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MLS: Lionel Messi’s brace helps Inter Miami rout host CF Montreal, 4-1

LIONEL MESSI scored twice to help Inter Miami to a 4-1 win against host CF Montreal on Saturday.

Miami (9-3-5, 32 points), playing its first Major League Soccer (MLS) match in over a month, has won three straight.

Prince Owusu scored the lone goal for Montreal (3-13-5, 14 points), which had won two of its previous three.

Owusu gave Montreal a 1-0 lead in the second minute. Messi missed on a pass attempt and an uncovered Owusu collected the ball at the top of the box before putting a strike through goalkeeper Oscar Ustari’s legs into the back of the net.

Miami went more than 10 minutes before registering its first shot attempt, but once it finally did, it couldn’t beat Montreal’s Jonathan Sirois. He got his hands up to deny the visitors off a corner in the 13th minute and two minutes later got his fingertips on a Jordi Alba chance to send it off the right post and out.

In the 20th minute, Sirois came off his line to the penalty area and slid to deny Tadeo Allende of a quality opportunity, and in the 27th minute came out to the top of the box to steal a chance from Telasco Segovia. — Reuters

Alas Pilipinas test run

Alas Pilipinas’ campaign at the 2025 VTV Cup did not end with a coveted medal, but it did send a powerful message all the same — one that tells all and sundry the team is no fluke, no flash-in-the-pan experiment, and certainly no pushover on the regional stage. The loss to Chinese Taipei in the bronze medal match — 17-25, 24-26, 22-25 — hurts, no doubt. Then again, the final score tells only part of the story.

It’s easy to zero in on the missed opportunities. A 23-22 lead in the second set that slipped away. A 22-21 edge in the third, followed by a string of costly miscues — mental lapses under pressure, the kind that separate medalists from mere contenders. Still, to focus solely on the failure to claim a podium finish would be to miss the bigger picture. After all, the team isn’t even supposed to be this good yet.

In 2024, the Philippine delegation to this same tournament barely made noise. Represented by National University, the red, white, and blue finished 10th — replete with resolve, but nonetheless an afterthought. Fast forward a year, and Alas Pilipinas, as a unified and more cohesive national squad, got to push perennial contenders to their limits and found itself close to taking home the hardware.

Yes, the errors at the end of the medal round set-to were painful. Alas Pilipinas’ bright hopes couldn’t convert when it mattered most. All the same, they did battle throughout; they very nearly turned a 0-2 deficit into the start of a momentum builder. That kind of pressure? You can’t fake it. You can’t simulate it. You just have to live through it and grow from it.

Lest we forget, this is only the beginning. The VTV Cup was a test run. The real goals are still to come — namely, the SEA V.League in August and the 33rd Southeast Asian Games in December. Meanwhile, coach Jorge Souza de Brito and the Philippine Volleyball Federation leadership will need to sharpen the roster in acknowledgement that while the team is already in a good place, it has to be much, much better.

True, Alas Pilipinas returns home empty-handed. Still, it does so with pride. This isn’t the end of a campaign. It’s the start of a reckoning, and the competition should take notice.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operations and Human Resources management, corporate communications, and business development.

BoI hoping to submit SIPP to Palace within Q3

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THE Board of Investments (BoI) has set a target of submitting the 2025-2028 Strategic Investment Promotion Plan (SIPP) to the Office of the President by the third quarter.

“It is scheduled for the Fiscal Incentives Review Board (FIRB) presentation on July 16,” said BoI Investment Policy and Planning Service Director Sandra Marie S. Recolizado said via Viber.

“If approved by the FIRB, it will still have to be approved by the BoI board and then submitted to the Office of the President,” she added.

The updated SIPP is set to rationalize the sector and tier list, with the aim of including projects that have a high impact on job creation, value creation, and moving up the value chain.

According to the BoI, the P3.38 trillion worth of investments approved under the SIPP from June 2022 to December 2024 are expected to generate 132,000 jobs.

“A substantial portion of the projected employment will be in administrative and support services, power, and manufacturing sectors,” BoI said in a statement over the weekend.

Power accounted for 76.33% of approved investments under SIPP, followed by information and communication, transport and storage, and mining and quarrying.

“These investments translate into tangible benefits  by providing livelihoods and strengthening the country’s economic resilience,” Trade Secretary and BoI Chairman Ma. Cristina A. Roque said. 

“As we work to attract strategic projects, our focus remains on translating these into real opportunities for our people,” she added.

BoI Managing Head Ceferino S. Rodolfo said the SIPP positions the Philippines as a hub for innovation and green growth.

“We are committed to ensuring that these investments drive not only economic gains but also inclusive development,” he said.

