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Legislator files rent relief and eviction moratorium bill in House

A BILL has been filed in the House of Representatives creating a loan program run by government banks to finance rent payments.

Representative Jose Ma. Clemente S. Salceda of the second district of Albay, who chairs the House Ways and Means committee, filed House Bill No. 7665, or the proposed Rent Relief Act of 2020, which also seeks to impose an eviction moratorium.

The measure hopes to provide financing for about 2 million renters.

In its 2015 Census of Population and Housing, The Philippine Statistics Authority estimated that around 2.7 million households occupy rented housing.

“We estimate the number to have increased to 3.1 million in 2020. Our analysis of the newly unemployed shows that up to 3% of these households, or some 93,000 households, may be in danger of eviction due to nonpayment of rents even with the Bayanihan measures to provide rent relief,” Mr. Salceda said in a statement Monday.

HB 7665 requires the Social Security System, the Government Service Insurance System, and the Pag-IBIG Fund to offer rent financing to their members “at favorable rates,” while also directing the Land Bank of the Philippines (LANDBANK) and the Development Bank of the Philippines (DBP) to offer rent loans “at rates not higher than their lowest-yielding loans.”

The scheme calls for banks to pay the rent for a pre-determined period, while allowing the tenant a longer repayment period.

Citing the effects of the pandemic on the livelihood and incomes of families, HB7665 also allows government institutions to discount promissory notes issued by the renter in exchange for non-eviction, while providing a three-month window for renters to find new jobs.

The bill also tasks the Department of Human Settlements and Urban Development with establishing rental assistance centers to help tenants and lessors negotiate terms of lease and find other assistance programs to stave off eviction.

Asked to clarify if the bill might be revised in the future to include private banks, Mr. Salceda told BusinessWorld that it is only possible under consultation with government agencies. He said if private banks are included in the measure, it “will probably be to co-share the risks or costs with them instead of requiring them to take up loans that might not align with their risk appetite, without some burden-sharing on government’s part.”

“We do not want to significantly compromise asset quality of banks during a crisis. That could have some unintended consequences for the rest of the economy,” he said. — Kyle Aristiophere T. Atienza

‘Second wave’ to bring more pain to developing economies via reduced remittances — IMF

FURTHER outbreaks in countries hosting migrant workers could deepen the economic downturns there, threatening wages, jobs, and ultimately remittances, according to the International Monetary Fund (IMF).

“A second outbreak of the coronavirus in the later part of the year in host economies, for example, could jeopardize remittance flows further,” it said in a blog post.

Migrant workers may not be able to sustain supporting their families by tapping savings if recessions in host countries deepen further, the IMF said.

Remittances to the Philippines dropped 4.2% year on year to $14.019 billion in the first half due to the pandemic. The Bangko Sentral ng Pilipinas expects cash remittances to decline by 5% this year due to the crisis.

In June, cash remittances rose 7.7% year on year to $2.465 billion.

Cash remittances in the six months to June from Europe declined 15.6% and fell 15.3% from the Middle East, according to UnionBank Chief Economist Ruben Carlo O. Asuncion. These areas account for 12.2% and 18.2% of total remittances to the Philippines.

Inflows from the Americas and Asia, which make up 44.3% and 22.3% of the total, grew 3.1% and 2.4% in the year to date, Mr. Asuncion said.

Mr. Asuncion said signs of a recovery are emerging in Hong Kong, Japan, Singapore, the UK, Germany, Qatar, Saudi Arabia, and the United Arab Emirates, based on purchasing manager indices, a forward indicator of economic activity.

“I found that except for Hong Kong, all countries have experienced improving PMIs between the months of June to August this year, suggesting a positive economic recovery trend for these particular economies,” he said.

More than 164,000 overseas Filipino workers (OFWs) have been repatriated as of Sept. 5 due to the crisis. Further repatriations are difficult to predict due to the altered dynamics of labor markets, according to Asian Institute of Management economist John Paolo R. Rivera.

“(Some) work functions will cease to exist. Will new work functions also demand OFWs?,” Mr. Rivera said in a text message.

The government should focus on ensuring displaced OFWs have jobs at home, which will be difficult, Mr. Asuncion said.

“The only way that the government can help is to create job opportunities here. The main reason why these kababayans left, in the first place, is because of the lack of opportunities here,” Mr. Asuncion said.

The unemployment rate in July eased to 10% from the record 17.7% in April. The July rate is equivalent to 4.571 million jobless workers. — Luz Wendy T. Noble

Helping our nation through voluntary tax compliance

The world we are living in right now is very different from the one we were used to. Whenever I hear news about the rising number of COVID-19 cases, employees losing their jobs, and businesses shutting down their operations, which were all brought about by the COVID-19 pandemic, I find myself helpless.

Thankfully, my mood is lifted by random acts of kindness, such as stories about helping those in need, even in their own little way. These stories always give me hope that if we work together, we can get past this crisis.

We, as a nation, should be helping each other out.

