THE GOVERNMENT’S share in the earnings of government-owned and -controlled corporations (GOCCs) last year is some P32.31 billion.
Jun 092014
Jun 092014
THE KEY in determining the taxability of a transaction is to know the nature of said transaction. This is definitely important in determining the taxability of a lease. A finance lease should be differentiated from an operating lease. Recently, the Bureau of Internal Revenue (BIR) clarified that a finance lease is subject to documentary stamp tax (DST) as a loan transaction instead of a lease transaction.
Jun 092014
On September 6, 2013, President Noynoy Aquino signed Republic Act 10672 or the “Anti-Bullying Act of 2013,” which requires all elementary and secondary schools in the Philippines to adopt policies to prevent and address bullying in their institutions. The law defines bullying as “any severe or repeated use by one or more students of a written, verbal or electronic expression, or a physical act or gesture, or any combination thereof, directed at another student, that has the effect of actually causing or placing the latter in reasonable fear of physical or emotional harm or damage to his property; creating a hostile environment at school for the other students.” Under the law, bullying acts include cyber-bullying, inflicting physical harm to the child, and utterance of slanderous statements or accusations, such as the use of profanities, name-calling, and commenting negatively on the victims’ looks, clothes, and body, which causes the victim undue emotional distress. Physical contact like punching, pushing, shoving, kicking, slapping, tickling, headlocks, and teasing are prohibited. Also included are social bullying — which refers to any deliberate, repetitive, and aggressive social behavior intended to hurt others or belittle any individual or group — and gender-based bullying, or humiliation of a person on the basis of their sexual orientation and gender identity. But whatever the law’s definition of bullying is, today’s experts agree on this: If mean behavior is intentional and the child being targeted feels powerless to stop it, it’s a serious problem. Effects of bullying A 2008 study of Read More …
Jun 092014
MANILA, Philippines – Inflation is seen remaining within the three to five percent target despite the jeepney fare adjustments set to take effect on June 14, the Bangko Sentral ng Pilipinas said. BSP Governor Amando M. Tetangco Jr. said in an e-mail the fare adjustments for jeepney and even for trains in the Metro were already taken into consideration when the central bank made its recent inflation forecasts. “The baseline inflation projections of the BSP already incorporate adjustments in jeepney fares, as well as MRT and LRT fares,” Tetangco pointed out. The Land Transportation Franchising and Regulatory Board (LTFRB) in the last week of May approved a 50-centavo fare increase and a 10-centavo hike for succeeding kilometers for public utility jeepneys in the National Capital Region, and in Regions 3 and 4. The decision follows a rise in fuel cost seen earlier this year. The fare adjustment takes effect on June 14. “The (inflation) projections continue to show within target inflation within the policy horizon,” Tetangco said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Inflation has so far averaged 4.1 percent in the five months to May, above the midpoint of the BSP’s three to five percent target range. The central bank last May 8 forecast the rate to average 4.3 percent this year, slightly above its March 27 projection of 4.2 percent. The hike came amid higher food prices, and pending adjustments in transportation fares and power rates. Tetangco said “The projections will be reviewed in the Read More …
Jun 092014
FATCA is part of a larger piece of legislation called the Hiring Incentives to Restore Employment Act (HIRE) that was passed by the United States Congress in 2010. Although FATCA has some tax components, it is actually a compliance measure aimed at curbing tax evasion or possible tax evasion by US persons. FATCA requires foreign financial institutions (FFIs) such as depositary institutions, custodial institutions, investment entities and certain types of insurance companies that have cash value products or annuities, to disclose to the US Internal Revenue Service (IRS) specific information on financial accounts identified as held by US persons. Under the FATCA rules, any FFI that does not register for FATCA purposes and does not disclose the required information to the IRS would be subject to a penal 30 percent final withholding tax on its US source income. After passage of the law, the US Treasury department came out with voluminous proposed regulations regarding the implementation of FATCA. In the Philippines, the reception to FATCA was lukewarm initially as it was generally viewed as US legislation having no impact on Philippine financial institutions. However, as FATCA registration deadlines drew closer, increased concern over its impact on FFIs caused many financial institutions to take a second look. Because of bank secrecy laws in the Philippines, financial institutions are faced with challenges regarding FATCA disclosure requirements. Thus, industry groups have been lobbying the Philippine government to enter into an inter-governmental agreement (IGA) with the US. However, the government response seems to be Read More …
Jun 092014