“Moving forward, the DTI is working closely with investment promotion agencies, the FIRB, other government agencies, and private sector stakeholders to ensure that the next SIPP reflects evolving national priorities and global economic trends,” the BoI said. — Justine Irish D. Tabile

PCCI backs Konektadong Pinoy but calls for entrants to be vetted

PHILSTAR FILE PHOTO

THE Konektadong Pinoy bill needs to be accompanied by a comprehensive regulatory framework that screens entrants to minimize national security risks, the Philippine Chamber of Commerce and Industry (PCCI) said.

In a statement over the weekend, the PCCI said it supports the passage of the bill, also known as the Open Access in Data Transmission Act, particularly its removal of the legislative franchise requirement for telecommunications operators, but called for safeguards to ensure that “only capable and responsible entities are allowed to operate.

“Open access must not come at the cost of our national security or the integrity of our critical digital infrastructure,” it added.

The PCCI said the implementing rules and regulations must be prepared with “transparency and foresight.”

It also supported strong oversight powers for the National Telecommunications Commission with clear criteria for approving and monitoring service providers.

The PCCI committed “to ensure that the Open Access in Data Transmission Act becomes a cornerstone for inclusive, secure, and sustainable digital connectivity.” — Justine Irish D. Tabile

CBK’s new operators expected to maximize hydro facility’s potential

CBKPOWER.COM

By Sheldeen Joy Talavera, Reporter

THE Aboitiz-led consortium possesses the know-how to unlock the potential of the 796.64-megawatt (MW) Caliraya-Botocan-Kalayaan (CBK) hydroelectric power plants (HEPP) due to the group’s hydropower expertise, analysts said.

“Given the company’s history of optimizing large-scale energy assets and the growing demand for sustainable energy solutions, it is reasonable to believe that AboitizPower can fully utilize the facility’s potential and deliver returns that justify their investment,” Globalinks Securities and Stocks, Inc. Head of Sales Trading Toby Allan C. Arce told BusinessWorld via Viber.

Mr. Arce said integrating CBK into AboitizPower’s portfolio “aligns seamlessly” with the group’s long-term goal of a 50% share of clean energy.

“AboitizPower’s operational expertise in hydropower generation… positions it well to maximize the CBK complex’s output and reliability,” he said.

On Friday, state-run Power Sector Assets and Liabilities Management Corp. (PSALM) announced that Thunder Consortium — consisting Aboitiz Renewables, Inc. (ARI), Sumitomo Corp., and Electric Power Development Co. (J-Power) — emerged as the winning bidder with an offer of P36.266 billion.

Thunder Consortium outbid FGKW Consortium — comprising of First Gen Prime Energy Corp. and Korea Water Resources Corp. — which offered P19.62 billion.

In a statement, the PSALM said Thunder Consortium will undergo a rigorous post-qualification process to verify the accuracy and authenticity of the eligibility documents.

“We hope to give (the official notice of award) by mid-July,” PSALM President and CEO Dennis Edward A. dela Serna said.

The CBK facility is PSALM’s major privatization project this year. The state-run firm is tasked with privatizing the government’s power and other disposable assets to liquidate the financial obligations of the National Power Corp. (NPC).

HEPP is currently covered by a 25-year build-rehabilitate-operate-transfer agreement between independent power producer CBK Power Co. Ltd. and NPC. CBK Power’s deal expires in February 2026.

The complex consists of the 39.37-MW Caliraya HEPP in Lumban; the 22.91-MW Botocan HEPP in Majayjay, and the 366-MW Kalayaan I and 368.36-MW Kalayaan II pumped-storage power plants, all in Laguna.

“It’s a significant win for AboitizPower as the CBK complex will expand its hydropower portfolio and further diversify the company’s power generation mix,” Juan Paolo E. Colet, managing director at China Bank Capital Corp., said via Viber.

The challenge for the consortium is to upgrade and optimize the asset given its age, It will also face competition from newer plants, he said.

“This is going to be a long-term play for the consortium, and they have the expertise and resources to make it work,” he said.

He said that J-Power, one of the leading hydropower companies in Japan, has access to the latest technology that can enhance the asset.

Peter Louise D.C. Garnace, equity research analyst at Unicapital Securities, said that AboitizPower stands to “gain significantly” from the technology transfer and deep industry expertise of its Japanese partners.

“The CBK hydropower complex is the oldest and largest government-owned hydropower plant, accounting for over 4% of the Luzon grid — a critical asset in ensuring grid-wide stability and energy security,” he said via Viber.

Given that the CBK has been acquired on an “as is, where is” basis, Mr. Garnace said that the consortium could be exposed to unforeseen operational challenges and maintenance costs.

“Although we are not privy to the exact ownership split of Thunder Consortium, we view this acquisition as earnings accretive for (AboitizPower), with strong potential to drive sustainable earnings growth in the coming years,” he said.

At present, ARI and its subsidiaries hold the investments and interests of Aboitiz Power Corp. in various renewable energy projects, including geothermal, large hydro, run-of-river hydro, and solar projects.