In an effort to help ease the suffering of our countrymen and to respond to the needs of those gravely impacted industries heavily affected by the pandemic, the government has given its taxpayers an opportunity to help defray its expenses by letting its taxpayers avail of the Voluntary Assessment and Payment Program (VAPP).

To implement this, the Bureau of Internal Revenue (BIR) issued Revenue Regulations (RR) No. 21-2020, which sets down the policies and procedures for VAPP, which applies to all internal revenue taxes covering the taxable year ending Dec. 31, 2018, and the fiscal year 2018 ending on the last day of the months of July 2018 to June 2019. Qualified taxpayers can avail of the benefits of the VAPP starting from Sept. 21 until the end of this year unless extended by the Secretary of Finance.

Any taxpayers, who inadvertently or otherwise, erroneously paid their internal revenue tax liabilities or failed to file tax returns/pay taxes, may avail of the benefits under the VAPP, except for the following:

• Taxpayers who have already been issued a Final Assessment Notice (FAN) that have become final and executory, on or before the effectivity of this RR;

• Persons under investigation as a result of verified information filed by a Tax Informer under Section 282 of the NIRC of 1997, as amended, with respect to the deficiency taxes that may be due out of such verified information;

• Those with cases involving tax fraud filed and pending in the Department of Justice or in the courts; and

• Those with pending cases involving tax evasion and other criminal offenses under Chapter II of Title X of the NIRC of 1997, as amended.

Considering the adverse effects of the COVID-19 on the business operations of taxpayers, what is in it for them should they avail of the VAPP?

1. Exemption from tax audit

Qualified taxpayers who were able to comply with the conditions set forth in the RR, which is a requirement for the application to be considered valid for the availment of the VAPP and be entitled to its privilege, shall have the benefit of having their books exempted from audit of the BIR for the taxable year 2018.

If in case the taxpayer has already an on-going assessment for the taxable year 2018, the audit being conducted shall be suspended. The issued Letter of Authority, Tax Verification Notice, Discrepancy Notice, Notice of Informal Conference, Preliminary Assessment Notice, Final Assessment Notice for pending cases covering the taxable year 2018 shall be withdrawn and canceled.

2. Limited contact between the taxpayer and the BIR

Since the taxpayer will no longer be subject to a regular audit of the BIR for that taxable year, it will limit the face-to-face interaction between the taxpayers and the BIR personnel as compared to if the taxpayers undergo the normal tax audit process.

This will also lessen the risk of possible transmission of the COVID-19 virus between the taxpayer and BIR’s personnel, while at the same time, complying with the Inter-Agency Task Force’s (IATF) health and safety protocols.

But before availing of the program, taxpayers should perform a tax compliance check with the existing tax rules and regulations. The taxpayer should compare the amount of tax exposure, among others, based on its tax compliance review against the amount of tax to be paid for availment of VAPP.

The amount of voluntary payment, which should be paid in cash, shall depend on the tax type as follows:

a. For Income Tax (IT), Value-Added Tax (VAT), Percentage Tax (PT), Excise Tax (ET), and Documentary Stamp Tax (DST) other than DST on One-Time Transaction (ONETT);

b. For Final Withholding Taxes (on Compensation, Fringe Benefits, etc.) and Creditable Withholding Taxes (CWT) other than CWT on ONETT, the amount to be paid shall be 5% of the total basic withholding tax remittance for the taxable year 2018; and

c. For taxes on ONETT, such as Estate Tax, Donor’s Tax, CGT, ONETT-related CWT/Expanded Withholding Tax, and DST, the amount to be paid shall be the basic tax due of the unfiled tax return/unpaid tax due plus 5%.

Moreover, here are the other factors that taxpayers should pay attention should it avail of VAPP:

1. For items a and b of the preceding section, taxpayers must apply all registered taxes indicated therein for the privilege under VAPP be availed;

2. For taxpayers with claims for tax credit/refund, such excess input VAT and excess tax credit for income tax, the taxpayer’s right to apply such claim shall be waived, unless they exclude the specific tax type for which they are pursuing the claim for tax credit/refund; and

3. Taxpayers availing of the VAPP should faithfully comply with all the requirements, such as the submission of a complete set of documentary requirements, and the filing and voluntary payment of taxes in the proper venue, and all other conditions in the RR. Otherwise, the taxpayer shall not be entitled to the privilege under VAPP. In this case, the voluntary payments may be applied against any deficiency tax liability for the taxable year 2018, in case of audit/investigation.

To encourage the taxpayers to avail of the program, the BIR should be proactive in reviewing the applications and communicating with the taxpayers should they find any defects in the applications so that taxpayers can act on the additional requirements.

As provided under regulations, the Revenue Officer assigned should evaluate the documents submitted for application within 30 working days from receipt of the application, and endorse the same to the Assistant Chief, LT Office/Assistant Revenue District Officer (ARDO) for review, and to the Chief, LT Office/Revenue District Officer (RDO) for signature. However, the RR did not specify if the 30 days cover the whole review process up to the approval of the Chief/RDO.

What happens after the 30 days lapse? Can the taxpayers assume that their application is already approved? For the guidance of the taxpayers, the BIR should issue a clarification so that the taxpayers are not left in the dark.

