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Visitor arrivals rise in four months to April on more flights, marketing activity

THE Department of Tourism (DoT) said international visitor arrivals in the four months to April were over 8% ahead of the year-earlier pace, led by visitors from China.

In a statement Wednesday, the DoT said: “(F)oreign visitor count for January to April 2019 totaled 2,867,551, or an increase of 8.57% over… the same period in 2018.”

The visitor count for April was 662,987, up 12.5% from a year earlier.

The DoT also reported that China, South Korea, the US, Japan, and Australia were the leading sources of visitors.

“The top five markets with their respective volumes and growth rates (in April) are: China with 139,177 (+26.77%), Korea with 130,707 (+13.68%), USA with 87,710 (+2.5%), Japan with 57,724 (+17.75%) and Australia with 28,683 (+13.41%),” the DoT said.

Tourism Secretary Bernadette Romulo-Puyat said the increase was due to additional flights and stronger marketing by the private sector. She also added that more initiatives to promote sustainable tourism and upgrade airport facilities are producing consistent monthly growth in foreign arrivals.

“(W)e anticipate more visitors to sustain this upward trend,” she said in the statement.

“We also attribute increased travel movement and consumption to continued efforts in developing new and existing tourism circuits all over the country in pursuit of sustainable tourism,” she added.

The DoT has said that it is targeting international visitors this year of 8.2 million, against the 2018 target of 7.6 million, which was not met with actual arrivals of only 7.2 million. — Gillian M. Cortez

New Sangley airport deadline forces DoTr to order 24/7 construction

THE Department of Transportation (DoTr) is scrambling to complete upgrades to the Danilo Atienza Air Base on Sangley Point after President Rodrigo R. Duterte ordered the immediate use of the facility for general aviation to help decongest the Ninoy Aquino International Airport (NAIA).

In a statement Wednesday, Transportation Secretary Arthur P. Tugade called for 24/7 construction at the former US naval facility in Cavite beginning today, and ordered the hiring of additional manpower and acquisition of additional equipment.

“Whatever it takes, we need to make sure that the directive of the President is delivered. Hire more manpower to work 24/7. Kailangan matapos ‘yan [It needs to be completed] on or before the timeline set by President Duterte,” he was quoted in the statement as saying.

At a Cabinet meeting Monday night, Mr. Duterte expressed concern over the congestion at NAIA after visiting the Manila gateway on the same day, and ordered the DoTr to start immediate operations at Sangley for general aviation flights.

General aviation refers to a category of aircraft lighter than commercial passenger jets. They encompass charter, corporate, military and pilot training flights.

According to the Civil Aviation Authority of the Philippines, an average of 3,000 general aviation flights depart NAIA every month. The DoTr has been developing Sangley to accommodate such flights.

Transportation Undersecretary for Aviation Manuel Antonio L. Tamayo said once Sangley opens for general aviation, it will “effectively be a third runway for Manila.”

In a phone call with BusinessWorld Wednesday, he said the original timeline of the DoTr was to open Sangley for general aviation by March 2020, which was moved to December 2019. Upgrades will need to be further accelerated to meet the President’s directive.

“Our plan is December. The original one was March next year. We moved it to December, pero ang directive ni [but the directive of the] President within four months, so sometime October,” he said.

“Yung December kayang-kaya [December is definite]. October, we’ll have to work 24/7. It’s best efforts for us,” he added.

He noted one of the challenges for the DoTr is the rainy season, which may obstruct construction if flooding happens at the location.

“Our main problem there is the rainy season… aside from the runway, the potential problem we need to address is flooding. Especially since area which we are developing [is] almost sea level… So we’re fixing the drainage system, we put in a pump to pump out the water,” Mr. Tamayo said.

He noted the DoTr will do “everything possible” to follow the President’s timeline.

Raw sugar output rises in mid-May amid declining prices, demand

SUGAR production up to the second week of May rose 3.8% year on year, the Sugar Regulatory Administration (SRA) said.

SRA said raw sugar output was 2.045 million metric tons (MMT) after the second week, up from 1.970 MMT a year earlier.

This is equivalent to 40.916 million 50-kilo bags.

The crop year for sugar starts in September and runs to August.

Meanwhile, demand for raw sugar declined 15% to 1.470 MMT.