MANILA, Philippines – Sen. Bam Aquino said yesterday that the proposed “Go Negosyo Bill” he introduced is expected to generate job opportunities that will spur economic development at the grassroots level. Speaking to reporters during the weekly Kapihan sa Diamond Hotel news forum in Manila the senator said the micro, small, and medium enterprises (MSMEs) sector is essential and should be given enough attention as it comprises 99 percent of all businesses in the Philippines and accounts for at least 66 percent of all jobs in the labor force. “The numbers show that boosting the MSME sector will help us create more decent, sustainable jobs that can lift many Filipinos out of poverty,” Aquino said. The Go Negosyo Bill (SB 2046) is designed to update two existing laws: the Magna Carta for MSMEs and the BMBE Law. Aquino said the proposed measure strengthens the Magna Carta for MSMEs by establishing Negosyo Centers supervised by DTI in each city and municipality as a hub for MSME registration and development. The senator said Negosyo Center can also boost the development of MSMEs, by providing information for training, financing, and marketing; creating mentoring programs with the help of private institutions and local chambers; and opening access to grants and other forms of financial assistance. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The latest figures show that 12.1 million or 27.5 percent of Filipinos are unemployed, the highest since August 2011 when the number reached 29.4 percent. “There is an urgent need Read More …
Jun 092014
MANILA, Philippines – The Department of Transportation and Communications (DOTC) said yesterday the agreement with the SM Prime Holdings on the location of the proposed P1.4 billion Metro Rail Transit and Light Rail Transit (MRT-LRT) common station expired more than three years ago. Michael Arthur Sagcal, DOTC spokesperson, said the memorandum of agreement signed by SM Prime Holdings Inc. and the Light Rail Transit Authority (LRTA) that was approved by the National Economic and Development Authority (NEDA) in July 2009 already lapsed in 2011. SM Prime filed a case against the DOTC and LRTA before the Pasay City regional trial court early this month seeking an injunction to stop the government from relocating the planned common station to the Trinoma Mall instead of SM North EDSA mall. “First of all, the NEDA approval that SMPHI is referring to expired in 2011. The 2013 NEDA approval, which is in effect, allows the Common Station to be built in the more advantageous location at MRT3,” Sagcal said. The proposed common station would connect the LRT1, MRT3, and the future proposed MRT7 of diversified conglomerate San Miguel Corp. The MOA also stated that SM would have the naming rights to the proposed common station in exchange for P200 million. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “Secondly, SMPHI was publicly quoted through its president in 2013 as saying that it does not mind where the common station is built, as long as it can exercise its alleged naming rights,” Sagcal said. Read More …
Jun 092014
MANILA, Philippines – Recent developments in the five months to May affecting financial markets and the economy in general would be among incorporated in the updated Balance of Payments (BOP) position assumptions set to be released soon, the Bangko Sentral ng Pilipinas said. Central bank Governor Amando M. Tetangco, Jr. said in an e-mail the BSP is finalizing the new forecasts following the first leg of its biannual review of the assumptions of the BOP and its components. “The review [or] updates of the BoP projections are being finalized given the actual developments in both the domestic and external economic environment during the first five months of the year, including the shift in the direction of flows within this period,” Tetangco stressed. In the first four months of the year, the country recorded a BOP deficit of $4.493 billion, a reversal of the $1.811-billion surplus recorded in the same period a year ago. The deficit was blamed partly to hot money outflows amid volatility in global financial markets after the US Federal Reserve started reducing its monthly asset purchases. The BOP shows a summary of a country’s transactions with the rest of the world. Components include trade, foreign direct and portfolio investments, and even remittances from Filipinos abroad. A surplus means more money went into the economy during the period, while a deficit means otherwise. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “We observed that net portfolio investments have started to register net inflows in April and May, Read More …
Jun 092014
Orange County joined the rest of the nation in highlighting the role of Asian American and Pacific Islanders by recognizing the visionary spirit that serve as community role models at the South Coast Plaza, a commercial complex known for being an international shopping destination which had generously made its resources available for the annual commemoration for years. The May 31 event brought together by local organizations and their partners made the May celebration known as Asian American and Pacific Islander Heritage Month, one that showcased the celebration of culture, traditions, and history of the Asian American and Pacific Islanders in the county of 34 cities. The awardees had their moments of recognition for their exemplary effort to succeed in their respective ventures. These community role models who have joined their peers in receiving the Diversity Visionary Awards which recognized their abilities to compete in the highly competitive environment of Orange County whose demographics represent tapestry of cultural and entrepreneurial mix. Joining in the efforts to recognize in acknowledging the achievements of the awardees who serve as role models for going the extra mile in the pursuit of their passions for the second year are the Korean American Chamber of Commerce of Orange County, the Vietnamese American Chamber of Commerce of Orange County, the Friends of Thailand International Network, the Hong Kong Association of Southern California, and their community partners like the Filipino American Chamber of Commerce of Orange County, and the Asian Business Association of Orange County. Honored for their Read More …
Jun 092014
One Direction’s Zayn Malik’s looks plus Christian Bautista’s voice in one package—Kapuso talent and balladeer James Wright.