about 126 million having received at least one vaccine dose.

Prime Minister Yoshihide Suga promised on Friday to fast-track the government’s vaccination drive, saying it aimed to administer one million shots a day.

Osaka, who at the age of 23 has won both the US Open and Australian Open twice, said she had already been vaccinated against the coronavirus, and added that it would not be right to “force” people to get inoculated.

“There is going to be a lot of people entering the country, so they definitely have to make the right decisions on that,” she said.

“I’ve gotten vaccinated, [but] I think that at the end of the day, you can’t force anyone to be vaccinated.” — Reuters

Daniel Quizon, Michael Concio qualify for FIDE World Cup

INTERNATIONAL Masters Daniel Quizon (left) and Michael Concio, Jr. produced impressive results at the Asian Zonal 3.3 Championship on Sunday to earn berths at the FIDE World Chess Cup later this year.

INTERNATIONAL Masters Daniel Quizon and Michael Concio, Jr. produced impressive results at the Asian Zonal 3.3 Championship on Sunday to earn berths at the FIDE World Chess Cup later this year.

Sixteen-year-old Quizon drew with top seed Grandmaster Susanto Megaranto of Indonesia after 30 moves of Queen’s Gambit Accepted to claim the title with seven points.

Mr. Concio, meanwhile, secured the other World Cup slot by winning the final round against second seed Grandmaster Novendra Priasmoro of Indonesia, scoring 6.5 points and also finishing at solo second place.

The two Filipino chess sensations, who are playing under the guidance of Dasmariñas City Rep. Elpidio “Pidi” Barzaga, Jr. and national coach FIDE Master Roel Abelgas, were both assured of a combined purse worth $3,750 (P187,500) for their showing.

The International Chess Federation (FIDE) World Cup takes place from July to August in Sochi, Russia. — Marlon Bernardino

KCS Computer Specialist-Mandaue City inaugural VisMin Super Cup Visayas champ

THE KCS Computer Specialist-Mandaue City was crowned inaugural VisMin Super Cup Visayas leg champion on Sunday. — VISMIN SUPER CUP

THE KCS Computer Specialist-Mandaue City was crowned inaugural VisMin Super Cup Visayas leg champion on Sunday after defeating MJAS Zenith-Talisay City (89-75) in the rubber match of their best-of-three finals in Alcantara, Cebu.

KCS banked on a spirited second-half effort to complete the upset of tournament favorites Aquastars in the regional tournament, which was rocked by controversy early on.

Al Francis Tamsi, Red Cachuela, Michole Sorela and Ping Exciminiano keyed KCS’ important run in the third canto, turning a seven-point deficit in the early goings of the period into an 11-point cushion, 61-50, heading to the final frame.

The Aquastars could not recover from there as KCS kept pouring it on. Mandaue City stretched its lead to 17 points, 81-64, at one juncture before closing things out.

Mr. Exciminiano, who was named Finals most valuable player after, led KCS with 15 points, five rebounds, an assist, and three steals in the title-clinching win. He averaged 13 points, six assists, and three steals in the three-game series.

Messrs. Sorela and Tamsi added 12 markers apiece with the former hauling down eight boards while Gileant Delator chipped in 10 points.

Patrick Cabahug led the Aquastars with 21 points.

“I told them, ‘let’s try to make history. Let’s give them forty minutes of hell!’” said KCS head coach Mike Reyes of the mind-set they had in the winner-takes-all.

The loss saw MJAS Zenith ending its campaign on a sour note after dominating the competition in the elimination round, going undefeated in 10 games, which also saw it defeat KCS twice with an average winning margin of 14 points.

The completion of the final series, meanwhile, had the VisMin Super Cup seeing its Visayas leg completed after being rocked early in the tournament by allegations of irregular activities by some of its members, which resulted in one member team being banned from the league permanently and some players and team officials fined heavily and handed sanctions.

KCS-Mandaue will represent Visayas in the Grand Finals of the league in August in Tubod, Lanao Del Norte while also pocketing P500,000 given by Ronald Mascariñas, president of league title sponsor Chooks-to-Go.

MJAS-Talisay, for its part, was given P100,000.

