Hotshots nab Game One of Philippine Cup finals

May 1, 2019 | 10:16 pm

By Michael Angelo S. Murillo
Senior Reporter

THE Magnolia Hotshots Pambansang Manok went 1-0 up in their best-of-seven PBA Philippine Cup finals series with the defending champions San Miguel Beermen following a gutsy 99-94 victory in Game One on Wednesday at the Smart Araneta Coliseum.

Banking on a total team effort on both ends of the court, the Hotshots successfully overcame the Beermen, who got a monster game from reigning league most valuable player June Mar Fajardo, to move a step closer to the title of the season-opening Philippine Basketball Association tournament.

The first two quarters had the two teams going back-and-forth with Magnolia bucking early struggles and going on a strong finish led by Paul Lee to claim the opening quarter, 34-30.

In the second it was San Miguel’s turn to make a run after a slow start behind Mr. Fajardo and Alex Cabagnot to go on top, 55-52, at the halftime break.

The third quarter saw the Hotshots making a move to pull away, opening the frame with a 15-4 run in the first five minutes.

San Miguel regained its footing and pulled itself to within one point, 67-66, after two minutes.

But Magnolia would maintain control the rest of the way as Jio Jalalon made his presence felt on offense, building a seven-point lead, 80-73, heading into the final quarter.

The Beermen did not waste much time in trying to gain some headway at the start of the payoff canto.

Their push, however, was met head-on by Magnolia which continued to hold sway, 88-79, with eight minutes to go.

San Miguel then turned to Mr. Fajardo to will it back in the game, with the five-time league MVP obliging with 15 straight points to help the Beermen stay close of the Hotshots, 95-94, with a minute and half left on the game clock.

Ian Sangalang gave the Hotshots further breathing room, 97-94, when he drained a jumper from the top of the key with 1:16 remaining.

The Beermen had chances to level the count after but three-point attempts by Arwind Santos and Marcio Lassiter did not connect.

Mr. Lee made it a five-point lead for the Hotshots, 99-94, with 17 ticks remaining.

It was a hole that San Miguel would not be able to claw itself out from as Magnolia went on to claim the win.

Mr. Lee led six players in double digits in scoring for Magnolia with 18 points, followed by Mr. Sangalang and Mark Barroca with 17 apiece.

Mr. Jalalon had 16 and Rafi Reavis and Justin Melton 12 and 11 points, respectively.

For San Miguel it was Mr. Fajardo who showed the way with 35 points and 21 rebounds.

Mr. Cabagnot had 18 points while Mr. Santos had 13 points and 15 boards.

Game Two of the finals is on Friday also at the Big Dome.

DoE seeks WESM registration for more power generators

May 1, 2019 | 9:52 pm

THE Department of Energy (DoE) said embedded generation plants, or those that are not directly connected to the power grid but supply electricity to a distinct area, are now required to register with the Wholesale Electricity Spot Market (WESM).

“If they are not participating in WESM activities, then we don’t know when they are in or out, and then suddenly if they are out then WESM has to provide the power,” said Mario C. Marasigan, director of the DoE’s Electric Power Industry Management Bureau, said in a recent interview.

He said there is a need for embedded power generation plants to register to allow the regulator as well as the grid operator to know exactly the existing power demand and the corresponding power supply to meet it.

Embedded power generating units are indirectly connected to the grid — or the interconnected power assets that transmit high-voltage electricity through transmission lines, towers and substations — through the distribution system that supplies power to its host distribution utility.

He said the DoE had issued a department circular providing for the framework governing the operations of embedded generators. That circular had already been published and should be in effect by now, he added.

“Once it’s effective, then they should follow. For example, in Mindanao if I’m a 5-megawatt (MW) embedded generator, I should register now with WESM. If I am below [5-MW], then I need not,” Mr. Marasigan said.

He said the need to register with the spot market comes at a time when power plants had been failing and reducing available supply. If embedded generators similarly fail, the distribution utility they serve would need to turn to the grid to source power.

Mr. Marasigan said if the embedded generator is not participating in the spot market, the DoE will not be able to allocate the required capacity should the generator go into an unplanned outage.

Under the DoE circular, embedded generators that provide at least 5 MW in the Visayas and Mindanao grids are to register with the WESM. In Luzon, the corresponding capacity threshold is 10 MW.

