Home Blog Page 7625

House defers PCOO budget hearing after ‘red’ label

CONGRESSMEN suspended hearings on the budget of the Presidential Communications Operations Office (PCOO) on Wednesday after an official tagged progressive lawmakers as communists.

Act Teachers Party-list Rep. France L. Castro moved to suspend the budget hearing on PCOO after grilling Presidential Communications Undersecretary Lorraine Marie T. Badoy, who had accused lawmakers critical of the government of being involved in armed rebellion.

Bayan Muna Party-list Rep. Carlos Isagani T. Zarate seconded the motion.

ACT-CIS Party-list Rep. Eric Yap carried the motion to suspend the hearing after members of the committee did not object.

“We have to ensure that the undersecretary responds to these concerns under oath,” Ms. Castro said in mixed English and Filipino.

Ms. Castro and Mr. Zarate presented before the committee several Facebook posts of Ms. Badoy accusing them and other lawmakers of being high-ranking officials of the Communist Party of the Philippines.

“And she is also calling us terrorists,” Mr. Zarate said. Ms. Badoy did not respond to the lawmakers’ complaints.

During the online hearing, PCOO Secretary Martin M. Andanar tried to distance himself from Ms. Badoy, saying her status updates had been posted on her personal Facebook page, not on the page of the PCCO, which has about two million followers.

In a separate statement, Ms.Castro urged Ms. Badoy to resign. — Kyle Aristophere T. Atienza

Regional Updates (09/09/20)

Solons want probe on Manila Bay ‘white sand’ project

A GROUP of lawmakers filed a resolution on Tuesday calling for an investigation on the Department of  Environment and Natural Resources’ (DENR) ‘white sand’ project at the Manila Bay. The Makabayan bloc in the House of Representatives, under Resolution 1194, cited issues raised by various groups on the use of crushed dolomite. Gabriela Women’s Party, one of the six members of the bloc, said a probe may not be possible soon given the ongoing 2021 budget deliberations, but they aim to immediately halt the project. “Gabriela Rep. Arlene Brosas wants to fast-track the recently filed resolution… However, because of the ongoing budget deliberations, a House inquiry may not happen any time soon. But Gabriela Women’s Party will still push for the stoppage of this disastrous project as it may cause respiratory ailments and more harm to the already heavily polluted Manila Bay,” the group told BusinessWorld via Viber. Environment Secretary Roy A. Cimatu defended the project during Tuesday’s hearing on the DENR budget. — Kyle Aristophere T. Atienza

Iligan City, Lanao del Sur residents not covered by cash aid 2nd round

RESIDENTS OF Iligan City and the province of Lanao del Sur, which have been reverted to a stricter quarantine level until the end of Sept. due to a surge in coronavirus cases, are not covered by the government’s second round of cash aid. In a briefing on Wednesday, Department of Social Welfare and Development (DSWD)Undersecretary Rene O. Paje said families in these areas will just have to tap into other social assistance programs. “Bagamat nais din sanang matulungan…hindi kasi sakop sa second tranche ang mga lugar na ito kung kaya’t maaari na lang po iyong mga talagang nangangailangan dito ay mag-avail sila ng ibang programa ng (As much as we want to help… these places are not covered by the second tranche, so those who are really in need of aid can avail of other programs of the) DSWD,” he said. The government’s social amelioration program (SAP) is an emergency cash distribution for the poorest households. As of Sept. 6, Mr. Paje said they have so far distributed P82.1 billion for the SAP second tranche, covering 13.7 million families. Distribution is pending for another 400,000 beneficiaries. — Gillian M. Cortez

Samal mayor says Writ of Kalikasan does not apply to properties affected by bridge project