Next up for the league is the Mindanao leg. — Michael Angelo S. Murillo

Team-by-team analysis of the Spanish Grand Prix

MERCEDES-AMG PETRONAS FORMULA ONE TEAM FB PAGE

TEAM-BY-TEAM analysis of Sunday’s Spanish Grand Prix at Barcelona’s Circuit de Catalunya, round four of the 2021 Formula One season (teams listed in championship order):

MERCEDES (LEWIS HAMILTON 1, VALTTERI BOTTAS 3)

Hamilton’s record-equaling fifth successive Spanish GP win and sixth in total, 98th career win and third of the season left him 14 points clear of Max Verstappen at the top. He started on pole for the 100th time, lost out to Verstappen and then made a second stop late in the race to reel in the Red Bull. Bottas started third, but dropped to fourth at the start. His recovery drive lifted him to third in the standings. Mercedes is only the second team to win 100 races from pole.

RED BULL (MAX VERSTAPPEN 2, SERGIO PEREZ 5)

Verstappen muscled past Hamilton at the first corner, pitted earlier than the Briton — and a lap before the team had planned due to a miscommunication that cost a couple of seconds — and then lost out on strategy with the car slower than the Mercedes on the medium tire. He pitted again late in the race, having lost the lead, to secure the fastest lap and a bonus point. Perez started eighth and made a good pass on Daniel Ricciardo.

MCLAREN (DANIEL RICCIARDO 6, LANDO NORRIS 8)

Both drivers gained a place on their starting positions. Norris was shown a black and white warning flag for unsporting conduct after an aggressive move on Ferrari’s Sainz. McLaren stayed third but Ferrari closed the gap to five points.

FERRARI (CHARLES LECLERC 4, CARLOS SAINZ 7)

Ferrari’s best points haul since Imola closed the gap to McLaren, with Alpine now 45 points behind the Italian outfit in fifth. Leclerc seized third from Bottas at the start but could not make it stick and fell back after his pitstop. Sainz, in his first home race with Ferrari, lost places from sixth at the start but fought back on a two-stop strategy.

ALPINE (ESTEBAN OCON 9, FERNANDO ALONSO 17)

Ocon, starting fifth, moved Renault-owned Alpine a point further away from AlphaTauri. Alonso, in his first home race since 2018, reported an early engine misfire and had to abandon his one-stop strategy and pit near the end due to worn tires. He and Aston Martin’s Lance Stroll also made contact at the first corner.

ALPHATAURI (PIERRE GASLY 10, YUKI TSUNODA RETIRED)

Gasly secured a point despite being handed a five-second penalty for being out of position at the start. Tsunoda stopped on track at turn 10 on lap eight, bringing out the safety car for two laps.

ASTON MARTIN (LANCE STROLL 11, SEBASTIAN VETTEL 13)

Still no points for four-time world champion Vettel, who did a two-stop strategy but ran out of tire life by the end. Stroll, who pulled off a great overtake on Alonso, lost out to Gasly on the closing laps.

ALFA ROMEO (KIMI RÄIKKÖNEN 12, ANTONIO GIOVINAZZI 15)

Giovinazzi endured a 35-second pitstop when one of his new tires punctured before being put on and the whole set had to be replaced. Räikkönen was the only driver to start the race on medium tires.

WILLIAMS (GEORGE RUSSELL 14, NICHOLAS LATIFI 16)

Both drivers pitted when the safety car was deployed. Russell did two stops and Latifi three.

HAAS (MICK SCHUMACHER 18, NIKITA MAZEPIN 19)

Mazepin attracted the ire of Mercedes’ boss Toto Wolff when he was slow to let Hamilton through with blue flags waved. Schumacher had a solid race. — Reuters

Understanding labor and work

PEGGY UND MARCO LACHMANN-ANKE/PIXABAY

The month of May marks the country’s Labor Day. As such, it would do us well to take a step back and to look at the concept of labor and work, which will hopefully help us face the challenges that workers all over the world face today. There seems to be a preponderance of looking at work only on the level of its economic dimensions and effects, but such a view is severely limited. Labor and work, being fundamental human activities, certainly have social, political, and cultural dimensions that needs bearing out. I suggest beginning our pondering on this topic by defining how labor and work are instrumental in the constitution of ourselves, the way that human beings relate with their world, and finally, the way that work is tied to our relationship to each other as human beings.

So, what is work’s relationship with the fact of being human? The answer to this question is simple: it is because work is one of the ways by which the human person is able to define themselves as having consciousness. For example, the eminent thinker Karl Marx, in his earlier work The German Ideology, tells us that:

“Men can be distinguished from animals by consciousness, by religion or anything else you like. They themselves begin to distinguish themselves from animals as soon as they begin to produce their means of subsistence, a step which is conditioned by their physical organization. By producing their means of subsistence men are indirectly producing their actual material life.”

