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Hyundai sustains position among top car companies in 2019

HYUNDAI Asia Resources, Inc. (HARI), the official distributor of the leading Korean automotive brand in the Philippines, ended the year strong with 2.9% growth in December 2019 or 3,163 units sold versus the same month last year.

December marked the third month in 2019 that HARI breached the 3,000-unit sales mark.

For the full year, Hyundai sales reached 33,763 units, enabling it to maintain its position in the market as one of the leading brands in the Philippine market. This is equivalent to a 6.1% drop from 2018 mainly due to the company’s non-participation in some market segments, such as pickups.

“We rose to the challenges in 2019 and have sustained our position as one of the preferred brands in the market. We are very excited to start the new decade with the introduction of innovative models that will disrupt certain segments and offer customers more and better choices. We shall also carry on with our aggressive PC and CV network expansion to serve high-growth corridors across the country,” HARI president and CEO Ma. Fe Perez-Agudo said.

HARI President & CEO Ma. Fe Perez-Agudo assures Hyundai will remain to exceed customer expectations with newer models, innovations in After-Sales, more convenient ownership, and relevant CSR engagements this 2020 and beyond.

Month-on-month, the Passenger Cars (PC) segment rose by 8.5%, from 1,516 units in December 2019 to 1,645 units in January this year. This was prompted by the Hyundai’s “golden pair” — the Hyundai Reina (PC A-Segment) and the Hyundai Accent (PC B-Segment). The Reina, despite being launched only in early 2019, is now No. 2 in the A-segment in total sales while the venerable Accent remains in the Top 3 in the B-segment. Both models are known for fuel-efficiency, segment-topping performance, and design. The company sold a total of 17,761 PC units in 2019.

Light Commercial Vehicle (LCV) sales increased by 2.9% in December 2019 to 1,399 units compared to the same month last year spearheaded by the durable and versatile Hyundai H-100 (Light Truck) and the globally awarded Hyundai Kona (subcompact SUV). Both models are No. 1 in their respective segments. Overall, Hyundai LCV sales declined by 2.6% with 15,095 units sold.

Hyundai Commercial Vehicles (CV) continued to be the best performing segment for the year with a 63.4% full-year growth, or a total of 907 units sold led by the Hyundai County bus. HARI CV sales are expected to further surge in 2020 due to higher demand generated by government programs to improve the existing public transportation. Late last year, HARI rolled out its Class-2 and Class-3 Modern Jeepneys (built on the Hyundai HD50S platform) to serve the needs of transport cooperatives while the Hyundai H-100 Class-1 Modern Jeepney was launched earlier in the year. Both Class 1 and 2 Modern Jeepneys were granted their Certificates of Compliance by the Department of Transportation in October 2019. Finally, in 2019 alone, HARI inaugurated five dedicated CV dealerships.

“For 2020, you can trust that Hyundai will continue to exceed customer expectations with newer models, innovations in After-Sales, and more convenient ownership, and relevant CSR engagement through H.A.R.I Foundation, Inc.’s flagship programs in health, education, and environmental sustainability. Ultimately, we want to be an integral part of our customers’ lives as we give them better products, better services, and better journeys,” Agudo added.

Founder’s DNA placed front and center in Paris Haute Couture Week shows

By Joseph L. Garcia
Reporter

IT’S A season of change as the earth seeks to shrug off the snows of winter — the same can be said about the appointment of two new names at two fashion powerhouses. BusinessWorld saw the shows at Paris Haute Couture Week last week (via a video stream), and chose three shows that shared something in common. While each is a flex of their maison’s muscles, the haute couture shows also dictate where fashions might go. Yes, trickle-up inspirations and Hollywood exist to do the same, but you might expect a few fast-fashion factories to copy these looks, thus bringing them to the middle classes. The collections revert to a sort of innocence and a return to basics — a timely response to the complications of our world.

FLOWERS FOR SPRING
“Florals? For spring? Groundbreaking,” Miranda Priestly loftily pronounced in The Devil Wears Prada. I’d dare you to say that straight to Givenchy’s Artistic Director Claire Waight Keller’s face. Ms. Keller, according to an article from Vogue, envisioned Givenchy’s Haute Couture collection based on the love letters between Virginia Woolf and Vita Sackville-West, and how that love blossomed in English gardens and contributed to Woolf’s novel, Orlando.