At the end of 2024, AboitizPower’s renewable energy assets in operation consisted of net sellable capacity of approximately 1,486 MW, divided into 252 MW of solar, 920 MW of hydro, 290 MW of geothermal, and 24 MW of battery energy storage.

PHL exports not seen competitive at 17% US tariff rate after Vietnam deal

STOCK PHOTO | Image from Freepik

By Justine Irish D. Tabile, Reporter

EXPORTS from the Philippines will have difficulty competing if the US restores its 17% reciprocal tariff rate, particularly after Vietnam was granted a favorable trade deal last week, the Foreign Buyers Association of the Philippines (FOBAP) said.

FOBAP President Robert M. Young said Vietnam struck a deal with the US that lowered its tariff to 20% from the 46% originally announced in early April.

“Presuming we have the 17% tariff … the latest Vietnam-US deal will definitely hinder our chances of competing in a price war,” Mr. Young said via Viber.

“To start with, even prior to Trump’s reciprocal tariff, Vietnam had a 10-15% lower free on board selling price compared to the Philippines,” he added.

He said Vietnam’s pricing advantage is due to its 50% lower wages and modern infrastructure.

“Realistically, there’s no contest between us. However, as FOBAP has been advocating, we, with the government, must seriously exert all efforts to improve in order to remain on the radar of the foreign buyers,” he added.

However, he said if the Philippines retains its current 10% tariff, “it may give some elbow room, but it will still not be easy to beat Vietnam prices.”

“The best scenario, in our opinion, is the relocation of the Vietnamese and other countries’ manufacturers to Philippine soil,” he added.

Last week, US President Donald J. Trump announced that he will impose a “lower-than-promised” 20% tariff on Vietnamese goods.

Under the US-Vietnam deal, transshipped goods through Vietnam will be subject to a 40% tariff, Reuters reported.

Philippine Institute for Development Studies Emeritus Research Fellow Rafaelita M. Aldaba said Vietnam’s new tariff structure “is a significant reduction from the earlier tariff rate of 46% announced in April, reducing Vietnam’s trade exposure risk.”

“However, the full implications of this deal will remain uncertain until the detailed provisions are finalized,” she said via Viber.

“For the Philippines, this development underscores the need for a strategic response. As Vietnam intensifies efforts to upgrade its industrial base and shift toward higher-value exports such as semiconductors, the Philippines must act decisively,” she added.

She said the Philippines must invest in critical infrastructure, negotiate market access, and address sector-specific constraints.

“Strengthening our competitive position in priority industries is crucial to ensuring that the country can capitalize on emerging opportunities in the rapidly evolving global supply chain landscape,” she added.

Philippine Chamber of Commerce and Industry (PCCI) President Enunina V. Mangio cited the need “to revisit our supply chain, technology, and our processes. Because if we can automate to improve our processes and reduce our costs, probably that would minimize the impact of all these things.”

Speaking to reporters on Friday, she added: “All our economic managers are working very hard in addressing the impact of tariffs and the increase of prices. As a matter of fact, right now, I think they are trying to negotiate for a free trade agreement with the US to lessen the impact of the tariff increase.”

“Let us wait and see for the final rate that will be implemented and imposed on us. And if that happens, I think the business sector will be ready. We just have to make our operations very efficient to at least reduce our costs,” she added.

She said the PCCI is also hoping for a review of the cost of logistics, charges, and taxes as another way to mitigate the impact of the tariff.

US tariffs on most trading partners are subject to a 90-day pause since the reciprocal tariffs were first announced in early April. Pending the completion of talks with various trade delegations, the US is charging most imports 10%.

Social-impact mitigation measures needed against gambling addiction

STOCK PHOTO | Image by kote baeza from Pexels

By Aubrey Rose A. Inosante, Reporter

TAXES will not be sufficient to curb online gambling addiction, and must be accompanied by programs to mitigate the industry’s negative social impact, economists said.

Taxes are “not a cure-all. A tax can certainly signal that it is not encouraged behavior. But, you have to remember, (gamblers) are people used to losing money,” according to former legislator Jose Ma. Clemente S. Salceda, who used to chair the House Committee on Ways and Means.

He also pushed for “circuit breakers for people who repeatedly lose, or who seem addicted already.”

“We have to be clear about our objectives first so that we can design tax policy right. If the goal is behavioral, the design will be different than if the goal is to raise revenues,” Mr. Salceda said.

The government has been urged to tax online gaming to discourage excessive gambling, but he warned that levies and tighter regulation won’t be enough to curb addiction.

“I think a tax on bets should be explored,” he told BusinessWorld over the weekend.“But since online gambling is domestic consumption, unlike POGOs (Philippine Offshore Gaming Operators), it can definitely be the subject of an excise tax,” according to Mr. Salceda, who now chairs Salceda Research, Inc.

Finance Secretary Ralph G. Recto has said he will seek to tax online gaming.