Embedded generators that do not meet the threshold may register in the WESM on a voluntary basis. End-users with generating units exporting power to the grid or distribution system should register in the WESM both as customer and generation company. — Victor V. Saulon

NEDA-Davao calls for expansion of construction labor pool amid slowdown

May 1, 2019 | 9:51 pm

DAVAO CITY — A worker shortage slowed the growth of the construction industry in the Davao Region to 18.1% in 2018 from 37.9% the previous year, regional economic planners said, citing Philippine Statistics Authority data.

Maria Lourdes D. Lim, regional director of the National Economic and Development Authority (NEDA), said last week at a news conference that the lack of construction workers has been noted across the region, with both government and private sector projects suffering delays due to the shortage of skilled manpower.

Ms. Lim said although the problem “is not that big” yet, skills training programs have to be stepped up even as she recognized ongoing initiatives by both the public and private sectors.

She said the Technical Education and Skills Development Authority should conduct “more capacity-building” activities in key areas of the region to “increase the number of construction workers.”

About two years ago, the Department of Labor and Employment flagged the need for more construction workers to meet the demand for private and public projects.

Several major road projects are being undertaken or lined up in the Davao Region under the government’s Build, Build, Build program, along with the planned phase 1 of the Mindanao Railway System.

Ms. Lim said the construction workers pool should be built up, focusing on local manpower, to sustain the momentum in Davao’ economic growth.

“Priority should be given to local workers in the region,” she said. — Carmelito Q. Francisco

SC ruling to delineate PCC, ERC responsibilities

May 1, 2019 | 9:50 pm

THE DIVISION of labor between the Philippine Competition Commission (PCC) and the Energy Regulatory Commission (ERC) will be clarified once the Supreme Court decides on a case which was elevated by the power regulator, according to a PCC official.

“We have to afford them the right to seek further clarification from SC. A MoA [memorandum of agreement] will take a while,” PCC Commissioner Johannes Benjamin R. Bernabe told reporters in Makati City last week.

Following the spate of outages that struck some parts of Luzon, the PCC revived proposals to sign a MoA with the DoE and ERC to facilitate market competition and investigations in the power sector.

The PCC and ERC had been tackling ways to coordinate efforts in the competition area of the power sector, with talks first surfacing in late 2016 when several areas of the country were struck with a series of power outages.

Republic Act (RA) 9136, known as the Electric Power Industry Reform Act (EPIRA) of 2001, authorizes the ERC to monitor and penalize any act that constitutes market power abuse and/or anti-competitive or discriminatory behavior by any electric power industry participant.

Meanwhile, RA 10667 or the Competition Act of 2015 authorizes the PCC to implement a national competition policy and ensure the promotion and protection of the competitive market by prohibiting anti-competitive agreements, abuse of dominant position, and anti-competitive mergers and acquisitions.

A resolution the Court of Appeals (CA) issued on May 23, 2018, dealing with a petition filed by Manila Electric Co., which questioned ERC’s jurisdiction over a competition concern related to the Malampaya shutdown in 2013, resolved this, saying the Competition law repeals Sections 43 and 45 of the EPIRA law which gives ERC the function to resolve cases of anti-competitive behavior and other unfair trade practices in the energy sector.

However, the ERC appealed the CA decision before the SC, according to Mr. Bernabe.

Mr. Bernabe added that regulators, specially those with competition mandates like ERC, are still not precluded from conducting their own investigation and factfinding inquiries.

“But when it comes to the period that there is a need for a quasi judicial determination whether there is breach of competition law or competition related laws, then it is the PCC, which has jurisdiction.”

Nevertheless, he added “there is nothing that prevents us from agreeing and reviewing certain other aspects of the MoA, exchanges of information, coordination in factfinding missions, preliminary inquiries and investigations.”

At present, the PCC is also looking into the merits of whether it will launch a probe into the alleged collusion of power plants that announced unscheduled closures, resulting in power outages on Luzon.

“There’s an urgency to address the issue of power outages. Of course, it is important that if there are any breaches of the law, that these should be subject to appropriate proceedings. But of course, we have to ensure that in the process of undertaking those proceedings, the facts and evidence would show that there’s breach of competition law, “ Mr. Bernabe added. — Janina C. Lim

EU objects to PHL’s frequent use of glass safeguard measures

May 1, 2019 | 9:49 pm

THE European Union has flagged at a World Trade Organization (WTO) meeting the Philippines’ practice of imposing sagefuard measures on float glass imports.

“The European Union said it regretted the frequent recourse to the safeguard instrument by the Philippines on imports of float glass and said that if the domestic industry could not adjust over 10 years, then another course of action should be taken,” an official based in Geneva, where the WTO is headquartered, told BusinessWorld.

