Subject: WEEKLY TAX UPDATES [JUNE 2] SC bars registration of similar ‘W’ trademarks

WEEKLY TAX UPDATES

JUNE 2

  1. TAX & BUSINESS-RELATED NEWS [MAY 26-JUNE 2]

  2. BIR PRESCRIBES THE PROCEDURES FOR THE FILING & PAYMENT OF QUARTERLY ROYALTY UNDER THE ENHANCED FISCAL REGIME FOR LARGE-SCALE METALLIC MINING ACT

  3. CTA CASES

1. TAX & BUSINESS-RELATED NEWS [MAY 19-26]

1. SC bars registration of similar ‘W’ trademarks

2. House bill seeks VAT exemption for all essential medicines

3. BIR rolls out interim filing system for mining royalty

4. PLDT to bundle internet with solar power for homes

5. Bill proposes increase in Pera for government employees to P9,000

6. De Lima files bill seeking 'ultra-wealth tax' on PH billionaires

7. Erwin Tulfo files bill exempting indigents from board, bar exam fees

8. SC urged to declare unconstitutional VAT on digital books

9. Japan firm Tanita eyes PH as site for health-tech hub — DTI

10. Japanese manufacturer eyes expanded semiconductor investments in PH

11. Future of two coco institutions serving farmers in limbo

12. Palace declares special non-working days in June in 5 localities

13. Pag-IBIG hikes maximum housing loan amount to P10M per borrower

14. Maharlika Investment Corporation partners with energy agencies for Mindoro grid

DISCLAIMER!

We saw these tax and business-related news on various news sites, and we thought you should see them. DMD is not responsible for the content of these news, and anything written thereon does not necessarily reflect DMD views or opinions.

SC bars registration of similar ‘W’ trademarks [The Manila Times, June 2, 2026]

In a decision written by Associate Justice Ramon Paul Hernando of the First Division granted the petitions of Starwood Hotels & Resorts Worldwide, LLC and reversed previous rulings that allowed Oceanic Empire Limited to register the trademarks “W Globalcenter” and “W Fifth Avenue,” as well as retain its registration for “W Tower.”


House bill seeks VAT exemption for all essential medicines [Philippine Daily Inquirer, June 2, 2026]

House Bill No. 9564, filed by ACT Rep. Antonio Tinio, Gabriela Women’s Party Rep. Sarah Jane Elago and Kabataan Rep. Renee Co, seeks to exempt essential medicines and drugs from VAT.


BIR rolls out interim filing system for mining royalty [Philippine Daily Inquirer, June 2, 2026]

The Bureau of Internal Revenue (BIR) has issued temporary guidelines for the quarterly royalty tax of large-scale metallic mining companies under the government’s new mining fiscal regime.


PLDT to bundle internet with solar power for homes [Technobaboy, June 1, 2026]

SVP John Palanca said that it helps PLDT “own the whole home, not just the internet portion.” While the telco has yet to name its solar partner, chairman Manuel V. Pangilinan also controls Meralco PowerGen Corp. (MGEN), which is linked to large solar projects like Terra Solar Philippines.


Bill proposes increase in Pera for government employees to P9,000 [The Manila Times, June 1, 2026]

Nueva Vizcaya Lone District Rep. Timothy Joseph Cayton has filed a bill seeking to nearly quintuple the monthly allowance of government employees by raising the Personnel Economic Relief Allowance (PERA) from P2,000 to P9,000, in a bid to cushion the impact of rising prices of prime commodities.


De Lima files bill seeking 'ultra-wealth tax' on PH billionaires [GMA News Online, May 31, 2026]

De Lima’s House Bill No. 9274, or the “Ultra-Wealth Tax Act,” proposes to amend some provisions of the National Internal Revenue Code of 1997. She noted that several consumption taxes heavily burden the poor and the middle class.


Erwin Tulfo files bill exempting indigents from board, bar exam fees [Inquirer.Net, May 31, 2026]

In filing Senate Bill No. 2035, or the “Free Professional Examinations Act,” Tulfo said the measure aims to expand opportunities for underprivileged Filipinos by making professional licensure more accessible.


SC urged to declare unconstitutional VAT on digital books [The Philippine Star, May 31, 2026]

Almario and Aceron argued taxing digital books violates constitutional principles of freedom of expression and of the press, and the right to education and accessibility, the Philippines’ obligations as signatory to the Florence Agreement that governs importation of educational, scientific and cultural materials, and the prohibition against prior restraint on protected expression, according to the 31-page petition posted on Aceron’s Facebook account.


Japan firm Tanita eyes PH as site for health-tech hub — DTI [GMA News Online, May 30, 2026]

Japanese precision health and wellness devices firm Tanita Corporation is considering the Philippines as a possible site for an integrated facility covering parts processing, assembly, and inspection, according to the Department of Trade and Industry (DTI).


Japanese manufacturer eyes expanded semiconductor investments in PH [Philippine News Agency, May 28, 2026]

Japanese manufacturer MinebeaMitsumi, Inc. is eyeing expanded investments in semiconductor back-end manufacturing and advanced precision technologies in the Philippines following a meeting with President Ferdinand R. Marcos Jr. in Tokyo, Japan on Thursday.


Future of two coco institutions serving farmers in limbo [Inquirer.Net, May 28, 2026]

Montemayor, now chairman of the Federation of Free Farmers, said the United Coconut Planters Bank-Coconut Industry Investment Fund’s (UCPB-CIIF) Finance and Development Corp. (CocoFinance) and UCPB-CIIF Foundation (CocoFoundation) have been on a downturn.