Mr. Recto also called for the study of policy options aimed at limiting unrestricted access to digital gambling platforms.

Legislators have introduced bills aimed at stopping electronic wallet platforms from promoting gambling apps, raising the legal gambling age and limiting the cash-in minimum requirement.

Mr. Salceda wrote Republic Act No. 11590 of 2021, which taxed offshore gaming firms, which have since been banned by President Ferdinand R. Marcos, Jr.

John Paolo R. Rivera, senior research fellow at the Philippine Institute for Development Studies, said taxation and regulatory circulars from the Bangko Sentral ng Pilipinas are “first steps,” but insufficient on their own.

“These measures can discourage excessive play through tighter controls and financial safeguards, but behavioral interventions, public awareness, and stronger platform regulation must complement them,” Mr. Rivera said.

The Philippine Amusement and Gaming Corp. (PAGCOR) said it is enforcing a code of practice across its regulated entities, including a player exclusion program that allows individuals or their families to voluntarily withdraw players from gambling.

PAGCOR has also partnered with rehabilitation centers such as Bridges of Hope and Life Change Recovery Center, which offer counseling, psychological support, and treatment for gambling addiction.

Filomeno S. Sta. Ana III, coordinator of Action for Economic Reforms said the Philippines should follow the example of Singapore and South Korea in restricting citizens from gambling in casinos.

“The gambling industry must be heavily regulated. In fact, it must be discouraged. Gambling has huge social costs.And it is an open secret that the gambling industry is a conduit for illicit financial flows,” he said.

Meanwhile, Mr. Sta. Ana said the government should not rely too heavily on gambling for revenue.

“While revenue will be earned from online gambling, the main objective of the tax is not to generate revenue but to deter people from engaging in gambling by making it costly,” he said.

In May, PAGCOR reported that gross gaming revenue (GGR) rose 27.44% to P104.12 billion in the first quarter, with electronic gaming out-earning physical casinos for the first time.

The electronic segment generated P51.39 billion or 49.36% of GGR in the three months to March.

Jose Enrique A. Africa, executive director at think tank IBON Foundation, said restricting locals from casinos may create a double-standard of “still promoting it for foreigners” which he said “reeks of opportunism.”

“It also wouldn’t be real reform because rich locals can still gamble abroad while driving lower-income groups to online or informal gambling. Still, it could stir welcome public debate on the ethical basis of government revenue sources,” he said.

“From the perspective of curbing gambling addiction, the problem isn’t just access to gambling but the broader economic and social context that drives people to gamble including desperation on the part of lower income groups,” he added.

Mr. Africa urged more focus on improving public services, creating decent jobs, and generating equitable economic opportunities to make gambling less appealing.

Brazil meat industry seeks to expand PHL footprint, share best practices

REUTERS

By Kyle Aristophere T. Atienza, Reporter

BRAZIL’S meat industry will strive to expand in the Philippines via a broader range of product offerings, while sharing best practices with domestic companies, the Brazilian embassy said.

The product line expansion is expected to take the form of more types of cuts of meat and processed products exported to the Philippines, to better meet “the specific preferences of the Filipino market, including convenience and value-added products,” an embassy spokesman told BusinessWorld in response to queries from the newspaper.

It said Brazil will pursue technical-exchange programs with Philippine health authorities and research institutions to share “knowledge and best practices in animal health and food safety.”

“Brazil reaffirms its commitment to the stable, safe, and competitive supply of animal protein to the Philippines, contributing to food security and economic development of both countries,” the embassy said.

Brazil is the largest supplier of chicken, pork, and beef to the Philippines.

Its meat industry operates under “one of the most rigorous health and traceability systems in the world,” exporting to more than 150 countries, the embassy said.

In 2024, the Philippines was the fifth-largest destination for Brazilian beef. The Philippines imported 92,200 metric tons or 3.19% of Brazil’s total exports.

“This significant volume reflects the growing confidence of the Philippine market in the quality and safety of Brazilian beef, while also demonstrating the growth potential of this strategic commercial partnership,” the embassy said.

“Brazil maintains a consolidated position as a global leader in beef exports, the result of decades of investment in genetic improvement, animal health, traceability, and increasingly efficient and sustainable production systems,” it added.

The World Organisation for Animal Health (WOAH) in June recognized Brazil as free from foot-and-mouth disease (FMD) without vaccination.

In the same month, WOAH recognized Brazil as free from Highly-Pathogenic Avian Influenza (HPAI). The Philippines last week lifted a ban it imposed on Brazilian poultry following a bird flu outbreak that killed almost 7,400 birds in Rio Grande do Sul.

The Philippines was the 6th largest market for Brazilian poultry in 2024, with its imports rising 7% to 234,861 MT.

“This volume represents 4.55% of total Brazilian poultry exports, highlighting the relevance of the Philippine market,” the embassy said.