THE WRIT of Kalikasan, a judicial remedy relating to environmental protection and the people’s constitutional right to a healthy ecology, cannot be applied to commercial establishments that will be affected by the planned Davao-Samal bridge, according to Samal Mayor Al David T. Uy. “I asked my city legal here in Samal, and I don’t think that would qualify for a writ of kalikasan since the area is commercial,” said Mr. Uy in a briefing Monday. He also noted that the owners of the properties have not filed a petition. “So far nothing was filed. We haven’t received anything,” the mayor said. The long-planned bridge that will connect the island city of Samal to mainland Mindanao through Davao City was approved by the National Economic and Development Authority (NEDA) Board in November 2019. It is estimated to cost P23.04 billion and will be funded through an official development assistance package from China Eximbank. Based on the feasibility study, the bridge will span from R. Castillo Street, Barangay Agdao in Davao City and Barangay Caliclic in Samal. Public Works and Highways Undersecretary Emil K. Sadain said the project is now undergoing conceptual design and construction plan, which are expected to be completed this month. Procurement activities will then follow. — Maya M. Padillo

Nationwide round-up

DITO says it won’t use telecom infra to obtain classified military info

CHINA-BACKED DITO Telecommunity Corp. on Wednesday said it will not use its devices and infrastructures to obtain classified information from the Armed Forces of the Philippines (AFP). DITO Telecommunity issued the statement after concerns about the deal between the AFP and the country’s third telco player to build cell sites in select military camps were raised anew at a House of Representatives hearing on Tuesday. “The memorandum of agreement signed with the AFP contained the very same provisions signed by the other two telcos with the notable exception that additional provisions were provided pertaining to commitments of DITO to national security. DITO Telecommunity guaranteed that its devices, equipment, and structures shall not be used to obtain classified information from the Armed Forces,” Adel A. Tamano, DITO chief administrative officer, said. Mr. Tamano also said the company submitted its cybersecurity plan during the bidding process “to prove that our networks and facilities will not compromise national security and shall abide with the National Cybersecurity Plan.” He said the Department of Information and Communication Technology (DICT) and the national security adviser “accepted” the plan. DITO Telecommunity is expected to have its technical launch in January 2021 and commercial operations by March. During the technical launch, the National Telecommunications Commission (NTC) will audit DITO’s compliance with the government’s requirement to cover 37% of the population nationwide with 27 megabits per second. — Arjay L. Balinbin

Justice chief says Duterte has final decision on PhilHealth officials as task force wraps up probe

JUSTICE SECRETARY Menardo I. Guevarra on Wednesday said President Rodrigo R. Duterte will ultimately make the final decision on Philippine Health Insurance Corp. (PhilHealth) officials as the task force investigating alleged corruption in the agency concluded its seven-day hearings. “We are still in the process of doing that (evaluation), but I can assure everyone that after proper evaluation, at ito ang makikita namin na (and we see the) liability of any person concerned, we’ll be very clear about it and say it as it is,” he said in an interview over ABS-CBN News Channel. “We will make a proper recommendation after having established our findings and leave it to the President, whether he will act on the recommendations or not,” he added. Mr. Duterte ordered the creation of the inter-agency task force led by the Department of Justice (DoJ). — Vann Marlo M. Villegas

Economic team, IATF agree to further reopen public transport

THE Inter-Agency Task Force on Emerging Infectious Diseases (IATF-EID) has accepted the recommendation of the economic team to open up public transportation further to help the economy recover, Acting Socioeconomic Planning Secretary Karl Kendrick T. Chua said.

“We proposed to the IATF recently is to shift from a policy of total risk-aversion to risk management and that is where we are going. The EDC (Economic Development Cluster) signed a joint position and presented it to the IATF and the IATF accepted it last Monday to further open up, safely and sufficiently, the public transportation system,”  Mr. Chua said at a Senate budget briefing by the Development Budget Coordination Committee Wednesday.

He did not discuss specific plans to reopen public transport.

“This will complement our rebalancing of the economy and open it up more,” Mr. Chua said.

He noted that the easing of lockdown restrictions, which started in June, allowed more parts of the economy to resume activity and bring back jobs, but the economic gains have still not been maximized as mobility remains restricted.

In August, he said visits to public transport stations dropped 60% despite looser restrictions.

“It is not enough just to open the economy to bring people back to work, it is also important to revive public transportation sufficiently and safely as possible,” he said.

The Management Association of the Philippines (MAP) late last month submitted recommendations to the Transportation department to improve public transport during the pandemic.

This includes allowing the rail system to operate at 50% capacity, similar to jeepneys and buses, from up 20% currently, and to equip public buses with speed limiters.

