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Luxury living at Shang Residences at Wack Wack

SHANG Residences at Wack Wack, the latest project of Shang Properties, offers a “stunning façade, an enviable location, and luxurious amenities” that make it “every urban dweller’s dream.”

The luxury condominium is located within the Wack Wack subdivision in Mandaluyong City.

“Tropical resort elements and understated luxury prevail in the amenities, which are both sophisticated and cozy. A relaxed feel pervades every facility, complementing residents’ busy lifestyles with an oasis of comfort,” Shang Properties said in a statement.

Shang Residences at Wack Wack has a gym with views of the golf course, swimming pool, steam and sauna rooms, poolside pavilion, private function rooms, mini theater and billiard table room.

The condominium’s sophisticated interiors are designed by BTR (HK).

“With such well-thought-out design, a prime location, and amenities suited for every lifestyle, Shang Residences at Wack Wack gives residents an urban living experience that lets them rest, recharge, and most importantly, feel at home,” the company added.

Back into the fold

It is not every day that delinquents are given the chance to avail of tax amnesty. A review of our past tax amnesties, both legislated and administrative, show that delinquents are very seldom given breaks. Of the 10 tax amnesties passed during the Marcos administration, only one covered delinquents (i.e., Presidential Decree No. 68, issued in 1972). Of the three tax amnesties passed during the Corazon Aquino administration, none covered delinquents. However, there was Executive Order No. 44, which authorized the Bureau of Internal Revenue (BIR) to accept compromise payments on delinquent accounts.

The scarcity of opportunities given to delinquents to settle their outstanding tax liabilities, of course, is understandable, given that delinquents have usually committed some mistake (e.g., errors in handling their tax liabilities, mismanagement of tax audits conducted by the BIR, or just plain avoidance or evasion of taxes).

That our new amnesty law — Republic Act (RA) No. 11213 — provides an entire title on delinquencies is a promising development. Delinquents can finally be given a chance to come back into the fold — or can they really?

On March 12, the BIR held a public consultation on the proposed Tax Amnesty Revenue Regulations (RR). The proposed RR defined delinquent accounts as those pertaining to “a tax due from a taxpayer arising from the audit of the Bureau which had been issued Assessment Notices that have become final and executory.” To the surprise of many, the draft RR stated that excluded under the category of delinquent accounts are “unpaid tax liabilities arising from non-payment of self-declared or self-assessed tax (i.e., unpaid tax due per return filed).”

The dichotomization of delinquency — self-assessed tax vis-à-vis tax assessed through audit or enforcement — then allowing the latter to be covered by the amnesty, while disallowing the former, is rather perplexing. Delinquency has always been understood to refer to outstanding tax liabilities arising from either self-assessed taxes or a result of an audit or third party information through the issuance of an assessment notice that was not protested within the prescribed period. Every definition of delinquency in BIR rules and regulations would bear this out. When the BIR issued A Basic Guide on the Tax Amnesty Act of 2007, it sought to exclude from the coverage of the last general tax amnesty law: “Delinquent Accounts/Accounts Receivable considered assets of the BIR/Government, including self-assessed tax.” Really, liabilities arising from self-assessed taxes have always been embraced in the concept of delinquencies.

The dichotomization even becomes more baffling if we go back to the nature of a self-assessed tax. In Tupaz vs. Ulep, G.R. No. 127777, Oct. 1, 1999, the Supreme Court explained that a self-assessed tax is one where no further assessment by the government is required to create the tax liability. A self-assessed tax falls due without need of any prior assessment by the BIR, and non-payment of a self-assessed tax on the date prescribed by law results in penalties, even in the absence of any assessment by the BIR.

Indeed, one frequently cited distinction between a self-assessed tax and a tax assessed through audit or enforcement, is that the former, which is payable on the due date, becomes a “delinquency” if not paid, and can be collected immediately by means of administrative summary remedies. On the other hand, a “deficiency” tax resulting from an audit is effected through the issuance of an assessment notice payable within a certain period of time, which becomes a “delinquency” upon the taxpayer’s failure to pay within the due date stated in the demand notice. Hence, if we are to pursue the dichotomization, tax liabilities arising from self-assessed taxes are actually even “more delinquent.” To exclude them from the coverage of the tax amnesty on delinquencies is nothing less than a contradiction.

We understand that amnesties, to be effective, must be granted sparingly. But, then, the general tax amnesty was vetoed; surely, there is no need to further restrict the coverage of the latest tax amnesty law? At the end of the day, the law did not distinguish, so regulations should not distinguish. To remove from the coverage of RA No. 11213 delinquencies that arose from self-assessed taxes would severely limit the coverage of the law.