This translated into loose, tailored suits in white, reflecting a sort of polite, patrician glamor. Next came separates with tops made to resemble flowers, petals represented by ruffling and ruching. Dresses followed in the same vein, reflecting blooms like foxglove, tulips, and carnations (a black pantsuit, totally wearable with white appliques on the shoulder might reflect Queen Anne’s Lace). It is as if the model isn’t wearing flowers, but becomes a flower herself.

Lacy white garments reflecting opulent and comfortable English prewar summers were also on the runway, though conventional florals were also there, seen printed on skirts (coupled with large hats also evocative as petals).

Shimmering gowns in metallic colors like silver and rose gold were also seen (I guess we haven’t completely killed rose gold, and that’s fine).

The show ended with a stunning white lace piece, positively bridal: made completely with lace, loose-fitting and off-the-shoulder, and coupled once again with an enormous hat shaped like a rose petal that in its structure serves like a veil.

(To see the show, visit https://www.youtube.com/watch?v=FlQg2jcpKCQ)

UNEASY SURREALISM
Elsa Schiaparelli served as a foil to Chanel in the early 20th century. When Chanel was stark and grew up in poverty, Schiap (her nickname) took to her work her privileged upbringing: an attachment to fine art, fine clothing, and a disregard for rules.

After the war, it seemed that Schiaparelli lost her battle with Chanel, closing her doors in the 1950s. The house was revived in 2007 by Italian businessman Diego Della Valle (of Tod’s fame), but Marco Zanini jumpstarted the brand’s return with its first couture show in 2014.

People came and went, and Daniel Roseberry sits now as Artistic Director for the maison, entering just last year. His show opens with a relatively plain black pantsuit with a cutout blouse that reveals more than hides (causing unease with its juxtaposition with a relatively conservative garment).

A black double-breasted pantsuit appeared on the runway, with its left lapel suddenly blooming up and above the model’s head, perhaps reflective of Schiaparelli’s fondness for surrealism. Schiap then created unease, sometimes plumbing into the human fear of mortality: think about a dress embroidered in gold (a similar black dress does the same) that sits where a model’s bones would be. According to Vogue, it reflects a design from Elsa Schiaparelli herself (a skeleton evening dress from 1938). If anything, this runway look is the most Schiaparelli (a single adjective cannot be placed for the multifaceted woman) — her playfulness and attachment to Surrealism can be seen in a pair of spectacles designed to look like a person’s eyes, complete with lashes and pearl tears. These glasses were seen throughout the show, and I suppose multiple viewings become a way of educating the audience of what Schiaparelli is all about.

For some classic Schiap moments, there’s also a dress in shocking pink (a color she practically invented), with a sweetheart neckline that called to mind her muse, Mae West.

Mr. Roseberry has his work cut out for him. Elsa then was a woman way ahead of her time, seeing that fashion was art and blurred the lines between the two disciplines. I’m sure if he released any old design of Elsa’s from the 1930s, it would still make tongues wag now as they did before.

(To see the show, visit https://www.schiaparelli.com/en)

A PSYCHOLOGICAL ANALYSIS
The Grand Palais of Paris was transformed into the cloister garden of the convent at the commune of Aubazine for Chanel’s Spring 2020 Haute Couture presentation. It’s an important detail, because the maison’s founder, Gabrielle “Coco” Chanel, at 12, was left there by her father after her mother’s premature death.

Coco Chanel died in 1971. Karl Lagerfeld, chief designer of Chanel since 1983, may have dug into the highs of Chanel for inspiration. The house since then has created its own language as interpreted by Lagerfeld. Perhaps it’s telling that his replacement after his death last year, Virginie Viard, has chosen to plumb into the formative years of Coco Chanel the person (perhaps an effort to find her own footing within the brand?).

In a way, the show becomes a psychological analysis of Chanel as the person who would shape an institution. In this convent, Chanel learned how to sew. The black, white, deep reds, and the chain belts seen on the convent’s nuns and indigent children would inspire her in the future. While the stay may have contributed to her career immensely, her impoverished and lonely situation within the convent also lit a flame within her to rise above her station — no matter what.

The show was opened and was immediately summarized by black and white tweed suits with an almost virginal aesthetic teetering on the prissy. The tweeds form collars, and according to an article from Vogue, patterns in the collars reflect patterns on the convent’s floor.

