Maniolas

INFRASTRUCTURE spending jumped by close to 30% in May compared with a year earlier, data from the Department of Budget and Management (DBM) showed.

Since the issuance of Revenue Regulations No. 12-2013, withholding the correct taxes has become a matter of paramount importance. Under the regulations, failure to withhold the proper tax would result in the disallowance of the related expenses or deductions for income tax purposes, even if the withholding tax is paid in the course of a tax audit. Consequently, in a deficiency withholding tax assessment, the withholding agent would be liable for the deficiency income tax on top of the assessed withholding tax. Effectively, the withholding agent would be liable for 30+x% in basic taxes, where “x” is equivalent to the withholding tax rate on the transaction, plus applicable penalties (surcharge and interest) for non-withholding or under-withholding of taxes. Such is the “double whammy” that withholding agents may face if they are unable to dutifully comply with withholding tax rules.

THE PHILIPPINE Statistics Authority said it estimated tourism to have accounted for 7.8% of gross domestic Product (GDP) in 2014, quantifying the sector’s impact at P982.4 billion, up 14% year on year.

THE INTERNATIONAL Finance Corp. (IFC) said it is projecting the potential demand for small-scale power generation projects in the Philippines this year to be worth over $200 million.

As the 2015 State of the Nation Address (SONA) of President Benigno S. C. Aquino III draws near, a clamor for the passage of laws lowering individual income tax rates before the end of his term has started to resurface. Although many believe that measures to bring down the tax rate or amend tax brackets are long overdue, is the last year of the presidential term the right time to tackle the issue?