MAP also suggested the adoption of a congestion pricing scheme for private vehicles in Metro Manila over the medium term to address the capital’s congestion problems. — Beatrice M. Laforga

BIR, Customs beat downward-revised targets for eight months to August

THE two major revenue-collecting agencies surpassed their reduced targets for the eight months to August with business activity picking up, though they both remain behind the year-earlier pace because of the damage to the economy caused by the pandemic.

According to preliminary data, the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BoC) generated a combined P1.637 trillion in the eight months to August, more than their combined collection goal of P1.514 trillion. The total represented a decline of 12% from a year earlier, according to separate data from the National Treasury.

In a text message Wednesday, BIR Deputy Commissioner for Operations Arnel S.D. Guballa told BusinessWorld the bureau collected P1.289 trillion in those eight months, exceeding its P1.182-trillion target by 9.05%. Year on year, BIR collections were down 11.2%.

The BoC generated P347.636 billion during the period according to a bureau report issued early this week, against a P334.44-billion target. It is 15.5% behind the year-earlier pace.

Finance Undersecretary and the agency’s Chief Economist Gil S. Beltran attributed the improved performance to loosening lockdown restrictions, which allowed business activity to pick up.

“The loosening of the quarantine enabled the economy to scale up production, create jobs and (generate) more tax revenue,” he said in a mobile phone message Wednesday.

Quarantine rules have been eased for much of the country, including Metro Manila, since June.

In August, the BIR generated P172.06 billion, beating its P118.2-billion target by 45.6%. The total was down 16% from August 2019.

The BoC also exceeded its P33.68-billion target by 32.6% after collecting P44.6 billion last month. It remains 16.7% behind the year-earlier pace.

The BIR’s target for the year was lowered by 3% to P1.686 trillion in May. The BoC’s collection target is now at P506.15 billion, down 6.6% from the previous goal.

The capital is now under a general community quarantine until Sept. 30.

Economic managers expect the economy to contract by 4.5-6.6% this year before bouncing back to 6.5-7.5% growth next year. — Beatrice M. Laforga

PNOC-EC targets coal expansion in Mindanao

THE exploration unit of state-run Philippine National Oil Co. (PNOC) is seeking to expand its coal development works in Mindanao via the government’s contracting program.

In July, PNOC-Exploration Corp. (PNOC-EC) announced its intention to accelerate investment in coal production to become the leading exploration firm in the Philippines over the next decade.

The company applied to explore and develop two coal blocks in Malangas, Zamboanga Sibugay under COC (coal operating contract) 42, noting the “high quality” of coal in the area, according to a notice issued by the Department of Energy (DoE) Wednesday.

“Taking advantage of the high quality of coal in Zamboanga Sibugay, PNOC-EC is looking at production from two underground mines by 2025,” PNOC-EC President and Chief Executive Officer Rozzano D. Briguez said in July.

The company’s application was made under the DoE’s Philippine Conventional Energy Contracting Program, where energy stakeholders are allowed either to nominate a potential exploration area or to apply for an area pre-determined by the department.

PNOC-EC has three coal contracts in the province — COC 41, 186, and 185.

It produced 1.3 million metric tons of coal in COC 41 between 2002 and 2013, and another 757,000 metric tons from small-scale mines from 2002 to 2018.

“PNOC will prioritize projects with higher projected revenues, and thus we will be focusing on the development and production of mines in COC 41 and the development of coal mine-mouth power plant projects in COC 122 in Isabela (province),” Mr. Briguez said.

The DoE is inviting the power industry to challenge the PNOC-EC’s application and must submit applications within two months. —  Adam J. Ang

Energy dep’t releases LNG investment guide

THE government has launched a guide for foreign investors interested in Liquefied Natural Gas (LNG) projects which was developed with US assistance.

In a recent webinar, the Department of Energy (DoE) presented its guide, supported by the US State Department’s Asia-Enhancing Development and Growth Through Energy program.

The DoE hopes to attract more public-private partnerships to develop natural gas in the Philippines, on the way to making the country a hub for LNG in Southeast Asia. 

“I am confident that with the guide now readily available, more investors will take interest in our downstream LNG industry. The DoE is committed to develop the Philippines as a LNG hub that can serve not only our energy needs but also of the region,” Energy Secretary Alfonso G. Cusi said in a statement Wednesday.