There are also skirts patterned after the windows at the Aubazine convent, which may have inspired Chanel’s logo of interlocking C’s.

The collection is incredibly wearable, totally classic, and totally Chanel. The final look is a simple, white schoolgirl-inspired bridal outfit (if one accounts for the veil trailing behind).

(To see the show, visit https://www.youtube.com/watch?v=3IbXHJkDxKA)

Public works chief to review contracts for ‘onerous’ clauses

SECRETARY Mark A. Villar of the Department of Public Works and Highways (DWPH) has expressed willingness to look into existing concession contracts for possible “onerous” provisions in line with President Rodrigo R. Duterte’s order.

“Definitely if we find something onerous, we will investigate,” Mr. Villar said in Malabon City on Friday on the sidelines of the inspection of NLEX Harbor Link Segment 10 C3-R10 Section when asked to comment on Mr. Duterte’s order to review government contracts with the private sector.

“We are always looking [at the contracts]. So far, wala pa kaming nakikitang onerous (so far, we have not yet seen any onerous provisions) … If we can see anything. But of course, as far as the road projects, so far wala pa kaming nakikita na onerous (we don’t see anything onerous),” he said.

Mr. Duterte, who ordered the review of all government contracts in April last year, approved recently the review of Ayala Land, Inc.’s (ALI) contract to develop a 20-hectare site on Commonwealth Avenue opposite the UP Diliman campus in Quezon City, a site which became the UP-Ayala Land Technohub.

The deal becomes the second contract of the Ayala group contract under review by the government for alleged “onerous” provisions, after state officials questioned the water contracts for Metro Manila’s water distribution agreed with two providers in 1997, including Ayala-controlled Manila Water Co., Inc.

Mr. Duterte also said recently that he wanted a review of the government’s contract with Light Rail Manila Corp. (LRMC), the operator of Light Rail Transit Line 1 (LRT-1).

LRMC is a joint venture company of Metro Pacific Investments Corp.’s (MPIC) Metro Pacific Light Rail Corp., Ayala Corp.’s AC Infrastructure Holdings Corp., and the Philippine Investment Alliance for Infrastructure’s Macquarie Infrastructure Holdings (Philippines) PTE Ltd.

Mr. Duterte said he had learned that the separate companies led by businessmen Fernando Zobel de Ayala and Manuel V. Pangilinan “are getting most of the contracts.”

A congressman then filed a resolution seeking to investigate the alleged onerous concession agreement between the government and LRMC.

MPIC is one of three Philippine subsidiaries of Hong Kong’s First Pacific Co. Ltd., the others being PLDT, Inc. and Philex Mining Corp.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., maintains an interest in BusinessWorld through the Philippine Star Group. — Arjay L. Balinbin

Ph auto industry powerhouses join the growing MG family

SINCE MG came under the distributorship of The Covenant Car Company, Inc. (TCCCI) in October 2018, the brand’s nationwide dealership network has experienced a rapid expansion. In just over a year, MG Philippines has opened a total of 18 dealerships throughout Luzon, Visayas, and Mindanao. And to open a new year and decade, MG Philippines is proud to announce the latest dealer principals to sign on with MG, demonstrating their trust and the confidence in this British heritage brand, its modern, stylish, and attainable products, the growth and foreseeable potential of the MG brand, and the very capable team at TCCCI behind it all.

It is MG Philippines’ honor to continue partnering with the biggest and most respected names in the local auto industry. This continues with MG Philippines newest dealer partners: Ark Diversified, Inc., The ANC Group, Advan Motor, Inc., Autohub Group, and Magnum Group, Inc.

Ark Diversified Inc., led by its President and CEO Ray Jarina, brings years of commercial vehicle sales success. This time around, the group continues that same success with the inauguration of MG Commonwealth in Quezon City.

The ANC Group is widely considered as one of the biggest and most influential local automotive groups. Under president and CEO, Anthony Cheng, the group is slated to open MG Makati to offer car sales and aftermarket services in a main business center.

Advan Motor Inc. and its president, Ramon Sison, will pioneer MG’s expansion in the eastern side of the Metro as it opens MG Marikina.