Maybe the BIR’s purpose in excluding those with unpaid self-assessed taxes from the coverage of the amnesty is because these are liabilities already known to, and admitted by, the taxpayer. Even so, is this not the essence of amnesty? To give a chance to errant taxpayers, and to give prodigal taxpayers the opportunity to comply with tax laws and enter the tax system with a clean slate.

While we are in the season of Lent, maybe it is a good reminder for us all that forgiving may really be hard, but not forgiving could hurt more.

Revenue Memorandum Circular (RMC) No. 19-2018 provided as exclusion from the coverage of the last general tax amnesty (RA No. 9480): Delinquent Accounts/Accounts Receivable considered as assets of the BIR/Government, including self-assessed tax. The RMC, however, was deemed by the Court of Tax Appeals in La Flor dela Isabela Inc., vs. CIR, CTA Case No. 7779, March 17, 2010, as altering the provisions of the law it seeks to implement.

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.

 

Diana Elaine Bataller-Simbulan is a manager from the Tax Advisory & Compliance division of P&A Grant Thornton, the Philippine member firm of Grant Thornton International Ltd.

pagrantthornton@ph.gt.com

How PSEi member stocks performed — April 1, 2019

Here’s a quick glance at how PSEi stocks fared on Friday, March 29, 2019.

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Philippine Stock Exchange’s most active stocks by value turnover — March 29, 2019.

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Palace: Diplomatic protest filed on Chinese vessels

By Arjay L. Balinbin
Reporter

MALACAÑANG on Monday said the Philippine government has filed a diplomatic protest against the People’s Republic of China over the presence of at least 275 vessels seen by the Armed Forces of the Philippines-Western Command (AFP-WesCom) near the Philippine-claimed Pag-asa Island in the West Philippine Sea.

The Chinese government, for its part, said it was cooperating with the Philippines to verify the report.

Presidential Spokesperson Salvador S. Panelo, at a news conference at the Palace on Monday morning, said: “I understand we have already issued a diplomatic protest per the Western Command. The DFA (Department of Foreign Affairs) has already made a diplomatic protest over it.”

Chinese Ambassador to the Philippines Zhao Jianhua visited Mr. Panelo at his office in Malacañang in the afternoon. “As for what is happening, who are there, we are cooperating with the Filipino side to verify whether there is any truth to that kind of report,” Mr. Zhao told reporters.

“I know there are fishermen from both sides. But whether the number is 600, whether they are surrounding the island that you have people, it is really up to further investigation and verification,” he added.

At the briefing, Mr. Panelo clarified that the number of Chinese vessels seen in the area was 275, not 617.

“Anything that concerns the security of the Philippines will always be a concern,” he said before his meeting with Mr. Zhao.

“We will ask them first, why. First, if they acknowledge such fact as determined by us; number two, ask them why they are doing it; number three, we will politely ask them not to,” Mr. Panelo said.

In his interview with reporters before the meeting, Mr. Zhao said: “We’ve been handling this issue through friendly and diplomatic channels, so you don’t have to worry about whether there will be kind of an outbreak of conflict or not. You don’t have to worry about that.”

The Chinese ambassador was also asked to comment on the communication to the International Criminal Court (ICC) filed by former foreign affairs secretary Albert F. del Rosario and former Ombudsman Conchita Carpio-Morales against Chinese President Xi Jinping and other officials over the harassment of Filipino fishermen in the West Philippine Sea.

Mr. Zhao said, “We don’t think it is a proper action that is based on facts. It’s a fabrication and also a misuse of the mandate of the ICC.”

“It’s a political action viciously targeting the Chinese leadership,” he added.

In a statement he issued after his meeting with Mr. Zhao that day, Mr. Panelo said: “Both officials… give importance to the existing bilateral consultation mechanism between China and the Philippines as an avenue to address possible issues in the West Philippine Sea and to resolve any conflict or misunderstanding that may arise therefrom.”

They also discussed the ICC issue. He said, Mr. Zhao “shares the official position of the Philippines on the possible weaponization of the ICC as a political tool, in stark contrast to the supposed spirit of the Rome Statute.”

For its part, the Armed Forces of the Philippines (AFP) clarified reports of Chinese vessels in the West Philippine Sea saying there are only 200 vessels circling near the Pag-asa Island, as opposed to reports of about 600 Chinese ships in the area.

“Around 200 nagpa-ply sa area na ‘yan. Halo-halong vessels (There are 200 vessels that ply in that area. Different types of vessels),” AFP chief Gen. Benjamin R. Madrigal told reporters during the opening ceremony of Balikatan Exercises on Monday, April 1.