On the other hand, a Certificate of Availment shall be issued by the LT Office/RDO within three working days once the application has been approved. The certificate shall serve as proof of the taxpayer’s availment of the VAPP, compliance with the requirements, and entitlement to the privilege granted under the RR.

While it is true that we should not expect anything in return for acts of kindness, it is good to know that our government appreciates the help and contributions of its taxpayers, and rewards them for it. I can really say that if we keep the spirit of Bayanihan alive in our hearts, we will heal as one.

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.

Christian Derick Villafranca 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

Our new world demands a new breed of leaders

The year 2020 is probably the year we will all look back on with much trepidation. After all, it is the year when everything that could go wrong around the world, happened. Wildfires, volcanic eruptions, hail storm, flooding, earthquake, mass protests, explosions and, of course, COVID-19.

Filipinos continue to rise above these challenges as a nation. So it is no surprise that when we surveyed 161 CEOs and business leaders, 59% remain confident of the growth in their own organization in the next 12 months while 90% see this in the next three years.

COVID-19, no doubt, is the biggest disrupter of the century. No force in history has stopped the global economy on its tracks or has left global leaders and business executives so dumbfounded. When faced with the unfamiliar, leaders tend to fall back to doing things they are used to and return to business as usual. Yet, more than ever, this is the time when people look to their leaders for creative solutions under the business UNusual.

CEO survey respondents identified communication, agility, critical thinking, decisiveness and innovativeness as necessary skills that a leader must possess to navigate crisis situations.

Communication —  Effective communication during a crisis is critical. There is no such thing as over-communicating during a crisis. People expect leaders to communicate frequently and with a sense of urgency. Frequent communication provides the employees a sense of comfort and reassurance.

One leader who stood out is New Zealand Prime Minister Jacinda Arden. Not only did she use various channels to communicate to her constituents, she also connected with transparency and empathy. She provided regular updates based on factual and scientific information. She was brutally honest about the country’s situation and, at the same time, offered hope by presenting clear plans.

Communication tops the CEOs’ list as the desirable characteristic of a crisis leader. Consistent with this, 69% of the CEOs said that they will prioritize investing in communication software in the next few months.

Agility — At times of great uncertainty, it is common for leaders to adopt the wait-and-see attitude until things become clearer. However, failure to quickly take action, even at times with limited information, can be disastrous to the organization.

We have seen how companies have to continually adapt to the disruptions caused by COVID-19. Business leaders have navigated themselves through the uncertainty by making quick decisions and making adjustments as needed. Decision-making that used to take months have been reduced to days. Leaders are embracing agility in their operations.

Take for instance Dyson and General Motors, which designed ventilators in a matter of days. At the local level, San Miguel Corp. produced alcohol sanitizers just days after the lockdown.

Garment manufacturers produced personal protective equipment (PPE) to address the shortage at that time. Retail companies started selling online to get their products to consumers.

In our CEO survey, more than two-thirds said that they will change their products and services to rebuild their respective revenue streams after the lockdown. The pandemic is just a reminder that we are constantly facing disruptions. Leaders should continue to be agile and flexible.

Critical thinking — The ability to think critically during times of extreme uncertainty is crucial. Situations change quickly and decisions have to be made on the fly. It is easier to follow what others are doing, instead of asking questions. The risk of herd mentality or groupthink increases during crises. As people become anxious about making the wrong decisions, doing it as a group seems to be the safer alternative. We expect our leaders to make bold decisions, through thoughtful considerations and asking the right questions.

Pre-COVID, many of us did not believe that we can work productively at home. And yet, circumstances forced us in this situation. Now, 73% of the CEOs see their organization implementing a work-from-home policy even after the pandemic. Forty percent of these CEOs also see a potential reduction in their office space in the next 12 months. Those who questioned the status quo and the traditional way of doing things came out more prepared to pivot when circumstances called them to.

Decisiveness — Many lauded Taiwan President Tsai Ing-wen’s decisiveness in curbing the coronavirus in her country. As early as February, Ing-wen recognized the threat of the virus, implemented border control and required the use of face masks. Leaders must have the confidence to make decisions amid the uncertainty.

The speed and magnitude of the crisis are daunting. It is easy to see why so many missed making decisive action on a timely basis. CEOs had to balance the decisions of continuing operations and the immediate safety of their employees. While 50% of the CEOs we surveyed believe that COVID-19 has the potential for having a significant impact on their business operations, the safety of their workers always came first.

Hard decisions have to be made, even if it means making it without a crystal-clear view of the future. Not making one, when needed, can be more devastating.

Innovativeness — Crisis can put innovation into overdrive. We have seen a lot of innovations during this pandemic — from changing the way we work to developing vaccines. Leaders who push innovation during this crisis are setting their companies up for success.

Statistics show that companies that focused on innovation during the SARS crisis outperformed the market average by over 30% after the crisis was over. Apple CEO Tim Cook’s philosophy, from the last global crisis up to now, has been to continue to invest and innovate even during downturns. Many of the major companies in the Fortune 500 were hatched during a downturn or a crisis. These include Apple, Microsoft and Netflix.