Such a view is hardly original to Marx and is in fact a widely accepted line of thinking about the person’s relationship with work. Marx’s novel contribution to how we think about work lies in his insistence that it is the material conditions of the human person that constitutes his essence. In the same work he says: “What they are, therefore, coincides with their production, both with what they produce, and with how they produce. The nature of individuals thus depends on the material conditions determining their production.” Such links between human activity and arguing for its determinism about their essence, however, is a widely debated topic and should be discussed elsewhere.

The key takeaway here is that labor and work are important facets of our being because they affect not only the person doing the work, but the physical world around them as well. In other words, work is one of those human activities which not only lies in the realm of internalized pondering but is also necessarily an activity which makes sense and necessarily changes the world around us.

But what then is the difference between labor and work? In this regard, the work of Hannah Arendt is illuminating. For Arendt, labor and work can be broadly differentiated by defining labor as the kind of activity that we undertake in order to produce what is necessary to sustain only our biological life. Arendt, in her essay entitled “Labor, Work, Action” (and more comprehensively in her book The Human Condition), argues that labor encompasses the view of the person as animal laborans. Specifically, for Arendt, if we “follow solely the etymological and historical evidence, it is obvious that labor is an activity which corresponds to the biological processes of the body… By laboring, men produce the vital necessities that must be fed into the life process of the human body.”

Work, meanwhile, encompasses the view of the person as homo faber, wherein with the use of a person’s labor, talents, and tools, the person is able to create the world of things around them beyond what one needs for biological survival. For Arendt, work, or the human person as homo faber means that:

“The work of our hands, as distinguished from the labor of our bodies, fabricates the sheer unending variety of things whose sum total constitutes the human artifice, the world we live in. They are not consumer goods but use-objects, and their proper use does not cause them to disappear. They give the world the stability and solidity without which it could not be relied upon to house the unstable and mortal creature that is man.”

We can thus establish, from both Marx and Arendt, that our human consciousness is molded not just by how we construct ourselves inside our heads, but also in the way we human beings, relate to and situate ourselves in, the world of objects around us. This relationship of the person with the world of things thus anchors us to reality and enables us to make sense of the changes in ourselves and in the environment and measure these against the very same world that we have fabricated. Arendt further argues that: “Only because we have erected a world of objects from what nature gives us and have built this artificial environment into nature, thus protecting us from her, can we look upon nature as something ‘objective.’ Without a world between men and nature there would be eternal movement, but no objectivity.”

The last source which I will discuss here is Laborem Exercens, the Catholic Church’s Papal encyclical which dealt specifically on the topic of human work. Laborem enables us to situate the definitions which we have outlined so far and contextualize this towards a view of the relationship between work and the dignity of the human person. The document allows us to affirm that “work is a good thing for man — a good thing for his humanity — because through work man not only transforms nature, adapting it to his own needs, but he also achieves fulfilment as a human being and indeed, in a sense, becomes ‘more a human being.’” Laborem affirms that whatever work is done by the human person must be situated as “not only by personal effort and toil but also in the midst of many tensions, conflicts and crises, which in relationship with the reality of work, disturb the life of individual societies and also all of humanity.” These disturbances come in many forms, but its most fundamental appearance is in the reality of poverty. Laborem reminds us that “the ‘poor’ appear under various forms; they appear in various places and at various times; in many cases they appear as a result of the violation of the dignity of human work.”

Our contemporary discourses on work and all its elements, from wages, to labor conditions, unemployment, to worker’s benefits, all ought to be guided by a preponderance towards human dignity. This view can only be fruitful if we also bear in mind that work is an inherently social and worldly phenomenon. It is a constitutive element of how we relate and make sense of the world around us, and it also one of life’s main arenas where we relate and make sense of our own and other people’s value and existence.

It then baffles me as to why the circumstance of our work seems to be surrounded in so many layers of needless niceties and secrecy. We should do away our pretenses around a secretive and individualistic work culture that diminishes the social aspect of work and be more open to freely discuss matters such as wages, hiring policies, safety, benefits, among others.