He added, “I just talked with WesCom [Western Command] commander, ‘yung report na binanggit around 600 plus (on the report that mentioned about the 600 vessels), …but ‘pag binilang mo ‘yun (if you count them) [those are] sightings but yung (the) involved na vessels (are) way below that.”

“600 is sightings but ‘yung involved na mga vessels is basically the same vessels na paulit-ulit nakikita.” (600 refers to the sightings but the involved vessels are just the same vessels sighted).

In a statement on Monday, the Department of National Defense (DND) said, “The Western Command of the Armed Forces of the Philippines has been continuously monitoring the waters around Pag-asa and they are aware of the presence of Chinese vessels and their activities in the area. The Department of National Defense, meanwhile, has been communicating reports of the above to the Department of Foreign Affairs for appropriate action.”

“Just as the Philippines honors our international obligations and protocols, we also expect other countries and their vessels to do the same especially when sailing and fishing in international waters.” — with Vince Angelo C. Ferreras

Plunder conviction of Napoles affirmed

THE Sandiganbayan First Division has affirmed the conviction of Janet Lim Napoles for the misuse of the P224.5-million Priority Development Assistance Fund of former senator Ramon “Bong” Revilla Jr.

In a resolution dated March 13, the anti-graft court affirmed its ruling that Ms. Napoles is guilty beyond reasonable doubt of plunder and sentenced to reclusion perpetua.

“Wherefore, in light of all the foregoing, this Court denies the Motion for Reconsideration of accused Janet Lim Napoles for lack of merit,” the resolution stated.

Also “found guilty beyond reasonable doubt” and sentenced to life imprisonment was Richard A. Cambe, former chief of staff of Mr. Revilla who was released last December after his acquittal from plunder. The case stemmed from the multi-billion pork barrel scam exposed in 2013 in which Mr. Revilla and two other senators were implicated.

The resolution stated, “Napoles cites several grounds for the reversal of the said Decision, first of which is that she, being a private individual, could not be the main plunderer.”

It added, “At the same time, Napoles avers that while the prosecution’s evidence points to Ramon ‘Bong’ Revilla Jr. as the main plunderer, the assailed Decision allegedly does not identify who the main plunderer is. Without a determination on who the main plunderer is, the crime committed could not be plunder.”

“The Information clearly specifies that both Revilla and Cambe, as the public officers are being charged as main plunderers, together with accused private individual and movant Janet Lim Napoles.”“While the Court did not find sufficient evidence for the pronouncement of guilt on the part of Revilla, there is overwhelming evidence presented to show that his co-accused-movant Janet Lim Napoles are the main plunderers in this case.”“A conspiracy between Cambe and Luy, to the exclusion of Napoles, could not be possible, because the NGOs, through which the funds were diverted, were all creations of Napoles. Napoles has control of the bank accounts of these NGOs.”

“Napoles has control of the bank accounts of these NGOs. In fact, every time a big withdrawal is made from these bank accounts, it was Napoles whom the bank calls to verify or confirm the withdrawals, instead of the NGO’s president or officers.”“It is clear that in the act of amassing and accumulation of ill-gotten wealth, Cambe did not act alone. He had a private individual, accused-movant Napoles, who not just aided him but was one in his design to amass and accumulate ill-gotten wealth and performed the necessary acts to fulfill the evil design of plunder.” — VACF

Sytin denies plotting brother’s murder in counter-affidavit

By Vann Marlo M. Villegas
Reporter

THE BROTHER of slain businessman Dominic L. Sytin denied in his counter-affidavit being the mastermind behind the murder on Nov. 28 last year.

Alan Dennis L. Sytin maintained his innocence in his counter-affidavit submitted to the Department of Justice (DoJ) on Monday.

“I deny the charges against me for being false and gravely unjust. I am innocent. I did not nor did I have anything to do with the killing of my brother, Dominic Sytin,” Dennis Sytin said.

“I regret that although the police investigators themselves have acknowledged that I was cooperative in their investigation and that I gave them all the information I had, I am now forced to defend myself against the Complaint of the police who now point me as responsible for my own brother’s death despite the fact that they never asked me to make a statement,” he added.

Mr. Sytin is facing complaints of murder and frustrated murder before the DoJ in connection with the murder of his older brother and wounding of his bodyguard Efren Espartero.

In a press conference on March 11, Philippine National Police (PNP) Chief Oscar D. Albayalde tagged Mr. Sytin as the alleged mastermind after he was identified by confessed hitman Edgardo Luib in his testimony.