In our survey, 80% of the CEOs plan to increase their investments in technology or digital transformation. Majority of them said that they will invest in data platforms and contactless payment to cope with the current reality.

Many leaders have proven themselves capable to address the challenges of the pandemic and embrace the new world.

Those thinking that we can still go back to the way it was are missing out on what it can be. This crisis presents an opportunity for us to build a better world. We will continue to see disruptions, perhaps not in the magnitude presented to us by this pandemic, but we should not lose the lessons of this one.

As humans, it is natural for us to be scared of the unknown. As leaders, we should remain to be the beacons of hope and stability for it is on the darkest nights that stars shine the brightest.

For more details about the PwC – MAP CEO survey, visit www.pwc.com/ph/ceosurvey.

Join us today in critical conversations at the MAP International CEO Web Conference 2020 as we discover the new world and reignite the stalled global economy.

 

Mary Jade R. Divinagracia is a member of the MAP CEO Conference Committee and Managing Partner for Deals and Corporate Finance of PwC Philippines/Isla Lipana & Co.

map@map.org.ph

jade.roxas@pwc.com

http://map.org.ph

Have we forgotten the Marcos years of tyranny and plunder?

Thirty years ago, on Sept. 11, 1990 to be exact, I wrote on this page:

“Today, some boisterous activities will remind us that it is the birth anniversary of Ferdinand Marcos. Yes, let us not forget the 13 years of tyranny and the 20 years of plunder.

“Let us not forget his mockery of the Constitution when he held on to the post of president after his term had expired, in contravention to the provisions of the Constitution which he twice swore in 1965 and in 1969 to uphold and defend. He promulgated laws and decrees that the basic law of the land had not empowered him to do.

“Let us not forget his sadistic torture of the people. According to Task Force Detainees, more than 70,000 citizens were arrested and detained, and at least 2,250 tortured and salvaged from the time martial law was imposed on Sept. 23, 1972 to October 1985. In most cases, no charges or complaints were filed against those arrested. Many gave gruesome accounts of beatings with rifle butts, burning of genitals, water cure, electric shock, and savage gang rapes.

“Let us not forget his muzzling of the press. He shut down media establishments and imposed government control over the other means of communication on Sept. 23, 1972. However, he reopened within hours KBS Channel 9, owned by his crony Roberto Benedicto, to disseminate the proclamation of martial law and to propagandize the New Society.

“Let us not forget his subjugation and prostitution of the judiciary. He turned the Supreme Court, which in the early Fifties earned the sobriquet ‘“the last bulwark of the civil liberties,’ into his political instrument by packing it with fawning former classmates and docile followers.

“He reduced the judiciary into a submissive adjunct of Malacañang. By issuing LOI No. 11, which required judges to submit their resignations, a judge could be dismissed from the service for any fancied cause by simply accepting his resignation anytime Marcos felt it was time to get rid of him. With the sword of Damocles hanging over their head, the judges could only do the despot’s bidding.

“Let us not forget that the late dictator politicized and corrupted the officer corps of the military. He licensed commanding generals and provincial commanders to exercise political powers previously exercised by civilian authorities. Generals sat regularly in Cabinet meetings and even in the KBL caucus sessions. Many amassed unexplained wealth. A number of generals ran smuggling, gambling, drug, and even carnapping syndicates.

“Let us not forget that Marcos looted the country clean. There is no need to detail this matter here as the recent Imelda trial in New York gave the minutest details of this thievery. The details were never disputed. If the jury acquitted Imelda, it is because the naïve members of the jury fell for the ludicrous claim that Imelda never knew of the 20-year looting.

“Let us not forget all these so that 27 years from now, when the 100th birth anniversary of Marcos is observed by those he made rich and powerful, he will not be called “that great Filipino president.”

Exactly 11 years later, on Sept. 11, 2001, I wrote:

“I asked the readers 11 years ago that if they are reminded of Marcos’ birthday to remember as well the 13 years of tyranny and 20 years of plunder.

“My exhortations were all for naught for many of those who aided, abetted, and applauded the repression, pillage, torture, and looting now serve in the present government as Cabinet members, senators, congressmen, governors, and mayors. Tourism Secretary Richard Gordon and National Security Adviser Roilo Golez were once the fair-haired boys in Marcos’ enormous political apparatus. The Senate now counts among its members KBL stalwarts Blas Ople and Renato Cayetano, zealous martial law military officers Gregorio Honasan and Panfilo Lacson, and corporate lawyers Edgardo Angara and Franklin Drilon.

“The Lower House of Congress is packed with former Marcos political lieutenants and their scions. Sons of Marcos staunch supporters Johnny Ponce Enrile, Maria Clara Lobregat, Johnny Remulla, Salvador Escudero, and Eduardo Cojuangco, just to name a few, now represent Marcos bailiwicks in that chamber. And Speaker of the House is Jose de Venecia, a Marcos disciple of the highest order.