Total sugarcane milled fell 4.54% year on year to 21.489 MMT.

Refined sugar output fell 4.6% year on year to 749,731.45 MT.

The millgate price fell 12.71% to P1,489.86 per 50-kilo bag. The retail price was estimated at P45 to P53 per kilo.

The food sector and industry lobby has been calling for the deregulation of the sugar industry to reduce the commodity’s domestic price. They include the Philippine Food Exporters, Inc. (Philfoodex), Philippine Chamber of Commerce and Industry (PCCI), and the Philippine Exports Confederation, Inc. (PHILEXPORT), who have expressed support for a measure replicating the opening up of the import market, as seen in the rice industry.

The Confederation of Sugar Producers (CONFED) said that there is no need for deregulation, and denied claims that the cost of domestic sugar is “prohibitive.” They also said freely importing sugar will affect the livelihoods of 5 million people.

“It seems that the lobby to liberalize sugar importation is being resurrected again through the food processors and manufacturers who comprise a miniscule market in terms of sugar usage,” Raymond V. Montinola, spokesperson for CONFED, said in a statement Wednesday.

He also said that the sugar industry in Thailand is heavily subsidized compared to the country’s sugar industry, which explains why Thai sugarcane sell for about P31 to P34 per kilo at retail, compared with P60 to P65 for domestic sugar.

“Even the Sugar Industry Development Act (SIDA) fund which was supposed to help in the modernization of the industry has been reduced to P500 million, a fourth of what was initially P2 billion. Thus farmers are reduced to traditional farming, (and must absorb) the high cost of farm inputs and implements,” Mr. Montinola noted.

“The SRA has mentioned in the past that they will import sugar when the need arises. The fact that the same has not been issued means that there is ample sugar in the domestic market for the food processors. All they have to do is ask and consult with the agency that is tasked to address their concerns,” he said. — Vincent Mariel P. Galang

TESDA to survey construction, IT-BPM sectors on potential impact of automation

THE Technological Education and Skills Development Authority (TESDA) is hoping to launch a survey next month to evaluate the potential impact of automation on job training requirements.

“It’s a workplace skills survey. It will pinpoint actually kung ano ang mga (what are the) skills requirements of the industry,” TESDA Director General for Policies and Planning Rosanna A. Urdaneta told BusinessWorld.

She added, “We will start by next month.”

Ms. Urdaneta said that TESDA will partner with the I.T. & Business Process Association of the Philippines (IBPAP) in conducting the surveys. The priority industries are construction as well as Information Technology and Business Process Management (IT-BPM).

These two sectors are thought to be potentially the most affected with increased adoption of artificial or augmented intelligence in the workplace.

The survey will give government agencies an understanding of how greater automation and will affect not only employment but also the businesses themselves.

“We’re trying to do that because right now, we don’t really know (much about) the form or content (of the changes),” she said.

The results of the workplace skills survey will be released next year. — Gillian M. Cortez

Full menu of options needed for climate change adaptation — ADB

COMMUNITIES need to be able to make informed decisions about their options in response to climate change, according to a research paper from the Asian Development Bank (ADB).

“While adaptation is typically understood to be a problem of environmental tipping points, this study highlights the need to reframe adaptation as a matter of choice, based on the affected population’s outlook on their own future,” according to the paper, “Rethinking the Limits of Climate Change Adaptation.”

“At-risk communities should be able to decide for themselves the best way to adapt to climate change, given their own contexts and resources,” it added.

The study noted that communities in Tubigon, Bohol have remained on the island despite several typhoons since the earthquake of 2013 and a four-month drought in 2016.

“Still, the communities of Tubigon were able to adapt and continue to live on the islands. Overall, these experiences indicate that extreme events also may not be sufficient to breach the limits of adaptation,” the study said, noting that these communities made adjustments by acquiring rainwater collectors or importing water from the mainland.

Residents also built new houses on stilts, elevated roads, and improved protections against high waves by constructing revetments or planting mangroves, according to the study.

The study also noted that the Tubigon local government also provided options such as employment elsewhere, indirectly encouraging a natural population decline in the community.

It said Tubigon highlights the need for various adaptation strategies and exploring new ones.

It said the local government has also become proactive in securing national funding for road elevation projects and curbing coral mining.

