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PHL shares to rise as investors hope for recovery

By Denise A. Valdez, Senior Reporter

LOCAL SHARES are seen to recover this week due to improved investor sentiment as September starts.

The bellwether Philippine Stock Exchange index (PSEi) closed Friday’s session lower by 37.37 points or 0.63% to 5,884.18. On a weekly basis, the benchmark index declined 2% or 121.22 points.

Value turnover was up 71% to an average of P9.09 billion, but net foreign outflows grew more than double to an average of P972.41 million.

“The market is expected to rebound around 5,700-5,800 levels amid recovery hopes as we enter ‘ber months,’” Philstocks Financial, Inc. Research Associate Claire T. Alviar said in a text message.

She noted the holiday season may signal improved consumer spending, backed by an expectation that lockdown restrictions will be eased in the months ahead.

“[S]pending could be better than the previous months this year but we don’t think that it would exceed last year’s spending as the country is still challenged by the COVID-19 (coronavirus disease 2019) pandemic,” Ms. Alviar said. “We are hopeful but not as optimistic as before.”

In August, the PSEi was flat with a 0.75% decline from in July. Ms. Alviar attributed this to the initial market drop when a stricter lockdown was imposed for two weeks, then a rebound when news of a COVID-19 vaccine and the recomposition of the PSEi member stocks came.

But the month of September may also signal volatility as investors anticipate increased climate risks due to La Niña, online brokerage 2TradeAsia.com said.

“With increased chances for La Niña to occur during September (50-55% chance), expect investor sentiment to exacerbate guarded sentiment given the climate risk exposure of key engines of the economy (agriculture, tourism, energy),” it said in a market note.

This week, investors will watch out for the August manufacturing data to be released on Tuesday and the August inflation data to be released on Friday.

“We’re going to see the impact of the reversion of Metro Manila and nearby areas (to stricter quarantine) in August. If it comes lower than July’s figure of 48.4, then it may weigh on the market,” Ms. Alviar said.

“With participation improving and the PSEi’s trading band narrowing, the next aspiration will not only be on trumping the 6,000 level again, but also establishing higher lows (from the 5,800 level). Doing so will put the index at a more exciting technical space, to north of 6,000-6,200,” 2TradeAsia.com added.

The brokerage is putting immediate support for the PSEi at 5,700, and secondary support at 5,500, with resistance at 6,000.

Advocacy group tells Meralco to ‘go green’

MANILA ELECTRIC CO. (Meralco) should turn to renewable energy supply for its upcoming round of procurement, according to clean energy advocates.

The listed electricity distributor asked the Department of Energy (DoE) last month to let it push back to October its competitive selection process for the purchase of 1,800 megawatts (MW) of greenfield capacity, or energy from upcoming power generators, given volatile fuel prices amid a global coronavirus pandemic.

The Power for People Coalition, a group of renewable power advocates, said Meralco should “go green” and shun energy from fossil fuel.

“If it would convert a substantial portion, or the entirety of its 1,800-MW contract to renewable energy instead of coal, it will become immune to fluctuations of prices in the international market and can pass on the savings to consumers, solving their problems,” group convenor Gerardo C. Arances said in a statement.

Consumers are also concerned about price changes that affect their budgets, he added.

The group stressed the importance of renewable energy as the country recovers from the worst economic recession in decades.

Meralco wanted to change its basis forecast year in its supply contract to 2022 from 2020, assuming that fuel prices would normalize by that time, so rates would be competitive for its customers.

The coronavirus pandemic brought down the demand for petroleum products globally, pushing prices down while a supply glut also troubled producers. Oil prices averaged $45 a barrel in recent weeks.

The DoE wanted the distribution utility to start its power procurement to ensure the availability of supply for its seven million customers. Power supply is expected to tighten in the coming years as the country bounces back from the impact of the pandemic.

Earlier, SMC Global Power Holdings Corp. said it planned to join the utility’s competitive selection process, bidding its four power plants in the pipeline with a combined capacity of more than 2,000 MW.