The three sources which I have cited here today, Karl Marx, Hannah Arendt, and the social teachings of the Catholic Church, despite their fundamental disagreements and nuancing of the view of labor and work, all point in some way to a kind of solidarity that returns human dignity at the center of work. Marx points to a kind of class consciousness in order to cultivate a sense of species-being, Arendt defines politics as human action within the political realm as the highest expression of our capacity to live and work together in concert, Laborem Exercens affirms the “principle of the priority of labor over capital” and the fundamentality of the right to association, the right to form labor unions, among others for it is through these forms of solidarity where demands to build a society towards the common good are voiced out and actualized.

It is thus a key challenge to the security of our future that we must more deeply understand and fundamentally shift our relationship with work, and therefore also change our relationship to ourselves, towards others, and our world. The problems presented by the current global crisis and the already-too-real damage at the time of the Anthropocene, gives us an opportunity to cultivate a new kind of work that is not fundamentally rooted in the exploitation of ourselves, our environment, and of our neighbor.

 

Miguel Paolo P. Rivera is a lecturer at the Department of Political Science, Ateneo de Manila University.

mprivera@ateneo.edu

No such thing as compassionate use of vaccine

CROMACONCEPTOVISUAL /PIXABAY

US President Donald Trump had trouble breathing on Oct. 1, 2020. He tested positive for the coronavirus. He was found to have lung infiltrates, which occur when the lungs are inflamed and contain substances such as fluid or bacteria. Their presence indicated an acute case of COVID-19.

That afternoon, White House officials frantically ordered from the biotechnology firm Regeneron Pharmaceuticals the antibody cocktail that helps people infected with the virus fight it off. The cocktail had not been authorized for use by the Food and Drug Administration (FDA).

A lawyer in the White House Counsel’s Office called the FDA commissioner to discuss how the agency could approve the drug’s use for senior administration officials. The lawyer was exploring how Mr. Trump could avail himself of the drug through normal FDA procedures.

The FDA commissioner and other officials, including the top federal drug regulator, worked to clear the drug through a standard process known as an emergency investigational new drug application, often used for very ill patients who agree to take an experimental drug still being tested in clinical trials. Regeneron shipped a package of doses to the White House. Mr. Trump took the drug that night.

Mr. Trump’s condition became so worrisome as his blood oxygen level dipped into the 80s. The disease is considered serious when the blood oxygen level falls to the low 90s. Also, his lungs showed signs of pneumonia caused by the coronavirus. His doctor considered putting him on a ventilator.

The following day he had trouble breathing again and was running a fever. He was twice given oxygen before he had to be taken to the Walter Reed National Military Medical Center. As he was 74 years old and overweight, he was considered a high-risk patient. So he was prescribed an aggressive course of treatment, indicating his condition was serious.

That type of treatment is generally known in the medical field as “compassionate use of medicine.” The term is used for a treatment option that allows the use of medicine or treatment for a patient with an immediately life-threatening condition or serious disease or condition when no comparable product or treatment is available prior to final FDA approval for use in humans.

The compassionate use of the Sinopharm vaccine was how former Philippine Medical Association president Dr. Leo Olarte justified the inoculation of Presidential Security Group (PSG) personnel with the Sinopharm vaccine in October last year.

It will be recalled that in his last public address in 2020, President Duterte surprised the public when he announced, “Almost all soldiers have been inoculated. I have to be frank and I have to tell the truth.” That revelation caught Philippine FDA Director-General Eric Domingo by surprise as at that time no vaccine had been approved by the FDA for use in the country.

When asked in a radio interview who authorized the vaccination, Lt. Gen. Cirilito Sobejana, Commanding General of the Philippine Army, answered, “Our President is our commander-in-chief. I should say it’s from the chain of command of the Armed Forces,” indicating it was authorized by the President himself.

Interior and Local Government Secretary Eduardo Año, who is also vice-chair of the Inter-Agency Task Force on Emerging Infectious Diseases, said, “There’s no need for FDA approval for that. These vaccines have its (sic) EUA (emergency use authorization) in that originating country. If somebody would like to try that for personal consumption, I don’t see any conflict on (sic) the law.”

PSG Commander Brig. Gen. Jesus Durante explained, “We soldiers vaccinated ourselves. It’s so easy. We are soldiers so we have to take risks to accomplish our mission.” He was referring to their mission to protect the life of President Duterte.

When DOBOL B sa News TV hosts Joel Reyes Zobel and Rowena Salvacion asked Dr. Olarte when a doctor can administer medicine not approved by the FDA, the doctor, who is also a lawyer, described three situations that allowed compassionate use of medicine:

1. when the medicine the patient has been taking is not effective;

2. when there is no comparable FDA-approved medicine available;

3. when the condition of the patient is life-threatening.