“Given that one country accounts for 85% of float glass (exported) to the Philippines, more appropriate trade defense instruments like anti-dumping or countervailing measures should be used, the EU said. The Philippines said it would report back to capital on the EU’s intervention,” the official, who cited his office’s usual procedure against being identified, added.

Float glass is manufactured according to the Pilkington process for making sheets of glass, typically used in windows. The process involves “floating” molten glass on a bed of molten metal. Products made via the Pilkington process are of uniform thickness, ensuring flat surfaces.

On April 29, over 30 safeguard-related actions of WTO members were reviewed at the Committee on Safeguard’s biannual meeting, reflecting the increased use of this trade-defense tool in recent years — amid increased concerns about their use.

In March, the Philippines notified the WTO of its preliminary safeguard investigation on the importation of clear and tinted float glass from various countries.

The probe, which started in February through Safeguard Case No. 01-2019, was conducted upon the request of the industry’s sole domestic producer, Pioneer Float Glass Manufacturing Inc.

Citing government data, Pioneer said the volume of imported clear and clear reflective float glass rose sharply between 2013 and 2016.

In 2014, imports totaled 32,351 metric tons (MT), up 646%; 2015 imports totaled 49,289 MT, up 52%; and 2016 shipments amounted to 58,787 MT, up 19%.

In 2017 imports of clear float and clear reflective glass declined by 29% following the imposition of an anti-dumping duty.

In the first six months of 2018, imports rose 113%.

Pioneer described the upward trend as “recent, sharp, sudden and significant.”

The report defines clear float glass as “a distortion-free, transparent glass with precise surface flatness which provides excellent thorough-vision images.”

It is used specifically for exterior and interior window and door openings, curtain walls, huge scenic openings (glacade-suspended glass systems), showcase windows, furniture applications (tabletops, dressers), interior room partitions and basic glass for mirrors, heat-treated safety glass, laminated glass, and ballistic glass.

Tinted glass or bronze glass is described as “a distortion-free, colored or tinted, but transparent glass, with a light to a darker shade of brown, with precise surface flatness.

Tinted float glass is used for exterior and interior window and door openings, curtain walls, scenic openings, furniture applications, interior room partitions and basic glass for tinted mirrors, automotive tempered glass, building tempered and heated -strengthened safety glass, ballistic glass, and decorative applications.

Top suppliers of clear and clear reflective glass and tinted and tinted reflective glass during the five-year-period are China, Indonesia and Malaysia. — Janina C. Lim

Not business as usual

May 1, 2019 | 9:48 pm

Prior to the enactment of the TRAIN Law, Section 100 of the Tax Code generally imposed a donor’s tax on transfers for less than an adequate and full consideration in money or money’s worth, whereby the amount by which the fair market value of the property exceeded the value of the consideration was deemed a gift, and included in computing the amount of gifts made during the calendar year.

Viewed on its own, the provision itself is not controversial, since transfers for less than the adequate and full consideration are, for all intents and purposes, actually donations insofar as the amounts foregone or given away is concerned. However, the complication arises when one tries to define what is considered as “adequate and full consideration,” or in other words, “fair market value.”

As the phrase suggests, “fair market value” is dictated by the market. In its simplest sense, fair market value is the price a property would sell for in the open market. It is the sum result of the confluence of factors that are present in a free or uncontrolled market characterized as follows: prospective buyers and sellers are reasonably knowledgeable about the asset, behaving in their own best interests, free of undue pressure to trade, and given a reasonable time period for completing the transaction, among others. Given these conditions, an asset’s fair market value should represent an accurate valuation or assessment of its worth.

However, in attempting to define the “fair market value,” the tax authority has come up with a mechanism, whereby real properties would be assessed and valued by the Commissioner or his duly authorized representatives on a periodic basis pursuant to the tax code. This resulted in a schedule of zonal values in which properties located within a certain location are prescribed such fair market value or “zonal value” as determined by the Commissioner, which will then be compared with the fair market value as shown in the schedule of values of the Provincial and City Assessors, and whichever is higher shall be the value of the property for tax purposes. With respect to shares of stock not traded through the stock exchange, the Bureau of Internal Revenue (BIR) based the fair market value on the adjusted net asset value, with real properties adjusted to their value as determined under the tax code

While generally the zonal value/value of the property as determined under the tax code may adequately represent the fair market value of properties in an area, there are numerous cases of disparities with the actual fair market value due to certain contributory factors, such as location, condition of the property, situation of the parties, terms and conditions of the contract, timing, etc. In other words, the dynamic environment of the business and the market determines the fair market value of the property, and not merely the value as estimated from time to time by the Commissioner or his agents.