This will be Meralco’s third attempt to hold a bidding for supply from new power plants after failing to attract power producers.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a stake in BusinessWorld through the Philippine Star Group, which it controls. — Adam J. Ang

Metro Retail Stores Group, Inc. announces schedule of annual stockholders’ meeting via remote communication

Phase 1 of Filinvest New Clark City on track for completion

THE FIRST PHASE of Filinvest New Clark City (FNCC) is expected to be completed “in the near future,” including the first 60 hectares of Filinvest Innovation Park.

Filinvest Development Corp. (FDC) is developing the FNCC, a 288-hectare project that is part of the New Clark City in Tarlac. Industrial lots at the Filinvest Innovation Park are currently being offered for lease.

The company said the FNCC “represents Filinvest’s vision of building a smart, green, sustainable, and highly accessible metropolis outside Metro Manila.”

“Working with Bases Conversion and Development Authority (BCDA) and the government has only reinforced our vision that our country should be mindful of only building smart, efficient and future-ready cities,” Josephine Gotianun-Yap, president and CEO of Filinvest Development Corp, said.

“With this, we identified that Ecology, Technology and Architecture, Future, and Culture or Eco-tech-ture are vital elements that should be well-integrated to attain our goal.”

Entertainment News (09/01/20)

HBO’s Food Lore honored at ContentAsia Awards

AFTER being prominently featured in the 34th Tokyo International Film Festival (TIFF) last year, the Philippine episode in the HBO Asia Original series, Food Lore, received two additional feathers in its cap at the inaugural ContentAsia Awards held on Aug. 28. The director of the episode “Food Lore: Island of Dreams” Erik Matti won Best Director of a Scripted TV Program while the series itself won the Best Asian Drama for Regional/International Market category at the Awards. “Food Lore: Island of Dreams” explores the life of Nieves (played by Angeli Bayani), an ambitious and hard working woman, who left her husband and children to work as a domestic helper in Metro Manila to provide them with a better life. Returning home for their annual fiesta, Nieves realizes that she may have grown estranged to her family due to unexpected changes in her life. The episode, which also touches on the diaspora of Filipino workers overseas, is written by Michiko Yamamoto. The ContentAsia Awards recognizes the best content representing the best Asia has to offer in the local and international markets. The HBO Asia Original anthology was recognized for its unique weave of different stories for Asian and global markets. Food Lore is an eight-episode series that explores human conditions with narratives inspired by Asian cuisines. Helmed by Singapore filmmaker Eric Khoo, Food Lore gathers some of Asia’s best storytellers to develop stories that reflect an emotional journey filled with passion, treasured memories and a little spice of Asia. Food Lore can be streamed exclusively on HBO GO. HBO GO is available via SKYCable and Cignal or at https://www.hbogoasia.com/.

Classic OPM song gets a modern twist for a good cause

WITH everything going on right now, the whole world could use a little more sunshine this summer. That’s why Malibu Caribbean Rum — through a partnership with platinum-selling American DJ and producer Dillon Francis and over 30 Malibu Ambassadors from the US, Canada, the UK, Germany, Spain, the Netherlands, and South Korea — is sparking that sunshine with the launch of #TheCoconutChallenge dance as a way of sending out good vibes. For #TheCoconutChallenge, Francis remixes a classic Filipino pop tune, “The Coconut Song” (“Da Coconut Nut”) by Philippine National Artist Ryan Cayabyab, into “The Coconut Nut Malibu Remix,” giving the song a fresh and modern twist, making it popular again as the foundation of this season’s latest viral dance challenge. #TheCoconutChallenge is not just for show — it’s part of a bigger movement to help out businesses in need after the global COVID-19 pandemic affected them. Malibu has pledged an initial $150,000 to the National Urban League to support African American-owned businesses in the US, and also donated $1 for each #TheCoconutChallenge post from netizens in the US and Canada for a maximum contribution of $250,000. For more information, visit: www.maliburumdrinks.com/en/thecoconutchallenge and www.youtube.com/maliburum.