“In particular, in situ strategies should be able to address climate and disaster risks, while promoting socioeconomic development at the same time so as to increase the overall adaptive capacity. In so doing, in situ strategies also can enable planned relocation, allowing island communities to move if, when and where they choose to, avoiding the risk of sudden disaster-induced displacement, and minimizing the constraints posed by long-standing socioeconomic issues,” the study concluded.

“…to be able to make an informed choice, the communities need to have full awareness of the various adaptation options that are available to them and a proper understanding of the risks involved in continuing to live on the islands, as well as in moving to other locations. Still, more importantly, the communities need to be empowered by promoting sustainable development as a means of building adaptive capacity,” according to the study. — Reicelene Joy N. Ignacio

Business style clarified

One of the amendments introduced in the Tax Reform for Acceleration and Inclusion (TRAIN) Law is related to the issuance of receipts or sales/commercial invoices under Section 237 of the National Internal Revenue Code (NIRC). Previously, all persons subject to an internal revenue tax shall issue duly registered receipts or invoices for each sale of merchandise or services amounting to at least P25.00. With the passage of the TRAIN Law, Congress increased the threshold for the issuance of receipts and invoices to P100.00.

However, the other invoicing rules remained basically the same, namely: (1) that the receipts and invoices must be prepared at least in duplicate, showing the date of transaction, quantity, unit cost, and description of merchandise or nature of service rendered; (2) that in case of a VAT-registered purchaser where the transaction covers rentals, commissions, compensation or fees, or where the sale is in the amount of P1,000 or more, the invoice or receipt must also show the name, business style (if any), and address, and Taxpayer Identification Number (TIN) of the purchaser, customer or client.

To clarify the meaning of Business Style, the BIR issued Revenue Memorandum Circular (RMC) 55-2019 on May 21.

Based on the RMC, the phrase Business Style refers to the business name registered with the concerned regulatory body used by the taxpayer other than its registered name or company name. The RMC cites the following examples:

1. A corporation registered under the corporate name XYZ Entertainment Corp. operates under the business name of Bozo the Clown, based on its Certificate of Registration issued by the Securities and Exchange Commission (SEC). Therefore, its business style is Bozo the Clown.

2. A single proprietor named Juanita M. Ricafrente registered the business name JMR Trading with the Department of Trade and Industry (DTI), as reflected in her DTI Certificate of Registration. Hence, the business style is JMR Trading.

Before RMC 55-2019, most taxpayers construed Business Style as referring to their line of business as indicated in the BIR Certificate of Registration (BIR Form 2303), such as water transport, textile manufacturing, private educational services, and others. Thus, when issuing or securing invoices or receipts, taxpayers only needed to refer to the BIR Form 2303 to get the required information.

With the issuance of RMC 55-2019, there is a concern about being penalized for non-compliance with formal requirements due to an erroneously indicated business style in the receipts and invoices. To properly comply, merchants may need to request copies of the SEC and DTI Certificates of Registration from their corporate and individual customers, respectively, to validate the business style to be reflected.

A more critical concern on the part of VAT-registered taxpayers is the impact of this new RMC in claiming input tax credits or refunds. Since one of the requirements to claim input VAT credits or refunds is substantiating the claim with compliant supporting documents, will the affected taxpayers now lose their right to claim a tax credit or refund if the Business Style field on the invoices/receipts supporting their previous purchasers is not properly filled up? Will the VAT refund claim for ongoing applications be denied if the indicated business style is not consistent with RMC 55-2019 or not written prominently in the receipts and invoices?

I believe that the impact of RMC 55-2019 should be applied prospectively without detriment to the taxpayer. Under Section 246 of the NIRC covering non-retroactivity of rulings, any revocation, modification, or reversal of any of the rules and regulations shall be not be given retroactive application if such will be prejudicial to the taxpayers. From my experience, the BIR had not previously questioned the practice of reflecting the line of business as the Business Style. It would not be fair to now clarify the matter and penalize taxpayers for past transactions which were based on a previously prevailing accepted practice. This is especially considering that information, such as the business style, has no impact on the recording of a company’s accounting transactions or on the determination of the amount of taxes to be paid.