Consequently, in cases where the “value of the property” prescribed by the BIR actually exceeds the actual fair market value of the property, the outright application of such value under Section 100 resulted in the imposition of donor’s tax notwithstanding the absence of any donation, or transfer below full and adequate consideration. In such cases, donor’s tax will be imposed even though there is no donation at all and the parties are transacting on an arm’s-length basis in the usual or ordinary course of business. In other words, the donor’s tax imposed without any underlying donation to begin with was illogical, illegal, and ultimately, void. However, the costs and/or delays of contesting such outcome were burdensome on the taxpayers, who eventually treated the tax as cost of the transactions to the detriment of their businesses.

Due to the prevalence of such cases, Congress deemed it proper to introduce, under the TRAIN Law, an amendment to Section 100 of the Tax Code, which reads:

“Provided, however, that a sale, exchange, or other transfer of property made in the ordinary course of business (a transaction which is bona fide, at arm’s length, and free from any donative intent), will be considered as made for an adequate and full consideration in money or money’s worth.”

The amendment merely clarified what should have been read as part and parcel of the law itself, but which was somehow lost or ignored upon implementation by the tax authority.

Notwithstanding the amendment, the BIR recently issued Revenue Memorandum Circular No. 30-2009 in which the BIR seeks to reimpose its position that the proviso should be strictly construed and applied, as follows:

“Since an arm’s-length transaction is a question of fact, it therefore behooves upon the party, seeking to apply the exception to prove that indeed the sale involves no irregularity between unrelated and independent parties. This would require presentation and reception of reasonable evidence sufficient enough to convince that the sale of the shares of stock for less than its FMV is without intent to evade tax and defraud the government (of the tax due therein).”

While the regulation, without doubt, eases the implementation of the provision on the part of the BIR or its agents, it shifts the burden of proof entirely on the taxpayer. By requiring reception of evidence, the BIR is now vested with unbridled authority to determine whether such burden has been properly dispensed with. As the outcome is dependent solely on the BIR’s discretion, the situation has not improved at all since taxpayers will again be faced with the prospect of paying the donor’s tax notwithstanding the absence of intent to donate.

With all due respect to the tax authorities, intent to evade and defraud the government of taxes is not a reasonable presumption that must be overcome by the parties to any transaction. Stated differently, parties do not enter into transactions to defraud the government of revenues and taxes. Rather, parties have legitimate business or commercial reasons for doing so, i.e., to realize gain, profit or advantage from productive activity. To require the parties, upon consummation of the transaction, to show proof that it is not meant to defraud the government of taxes, is to impose a presumption that they have an intent to evade taxes in the first place, and must overcome the burden by proving otherwise. This situation is abhorrent and violative of the Constitution, which provides for the legal presumption of innocence unless proven guilty. As a general principle of law, “proof lies on him who asserts, not on him who denies.”

Further, by adding another burden to tax compliance, compliant taxpayers are essentially punished, while tax evaders are left unscathed. Even as currently worded, the RMC is still subject to potential abuse by unscrupulous taxpayers. For instance, a taxpayer may still claim donor’s tax exemption provided the amount of the difference is P250,000 or less for a given year. Also, a taxpayer may simply declare a selling price lower than the actual fair market value or zonal value, as the case may be, and pay the donor’s tax on the difference, since the donor’s tax rate was reduced to 6%; in contrast, capital gains tax was increased to 15%.

While it has been customary on the part of the tax authority to introduce more onerous measures to address compliance issues and to meet mounting pressures to increase tax collections, this may not be the best and most productive way to meet these objectives, as borne by experience in more developed countries. There, the focus is not to add burdens, but to ease compliance and the cost of doing business. Also, by treating businesses as partners of the government in nation-building rather than presumptive tax evaders, industries prosper, and consequently, government’s tax collection efforts succeed as well.

To my mind, now is the time for our tax regulators to discard conventional views and consider more progressive ways to implement our tax laws that encourage compliance and reduce costs on businesses. By doing so, the government may be able to restore health to the “Sick Man of Asia” and finally transform itself into an industrialized country in Southeast Asia, a transformation which is long overdue.