“The Brazil-Philippines partnership in the poultry sector has potential for expansion in the coming years, with opportunities for product diversification and increased volumes, contributing to Philippine food security with quality protein at competitive prices,” it added.

In 2024, the Philippines surpassed China and became the main destination for Brazilian pork exports.

The embassy said Brazil is present in 157 markets for beef, 151 for poultry, and 94 for pork.

Agriculture Secretary Francisco Tiu Laurel, Jr. on Friday said the Department of Agriculture will focus on addressing supply gaps in chicken, pork, and fish to help contain food inflation.

Philippine inflation rose to 1.4% in June from six-year low of 1.3% in May, primarily due to rising housing and utility costs as well as higher education expenses.

Mr. Laurel said while food inflation continued to ease — slowing to just 0.1% in June from 0.7% in May and 6.5% in June 2024, “this was due largely driven by falling prices of rice, vegetables, and bananas.“

A closer look at the data, however, showed that the top five contributors to the 1.4% inflation in June were pork and chicken, up 13% and 10.4%, respectively, which together added 0.4 percentage points to headline inflation, Mr. Laurel said.

“Few countries in the world can match the resilience of Brazil’s meat industry. Despite global challenges such as increasing input costs and health risks, Brazil continues to deliver stability, volume, and quality,” the embassy said.

“This is due to our diverse production regions, continuous investment in biosecurity and innovation, and a strong commitment to animal health and food safety,” it added.

PEZA receives interest from potential UK locators

BRITISH COMPANIES have expressed interest in establishing a presence in the Philippines, the Philippine Economic Zone Authority (PEZA) said following a roadshow to the UK.

The PEZA roadshow was conducted last month in collaboration with HSBC Philippines, BDO Unibank, the British Chamber of Commerce of the Philippines, the IT & Business Process Association of the Philippines, and the Asian Consulting Group.

“As part of the UK mission, PEZA collaborated with BDO to hold roundtable meetings and explore industry engagements and potential government-to-government collaboration,” PEZA Director General Tereso O. Panga said in a statement over the weekend.

The participants in the roundtable meetings include Tech West England Advocates, SparQ International, Santander UK, the UK Department for Business and Trade, and the British Chambers of Commerce.

During the mission, PEZA also visited the Philippine Trade and Investment Center in London, which helped onboard a UK-Taiwan power electronics company in studying the Philippines as a manufacturing hub.

“The company, which operates a large campus in China, is a Tier 1 supplier to Dyson — another PEZA-registered locator,” Mr. Panga said.

Other companies from the electronics, information technology and business process management, steel manufacturing, pharmaceutical, renewable energy, data centers, and agro-processing industries have also expressed interest in registering with PEZA.

“The growing interest of British investors in the Philippines can be attributed to President Ferdinand R. Marcos, Jr.’s proactive efforts in promoting the country to the UK and other global markets,” Mr. Panga said.

“This is further reinforced by the Philippines’ strong economic fundamentals and the recent enactment of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) law, which now offers the most generous fiscal incentives in ASEAN,” he added.

To date, PEZA is home to 64 British locators, accounting for P34 billion in investments and 72,000 jobs. — Justine Irish D. Tabile

Strengthening tax compliance in light of recent reforms

IN BRIEF:

The recent acceleration of reforms in the Philippine tax landscape significantly impacts business operations and compliance requirements, necessitating a proactive approach from organizations to navigate these changes effectively.

• In an evolving regulatory environment, businesses must go beyond mere compliance with existing laws by proactively anticipating future changes and developing strategies to navigate the complexities of new tax regulations.

• Recognizing tax compliance as a vital element of operations enhances overall business performance and efficiency, fulfilling legal requirements while driving success.

As businesspeople browse through their e-mail or scroll through social media, they may have noticed a flurry of updates regarding new laws and regulations impacting businesses. The pace of change in the Philippine tax landscape has accelerated, with several significant reforms introduced over the past two years. These changes, including the Ease of Paying Taxes Act, VAT on Digital Services Law, Real Property Valuation and Assessment Reform Act, CREATE MORE Act, and Capital Markets Efficiency Promotion Act, have far-reaching implications for how businesses operate and comply with tax obligations.

As such, staying compliant is not just about adhering to existing laws; it is also about anticipating future changes and adapting accordingly. The complexity of these new regulations can create challenges for businesses, particularly those that may not have the resources or expertise to navigate the intricacies of tax compliance on their own. Organizations must be proactive in understanding these reforms and implementing strategies to ensure that they remain compliant while minimizing risks.

The stakes are high; non-compliance can lead to significant penalties, reputational damage, and even legal repercussions. Therefore, it is essential for businesses to prioritize tax compliance as a core aspect of their operations. By adopting a strategic approach, organizations will seek to not only meet their legal obligations but also leverage tax compliance to enhance their overall business performance.

This article discusses six key strategies to strengthen tax compliance considering these recent changes.