The Philippines is expected to run out of liquified natural gas (LNG) from its sole indigenous field over the next seven years, Energy Assistant Secretary Leonido J. Pulido III said in the webinar hosted by the United States Agency for International Development (USAID) and the United States Energy Association.

By then, the country will not have enough natural gas to power its industrial, commercial, residential, and transport sectors, he added.

As of August, the Philippines is on track to produce 73,388 million standard cubic feet (mmscf) of natural gas this year, with consumption at 69,856 mmscf, according to the DoE.

The Philippines gets its LNG from the Malampaya Gas Power Project off Palawan. It is operated by Shell Philippines Exploration B.V.

The gas field supplies power plants generating 3,200 megawatts of power, or 21.1% of gross power generated in 2019, Mr. Pulido said.

The US government is building energy markets across the region through USAID. One of its programs, the US-Asia Gas Partnership, is focused on natural gas.

Aside from exploring and developing locally-sourced natural gas, the Philippines is also looking into imported LNG.

The DoE has received four applications for LNG terminal projects forwarded by the Lucio Tan group with Blackstone Group’s affiliate Gen X Energy, First Gen Corp. with Tokyo Gas Co. Ltd., US-based Excelerate Energy, and Energy World Gas Operations Philippines, Inc. —  Adam J. Ang

House considering increasing DTI loan fund for small businesses

LEGISLATORS said they are considering increasing the funding for the Trade department’s loan fund to aid in the recovery of small businesses affected by the lockdown from its current proposed level of P1.5 billion.

“Definitely we will clamor for a bigger budget for SB Corp. so we can jumpstart these MSMEs,” Bukidnon-3rd District Representative Manuel F. Zubiri said at the budget hearing of the Department of Trade and Industry (DTI) before the House of Representatives Committee on Appropriations on Wednesday. He was referring to the Small Business Corp., which micro, small and medium-sized enterprises (MSMEs).

The DTI and its attached agencies’ proposed budget for 2021 is P20.162 billion, including the Technical Education and Skills Development Authority’s P13.5 billion.

The proposed budget for the DTI itself is P5.3 billion, with P1.5 billion alloted for SB Corp., Trade Secretary Ramon M. Lopez said.

Demand for loans from SB Corp next year is expected to exceed its resources, he added.

Rep. Teodorico T. Haresco, Jr. appealed to the appropriations committee to at least triple the amount given to SB Corp., which he said could support a V-shaped recovery for the economy.

In addition, Antique Rep. Loren B. Legarda asked that the deleted budget for the shared service facility or the shared equipment program for micro and small businesses originally allocated for 2020 be added to the 2021 budget for the same program.

Mr. Lopez said the shared service facility budget for 2021 will be P500 million. — Jenina P. Ibañez

PHL, Bangladesh most vulnerable to remittance slump — Fitch

THE PHILIPPINES and Bangladesh are the most exposed to a decline in remittances during the pandemic, in terms of number of households dependent on the inflows, a dependency which has increased due to the weak labor market, according to Fitch Ratings.

“This shock is likely to strain the incomes of the already vulnerable households, reducing their ability to meet basic consumption needs,” it said in a note.

Fitch cited a study from the Asian Development Bank which found that 8% of households in the Philippines receive remittances.

In June, cash remittances bound for the Philippines increased 7.7% year on year to $2.465 billion, rebounding from declines between March and May.

However, inflows were down 4.2% in the first half at $14.019 billion. The Bangko Sentral ng Pilipinas expects cash remittances to fall by 5% this year due to the worsening impact of the pandemic.

Fitch said migrant workers that have been displaced due to the crisis will likely remit their full savings before returning to their home countries.

“In this case, the impact of the pandemic on remittances would not be immediate, but would filter through in the coming quarters as migrant workers return to their home countries,” Fitch said.

More than 164,000 overseas Filipino workers (OFWs) have been repatriated due to the crisis, according to the Department of Foreign Affairs.

These OFWs have come home to a weak labor market with many jobless Filipinos competing for positions. The unemployment rate in July was 10%, much lower than the 17.7% in April but higher than the 5.4% from a year earlier, according to the Philippine Statistics Authority. The July rate represents 4.571 million jobless Filipinos.