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

Jaffy Y. Azarraga is a Director at the Tax Services Department of Isla Lipana & Co., the Philippine member firm of PricewaterhouseCoopers global network.

jaffy.y.azarraga@ph.pwc.com.

Kaya delights in solid showing that led to big win

May 1, 2019 | 9:43 pm

KAYA FC-ILOILO got its AFC Cup Group H campaign back on the winning track with a dominant 5-1 victory on Tuesday over visiting Lao Toyota FC of Laos at the Panaad Park and Football Stadium in Bacolod City.

It was a victory that Kaya took extra delight in as it had the team having a solid showing from start to finish.

Forward Jordan Mintah led the thorough Kaya attack with a hat trick while Connor Tacagni and Yannick Tuason scored a goal each to tow their team to the victory, a bounce back from a tough loss they had previously.

Erstwhile struggling Mintah got the scoring going for the home team in the 11^th minute when the Ghanaian poked a shot past the Lao goalkeeper for the 1-0 lead.

Just as the opening half drew to a close, Kaya doubled its lead care of midfielder Tacagni, who nodded a goal in the 40^th minute.

In the second half, Lao got buried deeper when Mr. Mintah scored his second goal in the 66^th minute.

The visiting side scrambled to stay in the game, managing to squeak in a goal in the 70^th minute from forward Kazuo Homma.

But that was the closest Lao could get as Kaya put its foot down and went on a strong finish, punctuated by goals from Messrs. Tuason (86’) and Mintah (89’) to complete the impressive victory.

“I’m so happy for my boys. That was hard work from start to finish. In general, we played really well today,” said Kaya coach Noel Marcaida of the performance they showed against Lao.

For Mr. Mintah, to finally bust loose on offense the way he did was something he truly welcomed. “I’m so happy. The last four games have been so hard for me. I keep asking, ‘What’s wrong with me?’ But God always answers ‘Your time will come.’ Today is that day — three goals — I hope it will continue,” said Mr. Mintah.

With the win, Kaya (2-2-1) moved back to second place in Group H with eight points, still in the hunt for the best runner-up finisher among the three ASEAN Zone groupings that would merit a ticket to the next round.

Kaya finishes its group assignments on May 14 versus Home United FC in Singapore. — Michael Angelo S. Murillo

PhilCycling bid to host BMX meet in ’20 accepted

May 1, 2019 | 9:42 pm

Filipino BMX cyclist Daniel Caluag — *ASIAN GAMES WEB SITE*

THE Asian Cycling Confederation (ACC) has elevated the Philippines’ bid to host the 2020 Asian BMX Championships to the continental body’s management committee meeting set later this year.

This was confirmed by ACC Secretary-General Onkar Singh to the Intergrated Cycling Federation of the Philippines (PhilCycling) during the confederation’s congress last Friday at the International Hotel Tashkent in Uzbekistan that coincided with the Asian Championships for Road.

So far, only the Philippines signified an interest to host the championships, whose 2019 edition was held last month in Kuala Lumpur where Filipinos Patrick Coo won gold in the men junior category and former Asian Games champion Daniel Caluag finished fourth place after skidding in the first turn in the elite class.

PhilCycling President Rep. Abraham “Bambol” Tolentino welcomed the ACC’s acceptance of the national sports association’s intention to host next year’s championships at the International Cycling Union (UCI)-regulation BMX track that is being built in Tagaytay City for the 30^th Southeast Asian Games.

“We are hopeful of the ACC approval of our bid to host the Asian championships at the world-class track in Tagaytay City,” Mr. Tolentino said. “With the new UCI track, we can host even the world championships given the existing facilities that Tagaytay City offers.”

The Philippines has hosted the Asian road championships in 1965, 1977, 1983 and 1995. The PhilCycling included BMX as a demonstration event in the 2005 SEA Games the country hosted ahead of the disciplines inclusion as a medal event in the Beijing 2008 Olympics.

NCRFA league launched

May 1, 2019 | 9:41 pm

THE National Capital Region Football Association (NCRFA) over the weekend launched its Summer Youth League at the British School Manila.

Now on its third year, the tournament is hosting 2,000 players from various football clubs all over Metro Manila.

Teams from Rizal, Olongapo, Tanauan, Laguna and some other provincial teams had been invited as well.

With the support of Makati Football Club, NCRFA is able to build a youth tournament that is for all the kids, giving everyone a chance to play as well as to promote the game.

“It is essential for the NCRFA youth football league that team registration goes for free unlike other leagues which charge a premium, so it won’t exclude any child or team from joining,” said SeLu Lozano, Makati Football Club CEO and NCRFA summer youth league founder and organizer.