STAYING INFORMED AND EDUCATED
Understanding the nuances of the new tax laws is crucial for compliance. Businesses should invest in training programs for their finance and tax teams to ensure that they are well-versed in the latest regulations. Regular updates from the tax authorities, including the Bureau of Internal Revenue (BIR) and other regulatory bodies, as well as the participation in seminars or workshops, can help keep staff informed about compliance requirements and deadlines.

REVIEWING CONTRACTS AND SUPPORTING DOCUMENTS
For major transactions, it is essential to conduct thorough reviews of contracts and supporting documents to ensure compliance with the latest tax rules and regulations. This includes examining agreements for any tax implications, such as withholding tax obligations or VAT treatment. By ensuring that all documentation aligns with current laws, businesses can avoid potential compliance issues and penalties.

PERFORMING INTERNAL TAX COMPLIANCE AUDITS
Conducting regular internal compliance audits is essential for identifying potential tax issues before they develop into significant problems. Businesses should establish a systematic approach to reviewing their tax practices, ensuring alignment with the most current regulations. In some cases, particularly for individuals who are new to their roles as CFO, finance manager, or tax head, it may be beneficial to engage external parties to conduct these audits. This proactive strategy can reveal discrepancies and issues related to substantiation and recording, enabling timely corrections and minimizing the risk of penalties resulting from tax audits.

ENGAGING TAX PROFESSIONALS
Navigating the complexities of new tax laws can be challenging. Engaging tax professionals or consultants who specialize in Philippine tax law can provide valuable insights and guidance. These professionals can assist in interpreting the new regulations, ensuring compliance, optimizing tax strategies to take advantage of available incentives and exemptions, and supporting businesses with their tax filings.

FOSTERING A CULTURE OF COMPLIANCE
Creating a culture of compliance within the organization is vital for long-term success. This involves promoting awareness of tax obligations among all employees, not just those in finance or tax. Regularly communicating the importance of compliance, sharing updates on tax laws, and encouraging employees to report potential issues can help build a collective responsibility towards adhering to tax regulations.

EMBRACING TECHNOLOGY
Leveraging technology can significantly enhance tax compliance efforts. Businesses should consider adopting tax compliance software that automates processes, tracks changes in regulations, and ensures accurate reporting. Moreover, utilizing data analytics can help identify trends and potential compliance risks, allowing organizations to respond proactively. Embracing technology not only streamlines compliance but also fosters efficiency and accuracy in tax-related operations.

By conducting thorough audits, and leveraging technology, organizations can meet their legal obligations and enhance their overall operational efficiency. Embracing these strategies fosters a culture of compliance that mitigates risks and positions businesses for long-term success in an ever-evolving regulatory landscape.

STRENGTHENING COMPLIANCE
Strengthening tax compliance is essential for businesses navigating the complexities of recent tax reforms. By implementing these six strategies — staying informed, reviewing contracts diligently, conducting regular compliance audits, engaging professionals, fostering a culture of compliance, and embracing technology — organizations can enact proactive measures that can lead to long-term success.

In 2023, SGV & Co.’s Tax service line articulated its own vision to further enhance its operations, aligning with the Firm’s ultimate purpose of “nurturing leaders and enabling business for a better Philippines.” This vision aims to create a tax ecosystem where taxpayers are willing to comply, regulators and practitioners collaborate for positive outcomes, tax professionals are equipped with the requisite skills and integrity, and the country becomes an investment haven where businesses can thrive. One of the tenets of the SGV Tax vision is building a tax ecosystem where taxpayer compliance is voluntary and not enforced, because the Firm believes that equipping businesses with proper information and systems can lead to a gradual transformation of taxpayer mindsets where tax becomes a dutiful obligation rather than a burden.

By encouraging all employees to take ownership of their responsibilities regarding tax obligations, companies can build a positive reputation and foster trust with stakeholders, ultimately driving sustainable growth.

This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinions expressed above are those of the author and do not necessarily represent the views of SGV & Co.

 

Michael A. Madlangbayan is a Global Compliance & Reporting (GCR) partner of SGV & Co.

Japan to export used destroyers to Philippines as China deterrent

DEFENSE SECRETARY Gilberto C. Teodoro, Jr. and his Japanese counterpart Gen Nakatani tackle regional security issues during the latter’s visit to Manila. — DEPARTMENT OF NATIONAL DEFENSE OFFICIAL FACEBOOK PAGE

By Adrian H. Halili, Reporter

TOKYO — Japan will export used navy destroyers to the Philippines to strengthen its deterrence against China’s maritime expansion, Japanese newspaper Yomiuri reported on Sunday, as the two US allies increase cooperation to counter Beijing.

The export plan involves six Abukuma-class destroyer escorts in service by the Japan Maritime Self-Defense Force for more than three decades, the Japanese daily said, citing multiple unnamed government sources.