The Autohub Group, along with president, Willy Tee Ten (who is recognized as one of the 33 most influential personas in the automotive industry in 2019), is geared to add MG Shaw to its growing list of auto dealers.

Magnum Group Inc., led by Managing Director Eduardo Bangayan, graces the Zamboanga peninsula with the opening of MG Zamboanga — ensuring the brand’s expanded market reach in the southern Philippines.

Magnum Motors Corporation, under its president and CEO Roger Chiu, launches MG Cagayan De Oro in this burgeoning, high-potential, economically progressive city.

Each dealership will also be equipped to amplify the aftersales offerings of MG Philippines, including parts, service, and customer relations.

For now, come and #MeetMG at any of the twenty-four (24) operational dealerships nationwide. MG Philippines continues to grow its network of dealerships to ensure access to these great, British-bred rides, as well as genuine parts and aftersales services to keep them in top condition.

Follow MG Philippines on social media: OfficialMGPhilippines (Facebook) @mg_philippines (Instagram and Twitter) for more updates. You may also call the 24/7 MG Philippines hotline at (02) 5328-4664 for more inquiries.

Maasin bamboo industry highlighted in Iloilo festival

ALEX HOLYOAKE/UNSPLASH

ILOILO CITY — The town of Maasin, Iloilo, which is being positioned as a center of the bamboo industry, supplied most of the kiosks for this year’s Ilonggo Food Festival in a bid to highlight the town’s design talent.

Phillipp Chua, chairman of the Iloilo Festivals Foundation Inc.’s (IFFI) committee on kiosks, said the organization tapped the local government of Maasin for the construction of 330 out of 500 food stalls that were set up for the Dinagyang Festival.

“The design of the 330 kiosks (was) by the people of Maasin so that we can also showcase their craftsmanship,” Mr. Chua said in a news conference last week before the Dinagyang weekend.

Maasin Mayor Francis A. Amboy said the town signed a P1.2-million contract with IFFI for the project, which used about 3,000 bamboo poles and employed 100 carpenters from the town.

“It (included) the construction of the kiosks and their installation at the venue. They (were) inspired by the typical bahay kubo,” Mr. Amboy said.

“This opportunity is really a big help for us because first, it creates employment for the people of Maasin and second, we can showcase our products. We are really proud that we have been tapped to create the kiosks,” he added.

The 330 IFFI-accredited stalls were set up at the Downtown Triangle.

The 170 other food stalls participated in other food fairs organized by the Iloilo Hotel Restaurants & Resorts Association (IHRRA), Association of Barangay Captains in City Proper District, and the ‘Kaon Ta, Iloilo’ Facebook group.

Maasin, located about 30 kilometers northeast of Iloilo City, has a 5,000-hectare bamboo plantation.

The Department of Environment and Natural Resources, along with the Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development (PCAARD), has been assisting the town’s KAPAWA people’s organization for the development of bamboo woven products. — Emme Rose S. Santiagudo

Fine jewelry is forever

FILIPINO designer Josie Natori wore a minimalist black outfit that showed off her statement jewelry perfectly — dangling dragon earrings in midnight silver accented with a white gemstone at the center.

“We just launched it. I haven’t got the chance to try everything,” Ms. Natori told BusinessWorld speaking of her new jewelry line.

The Natori Company, Inc. launched its first fine jewelry collection in a licensed partnership with direct-to-consumer and supply chain pioneer Angara.

“Growing up, I have always loved fine jewelry — diamonds,” Ms. Natori, who established the brand in 1977, said at the launch on Jan. 23 at Rustan’s Makati.

“I went into accessories with fashion jewelry first. It was a question of time in doing fine jewelry,” she said.

The Natori x Angara collection features the designer’s signature East-meets-West aesthetic with Angara’s gemstone and jewelry expertise. The jewelry — earrings, pendants, necklaces, rings, and bracelets — found their inspiration from Indochine, dragons, and the Kamon family crest.

“We strategized this collection with direct-to-consumer top of mind,” Ken Natori, President of Natori, said in a press release. “Customers will be able to order from our expansive fine jewelry collections; pieces are made to order, constructed and shipped within two days. This is truly a game-changing partnership for us.”

Ms. Natori noted that designing jewelry is as challenging as clothing.

“You work with different materials. It’s complicated. But the beauty about it is that it is forever,” she said. “It’s no different in clothes, you have to make sure that it fits.”