Palace declares special non-working days in June in 5 localities [Inquirer.Net, May 27, 2026]

Malacañang has declared special non-working days in five localities for the celebration of their respective anniversaries and special occasions.


Pag-IBIG hikes maximum housing loan amount to P10M per borrower [GMA News Online, May 26, 2026]

For her part, Pag-IBIG Fund CEO Marilene Acosta explained that with the higher loan ceiling, “qualified borrowers now have even better access to home financing payable for up to 30 years, with interest rates that may go as low as 5.75% a year depending on their chosen fixing period.”

 

Maharlika Investment Corporation partners with energy agencies for Mindoro grid [GMA News Online, May 26, 2026]

In a statement on Tuesday, MIC said it signed an agreement with National Power Corporation (NPC), the National Transmission Corporation (TransCo), and the National Electrification Administration (NEA) on May 25, 2026, for a “whole-of-government” framework aimed at improving the reliability and resiliency of the Mindoro Small Grid while supporting the island's long-term energy requirements.

2. BIR PRESCRIBES THE PROCEDURES FOR THE FILING & PAYMENT OF QUARTERLY ROYALTY UNDER THE ENHANCED FISCAL REGIME FOR LARGE-SCALE METALLIC MINING ACT

Revenue Memorandum Circular (RMC) No. 058-2026, issued on May 28, 2026, outlines the transitory procedures for the filing of quarterly royalty return and payment of royalty under Republic Act (R.A.) No. 12253, otherwise known as the "Enhanced Fiscal Regime for Large-Scale Metallic Mining Act". These procedures shall apply until a dedicated royalty return form becomes available and are intended to facilitate compliance among affected taxpayers.

3. CTA CASES

FAILURE TO PROVE FALSE RETURNS & FAILURE TO CONSIDER TAXPAYER'S DEFENSES RENDER ASSESSMENTS VOID; 10-YEAR PRESCRIPTIVE PERIOD INAPPLICABLE

Petitioner Commissioner of Internal Revenue (CIR) filed a Petition for Review seeking the reversal and setting aside of the CTA Division’s Decision and Resolution, which partially cancelled the deficiency tax assessments against Respondent Marina Square Properties, Inc. Petitioner argued that Respondent's substantial underdeclaration of income constituted prima facie evidence of a false return, thereby warranting the application of the extraordinary ten (10) year prescriptive period under Section 222(a) of the Tax Code. Likewise, it maintained that the assessment notices complied with due process requirements. On the other hand, the Respondent argued that certain Value-Added Tax (VAT), Expanded Withholding Tax (EWT), and Withholding Tax on Compensation (WTC) assessments had already prescribed under the ordinary three (3) year prescriptive period. Further, assessments were void because the Petitioner failed to establish false or fraudulent returns and failed to address the Respondent's defenses and supporting documents. In ruling, the Court held that the Petitioner failed to prove that the Respondent's returns contained deliberate or willful misstatements necessary to justify the application of the 10-year prescriptive period. It was likewise found that the Preliminary Assessment Notice (PAN) and Formal Letter of Demand and Final Assessment Notice (FLD/FAN) neither expressly invoked the 10-year prescriptive period nor stated the factual and legal bases therefor. Consequently, the ordinary 3-year prescriptive period applied, resulting in the prescription of certain VAT, EWT, and WTC assessments, while the remaining assessments were declared VOID for violation of due process. The Petition was DENIED, and the cancellation of the assessments was AFFIRMED. [COMMISSIONER OF INTERNAL REVENUE VS. MARINA SQUARE PROPERTIES, INC., CTA EN BANC CASE NO. 3051, MAY 21, 2026].


[CTA RECOGNIZES APPEALS FILED WITHIN 30 DAYS OF CIR FINAL DECISION, EVEN IF 180-DAY PERIOD LAPSED] [WARRANTS OF DISTRAINT/LEVY MAY BE TREATED AS CONSTRUCTIVE DENIAL OF PROTEST, BUT NOT IN CASE CIR LATER DECIDE]

Petitioner Ma. Fatima L. Simbre filed a Petition for Review seeking to reverse and set aside her deficiency assessments for Income Tax (IT), Value-Added Tax (VAT), Expanded Withholding Tax (EWT), and Compromise Penalties for taxable year (TY) 2014. The Petitioner argued that the Letter of Authority (LOA) was defective and improperly served, no valid Preliminary Assessment Notice (PAN) was issued, the audit lacked clear criteria, and the right to due process was violated. On the other hand, Respondent Commissioner of Internal Revenue (CIR) countered that the Court lacked jurisdiction because the Preliminary Collection Letter (PCL) constituted a final decision and that the LOA was validly issued. In ruling, the Court held that it had jurisdiction over the case since the Petitioner filed her Petition within 30 days from receipt of the Respondent’s February 10, 2023 Decision. While jurisprudence recognizes that collection letters or warrants may be treated as constructive denials of a protest, the Court emphasized that the Petitioner opted to await the Respondent’s final decision, which was timely elevated. The Court further held that although Warrants of Distraint or Levy may constitute constructive denial, this principle does not apply when the CIR subsequently issues a formal decision on the protest. Thus, the Petition was PARTIALLY GRANTED. The Respondent’s assessment on compromise penalties for taxable year 2014 was CANCELLED and SET ASIDE. However, the remaining deficiency assessments were UPHELD WITH MODIFICATIONS. [MA. FATIMA L. SIMBRE VS. COMMISSIONER OF INTERNAL REVENUE, CTA CASE NO. 11112, MARCH 19, 2026]


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