Asian-American rapper Blahza drops new single ‘Bandz’

LOS-ANGELES based Asian-American rapper Blahza releases his first solo single “Bandz” under Umami Records on Aug. 28 on all digital platforms worldwide. The latest single follows his previous collaborations with Singaporean electronic producer Xinister on “Break” and with Malaysian lo-fi producer OnlyM on “Perfect.” On the sparse, trap-influenced track, Blahza rhymes about hustling in life, minding your own business, and keeping your cool when the chips are down. “Bandz” is the lead single from Blahza’s upcoming EP, Sad Songs For Happy People, scheduled for release in 2021. Blahza also has several collaborations dropping later this year. Listen to Bandz via Umami Records: https://www.umamirecords.sg/bandz/

Miss S is the next HBO Original

WARNERMEDIA’S next HBO Asia Original series is Miss S, a 30-episode hour-long Chinese scripted drama and a format adaptation of the globally popular Miss Fisher’s Murder Mysteries. The series will premiere first and exclusively on the regional streaming service HBO GO later this year. The series, which is set in 1930s Shanghai, stars award-winning actress Ma Yili in the title role of Miss S, also known as Su Wenli, a beautiful and witty socialite who forms an unlikely duo with the righteous and serious inspector Luo Qiuheng played by Gao Weiguang. HBO GO is available via SKYCable and Cignal or at https://www.hbogoasia.com/.

Rico Blanco releases fun, upbeat single

ALTERNATIVE rock icon Rico Blanco spreads love and positivity amidst difficult times on his new single, “Happy Feelin,” which was released on Aug. 25, on all digital platforms worldwide. For his second release this year under Sony Music, the award-winning producer and singer-songwriter delivers a bright, upbeat number that soars with an inescapable chorus and a rockabilly vibe. “Happy Feelin” is the second song written and produced by Blanco in his home studio during the lockdown period. It’s the follow-up single to “This Too Shall Pass,” which was released in the first week of May. Stream Rico Blanco’s latest single at https://lnk.to/RB-HappyFeelin.

SSS, GSIS, PhilHealth expected to run budget deficits this year

THE two state pension funds and the public health insurer are expected to incur budget deficits until at least 2021, according to the Department of Budget and Management (DBM).

Citing estimates from the Finance department, the DBM reported the Social Security System (SSS), Government Service Insurance System (GSIS) and Philippine Health Insurance Corp. (PhilHealth) need to fill a combined budget hole of P84.84 billion this year, equivalent to 0.4% of gross domestic product.

The three organizations, which are government-owned and -controlled corporations (GOCCs), generated combined surpluses of P54 billion in 2019 and P63.25 billion in 2018.

The three GOCCs are also expected to post deficits next year, but narrower ones totalling P1.787 billion. No breakdown was provided.

Finance Assistant Secretary Maria Teresa S. Habitan said deficits are expected this year due to the “expected drop in the cash position” of SSS and PhilHeath.

“For SSS, this is a result of emergency measures to respond to the rise in unemployment because of COVID and increase in unemployment benefits. Maternity benefits will also increase because of the implementation of the Expanded Maternity Leave Law,” Ms. Habitan said in a text message Monday.

Unemployment surged to 17.7% in April at the height of the lockdown.

She added that PhilHealth’s cash position will decline because of “substantial benefit payments” for coronavirus disease 2019 (COVID-19)-related cases.

PhilHealth has said it will fall into deficit by year’s end because of lower contributions and additional payouts due to the coronavirus pandemic. It said it will remain in deficit until 2024.

“The situation is forecasted to improve in 2021 with economic recovery leading to higher employment generation that will improve the finances of SSS,” she said.

The national government subsidizes GOCCs to cover operational expenses not supported by their revenue.

Under the proposed P4.506-trillion budget for next year, the SSS and GSIS were not due to receive any subsidies from the national government, but PhilHealth has a P71.353-billion allocation, up 6%. — Beatrice M. Laforga

Major vegetable output mixed in second quarter; tomato, sweet potato production posts gains

PRODUCTION of major vegetables in the second quarter was mixed with output gains posted by farmers of mung beans (monggo), tomato, bitter gourd (ampalaya), native onion, and sweet potato and declines recorded for potato, cabbage, eggplant, bermuda onion, and cassava, according to the Philippine Statistics Authority (PSA).