In his counter-affidavit, Mr. Sytin described Mr. Luib as a “’polluted source’ whose statements must be viewed with the greatest caution and circumspection.”

He also said there was no clear and categorical statement from Mr. Luib that he is the mastermind and that he and Oliver Fuentes, a former United Auctioneers, Inc. (UAI) employee fired by the slain Mr. Sytin, were the ones he met at All Hands beach in September last year to plot Dominic Sytin’s murder.

“Luib was uncertain when he purportedly identified the alleged mastermind of the murder of Dominic from the few photographs presented to him by police investigators,” Dennis Sytin said.

“Luib’s unsureness as to his identification of the ‘Boss Dennis’ that he allegedly met with is in contrast to his certainty as to his identification of Oliver as ‘Ryan Rementilla,’” he added. He also noted that there is no physical evidence which would link him to the crime.

Mr. Sytin also claimed that “overwhelming evidence on record” show that Mr. Fuentes was the mastermind of his brother’s murder.

“Oliver had motive. He was a disgruntled former trusted employee whom Dominic fired in August 2018 for allegedly padding Job Orders and pocketing Php1 Million from UA collections,” Dennis Sytin said in his counteraffidavit.

He pointed out further that Mr. Fuentes has a standing warrant of arrest for murder and was the one who called Mr. Luib, fetched him from the bus terminal, and gave him instructions and information on Dominic Sytin’s whereabouts.

Dominic L. Sytin is the CEO of UAI, chairman of Foton Philippines, and director and chairman of the board of listed LMG Chemicals Corp. He was shot dead outside the Lighthouse Hotel at the Subic Bay Freeport Zone.

In the same March 11 press conference, Police Regional Office 3 (Central Luzon) Regional Director Police Brig. General Joel Napoleon Coronel said the Sytin brothers were in conflict over business, while Criminal Investigation and Detection Group (CIDG) chief Police Director Amador V. Corpus said the younger Sytin was fired in 2015 by Dominic Sytin for diverting equipment to his own company.

PPCRV partners with AMAES for better election monitoring technology

THE PARISH Pastoral Council for Responsible Voting (PPCRV), in partnership with the AMA Education System (AMAES), will be deploying more advanced technological systems to strengthen their poll watchdog duties this coming midterm elections.

PPCRV, the citizens’ arm of the Commission on Elections (Comelec) for the national and local elections in May, renewed its ties with AMAES on Monday through a memorandum of agreement (MoA) signing, making this their 4th partnership deal.

“We are delighted to again partner with AMAES in fulfilling our mandate as the citizens arm for responsible voter education, poll watching, and parallel quick count,” PPCRV Chairman Myla C. Villanueva said on Monday.

PPCRV Board Trustee William S. Yu said that the technology they will be using for this 2019 elections will be better.

“As we get better at running this exercise, we’re of course upgrading the system as well. One of the enhancements for 2019 is the machines we’re using with AMA are newer. We want the processing to be faster… because the validation is predominantly manual so it does take time to encode,” he said.

AMAES Chief Information Officer Edwin E. Santos said more efficient machines and systems will be used, especially in reporting incidents during the election period.

“(W)e will be rolling out an election reporting system. Aside from the election returns being reported by the team, (it) can also report other items not related to the election results like election violence, violations etc. or good things that are happening in certain areas… and it can be seen by the PPCRV command center,” Mr. Santos said.

The PPCRV officials also said that video conferencing facilities from the AMAES campuses and the software used for the school’s Blended Learning program will be vital for training PPCRV volunteers.

These will also be utilized in communicating operations of PPCRV nationwide.

AMAES President Felizardo R. Colambo said the institution’s role as the information technology partner of PPCRV “is a manifestation of our commitment to democracy as a whole. We keep telling people that democracy should not end in the election itself but more so in the participation.”

For his part, AMAES Founder and Chairman Amable R. Aguiluz said in a statement on Monday, “As educators, we highly believe in our civic duty to be part of ensuring that the electoral process remain clean and honest.” — Gillian M. Cortez