All uniforms are provided for all players and officials while food is given every match day.

The tournament has a noble cause, as the league will collect football shoes to donate to the kids who are not fortunate enough to have the right gear for football.

The Nationals to build on strong start to season

May 1, 2019 | 9:41 pm

AFTER successfully holding its first conference in its inaugural season, The Nationals — the Philippines’ first and only franchise-based Esports League — is looking to build on the gains it had as it ushered in its second conference.

Officially rolled off yesterday, the second conference of the DOTA 2 competition would see once again the five competing teams testing each other as they jostle for Esports supremacy in the country.

The Cignal Ultra Warriors are aiming to win back-to-back titles after topping the first conference of DOTA 2 in April.

They bested Suha-XCTN Punishers in the grand finals to claim the title and the P400,000 top cash prize.

The Cignal Ultra Warriors were to open the second conference against PLDT-Smart Omega yesterday.

Also seeing action on opening day of the new conference were the Punishers against Bren Epro. Happy Feet Emperors had an off day.

In the second conference, up for grabs anew is P400,000 for the champion, P200,000 for the second place and P100,000 for third.

“The league’s first conference was very successful, but The Nationals have bigger things in store,” said commissioner Ren Vitug as he spoke with media at the Philippine Sportswriters Association (PSA) Forum at the Amelie Hotel-Manila on Tuesday.

Adding, “Hopefully, we can better show our vision this upcoming conference.”

The first season of The Nationals happens till October with all the games to be played at the Gariath Concepts Studio in Eastwood City, Libis, Quezon City.

All of the contested games will have two conferences in the first season. Each conference will feature a double round-robin group stage and single-elimination playoffs, with winners and the top performers per conference advancing to a season finale later on in the year.

Mobile Legends: Bang Bang on Mobile, and Tekken 7 on PS4 are set to be played later in the season.

The Nationals’ official TV broadcast partners are ESPN5 through 5Plus on Free TV and Cignal TV through eGG Network and One Sports on Pay TV. Livestreaming on social media is also provided by the league.

For more information on the league follow it on its Website at TheNationals.PH. It is also on Facebook, Twitter and Instagram. — Michael Angelo S. Murillo

Magnus The Magnificent

May 1, 2019 | 9:40 pm

6^th Vugar Gashimov Memorial
Shamkir, Azerbaijan
March 30-April 10, 2019

Final Top Standings (all participants are GMs)

1 Magnus Carlsen NOR 2845, 7.0/9

2-3 Ding Liren CHN 2812, Sergey Karjakin RUS 2753, 5.0/9

4-6 Teimour Radjabov AZE 2756, Alexander Grischuk RUS 2771, Viswanathan Anand IND 2779, 4.5/9

7-8 Veselin Topalov BUL 2740, David Navara CZE 2739, 4.0/9

9 Shakhriyar Mamedyarov AZE 2790, 3.5/9

10 Anish Giri NED 2797, 3.0/9

Average Rating: 2778 Category 22

Time Control: 120 minutes for the 1^st 40 moves, then 60 minutes for the next 20 moves, then 15 minutes play-to-finish with 30 seconds added to your clock after every move starting move 1.

GM Vugar Gashimov is an Azerbaijani player who was no. 1 player of Azerbaijan for a time and among the top players of the world circa 2008-2011. Born July 24, 1986 in Baku, Gashimov represented his country in the chess olympiads of 2002, 2004, 2006 and 2008 and almost single-handedly revived the Modern Benoni for Black, utilizing it even in crucial games at a time when the general consensus was that it gave too many concessions to White. What’s more, he was willing to use the original move order 1.d4 Nf6 2.c4 c5 3.d5 e6 move order and defend Black’s cause in the most dangerous White attacks, namely the Taimanov Attack (1.d4 Nf6 2.c4 c5 3.d5 e6 4.Nc3 exd5 5.cxd5 d6 6.e4 g6 7.f4 Bg7 8.Bb5+) and the Modern Main Line (1.d4 Nf6 2.c4 c5 3.d5 e6 4.Nc3 exd5 5.cxd5 d6 6.e4 g6 7.Nf3 Bg7 8.h3 0–0 9.Bd3).

One of the highlights of his career was winning in the last round of the 2009 European Team Championship in Novi Sad, the crucial victory which gave the gold medals to the Azerbaijan team. I remember watching a video of the tense finish and how his teammates could not contain themselves and literally jumped in and embraced Vugar after his opponent’s resignation, and the wild celebrations afterward. Unforgettable!