“It is ironic that President Aquino appointed in quick succession to her Cabinet men who lawyered for Marcos cronies: Franklin Drilon for Cojuangco, Mat Caparas for Jose Campos, Conrado Vasquez for Emilio Yap. At one time, those directly involved with the recovery of ill-gotten wealth, Secretary of Justice Drilon, PCGG Chairman Caparas, and Ombudsman Vasquez were former lawyers of the biggest Marcos cronies.”

After the passage of 10 more years, on June 14, 2011, I wrote:

“How easily people have forgotten his crimes. Now half of the population thinks he deserves to be buried in the Libingan ng mga Bayani simply because he was once president of the country. Recently 204 out of 283 members of the House of Representatives signed a resolution authored by Salvador Escudero, Minister of Agriculture during the Marcos Dictatorship, urging PNoy to allow the burial of Marcos in the Libingan ng mga Bayani. It is no surprise that among the signatories are Imelda Marcos and other Congressmen surnamed Enrile, Remulla, Cojuangco, Crisologo, Farinas, Ejercito, and Espina. Those names stood for power and privilege during the Marcos regime.”

In my column of Sept. 11, 2001, I also wrote, “As we are reminded of Marcos today, his birth anniversary, it would do us well if we recall what life was like when he ruled over the land. It would do us well if we reflect on what life would be like if a man who considers Marcos the greatest president and who looks up to him as his role model becomes president.”

That was in reference to Panfilo Lacson who was ostensibly preparing that year for a presidential run in the next elections. Fifteen years later another man who considers Marcos the greatest president and who looks up to him as his role model ran for president. It was apparent 16 million voters did not reflect on what life would be like if he was elected president. So, Rodrigo Duterte became president. Life today is to a large extent like when Marcos ruled over the land.

As he had promised during his run for the presidency, President Duterte, with the willing cooperation of his appointees in the Supreme Court, had Marcos buried in the Libingan ng mga Bayani. It would not be far-fetched if before his term expires, he would get his minions in Congress to pass a law declaring Sept. 11 a national holiday.

Speaking of national holidays, Sept. 21 just might also be declared one by President Duterte. Marcos declared Sept. 21 as Thanksgiving Day because he declared martial law on that day, or so he claimed. He had a fetish for the number seven and 21 is divisible by seven. The fact is martial law was imposed on Sept. 23. But because we remain under the spell of Marcos, we continue to remember Sept. 21 as martial law day — as Marcos wanted us to remember.

 

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.

Virtual Marriage: A flawed solution to an illusory problem

House Bill No. 7042, or the Virtual Marriage Bill, seeks to amend the essential requisites of marriage under the Family Code in order to allow the virtual presence of contracting parties before a solemnizing officer, during a virtual marriage ceremony. In the bill’s Explanatory Note, the perceived necessity for virtual marriages was justified as “the current COVID-19 pandemic has caused the postponement and cancellation of many wedding ceremonies because of the prohibition on mass gatherings, observance of physical distancing and health risks posed to everyone…”

The advancements in technology and the prevalent use of videoconferencing in government proceedings were likewise cited as reasons for allowing virtual marriages in the Philippines.

While the crisis surrounding the introduction of virtual marriages in the Philippines has a factual basis, what the bill proposes is a flawed solution to an illusory problem.

The introduction of virtual marriages in the Philippines is hinged on the prohibition on mass gatherings imposed by the various community quarantines in the country, which has led to the postponement and cancellation of wedding ceremonies. However, the bill overlooks the fact that while mass gatherings are proscribed, there exists no prohibition on the celebration of marriage ceremonies. Marriages may be solemnized despite the pandemic, provided the requirements of social distancing and other health protocols are observed. It is noteworthy that the presence of mere five persons would suffice for a valid marriage ceremony.

Further, the imposition of the community quarantines in the country was never meant to be perpetual. In fact, the country is now under the most lenient type of community quarantine, with some social activities already being allowed. It follows that the prohibition on mass gatherings would be gradually further relaxed, and eventually lifted.

While the celebration of a wedding ceremony during a pandemic would necessarily entail difficulties, its solemnity and sublime importance to a marriage and to the family should not be sacrificed for the sake of convenience.

It is erroneous to argue, as the proponent of the bill does, that since proceedings before congress, the courts, and other governmental agencies are being conducted virtually, marriages should follow suit.

This skewed view disregards the stature of marriage as a special contract, as the foundation of the family, and as an inviolable social institution, the celebration of which is of far greater prominence over any governmental transaction.

Recognizing the significance of a marriage ceremony, the Supreme Court, in Go vs. Court of Appeals, stated: “in our society, the importance of a wedding ceremony cannot be underestimated as it is the matrix of the family, and, therefore, an occasion worth reliving in the succeeding years” (G.R. No. 114791, May 29, 1997).

By providing “virtual presence” as an alternative to physical presence, which is required by law, and which has been the norm since time immemorial, the bill does more harm than good. Instead of upholding the sanctity of marriage, it unwittingly becomes a threat to its stability, solemnity, and even its existence.