In its quarterly bulletin, the PSA said tomato production rose 3.2% year on year to 74,266 MT.

Ilocos Region was the top producer, accounting for 38% or 28,247 MT, followed by Central Luzon with 10.9% or 8,111 MT, and Cagayan Valley 10.2% or 7,596 MT.

Sweet potato production rose 4.9% to 157,469 MT.

Bicol Region was the top producer, accounting for 29.1% or 45,759 MT, followed by Central Luzon with 21.2% or 33,406 MT, and Eastern Visayas 14.3% or 22,540 MT.

Native onion production rose 0.4% to 1,018 metric tons (MT), led by Ilocos Region with 76.7% or 781 MT.

Ampalaya, or bitter gourd, production rose 0.5% to 30,666 MT, led by Central Luzon, which accounted for 41% or 12,560 MT, followed by CALABARZON (Cavite, Laguna, Batangas, Rizal, and Quezon) with 13.7% or 4,207 MT, and Ilocos Region 11.9% or 3,657 MT.

Monggo production rose 1% year on year to 23,799 MT, led by Ilocos Region, which accounted for 40.4% or 9,614 MT, followed by Cagayan Valley with 25.2% or 5,990 MT, and Central Luzon 24.4% or 5,818 MT.

Meanwhile, Bermuda onion production fell 7% year on year to 54,957 MT.

Potato production fell 5.3% to 12,520 MT, while cabbage output fell 0.6% to 22,356 MT. Eggplant production fell 1.8% to 104,435 MT, and cassava output fell 3.8% to 722,820 MT.

In August, the PSA estimated that the overall crop production in the Philippines rose 5% year on year and accounted for 53.7% of total agricultural output. — Revin Mikhael D. Ochave

DTI seeking end to Brazilian poultry import restrictions

THE Trade department is asking for a ban on poultry products from Brazil to be lifted, after meat processors said such a ban could lead to food shortages.

The Philippines had imposed a temporary ban after China reported that it found traces of the coronavirus disease 2019 (COVID-19) in products from Brazil.

The Department of Agriculture (DA) in its order also cited the rising number of COVID-19 confirmed cases in Brazil, which included workers at meat packing facilities.

Trade Secretary Ramon M. Lopez said that he has written to the DA to ask for a lifting of the ban, adding that there is no scientific evidence that the products transmit disease.

Kung hindi, ma-te-threaten po ang ating food supply, lalo na iyong galing dito sa mga meat processors na isang malaking food category na binibili po ng ating mga kababayan (Our food supply could be under threat, particularly those that according to our meat processors are in high demand),” he said in a Laging Handa briefing Monday.

He said the department will also look at the ban’s possible impact on pricing, noting that Brazilian meats are cost-competitive.

Delikado itong nangyayari ngayon in the sense na pwedeng magtaas din iyong cost ng raw material na iyon. At siyempre kapag nangyari iyan hihingi ng pagtaas ng presyo ang mga meat processors (The situation is very sensitive because raw material prices could rise, which could lead meat processors to request higher retail prices),” he said.

“But we will not automatically give it. In other words kailangang pag-aralan iyong cost impact. Pero sinasabi natin may impact ito sa presyo kapag hindi na-solve itong problema na ito (We’ll need to study the cost impact. But costs will definitely rise if we don’t resolve this problem).”

The Philippine Association of Meat Processors, Inc. has been asking the DA to lift the ban, saying there could be a shortage of mechanically deboned meat which could lead to an increase in canned goods prices.

The Bureau of Animal Industry earlier this month said that there is no shortage of poultry products in the Philippines as it continues to import from other countries.

Brazilian chicken imports account for around 15% of all such imports, the bureau said.