Asked if the inoculation of PSG men with a vaccine not approved by the FDA falls under any of the circumstances mentioned, Dr. Olarte answered: “Yes, because it was to protect President Duterte from the life-threatening virus.”

But the use of Sinopharm to save the life of President Duterte should not be likened to the compassionate use of drugs to save the life of then US President Trump. Mr. Duterte’s condition was far from life-threatening, unlike Mr. Trump’s condition. And the Sinopharm vaccine was administered to the able-bodied PSG soldiers, not to Mr. Duterte. The Regeneron cocktail was taken by Mr. Trump.

Anyway, last Monday, President Duterte was inoculated with his first dose of Sinopharm COVID-19 vaccine by no less than Dr. Francisco Duque, the Secretary of the Department of Health. The vaccine has yet to be granted an emergency use authorization by the FDA, an agency under the Department of Health.

Presidential Spokesman Harry Roque said the President did not violate any law because China’s Sinopharm vaccine was “covered by compassionate use.” He explained that the President, as Commander-in-Chief of the Armed Forces of the Philippines, is entitled to use these doses. He added that according to Senator Bong Go, the Sinopharm vaccine was prescribed by the President’s physician and it was administered in the PSG Hospital.

But vaccines are designed to prevent disease by training the body’s immune system so that it can fight a disease it has not come into contact with before. That means the recipient of the vaccine is presumed to be free of the disease the vaccine is meant to ward off. The vaccinee is not sick. He needs no compassionate medication or treatment.

So, there is no such thing as compassionate use of a vaccine, Sinopharm or any other brand. There is only the President’s passionate love for anything Chinese.

 

Oscar P. Lagman, Jr. is a retired corporate executive, business consultant, and management professor. He has been a politicized citizen since his college days in the late 1950s.

Tax Guide on CREATE Law

STEVE BUISSINNE/PIXABAY

(2nd of 2 parts)

While we applaud the government for another piece of tax legislation which will help small businesses bounce back, the approval came too close to the April 15 deadline. This resulted in some confusion and an appeal to extend the deadline for the filing of the Annual Income Tax Return (AITR).

Although many taxpayers, especially tax practitioners, lobbied for an extension, the Bureau of Internal Revenue (BIR) was quick to resolve the issue and decided not to extend.

Other than allowing taxpayers to file and pay anywhere even outside the jurisdiction of the Revenue District Office (RDO) where they are registered, an AITR filed on or before the April 15 deadline may be amended not later than May 15. If the amended return will result in additional payment, no penalties shall be imposed as provided in RMC 46-2021 while any over-payment may be carried over as a tax credit in the succeeding period or may be refunded.

Since the effectivity of the reduced rates is July 1, 2020, the BIR released transitory rates to be used for purposes of computing, filing, and paying annual income tax for the taxable year 2020.

Here is a tax guide on the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law:

1. With the reduction of corporate income tax (CIT) whether 20% or 25%, a one person corporation (OPC) will now have a tax advantage against a sole proprietor business which is subject to a maximum of 35% personal income tax;

2. MSME (Micro, Small and Medium Enterprises) corporations subject to 20% income tax are corporations (including OPC) with net taxable income not exceeding P5 million, and total assets not exceeding P100 million (excluding land);

3. Both individual and non-individual taxpayers will benefit from the temporary reduction of percentage tax from 3% to 1% effective July 1, 2020 to June 30, 2023;

4. Sale, importation, printing or publication of books, and any newspaper, magazine, journal, review bulletin on digital or electronic format is VAT-exempt;

5. VAT-exempt medicines: a. Diabetes, high cholesterol, and hypertension beginning Jan. 1, 2020; and, b. Cancer, mental illness, tuberculosis, and kidney diseases beginning Jan. 1, 2021;

6. Beginning Jan. 1, 2021 to Dec. 31, 2023, the sale and importation of the following shall be VAT exempt: a. Capital equipment, its spare parts, raw materials necessary for the production of PPEs; b. All drugs for the treatment of COVID-19 approved by the FDA for use in clinical trials;

7. Reduced MCIT of 1% from 3% is effective July 1, 2020 to June 30, 2023, imposed on the fourth taxable year in which such corporation commenced its business operations;

8. In the case of proprietary educational institutions or hospitals, if the gross income from “unrelated trade, business or other activity exceeds 50% of the total gross income derived by such educational institutions or hospitals from all sources, the tax prescribed for domestic corporations shall be imposed on the entire taxable income”;

9. The improperly accumulated earnings tax shall no longer be imposed on corporations upon the effectivity of the CREATE law. This shall apply to the entire taxable year for all fiscal years/taxable years ending after the effectivity of CREATE.