The physical presence of the contracting parties and the solemnizing officer during the marriage ceremony is not for mere pageantry and for romantic display. It has a purpose based on legal and practical considerations, as it guarantees that the exchange of free consent has “due publication, before a third person or persons, for the sake of notoriety, and the certainty of its being made” (Dyer vs. Brannock, 66 Mo. 391, 27 Ann Rep. 359).

The physical presence of the contracting parties before the solemnizing officer also provides for an opportunity to safeguard the validity of the marriage by ensuring compliance with the essential requisites of marriage, which are the legal capacity, and the free consent of the parties.

By being physically present, the solemnizing officer is able to observe if the contracting parties possess the requisite age (at least 18) and sexes (male and female) for contracting marriage.

The solemnizing officer is also able to determine if the consent is truly given and that it is freely given, that is, it was not attended by fraud, force, intimidation, or undue influence, which would make the marriage voidable.

These precautions that a solemnizing officer is usually able to take are effectively disabled by a virtual marriage as there is no chance to scrutinize the physical manifestations of these essential requisites through a computer screen.

Lastly, in addition to the requirement that the parties appear personally before the solemnizing officer, they are also to declare in the presence of not less than two witnesses of legal age that they take each other as husband and wife.

Curiously, the bill does not provide for the virtual presence of witnesses. This omission manifests a dearth in appreciation of the role witnesses have and could even lead to an absurd situation where witnesses are physically present before the solemnizing officer, while the contracting parties are merely virtually present.

It bears emphasis that these requirements serve to benefit the parties to the marriage, including the State, which is constitutionally mandated to protect marriage. This protection must start at the moment of the inception of marriage, the ceremony, which the State must keep meaningful and dignified.

Ultimately, the profound nature of marriage demands no less than the physical presence of all persons involved, with respective crucial parts to play, at its commencement. This physical presence manifests the parties’ commitment to a life-long union that the State must simply respect and support.

 

Joel Arzaga teaches Philippine Politics and Governance at the University of Asia and the Pacific

joel.arzaga@uap.asia

Japan’s Suga wins ruling party race to replace Abe as prime minister

JAPANESE Chief Cabinet Secretary Yoshihide Suga was elected leader of the ruling Liberal Democratic Party (LDP) by an overwhelming majority, ushering in the country’s first change of prime minister in almost eight years.

The party, which has ruled mostly uninterrupted since 1955, was set to use its parliamentary majority to install Mr. Suga as prime minister in a separate vote Wednesday. Mr. Suga’s appointment will bring to an end the record run of his ailing boss, Shinzo Abe, who has served since 2012 and forged an identity on the global stage that the world’s third-largest economy had often lacked.

“I made a late decision to run, but before I knew it I was out in front,” Mr. Suga told supporters just before LDP lawmaker started voting. “I would like to create a government that’s trusted by the people.”

A farmer’s son long known as Mr. Abe’s back-room fixer, Mr. Suga won 377 of the 535 available votes Monday, the LDP said. While Mr. Suga headed into a three-way race with little voter support, media polls show the public has also begun to swing behind him. His two rivals were former Defense Minister Shigeru Ishiba — known for his frank criticism of the Abe government — and ex-Foreign Minister Fumio Kishida.

Even before Mr. Suga declared his candidacy on Sept. 2, he had the backing of five of the party’s seven factions and enough votes lined up to win. The only factions that didn’t back him were the ones led by the other contenders — Ishiba, with 19 members, and Kishida, with 47.

Meanwhile, Finance Minister Taro Aso stoked speculation about an early general election, saying it could happen “soon” to legitimize the new administration, Kyodo News reported. While Mr. Suga has repeatedly said the public doesn’t want to go to the polls during the coronavirus pandemic, a surge in support for the cabinet gave rise to ideas the new premier would call one in the near future.

Mr. Suga inherits an economy in a grim state as COVID-19 reverses many of the gains of the past few years, effectively closing down what had been a growing inbound tourism industry. He has pledged to fight the virus while helping businesses stay afloat.

Mr. Suga has said he will continue the ultra-easy “Abenomics” monetary policy. He has said that more should be done on monetary and fiscal policy, if needed, to protect jobs and companies during the virus crisis. Mr. Suga has said reviving the economy should be prioritized over tackling debt at this point.

Any sign of a departure from the path of Abenomics could send the yen surging and stocks sliding, triggering a re-evaluation of the outlook for the nation.

Though Mr. Suga is largely seen as a continuity candidate, he has been outspoken on some issues, including the need for more competition among mobile phone providers. He has said Japan has too many regional financial institutions, and is a strong proponent of introducing casino resorts to bolster tourism.

While Mr. Suga has little direct experience in diplomacy, he has said that Japan’s alliance with the U.S. will remain the cornerstone of its foreign policy. He also referred in a policy pamphlet to maintaining relations with neighboring countries, especially its largest trading partner, China.