“Labor markets are also unlikely to be able to absorb a large influx of returning migrant workers, which will further dampen incomes and present possible social challenges,” Fitch said. — Luz Wendy T. Noble

World Bank agriculture expert recommends PHL drop focus on individual crops

A WORLD BANK economist said the Philippines needs to move away from a policy of prioritizing specific crops while focusing on improving the resilience and sustainability of the agriculture sector.

In a virtual briefing, Eli Weiss, the World Bank senior agriculture economist, said in a report that the Department of Agriculture (DA) should also reconfigure its policy to be demand-driven rather than supply oriented.

Mr. Weiss said according to the report’s findings, the DA’s budget for 2020 remained focused on rice, which received 48% of production support services, 53% of extension support, education, and training services, and 88% of irrigation services, among others.

“Focus, which is primarily on rice, should be on more diverse content such as marketing management, natural resources, and research and development (R&D),” Mr. Weiss said.

“Going forward, rice will remain a vital food staple for the country, but the bulk of the income-earning and job creation opportunities for the sector will be generated in other non-rice subsectors,” he added.

The report said the transformation of the Philippine agriculture sector will play an important role in ensuring the food supply chain is stable and food affordable during and after the coronavirus disease 2019 (COVID-19) pandemic.

Ndiame Diop, World Bank country director for Brunei, Malaysia, Thailand, and Philippines, said that no country has completed a successful transition from middle to high income status without modernizing food production.

“Modernizing the country’s agricultural sector is a very important agenda for the Philippines,” Mr. Diop said.

Meanwhile, the report found that the government’s past spending has been weighted towards price supports for specific crops and on subsidies for farm inputs such as fertilizer, planting materials, and machinery.

It said shifting public spending to infrastructure, biosecurity systems, and innovation systems result in more effective poverty reduction and better productivity, which will help modernize Philippine agriculture.

“Small farmers have difficulty accessing inputs and markets for their produce, while buyers such as agribusiness enterprises and wholesalers find it difficult to get the quantity and quality of produce that they need for processing on a timely basis,” according to the report.

“The transformation of Philippine agriculture into a dynamic, high-growth sector is essential for the country. It is the surest way if we are to speed up our economic recovery from the pandemic and achieve meaningful poverty-reduction and inclusive growth,” Agriculture Secretary William D. Dar said.

The World Bank’s Philippines programs include the Philippine Rural Development Project which focuses on improving farm and fishery productivity and boosting rural incomes. — Revin Mikhael D. Ochave

2020 Voluntary Assessment Program for taxpayers

Six months into the COVID-19 pandemic and the government is low on funds. This is an expected effect of almost standstill business operations given the rising positive cases and prolonged lockdowns. Despite aggressive tax audit efforts by the Bureau of Internal Revenue (BIR), the limited workforce and social distancing measures being implemented nationwide restrict the conduct of examinations.

To collect additional revenue at the least administrative cost, the BIR is granting taxpayers the opportunity to pay additional tax, with or without a tax investigation, through a Voluntary Assessment and Payment Program (VAPP).

COVERAGE AND BENEFITS
Launched through Revenue Regulations No. 21-2020, the VAPP covers all internal revenue taxes, including those arising from one-time transactions (ONETT) like estate tax, donor’s tax and capital gains tax (CGT) for the calendar year 2018 and fiscal years ending July 31, 2018 up to June 30, 2019.

Any taxpayer who underpaid taxes or failed to file returns can avail of the VAPP. Even taxpayers with ongoing tax audits can avail of the program, except if the assessment has become final and executory by Sept. 20, 2020, or if the investigation is due to an informant, or involves fraud, tax evasion or other criminal tax offenses.

Those without existing audits for 2018 will get immunity from audit upon successful availment of the VAPP. For those with ongoing 2018 tax investigations, the audit shall be suspended upon availment, while the VAPP application is under evaluation. It will resume only if availment is found to be invalid. Once the Certificate of Availment is issued, the assessment notices shall be withdrawn.