Defense ministers Gen Nakatani and Gilberto C. Teodoro, Jr. agreed to the destroyer export when they met in Singapore last month, the Yomiuri said, adding the Philippine military is set to inspect the destroyers this summer as part of the final preparations.

A Japanese defense ministry spokesperson declined to comment on the report. A Philippine military spokesperson and China’s foreign ministry did not immediately respond to Reuters requests for comment.

Manila’s Defense department spokesman Arsenio R. Andolong and Philippine military spokeswoman Francel Margareth Padilla also did not immediately reply to BusinessWorld’s separate Viber messages seeking comment.

Tokyo and Manila say they face challenges from Beijing’s increasingly assertive moves in waters including the South China Sea for the Philippines and the East China Sea for Japan.

Bilateral military cooperation has included joint exercises, a Japanese radar aid package and a high-level strategic dialogue. Last year they signed a reciprocal access agreement, the first such for Japan in Asia, allowing deployment of forces on each other’s soil.

To clear military equipment export restrictions for the destroyers under Japan’s pacifist mandates, Tokyo will treat the installation of equipment and communication systems requested by Manila as a joint development project, the Yomiuri said.

The Abukuma-class destroyer escort, a relatively small type of destroyer with a 2,000-ton standard displacement, is operated by a crew of about 120 and is armed with anti-submarine and anti-ship missiles, torpedo tubes and guns, according to a Japanese navy website.

The Philippine Navy does not have destroyers, only frigates and corvettes, which are typically smaller and lighter-armed vessels.

PHL-US JOINT AMMO HUB
Meanwhile, the proposed mutual ammunition facility between the United States and the Philippines could enhance existing Enhanced Defense Cooperation Agreement (EDCA) sites in the country, analysts said.

“The facility would complement EDCA sites because we would have local production, aside from just basing access,” Justin Keith A. Baquisal, a national security analyst at FACTS Asia, said in a Viber message.

US troops currently have access to nine EDCA sites, including two military bases in Cagayan which are facing Taiwan. These sites are used for security cooperation exercises, joint military training activities, humanitarian assistance, and disaster relief activities.

US Ambassador to Manila MaryKay L. Carlson said that the feasibility study is part of her government’s plans to enhance defense cooperation with the Philippines.

“I am not surprised, given the very strong bipartisan support for the Philippines in the US Congress, that they’re also looking at ways that they can continue to enhance US-Philippines defense cooperation here in the Philippines,” Ms. Carlson told reporters on the sidelines a US Independence Day reception last week.

Last month, the US House Committee on Appropriations ordered federal agencies to assess the feasibility of establishing a joint ammunition manufacturing and storage facility within a former US naval base in Subic Bay, Zambales province.

The US is the Philippines’ major security partner, with a 1951 defense treaty compelling both nations to defend each other in case of an armed attack.

Don Mclain Gill, who teaches international relations at De La Salle University in Manila, said that planned facility is a progression between Manila and Washington’s joint goals to enhance industrial defense cooperation.

“We could clearly see the statements made by the allies during their engagements are not just for rhetoric but are actually based on objective and sincere plans to build each other’s capabilities and at the same time to improve the Philippines’ position within this whole defense supply chain network in the Indo-Pacific,” he said via Facebook Messenger.

Mr. Baquisal noted that the Philippines’ ammunition facility has been unable to fully sustain the requirements of the armed forces and the police.

The Government Arsenal in Bataan province is responsible for the manufacture of basic weaponry and ammunition for the Armed Forces of the Philippines and the Philippine National Police.

“An American facility might — in the near term — focus only on supplying US demand, but the facility can cultivate local employment and enable the Philippines to have technical specialists and logisticians who are up to global standards,” he added.

Chester B. Cabalza, founding president of Manila-based think tank International Development and Security Cooperation, said that the Philippine government should encourage the construction of the ammunitions facility to demonstrate support in revitalizing the defense industry.

“In the medium term, this facility will help the government’s ambition to build a self-reliant defense posture for strengthened sovereignty-centered diplomacy,” Mr. Cabalza said in a Facebook Messenger chat.

The Philippines has launched a $35-billion military modernization program to bolster its defense capabilities in the next decade, including the acquisition of advanced naval ships, planes and missile systems, amid ongoing tensions with China in the region.

On the other hand, Francis M. Esteban, who teaches at the Far Eastern University’s Department of International Studies, noted that the government should also weigh the environmental costs of establishing an ammunition facility.

“Having these ammunitions would have environmental cost, as the waste materials from it might be toxic. I believe local fisherfolk groups are also against it since it might be a target of Chinese attacks should a conflict arise,” he said in a Messenger chat.

Analysts have also noted that the construction of a facility with the US may further provoke protests from Beijing.

According to Mr. Baquisal, the facility may lead to protests from China even as he noted “an ammunition production and storage facility is really non-threatening to anybody.”

“Even in peacetime, militaries expend ammunition for training, etc. — so production capacity has to be present,” he added.