The collection is made of materials such as yellow gold, rose gold, midnight silver, diamonds, and pearls.

It will be available at Silver Vault at Rustan’s Makati for a limited period — until Jan. 31. Afterwards, the collection will be officially launched in retail stores in New York City.

Prices for the Natori jewelry range from $300 to $58,000. For information, visit angara.com and natori.com.Michelle Anne P. Soliman

Property firm’s P1.7-B taxes canceled

By Vann Marlo M. Villegas
Reporter

THE Court of Tax Appeals (CTA) affirmed the cancellation of the P1.73 billion alleged tax deficiencies of real estate firm Fort 1 Global City Center, Inc.

In a six-page resolution on Jan. 23, the court’s second division denied for lack of merit the motion for reconsideration of the Bureau of Internal Revenue (BIR).

The court reiterated that the bureau did not comply with Section 3.1.4 of Revenue Regulation No. 12-99 on the personal service of assessment notices for 2009 and 2012.

“While it is true that some of the BIR notices appear to have been received by the people named therein, however, no statement regarding their designation and authority to act for and in behalf of petitioner were mentioned by respondent,” the court said.

It noted that “substantial irregularities” in the alleged personal service of the notices show its failure to comply with laws and regulations and also denies the taxpayer’s due process.

“Accordingly, this Court correctly held that no valid assessment was issued by respondent as petitioner did not receive the same. And since an invalid assessment bears no valid fruit, the assessments and the FDDA [final decision on disputed assessment] issued against petitioner for taxable years 2009 and 2012 should, therefore, be cancelled for not properly observing petitioner’s right to due process of law,” it said.

The court in September last year granted the petition of Fort 1, canceling the BIR’s tax assessments against it worth P134.1 million and P1.6 billion for 2012 and 2009, respectively, as the bureau delivered the notices to different address and was received by individuals.

However, the BIR failed to present evidence that the recipient of the notices were Fort 1’s authorized representatives.

In the motion for reconsideration, the BIR said the petitioner is barred from questioning the authority of those who received the assessments as the issue was never raised in the administrative level and it allowed the taxpayer to substantiate its contentions before the case was brought to the court.

The court, on the other hand, said the Revised Rules of CTA provided the court “may not limit itself to the issues stipulated by the parties but may also rule upon related issues necessary to achieve an orderly disposition of the case.”

It also cited a previous ruling of the Supreme Court that the appellate court may take into consideration issues the parties did not raise or was ignored by the lower court.

The resolution was penned by Associate Justice Cielito N. Mindaro-Grulla and concurred in by Associate Justices Juanito C. Castañeda, Jr. and Jean Marie A. Baacorro-Villena.

AC Motors conducts low-key relief ops for Taal evacuees

Words and photos by Enzo O. de los Reyes

LAST MONDAY, AC Motors executives, together with 30 volunteer members of the Philippine motoring media and through the Ayala Foundation, conducted relief operations for Taal evacuees. The group consisted of 32 vehicles — 10 brand new Kia K2500 Kargo and Karga units and 22 demo units from Volkswagen, Kia, Maxus, Honda and Isuzu – all loaded with relief goods, consisting of assorted necessities such as mattresses, blankets, towels, sleeping mats, hygiene kits, underwear, and sacks of rice for at least 1,200 families. Participants for the relief efforts converged at the Honda Magallanes dealership early Monday morning for a pre-departure briefing given by members from the Ayala Foundation.

The Taal relief operations took the place of AC Motors’ 2020 Media Thanksgiving Night. The six brands under AC Motors, which is under AC Industrials, a subsidiary of Ayala Corporation, are Volkswagen, Kia, Maxus, KTM (motorcycles), Honda, and Isuzu. The latter two brands have Ayala-owned dealerships while Volkswagen, Kia, Maxus and KTM are importers and distributors with dealerships as well. AC Motors decided to forego the party intended for the Philippine motoring media and instead, allocated the budget to purchase vital relief goods and supplies to help fellow countrymen in dire need; hence, the involvement of the motoring media volunteers.

The relief operations were AC Motors’ response to the widespread effect of Taal volcano’s sudden eruption on January 12. The subsequent ashfall, earthquakes, and the continuing threat of further explosive eruptions have led to the mandatory evacuation of nearly half a million people residing within the 14-km radius of the volcano’s designated “danger zone.” Most of the evacuees are now in various centers in Batangas, Cavite and Laguna provinces. The donations were conducted in a straightforward manner with no ceremonial turnovers, photo ops, or fanfare.