It’s high time that the government revisit the required information to be indicated in the receipts and invoices. The omission of unnecessary information may help the government achieve its objectives of streamlining and simplifying the taxpayers’ compliance requirements. It will also lessen the tax authority’s administrative work as they will only need to validate lesser information. In fact, if we were to go to the extreme, one actually only needs the TIN to identify and validate an existing taxpayer since it is a unique number.

However, with the issuance of RMC 55-2019, taxpayers must ensure that they are compliant with the directives of the law. Not only is there is a risk of not being able to claim the proper deductions or credits, sadly, non-compliance with formal requirements, no matter how trivial it may seem, is considered a violation that is punishable with fines, or worse, by imprisonment under Section 264 of NIRC.

The views or opinions in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The firm will not accept any liability arising from the article.

 

Maybellyn O. Pinpin-Malayao is a senior manager with the Client Accounting Services group of Isla Lipana & Co., the Philippine member firm of the PwC network.

+63 (2) 845-2728

maybellyn.o.pinpin@pwc.com

PBA: Northport hands Magnolia another loss

By Michael Angelo S. Murillo
Senior Reporter

THE NORTHPORT Batang Pier rolled to their fifth win in six games in the Philippine Basketball Association Commissioner’s Cup on Wednesday, sending the Magnolia Hotshots Pambansang Manok to a second straight defeat, 102-99, in league action at the Smart Araneta Coliseum.

Struggled at the beginning of the contest, the Batang Pier collectively picked it up on both ends of the court as the match progressed to keep at bay and outlast the Hotshots, and strengthen their position in the top-half of the standings.

The Hotshots got it going early, racing to an 11-2 lead in the first four minutes of the opening quarter, led by Robbie Herndon, Ian Sangalang and new import James Farr.

Northport tried to claw its way back after but was staved off by Magnolia, which continued to hold sway after the first quarter, 23-16.

The Batang Pier, however, were undeterred and did not waste much time in charging back anew in the second frame.

They would come to within two points, 34-32, with 5:38 to go in the first half, eventually tying the count at 43-all with a minute left.

Northport did not stop there as Sean Anthony and Jonathan Grey conspired to a 5-0 finish to hand their team a 48-43 advantage by the halftime break.

The break hardly slowed down the Batang Pier as they came out firing at the start of the third period, outscoring their opponents, 11-2, with just two minutes lapsing to push their lead to 14 points, 59-45.

Magnolia managed to squeeze in a 9-3 run after to narrow the gap to eight points, 62-54 midway into period.

The Batang Pier though would regain its footing to stay ahead, 70-62, heading into the final canto.

The two teams started the fourth quarter looking to establish early control to build momentum for the homestretch.

Northport had inside track first before Magnolia countered to stay within striking distance.

The count was at 82-75 with seven minutes left, and the Batang Pier still on top, before Northport went on a 5-0 run to create another double-digit separation, 87-75, at the 6:29 mark.

Northport was ahead, 92-83, with less than three minutes remaining only to see Magnolia make a late charge to come within three points, 98-95, with 35 seconds left.

The Hotshots tried to push it further but two free throws from Mr. Anthony with nine seconds to go made it a five-point cushion, 100-95, for the Batang Pier and eventually put the game away.

Mr. Anthony led Northport with 22 points, eight rebounds and five steals. For Magnolia (0-2) it was Mr. Sangalang who top-scored with 21 points.

After Game Five defeat, Raptors forced to regroup

TORONTO — Canadian basketball fans did not wake up on Tuesday nursing hangovers from a championship celebration but rather with a mild sense of panic after the Toronto Raptors missed a chance to clinch a maiden NBA title.

The Raptors, with an entire nation hanging on their every shot, had gone into Game Five with a 3-1 advantage and had led the defending champion Golden State Warriors by six points with under three minutes to play on Monday but came away empty-handed as their shooters went cold.

“We didn’t play well enough. We didn’t execute enough down the stretch and that stings a little bit, but there’s a lot more basketball left to play,” said Raptors guard Fred VanVleet.

“We came into this series expecting a long series and we put ourselves in a good position. Now it’s time to look at the film and see how we can get better.”

Toronto still has two more chances to close out the best-of-seven series, which resumes on Thursday in Oakland, but if they come away empty-handed will most certainly be haunted by their closing stretch to Game Five for the rest of their lives.