Mr. Cabalza said that China’s allies in the Philippines will criticize the active presence of the US.

“Beijing would use this spade to attack both Manila not to become a pawn of the US and Washington not to interfere in the region,” he added.

China claims nearly the entirety of the South China Sea via a U-shaped, 1940s nine-dash line map that overlaps with the exclusive waters of the Philippines and neighbors like Vietnam and Malaysia.

A United Nations-backed tribunal in 2016 voided China’s sweeping claims for being illegal, a ruling that Beijing does not recognize. — with Reuters and inputs from Kenneth Christiane L. Basilio

Marcos likely to pursue independent foreign policy, ties outside traditional allies

PRESIDENT Ferdinand R. Marcos, Jr. attends the 2nd ASEAN-Gulf Cooperation Council Summit during the 46th Association of Southeast Asian Nations Summit in Kuala Lumpur, May 27. — MARK BALMORES/PPA POOL

By Chloe Mari A. Hufana, Reporter

PRESIDENT Ferdinand R. Marcos, Jr., who is set to deliver his fourth State of the Nation Address on July 28, is expected to use the remainder of his term cementing a foreign policy legacy defined by two pillars: promoting an independent foreign policy while pivoting towards both traditional allies and emerging partners, an analyst said over the weekend.

As geopolitical competition between the United States and China intensifies, Southeast Asian nations are under growing pressure to choose sides, but Manila is signaling that it intends to chart its course, said diplomacy lecturer at De La Salle-College of St. Benilde Josue Raphael J. Cortez.

“A lot of scholars today are arguing that Southeast Asia is in the middle of the great power competition, trying to hedge between the US and China,” he said in a Facebook Messenger chat. “The Philippines has shown that it can be a formidable friend to both parties.”

In the remaining three years of his six-year term, Mr. Marcos is expected to accelerate efforts to forge new partnerships beyond the country’s long-standing allies.

Hedging will remain a central feature of Philippine foreign policy under Mr. Marcos, as the country seeks to maximize its strategic value without becoming overly dependent on any single power bloc, Mr. Cortez noted.

Talks are underway to expand security and economic cooperation with Canada and European nations such as Lithuania, while Manila maintains strategic dialogues with South Korea and India to diversify its defense portfolio.

This dual-track approach reflects the constitutional mandate under Article II, Section 7, for an “independent foreign policy,” a principle the President has repeatedly invoked in public statements and regional fora.

Under Mr. Marcos’ leadership, Manila is set to chair the Association of Southeast Asian Nations (ASEAN) in 2026 and is also pursuing a non-permanent seat on the United Nations Security Council (UNSC) for 2027.

“Our campaign pitch for the UNSC seat says it so well: Partner, Pathfinder, and Peacemaker. Through this pitch, we can already see what the Marcos foreign policy agenda is about, both in the regional and global landscapes,” he noted.

As part of the country’s campaign for a non-permanent seat in the UNSC, Mr. Marcos reassigned his now Foreign Affairs Secretary Enrique A. Manalo to the UN in New York, who will be succeeded by veteran diplomat for bilateral relations, Ma. Theresa P. Lazaro.

In the second half of the Marcos administration, Mr. Cortez hopes the government will keep the country’s momentum in adhering to the 2016 Permanent Court of Arbitration ruling in favor of the country in the disputed region in the South China Sea.

“The Philippines may further increase its legitimacy by utilizing this circumstance as an example for nation-states across the world on how we can promote territorial integrity sans the use of force,” he added.

He said the Philippines could position itself as a model for ASEAN and other Global South countries by demonstrating how emerging technologies can be integrated without displacing workers, given its current stage of technological development compared to major powers like the US, China, and the European Union.

He also noted that strengthening the creative industries could boost the country’s soft power, showcasing Filipino adaptability and cultural heritage, similar to how Thailand and Indonesia leverage their cultural sectors.

According to Francis M. Esteban, faculty member at the Far Eastern University Department of International Studies, Mr. Marcos’ foreign policy in the past three years largely centered on preserving the country’s traditional Western allies rather than reorienting towards regional powers such as China.

He noted this may be a result of the President’s Western-oriented upbringing and a possible continuation of his late father’s favorable perspective on the West.

A key milestone under Mr. Marcos’ administration has been the enactment of the Philippine Maritime Zones Act, Mr. Esteban noted, which effectively incorporated the country’s 2016 arbitral victory against China into domestic law.

“As the chair of ASEAN next year and as a bid at the UNSC, it is an instrumental piece of legislation that encapsulates the Philippines as champion of a rules-based order,” he said in a Facebook Messenger chat.

However, enhancing protection mechanisms and diplomatic support for the country’s migrant workforce remains an area for potential action by the current or next administration, he said.

There were 2.16 million overseas Filipino workers (OFWs) in the last quarter of 2023, the Philippine Statistics Authority said.