Kia Philippines is also celebrating its first anniversary this January 30 under Ayala management, which had a very successful 2019. In its effort to give back to society on a long-term basis, Kia donated 10 brand new Kia K2500 Kargo and Karga units through Ayala Foundation to the most affected LGUs through the provincial government.

The volunteers were clustered into six groups that were divided to be able to distribute the relief goods to six evacuation centers: Alitagtag, Santa Teresita, San Jose, San Luis, Padre Garcia and Mataas na Kahoy.

Apart from the six evacuation centers the volunteers visited, three other areas where evacuees were located — in Barangay Madalunot in Calaca, Barangay Caloocan in Balayan, and Barangay Bagong Pook in Rosario — were identified. Evacuees in these locations would also be given relief goods, via the office of the Batangas Provincial Governor Hermilando Mandanas.

After the distribution, the volunteers regrouped at the Batangas Provincial Capitol, where the 10 Kia Karga K2500 units were turned over. Currently, the donated vehicles are being used to carry relief items from the Provincial Evacuation Center to hard-to-reach areas in the province. These vehicles will later be assigned to affected municipalities that need them most.

Arthur Tan, Group President and CEO of AC Industrials, said during the pre-departure briefing, “The project is a collective effort from everybody, from Ayala Corporation to AC Motors to Ayala Foundation to the motoring media. Special thanks to Kia Philippines for donating 10 brand new Kia K2500 light trucks which can be used extensively for relief operations in Batangas.”

He added, “Moving forward, I hope this is the beginning of how we have to work together in order to help our country in being able to be prepared for natural disasters.”

Ayala Foundation president Ruel Maranan, who addressed the local groups at the provincial capitol, said, “The relief operations are just the beginning. We have a long way to go in the recovery and rehabilitation of the affected areas. Keep the heart. Keep the faith. We are here to help you all the way, as long as you need us.”

Nike moves forward with Infinity Run and Adapt BB 2.0 shoes

NIKE’S thrust of providing consumers with quality products by tapping the latest in technology continues with the launch of its new running and basketball shoes — the Nike React Infinity Run and Nike Adapt BB 2.0 shoes.

Set for local release in the coming weeks, the shoes, Nike said, are designed to churn out optimum performance while exuding some freshness into how they are presented.

The Nike React Infinity Run is made to reduce runners’ injuries by hemming in two technologies found in the brand’s past shoes, namely the Zoom Vaporfly 4% and Nike React, which were released in 2017.

The Infinity Run boasts of the fine-tuned blend of biomechanical efficiency (Vaporfly) and cushioning (React) — for a more democratic solution to stability.

With the combination of the two elements, a runner can instantly feel the impact.

Slip the shoe on, and it feels at once stable and energetic, the spring in the React foam ready to fuel miles. The Infinity’s rocker-geometry encourages a slight lean forward, moving a runner’s foot strike from heel to midfoot, or even forefoot; this creates a natural forward feel of propulsion.

The wider platform, and the supportive foam that accompanies it, provides a reassuring feel — the shoe gently guides the foot in a smooth, straight line, reducing side-to-side wobbling and movement.

The Nike React Infinity Run retails for P8,095. It was exclusively made available on Jan. 23 for Nike Members at the Nike Park Mall Of Asia opening.

The power-lacing Nike Adapt BB 2.0 builds on the forward-looking features of the original.

Its retail launch is set for Jan. 30. For more details, visit https://news.nike.com/news/react-infinity-run.

NIKE ADAPT BB 2.0
Meanwhile, the power-lacing Nike Adapt BB 2.0 is set to hit the local market in February.

Recently debuted by Memphis Grizzlies rookie guard Ja Morant in their National Basketball Association game versus the New Orleans Pelicans, the Nike Adapt 2.0 has it building on the features of the original Nike Adapt BB which was released last year.

The latest iteration of the Adapt BB has a bouncier court fell, Nike said, with its designers adding Air Zoom Turbo to the forefoot of the 2.0, similar to the Kyrie line.

It also promises a better ride after the designers reconfigured the midsole stack height, resulting in an improved transition from heel to toe while moving.