The Raptors trailed by 14 points at one point during the second half but impressively rallied back and led by six points with under three minutes to play to put the Warriors’ bid for a fourth title in five years in serious jeopardy.

But Toronto combined for 1-for-6 shooting the rest of the way in a game that came down to the final possession where Kyle Lowry’s last-second shot came up short after Warriors forward Draymond Green got a piece of the ball as it traveled through the air.

“It felt great out of my hand,” Lowry said of his three-point shot attempt that had it gone in would have marked the first time a Canadian team has won an NBA championship.

“He got a piece of it, that’s what great defenders do. He got a piece of it and we’ll continue to look at it and see how we can be better for the next game.”

The Raptors will surely like their chances going forward as they have already won both games played on Golden State’s home court this series and are facing a Warriors lineup that due to injury is the thinnest it has been during their dynastic run.

Kevin Durant, the centerpiece of Golden State’s potent offense, started Game Five after missing over a month with a stained right calf but went down suddenly in the second quarter with an Achilles injury.

Despite the injury to Durant, who was named the NBA Finals Most Valuable Player in each of the last two years, Raptors forward Kawhi Leonard is approaching Game Six with the same sense of urgency.

“They’re dangerous,” said Leonard. “Obviously KD makes them a different team, they have been here before … I’m just focusing on our team and what we got to do next game.

“But they played great tonight in the last three quarters after KD exited.” — Reuters

Woods feels Durant’s pain after Achilles injury

PEBBLE BEACH, CALIFORNIA — Knowing all too well what it is like to be struck down by injury Tiger Woods spared a thought for Kevin Durant on Tuesday, after watching the Golden State Warriors forward crumple to the floor during a game against the Toronto Raptors.

“It was sad,” said Woods, during his US Open pre-tournament media conference. “As athletes we’ve all been there, to that spot when you just know it, that something just went, and can’t move, can’t do much of anything.

“You can see it on his face. You just know.”

Sidelined by a calf injury since the second round of the postseason, Durant made his long-awaited return to the Golden State lineup on Monday for a must-win Game Five of the NBA Finals only to go down suddenly in the opening minutes of the second quarter with a suspected Achilles injury.

The sight of Durant on the floor clutching at his leg brought back all-too-painful memories for Woods who battled career-threatening back issues until undergoing surgery just over two years ago.

“I’ve been there. I’ve had it to my own Achilles,” said Woods. “I’ve had it to my own back.

“I know what it feels like. It’s an awful feeling. And no one can help you.

“That’s the hard part.”

If Durant has suffered an Achilles injury Woods knows what awaits the NBA All-Star.

The 15-time major winner injured his left Achilles during the 2011 Masters and missed three months of action. He was diagnosed with a mild Achilles tendon strain the following year.

“If he popped it, then that’s six to nine months of rehabbing,” said Woods. “That’s what people don’t see, is all those long hours that really do suck.

“Why do we do it? Because we’re competitors.

“As athletes our job is to make the human body do something it was never meant to do and to do it efficiently and better than anybody who is doing it at the same time.

“Well, sometimes things go awry. And we saw it last night with Kevin.” — Reuters

Thiem seeks to end Serena row with offer to play mixed doubles

Austria’s Dominic Thiem poses with his trophy at the recently concluded French Open. — REUTERS

AUSTRIA’S DOMINIC THIEM has extended an olive branch to Serena Williams after their media room misunderstanding at the French Open by offering to partner the American in mixed doubles at Wimbledon or the US Open.

Thiem, who finished runner-up at Roland Garros, was left fuming after being asked to make way for Williams at a postmatch news conference following her third-round defeat in the first week of the tournament.

Williams, who had just lost in straight sets to Sofia Kenin, was pushing organizers to give her a room right away and Thiem accused the American of showing “bad personality” and treating him like “a junior.”

“Probably it was not Serena’s mistake,” he told reporters on Tuesday. “I find her achievements unbelievable, sensational. I would like to make amends with her in Wimbledon or the US Open mixed doubles.

“In retrospect, it was funny that such an organisational mistake happened at a Grand Slam tournament. What I do not understand is that it blew up so much.”