The World Health Organization said there is no evidence that COVID-19 can be transmitted through the food chain. — Jenina P. Ibañez

DoF freezes textile firm’s tax incentive application after CoA finds irregularities

THE Department of Finance (DoF) has suspended the issuance of P262 million in tax credits and P57 million in refunds to a Bulacan textile firm after the Commission on Audit (CoA) cited “irregularities” in its tax credit certificates (TCCs).

The DoF said in a statement Monday that its One-Stop Inter-agency Tax Credit and Duty Drawback Center (OSS) decided to withhold the application of Indo Phil Group of Companies (IPGC) for the tax perks after the CoA audit of TCCs issued between 2008 and 2014.

IPGC is a Filipino-Indian joint venture based in Marilao, Bulacan. It includes Indo Phil Textile Mills, Inc. (IPTMI), Indo Phil Acrylic Manufacturing Corp. (IPAMC) and Indo Phil Cotton Mills, Inc. (IPCMI). The total TCCs applied for each company amounted to P69 million, P102 million, and P91 million for IPCMI, respectively.

The statement was based on the letter of OSS Executive Director Emee I. Macabeles to Labor Secretary Silvestre H. Bello III who referred to the request of the company for a P57-million tax refund and issuance of TCCs worth P262 million. It was Indo Phil Group President Shanti Sipani who made the request, the DoF said.

“We highlight that IPAMC, IPCMI, and IPTMI are covered by the CoA SAO (Special Audits Office) Report 2018-06, with findings of irregularities on the TCCs issued to each company for years 2008-2014,” according to the letter sent by Ms. Macabeles.

Citing the IPGC’s  request, the DoF said the tax perks were put on hold because of the CoA report but Mr. Sipani was quoted as saying the company only “followed the government’s directions” in applying for the tax credits.

Ms. Macabeles, however, said CoA has started issuing notices of disallowance to companies that have TCCs that are ”tainted with irregularities.”

“Due to these developments and the enormity of the amount involved, the DoF and OSS Center (are) taking precaution(s) before any request for TCCs, Tax Debit Memos (TDMs) or duty drawbacks are acted upon,” she said, adding that the agency will update the Labor department on developments.

BusinessWorld asked the company for comment but had not received a response at deadline time.

The DoF reported last month that CoA has rejected P377.29 million worth of tax credits granted to four textile firms from 2008 to 2012. — Beatrice M. Laforga

Remittance decline seen weakening consumer spending, demand — Diokno

THE DECLINE in cash remittances due to the coronavirus pandemic will translate to lower consumer spending as well as demand, according to Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno.

“The impact of lower overseas Filipino remittances on inflation is via lower consumer spending hence less aggregate demand,” he said in a text message.

Consumption accounts for 70% of the economy, which posted a record 16.5% gross domestic product contraction in the second quarter.

Mr. Diokno said  the pandemic is “unprecedented” because remittances would increase in the past regardless of crisis. He described it as “invariant to world economic performance.”

The peso’s strengthening past the P48 per dollar level is expected to encourage overseas workers to send money to take advantage of the favorable exchange rate.

“That said, the impact of peso appreciation on inflation is tilted on the downside,” he said.

The peso ended trading at P48.485 to the dollar on Friday, gaining P14.50 centavos. Its Friday close was also its strongest in more than three years.

Inflation in July was 2.7%, against 2.5% June result and the 2.4% year-earlier level. It remained within the 2-4% target by the BSP.

A BusinessWorld poll of 16 economists yielded a median estimate of 2.8% for August inflation, which would be significantly higher than the year-earlier 1.7%. The official August data will be reported by the Philippine Statistics Authority on Sept. 4.

Economists studying the link between remittances and inflation have concluded that overseas Filipio workers (OFWs) tend to send more to their relatives back home when prices are rising.

“We surmise that increases in inflation in remittance-recipient economies motivate migrant workers to send more remittances to their families, by virtue of altruism, to smooth their family’s consumption, provide additional funds to maintain their consumption as well as their standard of living,” John Paolo R. Rivera, an economist from the Asian Institute of Management and Tereso S. Tullao, Jr., an economist from the De La Salle University said in their paper, “Investigating the link between remittances and inflation: evidence from the Philippines.”