AMOUNTS PAYABLE
For income tax, value-added tax (VAT), percentage, excise and documentary stamp taxes (DST), the amounts to be paid shall be based on a percentage of the 2018 gross sales (1%-5%) or taxable net income (5%-9%), whichever is higher, but in no case shall the amount be less than P75,000 for individuals, estates and trusts or the prescribed minimum amount for corporations (P100,000 for those with subscribed capital of P5 million and less, up to P1 million for those with subscribed capital of more than P50 million).

The percentages shall be based on the increase or decrease in the taxpayer’s total taxes due from 2017 to 2018. The percentage is preferentially lower for those with higher increase in taxes paid over the two years, and higher for those exhibiting a downward trend.

Note that taxpayers who failed to file 2018 returns for the above taxes can still avail of the program, but should first file the unfiled tax returns and pay the taxes due, plus the penalties.

For final and creditable withholding taxes, the amount to be paid shall be 5% of the total basic withholding tax remittance for the taxable year 2018.

For ONETT taxes, the amount to be paid shall be the unpaid basic tax due, plus 5%.

True to the objective of the program, all VAPP payments should be in cash; use of tax debit memos is not allowed. Moreover, VAPP availment is considered a waiver of the right to claim refunds on erroneous payments.

DOCUMENTS AND PROCEDURES
Taxpayers who wish to avail of the VAPP should file BIR Form No. 2119 personally or via courier, together with the following attachments:

• BIR Form No. 0622 with proof of payment of the taxes;

• Tax returns and proof of payment for 2017 and 2018, and Audited Financial Statements, if availing of the VAPP for income, VAT, percentage, excise taxes and DST;

• Remittance returns and proof of payment of final and creditable withholding taxes, if availing of the VAPP for such taxes;

• BIR Form 0605 and proof of payment of deficiency tax, with or without an assessment notice, if any, for the covered period;

• ONETT tax returns with documentary support for the transactions, if availing of the VAPP for ONETT.

Qualified taxpayers can avail of the program from Sept. 20 until Dec. 31, unless extended.

The BIR has 30 working days from receipt of the application to evaluate and approve availment. The Certificate of Availment, issued within three working days from approval, serves as proof of the taxpayer’s availment and entitlement to the audit-immunity privileges under the program. There is no deemed approval after the lapse of the 30-day review period. Thus, taxpayers will have to secure the Certificate of Availment to ensure that they are entitled to the benefits.

The Certificate of Availment can only be invalidated in case of non-remittance of taxes withheld or if there is strong evidence of under-declaration of income by more than 30%, based on a written report by a revenue official.

If there are defects in the availment like computation errors on the taxes due, mis-application of rates or discrepancies in the base amounts used, the BIR shall notify the taxpayer via e-mail so the errors are rectified and deficiencies are paid within 10 working days. Inaction by the taxpayer within the 10-day period would result in the denial of availment.

One thing to note here is that unlike the Tax Amnesty, the VAPP does not have a pre-approval process. Voluntary payments are made before validation so one must be cautious since availments later found to be defective (and not rectified within the 10-day window) will get disqualified. While amounts paid may be applied against deficiency taxes from 2018 audits, it would be such a waste to go through the process of availing and not get the audit immunity and immediate resolution that the program affords just because of a mathematical error as may be the case.

The BIR has granted similar programs in the past. It’s safe to say though that the 2020 VAPP may be the most pivotal and most welcome. Nearing the last quarter of 2020 with COVID-19 still prevalent, this may be the BIR’s last-ditch effort to raise funds. With the increase in revenue resting on the effectiveness of the program, maybe the BIR should also allow electronic filing of Form 2119 and supporting documents. That way, taxpayers can avail more easily and evaluations can be quicker. While submission via courier is allowed, taxpayers may still need received-copies of the application to suspend ongoing audits.

With the General Tax Amnesty vetoed last year, this is an opportunity for taxpayers to minimize the inconvenience of tax audits, even if it’s just for 2018. But as in any voluntary assessment, taxpayers should still make a careful evaluation of the reduced tax payable against possible deficiency tax liabilities to determine if availment is the best option.

The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only, and should not be used as a substitute for specific advice.