The Nike Adapt BB 2.0 has the Flyknit shroud in the original removed, opening up the collar and integrating a stretchable ballistic mesh throughout the upper, making putting on the shoe simpler.

Visually, the shoe has a more immersive detailing. It has a larger Swoosh which at a closer look reveals a combination of pixelated textures, a deliberate choice by material designers to balance the shoe’s über-tech performance ideal with a more grounded opportunity to sense the shoe in ways beyond fit. — Michael Angelo S. Murillo

Lotte Confectionery’s tax assessment cancelled

THE Court of Tax Appeals (CTA) cancelled the P29.8 million tax assessment against Lotte Confectionery Pilipinas, Inc. due to violation of its rights to due process.

In a 15-page decision on Jan. 15, the court’s second division said the tax deficiency assessments by the Bureau of Internal Revenue against Lotte Confectionery are “null and void” due to violation of the taxpayer’s right to due process.

The court said that Lotte denied receiving a copy of a preliminary assessment notice (PAN), which is a requirement for due process.

Revenue Regulations No. 12-99 said that a PAN should be issued to a taxpayer for the proposed assessment, a part of due process requirement in the issuance of deficiency tax assessment. A formal letter of demand is to be issued if the taxpayer failed to respond to the PAN within 15 days.

A Supreme Court ruling also recognized that failure to send the PAN as required by Section 228 of the Tax Code makes the assessment void.

The court also cited a previous ruling of the high court that said to prove fact of mailing, the BIR must present a registry receipt or registry return card signed by the taxpayer or an authorized representative.

While a registry receipt proved the fact of mailing, the memorandum transmittal and the preliminary assessment notice were insufficient to establish that the assessment was received by the petitioner, the court said.

It also said the BIR did not present the person who prepared the memorandum transmittal despite the denial of Lotte that it received the preliminary assessment notice.

“Thus, respondent failed to discharge his burden to show that petitioner actually received the PAN,” the court said.

“Consequently, a tax assessment issued in violation of the due process rights of a taxpayer is null and void, and bears no valid fruit. Considering that the subject tax assessment is void for violation of due process, the other matters raised by petitioner shall no longer be addressed,” it added.

“Wherefore, the instant Petition for Review is granted. Accordingly, the Formal Letter of Demand dated January 13, 2014 and the Assessment Notice No. 043A-B144-10 issued by respondent against petitioner for deficiency income tax, Value-Added Tax, Expanded Withholding Tax, Final Withholding Tax, Withholding Tax on Compensation and compromise penalty for CY 2010, in the aggregate amount of P29,838,011.46, are cancelled and set aside,” the court ruled.

The decision was written by Associate Justice Juanito C. Castañeda, Jr. and concurred in by Associate Justices Cielito N. Mindaro-Grulla and Jean Marie A. Bacorro-Villena. — Vann Marlo Villegas

T-bill rates may move sideways on ample liquidity, lack of leads

YIELDS ON THE Treasury bills (T-bills) to be auctioned off on Monday will likely move sideways amid strong liquidity.

The Bureau of the Treasury (BTr) will offer P20 billion via T-bills today, broken down into P6 billion for the 91- and 182-day papers and another P8 billion for the 364-day bills.

Also this week, on Tuesday, the BTr will start offering three-year fixed-rate retail Treasury Bonds (RTBs) to raise at least P30 billion. The Treasury will have the option to upsize the volume or adjust the offer period — which is set to end on Feb. 6 — as it deems necessary.

For Kevin S. Palma, the government’s 23rd RTB issuance is expected to be met with strong demand, as what has been observed in previous offerings.

For the T-bills, two bond traders said rates of the short-term securities will move sideways as the market still has sufficient liquidity.

Specifically, the first trader said the one-year securities will move sideways but rates on the three-month and six-month papers are expected to inch up by 5 to 10 basis points (bps).

The second trader, meanwhile, said the fear of an uptick in inflation for the month may push investors to the sidelines as they continue to monitor further developments in the Taal Volcano.

The government partially awarded the T-bills it auctioned off last week as rates increased across-the-board amid continued worries due to the Taal Volcano eruption, which has already been considered as an upside risk to inflation.

The BTr raised just P14.7 billion via the T-bills out of its P20-billion program, even as the auction fetched bids totaling P33.502 billion.

