Maniolas

AN EXECUTIVE order (EO) for the proposed standardization of compensation for employees of government-owned and controlled corporations (GOCCs) may be issued by President Benigno S. C. Aquino III after he receives the bill from Congress that will trigger a fresh round of salary increases for the public sector by 2016, the head of the agency overseeing government-led corporations said.

Hybrid mismatch arrangements are the focus of the 2-part Action Plan 2 of the Organisation for Economic Co-operation and Development’s (OECD’s) Base Erosion and Profit Shifting (BEPS) initiative. Hybrid Mismatch Arrangements abuse differences in the tax treatment of an instrument (i.e., a hybrid instrument) or an entity (i.e., a hybrid entity) by separate jurisdictions to reduce or eliminate taxes. Action Plan 2 contains recommendations for changes (i) to domestic tax rules of taxing jurisdictions, and (ii) to the OECD Model Tax Convention, to neutralize the effects of hybrid mismatch arrangements. Part I of Action Plan 2 provides guidance on how countries should implement and apply the recommended rules, and emphasizes that the rules were designed to neutralize mismatches and not simply to minimize tax benefits. The rules should be comprehensive, apply automatically and consistently, avoid double taxation via rule coordination, and minimize disruptions to existing laws. In addition, they should be clear and transparent in their application; provide for flexibility as these are incorporated into each jurisdiction; be workable for taxpayers and entail minimum compliance costs; and minimize administrative burdens on tax authorities.

I am confident that Christmas was good this year for many Filipino families as the tradition we grew up continues to burn – the simbang gabi and the serenity of the Christmas eve mass, the frenetic shopping, the nightly carolling, the family reunions and gift-giving, and the Noche Buena. We still have a few days before the New Year, the official end of the Christmas season, and then we buckle down to work again. So how did 2015 go for the country’s major industries? Every year, we get the assessments of the different umbrella organizations representing specific business sectors.  Almost all of these sectors now have their own roadmaps, and while some may have successfully met their goals and targets, others have dismally failed. For the automotive industry, Rommel Gutierrez, president of the Chamber of Automotive Manufacturers in the Philippines (CAMPI), this year appear slightly better than 2014 judging from figures as of October this year.  The CARS program  initiated by the Board of Investments, which will be in place next year is indeed a very ambitious one, doable by the bigger manufacturers. But the conditions, they acknowlege, are very, very challenging. Only three manufacturers can enroll in the program and as of now only two are confirmed. For 2016, the CAMPI president foresees production targets will breach the 350,000 units mark. The information technology/business process industies are the best-performing this year, as it has been for the past few years.  Their projected growth for 2015 is between 15 percent Read More …

MANILA, Philippines – The Securities and Exchange Commission (SEC) has extended the effectivity of financial statements to 180 days from 135 days. Companies regularly submit their financial statements to the SEC. According to Part II, Section 4 of the Securities and Regulation Code Rule 68, at the time a registration statement  is to become effective, the financial information therein shall be as of a date within 135 days from effective date or such longer period which the Commission may allow upon favorable consideration of a written request of the registrant. This provision further stated that the factors that could be considered in granting the request include the time constraints and the significant circumstances surrounding the given proposed issue. However, due to requests from various companies, the SEC extended the effectivity of financial statements. “This reform in financial reporting standard aims to address the recurring requests from companies for exemptive relief to extend the effectivity of their FS,” the SEC said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 SEC chairperson Teresita Herbosa said the move is also in line with the Asean standard for the age requirement for FS, which is 180 days. “Accounting & auditing professionals, prospective issuers of securities and other concerned organizations are advised to take note of this new requirement,” the SEC added. Given this new development, the SEC will no longer entertain requests for extension of the 180-day period. The extension bodes well for companies because if a company files its financial report for Read More …

MANILA, Philippines – The consortium operating service contract (SC) 55 in offshore Northern Palawan expects the government’s go-signal to undertake further studies in the oil and gas prospect in early 2016. In a statement posted on its website yesterday, Otto Energy Investments Ltd. said the group expects a response from the Department of Energy (DOE) with respect to its moratorium request early in the new year. “The consortium intends to undertake further technical studies during the moratorium period, including a quantitative interpretation (QI) study,” it said. QI is a relatively recent geophysical technique designed to gain a better understanding of existing and potential petroleum reservoirs. The consortium, through Otto Energy, earlier asked the DOE for a two-year moratorium for SC 55 after it completed a drilling activities in the Hawkeye Well last August, consortium member Trans-Asia Petroleum Corp. disclosed on Tuesday. The drilling showed there was an active petroleum system in the area but gas in the project was not in commercial quantities. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 SC 55, located near the Malampaya gas field in offshore Palawan, is estimated to have some 2.2 trillion cubic feet of gas, according to DOE. In particular, the Hawkeye well was believed to have an estimated 480 million barrels of oil identified on 2D seismic originally acquired by Otto in 2007 and further defined with the 600-km 3D seismic acquisition in late 2009. Otto Philippines, a subsidiary of Otto Energy, has a 68.18 percent participating interest in SC Read More …