Sadly, Vugar Gashimov, who was diagnosed with a brain tumor in 2000, had to retire from chess in early 2012 when he took a turn for the worse and died at the tragic young age of 27 in a hospital in Heidelberg, Germany, while receiving treatment for the same tumor.

In 2014 an annual chess superGM tournament was organized in Shamkir, Azerbaijan, in memory of GM Vugar Gashimov. This tradition has continued to this day:

Winners:

2014 Magnus Carlsen

2015 Magnus Carlsen

2016 Shakhriyar Memedyarov

2017 Shakhriyar Mamedyarov

2018 Magnus Carlsen

I bring this up because the Gashimov Memorial, similar to other superGM tournaments around the world, is dangerously close to a “draw-death” where the players just go over some moves on the board then shake hands. They are compensated enough with appearance fees already and are disinclined to fight for the full point. You get players like Radjabov, who always complain about not receiving tournament invitations but never considers that it may be because he likes agreeing to short draws.

We should remember the fighting spirit of Vugar Gashimov every time we play in a tournament named in his memory. This tournament is traditionally a single round-robin event with 10 players, so a total of 9 rounds and 45 games. Last year out of 45 only 11 games were decisive, 34/45, or 75.6%, were drawn. Radjabov drew all his games.

This year the tournament went a bit differently. The draw ratio was still a bit high, 30 out of 45 games, or 66.67%. Radjabov still drew all his games. This time though the tournament was made memorable when Magnus Carlsen put in an overpowering show to win 5 and draw 4 games, a performance rating of 2988, his best since a similar performance in the same event in 2015. His closest pursuers (Ding Liren and Sergey Karjakin) both had only +1 (one more win than their losses), which means 5/9, a full two points behind Carlsen.

You known GM Romain Edouard, right? He is a French GM, an openings expert who worked with Veselin Topalov in 2010-2014 (he has recently written a book by Thinkers Publishing on those “Magic Years.” In the foreword Topalov gives a few samples of the opening ideas developed by Romain, and they are impressive!).

Anyway, he pointed out on Twitter a tactical motif that Magnus Carlsen likes to use: “So yeah, put your bishop on c3, sac your e-pawn, open the g-file and give mate.”

And it works! Here is Magnus vs Richard Rapport from the Tata Steel “A” tournament last January. I had already previously annotated it so now just give it with minimal notes.

Carlsen, Magnus (2835) — Rapport, Richard (2731) [B80]
Tata Steel Masters 2019 Wijk aan Zee (8.1), 20.01.2019

1.e4 c5 2.Nf3 e6 3.d4 cxd4 4.Nxd4 Nc6 5.Nc3 Qc7 6.g3 a6 7.Bg2 Nf6 8.0–0 d6 9.Nxc6 bxc6 10.Na4 Rb8 11.c4 c5 12.b3 Be7 13.Bb2 0–0 14.Qe1!

A new move, and a strong one. Grandmaster Carlsen leaves the d1–square free for his rook and prepares a later Bb2–c3–a5 incursion.

14…Nd7 15.Rd1 Bb7 16.Qc3 Bf6 17.Qd2 Be7

Not 17…Bxb2? 18.Nxb2 the d6–pawn falls.

18.Qc3 Bf6 19.Qd2 Be7 20.f4 e5 21.Bc3! Bc6 22.Ba5 Qb7 23.Nc3 exf4 24.gxf4 Rfe8 25.e5! Bxg2 26.Qxg2 dxe5

The queen trade 26…Qxg2+ 27.Kxg2 loses the d6–pawn.

27.Nd5 e4 28.Bc3 f6 29.Kh1! Kh8 30.Rg1

The position GM Romain was describing.

30…Bf8 31.Ne3!

The Chess24 Website points out that White could win back the pawn with 31.Nxf6 (the threat of mate on g8 stops Black capturing twice on f6), but instead he went for the deadly maneuver of 31.Ne3! followed by Rd5–h5, when there was no way to defend the black king.

31…Qc6 32.Rd5 Qe6! 33.Rh5 Qf7 34.Qh3 g6 35.Rh4 Rb6 36.f5! Ne5 37.Nd5 Rd6 38.fxg6 Nxg6 39.Bxf6+! Rxf6 40.Rxh7+ 1–0

The Black resigns because of the fork after 40.Rxh7+ Qxh7 41.Qxh7+ Kxh7 42.Nxf6+.