“Even if the leader changes, we cannot afford to change our posture with the United States,” Ichiro Fujisaki, a former Japanese ambassador to the U.S., told Bloomberg Television. “Being surrounded by North Korea, China and Russia, the U.S.-Japan relation has to be the cornerstone of our foreign policy.” — Bloomberg

One of ‘best periods’ for Asian equities is now, Jefferies says

ASIAN EQUITIES are set to benefit from a confluence of factors as the global economy recovers, according to Jefferies Financial Group, Inc.

Cyclical shares, undervalued companies and technology names are poised to rally on the “old-school recovery” of a weak dollar, softer oil prices, a pick-up in global trade and the digitalization theme amid unprecedented monetary and fiscal easing, global equity strategist Sean Darby said at the Jefferies Asia Forum. “This is going to be one of the best periods for Asian equities,” he said.

The MSCI Asia Pacific Index has erased its year-to-date losses to climb more than 1% in 2020. Analysts expect it to rise another 13% over the next year, pushing it past an all-time high in January 2018, according to data compiled by Bloomberg. The gauge is trading at about 17 times earnings estimates for the next 12 months versus about 22 times for the S&P 500 Index.

In China, autos as well as domestically oriented airlines listed in Hong Kong are set to outperform over the next six to eight months, according to Jefferies. Japan’s trading houses and the materials sector, particularly steel firms, could also rise amid global reflation, as could companies in Taiwan and Korea as they offer high credit ratings and decent dividend cover, Mr. Darby said.

The Hong Kong-based strategist also favors Asian technology names versus their U.S. peers on valuations even after a rout in technology stocks plunged the Nasdaq 100 index by 8.5% this month.

“If the dollar continues to weaken, then the period for value shares to outperform growth is looming on the horizon,” Mr. Darby said. — Bloomberg

WHO reports record one-day increase in global coronavirus cases

THE World Health Organization (WHO) reported a record one-day increase in global coronavirus disease (COVID-19) cases on Sunday, with the total rising by 307,930 in 24 hours.

The biggest increases were from India, the United States and Brazil, according to the agency’s website. Deaths rose by 5,537 to a total of 917,417.

India reported 94,372 new cases, followed by the United States with 45,523 new infections and Brazil with 43,718. Both the US and India each reported over 1,000 new deaths and Brazil reported 874 lives lost in the past 24 hours.

The previous WHO record for new cases was 306,857 on Sept. 6. The agency reported a record 12,430 deaths on April 17.

India leads the world in new cases reported each day and set a global record last week with 97,570 cases reported in a single day, according to a Reuters tally.

In some parts of India, medical oxygen is becoming hard to find as total cases exceed 4.75 million. Only the United States has recorded more cases at 6.5 million. COVID-19 infections are still rising in 58 countries, including surges in Argentina, Indonesia, Morocco, Spain and Ukraine, according to a Reuters analysis.

New cases are falling in the United States and are down about 44% from a peak of more than 77,000 new cases reported on July 16. Cases in Brazil are also trending downward. — Reuters

Taking charge of personal finance through healthy cash flow

By Patricia B. Mirasol

Achieving life goals entails the proper management of personal finances. “But do you know where your cash goes?,” asked Camille D. Francisco, head of Insular Life’s InLife Learning Academy. 

In the first part of “Shaping Her Future: Sheroes Guide to Financial Freedom,” Ms. Francisco explained basic personal finance concepts and shared tips on how Filipino women can take charge of their economic well-being. Here are the steps to achieving a healthy cash flow.

MINIMIZE BAD DEBTS
Good debts, such as business loans, increase one’s net worth. Bad debts, such as loans to sustain a lifestyle, do not. The road to becoming debt-free starts with asking these questions: How much of one’s income goes to debt? In what order should these debts be paid? How much is needed to pay all these? Creditors can be prioritized through the high-interest method (paying the debt with the highest interest first while just making minimum payments on the rest) or the small debt method (paying the smallest debt first while making minimum payments on the rest).

A crucial step in debt management is realizing that credit cards are not manna from heaven. Aim to pay credit card statements on or before the due date—and in full. Credit card companies earn from the interest of such statements not paid in full. Avoid cash advances and be aware too of any unauthorized purchases.

STICK TO A BUDGET
The struggle is not in creating a budget—it’s in sticking to it. As leadership expert John Maxwell said, “A budget tells your money where to go instead of asking where it went.” Setting oneself up for success involves simple actions like reviewing your monthly subscriptions (are you still utilizing a co-working space or are you now working from home?) and canceling the ones that are no longer applicable.

Download personal finance apps that help track income and expenses. Note that financial planning is not a one-size-fits-all. What works for a two-income family of five does not work for a single mother with a toddler. Create household budget targets that take into consideration the reality of one’s life.

INCREASE INCOME
Look for a suitable side hustle in line with one’s schedule, resources, and company policy. Do it outside of office hours. 

Invest in yourself regularly through continuing education or new skills. This is non-negotiable because of inflation and a rapidly changing world. Workplaces are ever-evolving and there will be few “jobs for life.” Take advantage of free courses online.