What’s next? With elections coming up, will the remaining packages of the Comprehensive Tax Reform Package pass into law before the filing of candidacies in October 2021? Will the Joint Congressional Oversight Committee on the Comprehensive Tax Reform Program (COCCTRP) revisit the TRAIN (Tax Reform for Acceleration and Inclusion) Law and Tax Amnesty Act before deliberating on the remaining packages? Can they pass the proposed two-year extension for Estate Tax Amnesty before it expires on June 14, 2021? How much have we collected from the ongoing tax amnesty? What happened to the proposed General Tax Amnesty? Is Congress really afraid of the lifting of the Bank Secrecy Law?

COCCTRP must align the definition and criteria for small businesses since the TRAIN law set a P3-million sales threshold for an optional 8% income tax rate while CREATE provides a P5-million net taxable income and total asset not exceeding P100 million for a lower income tax rate of 20% for small corporations.

Further, the TRAIN law created an ultra-rich category for individuals earning P8 million and above, imposing the highest personal income tax rate of 35% against 25% corporate income tax which will further be reduced to 20% in 2027. That’s why I’m proposing a 10% flat tax for small businesses with total assets not exceeding P100 million to further broaden the taxpayer base and increase voluntary compliance among MSMEs or non-large taxpayers whether registered as sole proprietor or corporation.

Here are some urgent tax reform agendas if we want to broaden our taxpayer base and increase voluntary compliance from the informal sector and digital economy including startups:

1. Update the annual gross sales threshold for marginal income earners (MIEs) and impose a fixed annual tax from P1,000 to P5,000 based on sales, assets and nature of business. This will allow those in the underground economy to register their businesses, e.g., sari-sari store, sidewalk vendors, online sellers, etc. Providing incentives and financial assistance will definitely encourage more MIEs to formalize their operations;

2. Revisit RA 9178, also known as the Barangay Micro Business Enterprise (BMBE) law, to automatically grant income tax exemptions to those who will register a business with total assets of not more than P3 million but limit it to sole proprietors or the self-employed who can only avail it once and be subject to one-time renewal after two years to avoid being abused. Aside from P500 annual registration, BMBEs shall pay a 3% percentage tax quarterly with an option to pay in advance at a lower rate during annual registration;

3. Revisit RA 8289, also known as Magna Carta for Small Enterprises, to align and standardize the definition of micro, small and medium enterprises (MSMEs) whether registered as sole proprietor or corporation. Instead of an optional 8% for a small business under the TRAIN law and 20% CIT under the CREATE law, a tax system providing an optional flat 10% for small enterprises with no more than P50 million to P100 million in total assets regardless of annual sales or net income will tremendously increase voluntary compliance and broaden the tax base;

4. Revisit RA 10963, also known as Tax Reform for Acceleration and Inclusion (TRAIN) Act, to repeal the 35% personal income tax for those earning above P8 million. This is owing to the fact that the CREATE law has provided an undue tax advantage for corporations paying only 25% versus 35%;

5. Revisit RA 11213, also known as the Tax Amnesty Act, to extend the deadline for another two years, allowing taxpayers to recover from losses and utilize their available funds to pay outstanding debts. Passing a General Tax Amnesty law with a provision to lift the Bank Secrecy Law is also urgent and necessary to collect more taxes without relying on audit and investigation.

Whether these proposals will be considered and completed under the Duterte administration, I hope Congress will increase the budget of the BIR by at least 100% to fund its digitalization and to professionalize tax administration if we really want to reform our tax system to be simpler, fairer, and more efficient.

This article reflects the personal opinion of the author and does not reflect the official stand of the Management Association of the Philippines or MAP.

 

Raymond “Mon” A. Abrea is a member of the MAP Ease of Doing Business Committee, the Founding Chair and Senior Tax Advisor of the Asian Consulting Group and the Co-Chair of the Paying Taxes — EODB Task Force. He is Trustee of the Center for Strategic Reforms of the Philippines — the advocacy partner of the Bureau of Internal Revenue, Department of Trade and Industry, and Anti-Red Tape Authority on ease of doing business and tax reform.

map@map.org.ph

mon@acg.ph

map.org.ph