Thiem, a clay court specialist, said he wanted to improve his record at Wimbledon, where he has never reached the quarter-finals. He retired midway through his opening-round match against Cypriot Marcos Baghdatis last year.

“Wimbledon is special,” the 25-year-old added. “I want to show myself better than last year. At that time I was slightly injured and had to give up in the first round. Now I see good chances to get relatively far.” — Reuters

TMP’s Vios Racing Festival first leg successfully held

THE FIRST leg of Toyota Motor Philippines’ (TMP) Vios Racing Festival was successfully held last weekend at the Clark International Speedway in Pampanga.

Happened on June 8, the motoring festival gathered celebrities, racing teams, car club members, Toyota owners and motoring media in a day of exciting pedal-to-the-metal action.

Race proceedings were divided into two formats, namely, Autocross Challenge and Circuit Championship.

The Autocross Challenge is a timed competition wherein drivers navigate through an obstacle course one at a time while the Circuit Championship is the classic format wherein all drivers are simultaneously competing against each other during laps.

Both formats made use of the One-Make Race (OMR) edition of the All-New Toyota Vios, which was modified for optimum handling and performance.

In line with its push for a more inclusive and accessible motorsports program, TMP invited Toyota owners, even those without racing experience, to participate in the Autocross Challenge, making the event all the more exciting.

Winners in the Autocross Challenge were Carlos Inigo Anton (49.99 seconds), Mickie Carbonel (52.65) and Alexis Lavapie (53.02) in the car club/Vios owners class; Vince Vandorpe (54.49), Phytos Ramirez (56.83) and Reph Bangsil (57.06) in the influencers class; and Jose Luis Altoveros of Autoindustriya (53.05), Jeff Soberon of MPTurbo (54.05) and Matt Mallari of STV (55.15) in the media class.

The Circuit Championship, meanwhile, was divided into three categories — Sporting class, Promotional Class and Celebrity Class — attracting a total of 22 racers.

Winners in race 1 of the championship circuit were Daniel Matsunaga (first), Aubrey Miless (second) and Gretchen Ho (third) in the celebrity class; Francis Adriano (Obengers/Toyota San Jose Del Monte), Julian Tang (Obengers/Toyota Otis) and Elysse Menorca (Obengers/Toyota North Edsa) in the promotional class; and John Dizon (Obengers/Toyota Marilao), Gel Napat (Team Biskeg/Toyota Dagupan) and Red Diwa (Growl Thule Racing) in the sporting class.

In race 2, winning were Troy Montero, Ms. Ho and Mr. Matsunaga (celebrity); Mr. Adriano, Julian Neri (Toyota Cebu) and Fabio Ide (TMP) (promotional); Eggy Ong (JBT Racing/Toyota San Fernando), Mr. Diwa and Lord Seno (Toyota Cebu) (sporting).

Winning in race 3 were Mr. Montero, Ms. Ho and Ms. Miles (celebrity); Mr. Tang, Elysse Menorca (Obengers/Toyota North Edsa) and Mr. Adriano (promotional); and Mr. Seno, Mr. Dizon and Mr. Napat (sporting).

The second and third legs of the Vios Racing Festival happen in August and November, respectively, also at the Clark International Speedway. — Michael Angelo S. Murillo

Red Bull Reign on June 29

RED BULL’s signature streetball tournament – “Reign” — returns to the country for a third straight year with the last chance qualifier and national finals slated for June 29.

Happening at the Highstreet Amphitheater in Bonifacio Global City, Taguig, Red Bull Reign is expected to once again feature exciting and competitive 3×3 action that will pit hopefuls against one another in high-endurance and offensive-driven battles.

Tournament rules are simple: teams that score the most overall points in each round will advance until one team remains. Also, players 16 years old and above, and legal citizens of the Republic of the Philippines, are open to submit their teams of three (with one reserve) to compete and must have their passports ready.

Winner of the Philippine leg gets to compete at the World Finals in Toronto, Canada, in September where it will go up against other winners in different qualifiers from Canada, The Netherlands, Belgium, Lithuania, Russia, United Kingdom, Russia, Kosovo, Turkey, Montenegro, Angola, Taiwan, India and Hong Kong.

Those who want to participate and compete may check out win.gs/redbullreign2019 for further details. — Michael Angelo S. Murillo

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