INVEST WISELY
Before investing, ensure an emergency fund of at least three to six months’ worth of living expenses. Ideally set aside at least twenty percent of one’s net income each month as savings, else start small. Never borrow to invest. Never borrow from your savings either. “Don’t touch it,” said Ms. Francisco. “This is the worst type of debt because you don’t pay it back.”

When investing, learn more about the product first. If it’s too good to be true (“Risk-free! Double your money in 30 days!”), then it’s not good at all. Choose among the most common ways to invest based on one’s financial goals and appetite for risk. Understand that all investments come with some form of risk. Do not put all your eggs in one basket. 

Shaping Her Future: The Sheroes Guide to Financial Freedom is part of the InLife Sheroes Movement, a program that aims to empower at least one million Filipinas and expand their access to risk-mitigating solutions and investment opportunities. The aforementioned module was co-developed by the Philippine Business Coalition for Women Empowerment (PBCWE), Philippine Women’s Economic Network (PhilWEN), and InLife. The module comes in three parts: Basic Financial Literacy, Investment Planning, and Estate Planning. 

Denver Nuggets force Game 7

Jokic second-half surge fuels Nuggets past LA Clippers

NIKOLA Jokic totaled 34 points, 14 rebounds and seven assists, and the Denver Nuggets overcame a 19-point second-half deficit in a 111-98 victory over the Los Angeles Clippers to force a Game 7 in their Western Conference semifinal series near Orlando.

It was the Nuggets’ fifth consecutive win in an elimination game in these playoffs. They will need a sixth to advance to the conference finals.

But Denver’s resilience was present in its second consecutive furious rally after the break.

The Nuggets outscored the second-seeded Clippers 64-35 in the second half, and held Los Angeles to 26.3% shooting. That included a stretch of 10 consecutive Los Angeles misses in the third quarter, which helped Denver trim a 19-point deficit before taking control in the final period.

Jokic scored 11 of his points in the fourth quarter, including back-to-back 3-pointers to give the Nuggets a 91-84 lead with 8:14 to play. Later, a Jokic jumper pushed that lead to 10, before another 3-pointer by the two-time All-Star made the score 106-93 with 2:27 to play.

The Nuggets outscored the Clippers 30-16 in the third quarter, including a 17-0 run to slice Los Angeles’ advantage to 73-72 on a Gary Harris layup with 3:29 to play in the period.

Denver tied the game at 79 on a layup by Torrey Craig in the fourth quarter’s opening minute, then took its first lead since the opening minute when Craig buried a corner 3 on Denver’s next possession.

The Nuggets shot 61.1% in the second half, including a seven-of-12 mark from 3-point range.

Denver’s Jamal Murray finished with 21 points, five rebounds and five assists, and stayed in the game after hitting the floor hard after getting blocked by Paul George under the basket early in the third quarter. Gary Harris added 16 points, four rebounds and four steals.

George finished with 33 points, six rebounds and five steals, while Kawhi Leonard totaled 25 points, eight rebounds, five assists and two steals.

The Clippers built a 10-point first-quarter lead. Denver used a 17-7 second-quarter run — highlighted by a one-footed, hoisted 3-pointer at the end of the shot clock by Jokic — to cut that advantage to 47-45 with 5:52 to go before the half. But the Clippers answered with 10 consecutive points, and eventually took a 63-47 lead into the locker room. — Reuters

US Open champion Dominic Thiem

FACTBOX on Austria’s Dominic Thiem, who beat German Alexander Zverev 2-6 4-6 6-4 6-3 7-6(6) to win the US Open title on Sunday.

Born: Sept. 3, 1993 in Wiener Neustadt, Austria (age 27)

Grand Slam titles: 1 (US Open 2020)

EARLY LIFE
• Born to Wolfgang and Karin Thiem, both of whom are tennis coaches, and began playing at the age of six.

• Made his ATP Tour debut in 2011 at Kitzbuehel as a wildcard, losing to Daniel Gimeno-Traver in the first round.

• Won his first main draw match later that year, against compatriot Thomas Muster at Vienna.

CAREER TO DATE
• Finished in the Top 125 for the first time in his career in 2013 after reaching the quarter-finals at Kitzbuhel and Vienna.

• Made his Grand Slam debut at the Australian Open in 2014, defeating Joao Sousa before losing to Kevin Anderson in the second round.

• Reached his first ATP Tour final later that year at Kitzbuehel – losing to David Goffin – and ended the year inside the top 50.

• Won his first ATP Tour title in Nice the following year and followed it up with titles in Umag and Gstaad, finishing as the youngest player in the top 20.

• Broke into the top 10 in 2016 after winning titles at Buenos Aires, Acapulco, Nice and Stuttgart, and qualified for the ATP Finals for the first time in his career.

• Advanced to his first Grand Slam final at Roland Garros in 2018, losing to Rafa Nadal.

• Won his maiden Masters 1000 crown the following year at Indian Wells, defeating Roger Federer in the final. Ended the season with five titles, joint-most with Novak Djokovic.

• Defeated by Nadal in the 2019 French Open final and by Djokovic in the Australian Open title clash in 2020.

• Won his maiden Grand Slam title at the US Open with victory over Zverev in the final. — Reuters

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