3 arrested for transporting cocaine hidden in children’s books

THE NATIONAL Bureau of Investigation (NBI) arrested three individuals last week for transporting 3.3 kilos of cocaine, hidden in five children’s books, which were intended to be brought to Brazil via Thailand. In a press statement on Monday, NBI Director Dante A. Gierran identified the individuals as Ma. Clara Q. Bedico, Alvin J. Avila, and Antonette R. Mendiola. The three were presented Monday for inquest proceedings before the Department of Justice for violations Section 11 (Possession of Dangerous Drugs) and Section 5 (Transportation of Dangerous Drugs) in relation to Section 26 (Conspiracy to Transport Drugs) of the Comprehensive Dangerous Drugs Act of 2002. According to the NBI, Ms. Bedico just landed at the Ninoy Aquino International Airport and went to a nearby fastfood to meet Mr. Avila, who would assist her in rebooking her plane ticket. They were arrested on March 28. Upon further investigation, the NBI found that the two were set to meet Ms. Mendiola in a motel in Pasig City for securing the luggage of Ms. Bedico. She was arrested on March 29. The NBI said the operation revealed that the Western African Drugs Syndicate recruit Filipinos to be couriers through “work abroad scheme posted in Facebook.” — Vann Marlo M. Villegas

ISIS flags found in house of 2 suspected extremist group members in Cagayan

TWO ISLAMIC State of Iraq and Syria (ISIS) flags were seized by the police and military during a joint operation last week at Baggao, Cagayan. The flags were found by the Philippine National Police (PNP) Criminal Investigation and Detection Group during the serving of search warrant at the houses of brothers Greg and Altero Cariaga, who are suspected members of an ISIS-inspired group called Northern Jihadist Group. “Apparently, parang (it seems) they are pledging support to the ISIS,” said PNP chief PGen. Oscar D. Albayalde during a press briefing at Camp Crame on Monday. Mr. Albayalde said this was the first ISIS-inspired group monitored outside Mindanao, particularly in northern Luzon, but he allayed fears that the extremist group is expanding in the country. He said there have been no reported hostilities or atrocities carried out by the group in the area. “Kaya nga (That is why) this is one of the preventive measures that we do together with the AFP (Armed Forces of the Philippines), na kapag may mga na-monitor na ganyan (if we monitor something like that) we do preventive measures already,” he said. — Vince Angelo C. Ferreras

Flood control protection for Cabagan, Isabela

THE 241-meter flood control project in Cabagan, Isabela has been completed and is expected to provide protection to Barangay Garita and other communities with a combined population of more than 43,000. “The area is situated on low lying plain fields and flood control structures are needed to help reduce or prevent the detrimental effects of flooding during rainy season. The completion of Garita flood control project will benefit thousands of residents as it will save lives and properties increasing protection in times of flood and calamities,” Department of Public Works and Highways Region 2 Director Melanio C. Briosos said in a statement. The project was built at a cost of P95.1 million. Construction Chief Engineer Jose B. Tobias said the project will be expanded in the coming years as part of the flood mitigation structures and drainage systems in the Cagayan Valley River Basin. Isabela province was among the hardest hit during typhoon Rosita (international name: Yutu) in Oct. 2018.

3 more Iloilo towns could be placed under state of calamity

THE ILOILO Provincial Agriculture Office (PAO) is looking into the possibility of declaring the towns of Lambunao, Janiuay, and Cabatuan towns under a state of calamity due to the prevailing El Niño phenomenon. PAO said damage has so far been estimated at P911 million. Assistant Provincial Agriculturist, Elias V. Sandig said the amount was based on reports submitted by 39 local government units as of March 15. Around 24,176 farmers have been affected with 6,712 hectares of farms that are totally damaged and 16,985 hectares partially damaged. Last week, the municipality of Bingawan already made a state of calamity declaration due to losses in the agriculture and fisheries sectors. “Our total loses is already P53,172,976 covering rice losses worth P37,947, 976, corn (P1.7 million), livestock (P380,700) and fisheries (P3 million),” Mayor Mark P. Palabrica said in a phone interview. He added that more than 25 units of small farm reservoir in the town have also been affected by the dry spell. Mr. Palabrica said they have started implementing mitigating measures to combat the effects of El Niño. — Emme Rose S. Santiagudo

Ifugao cooperative gets meat processing center from DAR

THE HAPAO Multi-Purpose Cooperative (HMPC) in Hungduan, Ifugao has received a processing center for the expansion of its meat production business, complemented by training on various aspects of business operations. The P300,000 processing facility, which was turned over late March, was funded under the Village Level Farm Focused Enterprise Development of the Department of Agrarian Reform (DAR). To further develop and standardize the cooperative’s products, the Department of Science and Technology provided a smoking chamber, a digital weighing scale, a stuffer, an upright freezer, a meat grinder, and an impulse sealer. The Department of Trade and Industry, meanwhile, organized a seminar on entrepreneurial skills. The HMPC is currently applying for a license from the Bureau of Food and Drugs, which will allow the cooperative to market its products outside Ifugao province.