The authors said their research showed that remittances reacted “instantaneously but at a lethargic pace.” They noted that the impact of rising inflation on remittances tapered off after six months.

“An increase in inflation… will immediately increase remittances, which we attribute to the altruistic motive of sending remittances so that recipient households can maintain their consumption levels despite the reduction in purchasing power due to inflation,” they said.

The authors argued against previous studies which showed remittances induced inflation in developing countries by fueling domestic consumption and creating short-run demand pressures.

“We did not find empirical evidence that remittances directly cause inflation in the Philippines. Results from the Philippine case present conclusions dissimilar from other economies,” they said.

The Philippines is the fourth largest recipient of cash remittances in 2019, behind only India, China, and Mexico, according to World Bank data.

More than 153,000 OFWs have been repatriated as of Aug. 29 due to the crisis, the Department of Foreign Affairs said. — Luz Wendy T. Noble

Conquer your transfer pricing blues

The year 2020 is like no other. With a pandemic still raging, a volcanic eruption, explosions, wildfires, plane crashes, social unrest, tragic deaths, and many other unexpected events — each one of us is affected one way or another. The year is not yet over but it has dished out something out of the ordinary to each and every one of us.

For taxpayers in the Philippines, this year is remarkable, because of the issuance of Revenue Regulations (RR) No. 19-2020 by the Bureau of Internal Revenue (BIR). The revenue regulation requires taxpayers with related party transactions (RPT) to submit Information Return on Related Party Transactions (BIR Form No. 1709) or RPT Form, along with transfer pricing documentation (TPD) and other supporting documents, as an attachment to the annual income tax return (AITR).

Failure to comply by not submitting the accomplished RPT Form, TPD, and other supporting documents may result in fines and penalties on the part of the taxpayers.  Also, the BIR may impose transfer pricing adjustments which could result in deficiency tax assessments in case a taxpayer is not be able to justify its transfer price through a TPD.

Admittedly, though, taxpayers may face challenges surrounding the preparation of TPD and submitting the RPT Form and its attachments.

First, some Philippine taxpayers may not be familiar enough with the transfer pricing rules or may not have enough experience in preparing TPD.

TPD is not just mechanical documentation. Under the BIR issuances, TPD should at least include statement of facts (organizational structure, nature of business of the taxpayer and its related parties, and nature of the covered controlled transactions), industry analysis, FAR (functions, assets, and risk) analysis, selection and application of transfer pricing method, search for comparable companies, benchmark analysis, and conclusion. With all these required contents, the preparation of TPD would require some substantial effort in data gathering and a great deal of analysis of the collected data.

In preparing TPD, a taxpayer should always keep in mind that, simply put, the objective is to determine the reasonable arm’s-length range from the most reliable information and support, that its RPTs are within the arm’s-length standard.

Taxpayers will also need to consider that the preparation of TPD entails some costs such as subscription fees for a commercial database to gather candidate comparable companies as well as securing the copies of their financial statements to be used in the analysis.

A second concern would be the deadline for the submission of the RPT Form and the TPD. The RPT Form, along with the TPD and other supporting documents, serves as one of the attachments to the AITR. eFPS filers have 15 days from the statutory due date or actual date of electronic filing of the AITR within which to submit the RPT Form, TPD, and other attachments.

The preparation of the RPT Form, TPD, and other attachments during the year-end closing, financial audit, and AITR filing season could take the stress for accountants and tax practitioners several notches higher. Thus, it will be advisable to start the preparations as early as possible. Most of the sections of the TPD can actually be prepared well in advance ahead of the year-end closing.

The completion of the other attachments to the RPT Form, aside from the TPD, will also not be easy. Under RR No. 19-2020, the attachments to the RPT Form, in addition to the TPD, are certified true copies of the relevant contracts or proof of transaction (regardless of volume), withholding tax returns and the corresponding proof of payment of taxes withheld and remitted to the BIR, proof of payment of foreign taxes or ruling duly issued by the foreign tax authority where the other party is a resident, and certified true copy of advance pricing agreement, if any. The copies of the contracts and proof of transactions such as sales invoices, official receipts, delivery receipts, among others, could be challenging to collate. In this regard, taxpayers should ensure that the relevant documents are properly kept and maintained in a way that it would be easy to retrieve the documents supporting the RPTs.