 

Maria Jonas Yap is a Senior Manager at the Tax Services Department of Isla Lipana & Co., the Philippine member firm of PricewaterhouseCoopers global network.

maria.jonas.s.yap@pwc.com

Heat oust top-seeded Bucks

LeBron James all-time leader in postseason wins

JIMMY Butler totaled 17 points, 10 rebounds and six assists, and the fifth-seeded Miami Heat used stingy defense to knock the top-seeded Milwaukee Bucks out of the playoffs with a 103-94 Game 5 victory Tuesday night to win its Eastern Conference semifinal series 4-1 at ESPN’s Wide World of Sports Complex near Orlando.

Bucks star Giannis Antetokounmpo, the 2019-20 NBA Defensive Player of the Year and favorite to repeat as league MVP, did not play Tuesday after aggravating his sprained right ankle in the first half of Sunday’s Game 4.

Miami awaits the winner of the other Eastern Conference semifinal series between second-seeded Toronto and third-seeded Boston. The Celtics lead 3-2 ahead of Wednesday’s Game 6.

For the Bucks, it’s a stunningly premature playoff exit after posting the NBA’s best regular-season record. The Heat, meanwhile, became the 140th team in 140 tries to win an NBA playoff series after building a 3-0 lead.

Miami held the Bucks to 36.3% shooting, including a third-quarter drought that lasted more than six minutes. That’s the stretch when the Heat created distance for good, with a 3-pointer by Jae Crowder giving Miami a game-high 12-point lead (68-56) at the 3:07 mark of the period.

In the fourth quarter, the Bucks trimmed the Heat’s advantage to 91-87 when Brook Lopez threw down an alley-oop dunk with 2:05 to play. But Butler answered with two free throws and Goran Dragic hit a high-arching jumper on the ensuing possession to maintain Miami’s edge.

Another two free throws by Butler with 46.7 seconds to play extended the Heat’s lead to 97-88 and all but sealed the win.

Rookie Tyler Herro finished with 14 points, eight rebounds and six assists off the bench for the Heat. Dragic added 17 points and four rebounds, while Crowder scored 16 points, grabbed six rebounds and made four 3-pointers.

Khris Middleton finished with 23 points, seven rebounds and six assists, but shot just 8-for-25 and eventually fouled out. Donte DiVincenzo scored 17 points and hit three 3-pointers. Lopez recorded 15 points and 14 rebounds.

Miami overcame a sloppy start. The Heat committed six first-quarter turnovers and shot 7 of 18 in the period, helping the Bucks build a 13-point advantage en route to a nine-point lead at the end of the period.

But the game shifted in the second quarter. The Heat outscored the Bucks 33-18 in the period and buried six 3-pointers.

Miami used a 13-2 spurt to tie the score at 32 on a Kelly Olynyk transition layup at the 8:36 mark. A 3-pointer by Herro later broke a 37-37 tie and sparked an 8-0 Heat spurt to stretch the lead to 45-37 with less than five minutes to play in the half.

LEBRON SETS PLAYOFF WINS MARK
LeBron James scored a team-high 36 points and became the all-time leader in NBA postseason wins as the Los Angeles Lakers claimed a 112-102 victory over the Houston Rockets in Game 3 of the Western Conference semifinals on Tuesday near Orlando.

The Lakers will take a 2-1 lead into Game 4 of the best-of-seven series on Thursday.

Los Angeles’ Anthony Davis added 26 points and a game-high 15 rebounds, and Rajon Rondo keyed a fourth-quarter run after the teams entered the final period tied.

James earned his 162nd career playoff victory, topping the mark set by Derek Fisher.

“It says that I’ve played with a lot of great teams,” James said postgame on TNT. “It says that I’ve played with a lot of great teammates and some great coaches, in Cleveland, in Miami and now here in Los Angeles.”

“It doesn’t happen without the supporting cast. It’s why I’m able to sit here with this achievement, but it’s all about the three organizations I’ve been with; the Cavs, the Heat and now the Lakers, because without them, I wouldn’t be in this position.”

Rondo finished with 21 points and nine assists in 30 minutes off the bench. The Lakers survived 15 ties and 16 lead changes by controlling the final period for a second consecutive game, posting a 30-20 edge in the last 12 minutes.

The Lakers ultimately finished with a 56-46 advantage on paint points and outrebounded the Rockets 43-30 while shooting a robust 55.1% from the floor. Houston sank 46.9% of its field-goal attempts. — Reuters