And here we see him use it again versus Holland’s Anish Giri.

Carlsen, Magnus (2845) — Giri, Anish (2797) [A29]
Gashimov Memorial 2019 Shamkir (7.3), 07.04.2019

1.c4 e5 2.Nc3 Nf6 3.Nf3 Nc6 4.g3 d5 5.cxd5 Nxd5 6.Bg2 Bc5 7.0–0 0–0 8.d3 h6 9.Nxd5 Qxd5 10.a3 a5 11.Bd2 Qe6 12.Rc1 Qe7 13.Bc3 Nd4 14.e3 Nxf3+ 15.Qxf3 Bd6?!

After the game Giri said that at this point he was concerned about White’s d3–d4 pawn push. If you had kept in mind GM Romain’s tweet you will understand that it is not the d-pawn that White wants to advance.

16.Qh5 c6 17.f4 exf4?!

Playing into the White’s hands. He should have played something like …f7–f5.

18.gxf4!

The sort of move that either beginners or players of a very high class will play. White gives up his e3–pawn with check, but it accomplishes the two objectives of eliminating Black’s e-pawn and also opening up the g-file.

18…Qxe3+ 19.Kh1 Rd8 20.Rce1! Qc5 After some thought Anish Giri refuses the second pawn. Good decision as here is what might happen: 20…Qxd3 21.f5 Qc4 (21…Bf8 to protect the g7–pawn cannot be played because he will lost his rook to 22.Rd1) 22.Bxg7! Kxg7 23.f6+ with a mating attack.

21.f5 Bf8

[21…f6 is refuted by 22.Bxf6! gxf6 23.Qg6+ Kf8 24.Qxh6+ Kg8 (24…Kf7 25.Qh7+ Kf8 26.Bf3! threatening Qh8+, Kf7, Bh5 mate) 25.Qg6+ Kf8 26.Qxf6+ Kg8 27.Rg1 mate will follow]

22.Be4 Rd5 23.Rf3

White is after bigger gain than the mere win of the exchange. Besides, 23.Bxd5 Qxd5+ 24.Qf3 will bring about the exchange of queens, which Magnus was not interested in.

23…b5

Not 23…g6 24.fxg6! Rxh5 25.gxf7#

24.Rg1 Ra7

The Black rook is now ready to swing over to his monarch’s defense. <D>

POSITION AFTER 24…RA7

25.Bf6!

White makes sure that Black cannot play …f7–f6 to swing over his a7-rook to the defense of the king. If White had been impatient and proceeded with 25.Rxg7+ Bxg7 26.Qg4 f6 it is actually Black who is winning.

By the way, please do not fall for 25.Qxh6?? Qxg1+!

25…g6 26.Qh3

Possible and perhaps even stronger was 26.Rxg6+! fxg6 27.Qxg6+ Rg7 (27…Bg7 28.Bc3 followed by 29.f6.) 28.Bxg7 Bxg7 29.Rg3 Qf8 30.Bxd5+ cxd5 31.f6

26…Rd6 27.Qh4

Now White intends 28.fxg6 fxg6 29.Rxg6+ Bg7 (29…Kf7 30.Bd4+ the black queen falls) 30.Qxh6 etc

27…Rxf6 28.Qxf6 Be7

Or 28…Bg7 29.Qd8+ Qf8 30.Qb6 Rd7 31.fxg6 f6 32.Bxc6 Qd6 33.Qxb5 Black is just losing.

29.Qxc6 Qxc6 30.Bxc6 Kg7 31.fxg6 fxg6 32.d4 a4 33.d5 b4 34.Be8 Bg5 35.h4 Bxh4 36.Rxg6+ Kh7 37.Rc6 Bg4 38.Rf4 Rg7 1–0

After 38…Rg7 Giri resigns without waiting for 39.Bg6+ Rxg6 (39…Kg8 40.Rxg4) 40.Rxg6 Kxg6 41.Rxg4+ Bg5 42.axb4 one of the white pawns will queen.

The chess teachers always advise us to keep the end game in mind, even in the middle of a kingside attack. Magnus Carlsen gave us a very nice demonstration of that. I will show it to you on Tuesday.

Bobby Ang is a founding member of the National Chess Federation of the Philippines (NCFP) and its first Executive Director. A Certified Public Accountant (CPA), he taught accounting in the University of Santo Tomas (UST) for 25 years and is currently Chief Audit Executive of the Equicom Group of Companies.

bobby@cpamd.net

BusinessWorld Online