Last, taxpayers should be reminded that the submission of the RPT Form, TPD, and other attachments, is applicable to Philippine taxpayers with RPTs regardless of the amount and volume of transactions. There is currently no threshold considered for RPTs. Thus, the submission is applicable even to small-sized taxpayers or to those with minimal RPTs. Hopefully, this is something that would be addressed in a tax issuance in the future. Besides, one of the objectives of requiring the submission of the RPT Form is for the BIR to be able to focus on the most important and significant transfer pricing issue.

It is understandable that taxpayers may feel anxious about the submission of the RPT Form, TPD, and other attachments considering all the efforts that will be exerted in order to comply with the requirement. However, taxpayers should rather accept the fact that the BIR is looking at RPTs now more than ever and that these requirements may be here to stay. As it was said, all things are ready, if our mind be so.

Most certainly, being aware of the rules, seeking help from experts, being prepared, and having the appropriate mindset, could blow your transfer pricing blues away.

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.

 

John Paulo D. Garcia is a manager from the Tax Advisory & Compliance division of P&A Grant Thornton, the Philippine member firm of Grant Thornton International Ltd.

pagrantthornton@ph.gt.com

Metro Manila mayors want status quo on quarantine level

MAYORS IN Metro Manila have recommended to extend the quarantine measures that are in effect until end-August while the national task force on the coronavirus response were still meeting as of Monday late afternoon on what will be the lockdown status of the capital starting Sept. 1.

Presidential Spokesperson Harry L. Roque said the mayors, who met with the task force on Sunday, want to keep the general community quarantine (GCQ) category with easing of some rules such as shortening the common curfew hours.

Mr. Roque said various factors are still being assessed, including the capacity of health care facilities and the continued increase in coronavirus disease 2019 (COVID-19) cases in the capital.

“Pinag-uusapan pa po nila, tinitingnan po iyong critical care capacity, tinitingnan po iyong case doubling rate at malalaman po natin maya-maya lamang po, mag-iinspeksiyon lang si Presidente (They are still discussing, they will look at the critical care capacity, case doubling rate, and we will learn their decision later, the President will just inspect),” he said in an interview with Teleradyo Pilipinas.

Meanwhile, Trade Secretary Ramon M. Lopez said the government is considering a shift to one month-long period for the declaration of quarantine status from the previous two-week cycles.

“Ang pinaka-benefit po nito, of course, mas may stability ho sa ating pagkilos, sa pag-prepare ng reopening of the economy. Hindi nagbabago-bago (The main benefit of this, of course, is more stability in our movements, in preparing the reopening of the economy. Not a shifting) every 14 or 15 days,” Mr. Lopez said in a Palace briefing on Monday.

He added that the government is leaning towards an overall easing of restrictions with strict lockdowns to be imposed in smaller areas where there are surges in COVID-19 cases.

Mr. Lopez, a member of the task force, said he believes the country could eventually shift to the more relaxed modified GCQ category as long as the system to contact trace, isolate, and treat patients is firmly in place.

Metro Manila, also referred to as the National Capital Region (NCR), is the country’s economic center and has also been the hotbed of COVID-19 transmissions.    

As of Aug. 30, the capital accounted for more than half of the country’s total COVID-19 cases at 122,174.

The Department of Health (DoH) reported 3,446 new cases on August 31, bringing the national total to 220,819.

Metro Manila accounted for 1,900 of the new cases, while the nearby provinces of Laguna, Cavite, and Pampanga each had over 100.

There were 38 new deaths, bringing the toll to 3,558, while new recoveries stood at 165 for a total of 157,562.

More than 2.4 million individuals have been tested, according to the Health department. — Gillian M. Cortez, Jenina P. Ibañez and Vann Marlo M. Villegas