The Treasury fully awarded the three-month papers even as the tenor fetched higher rates, while opting to partially award the 182- and 364-day T-bills.

Broken down, the government fully awarded the P6 billion it wanted to borrow via the three-month T-bills at an average rate of 3.39%, 6.2 bps higher than the 3.328% fetched during the last auction on Jan. 14. This, as the papers fetched bids totaling P13.927 billion, more than double the Treasury’s program.

On the other hand, the Treasury accepted just P3.02 billion in bids for the six-month papers out of the P6-billion program despite a total of P8.27 billion worth of bids. The average rate for the 182-day T-bills was at 3.652%, higher by 6.5 bps than the 3.587% seen in the previous offer.

For the 364-day papers, the Treasury raised only P5.685 billion out of the P8-billion program despite receiving P11.305 billion in tenders for the tenor. The one-year securities yielded an average rate of 3.971%, rising 7.5 bps from the 3.896% quoted during the last auction.

At the secondary market on Friday, the yields on the three-month and six-month T-bills were quoted at 3.307% and 3.518%, respectively, while the one-year securities fetched a rate of 3.87%.

“For the T-bills auction, sideways on the one-year and then perhaps, 5-10 bps on the 91 and 182 days. Strong demand in the short tenor due to sufficient market liquidity,” the first trader said.

The second trader said rates of the papers “will move sideways because at the secondary market, there has been an adjustment, more or less, from the fear of inflation from the Taal. I think T-bills will trade within the range (observed) last week. Well the fear has already subsided (Taal eruption), we’ll see.”

The Philippine Statistics Authority will report January inflation data on Feb. 5.

The Taal Volcano in Batangas erupted in Jan. 12 and has been on alert level four for almost two weeks. On Sunday, the government announced in a notice that the status will be lowered to Alert Level 3 due to declining volcanic activity.

The Treasury has set a P420-billion local borrowing program this quarter, broken down into P240 billion in T-bills and P180 billion via Treasury bonds.

The government plans to raise P1.4 trillion this year from local and foreign lenders to plug its budget deficit, which is expected to widen to as much as 3.2% of gross domestic product. — B.M. Laforga

Honda PHL launches all-new cutting-edge Airblade150 AT bike

By Enzo O. de los Reyes

THE COUNTRY’S leading motorcycle manufacturer, Honda Philippines, has raised the bar once again in the scooter segment with the launch of the sporty all-new Airblade150.

The new Airblade150 is designed to bring a new level of riding experience for young riders looking for an AT bike with a standout look, power and cutting-edge comfort in shared riding.

So whether you’re a young professional trying to beat the traffic or a millennial who enjoys riding around the city with friends, this AT bike is a must-have. Honda positions the Airblade150 as a cutting-edge bike in sporty design, advanced technology, easy handling, and buddy-riding with your riding pals.

“In Honda Philippines, we believe that the joy and freedom of mobility is best experienced with friends. That is why we conceptualized the all-new Airblade150 with shared riding in mind,” said Susumu Mitsuishi, president of Honda Philippines, Inc. “The comfort of the passenger is another top consideration in the minds of today’s millennial customers, and the all-new Airblade150 is the bike that we believe will fulfill that need,” he added.

The new Airblade150 features a powerful 150cc liquid-cooled SOHC engine for superior lag-free power in both stop-and-go and light traffic and for both short and long distances. This AT bike also offers a 22.7-liter U-Box that can accommodate full-faced helmets and enough room for the rider’s personal belongings. It has a 4.4-liter fuel tank and boasts up to 47km/L fuel consumption.

It is also equipped with other cutting-edge features, such as Smart Key, Power Socket for recharging devices and smartphones, and a front-wheel Anti-lock Braking System (ABS), which helps prevent wheels from locking up for enhanced steering control even in slippery conditions.

The all-new Airblade150 comes in three unique colors: Matte Galaxy Black Metallic, Candy Caribbean Blue Sea, and Candy Ross Red. It will be available at all Honda’s dealerships this March 2020 with a suggested retail price of P109,000. Interested buyers may now visit the nearest Honda dealer for reservations.

For more details about Honda products and promos, follow them at their Facebook page, Honda Philippines, Inc. and Instagram page, @hondaph_mc.

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