Subject: WEEKLY TAX UPDATES [MAR 19] DOLE: Private sector may adopt flexible work arrangements amid rising oil prices

WEEKLY TAX UPDATES

MARCH 19

  1. TAX & BUSINESS-RELATED NEWS [MARCH 11-19]

  2. SEC LEGAL OPINION ON REPRESENTATIVE OFFICE, DORMANT OR INACTIVE STOCKHOLDERS & CONVERSION OF COMMON SHARES TO REDEEMABLE PREFERRED SHARES

  3. COURT OF TAX APPEALS CASES

1. TAX & BUSINESS-RELATED NEWS [MARCH 11-19]

1. Philippine Coconut Authority opposes proposed suspension of biofuel blending

2. D&L unfazed by looming suspension of biofuel blending

3. Conglomerates brace for higher operating costs amid Middle East war

4. DOLE: Private sector may adopt flexible work arrangement amid rising oil prices

5. Donny Pangilinan, dad Anthony reduce diesel price at own gas station

6. No minimum wage hike in Central Visayas in the meantime

7. Phinma takes over Southeastern Colleges for P690M

8. Villar backs OTP phaseout, eyes stronger digital security with Afasa law

9. Marcos to LGUs: End 'pass-through' fees for goods vehicles

10. Villars skip DOJ hearing on SEC case as lawyers seek filing extension

11. BSP on guard as digital banks face profit strain

12. PH eyes space launch capability with CEZA's aerospace corridor

13. DHSUD hails exemption of socialized housing from farm lands conversion moratorium

14. InterContinental returns to the Philippines

15. Rep. Leviste buys Germany house where Rizal once lived, wrote ‘Noli’

16. Senate inquiry sought on new procurement law

17. Gov't to assist US probe into forced labor in PH — DTI

18. Razon’s Colombia firm plays a ‘huge buffer’ in fuel crisis

19. Medical inflation to be felt due to Middle East conflict, says economist

20. BARMM investments hit P2.4B in just two months

21. Manila Water subsidiary seals 30-year partnership with Cathay Land

22. BIR suspends Mandaue online seller over P211M undeclared sales

23. Nueva Vizcaya village to boost salt output with DTI, BFAR

24. SSS launches online facial verification for pensioners’ confirmation

25. Cardinal David asks, Is PH tax system fair, serve human dignity?

26. Thai stevia firm to expand in PH with $30M investment

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.

Philippine Coconut Authority opposes proposed suspension of biofuel blending [GMA News Online, March 19, 2026]

The coconut industry regulator emphasized that “any suspension or displacement of coconut methyl ester (CME) in favor of imported palm methyl ester (PME) would likely redirect domestic supply to lower-priced export markets, thereby exerting downward pressure on local copra and CNO prices.”

 

D&L unfazed by looming suspension of biofuel blending [Philippine Daily Inquirer, March 18, 2026]

D&L operates in the biodiesel sector through Chemrez Technologies Inc., one of the country’s leading producers of coconut-based biodiesel.

 

Conglomerates brace for higher operating costs amid Middle East war [BusinessWorld, March 18, 2026]

“At this time, with all of this conflict in the Middle East, I guess maybe there’s still a lot of fear in all of us. But having said that, I guess the lights go on, business goes on, capex (capital expenditure) goes on. Of course, there are more risks, and maybe the thing that will be higher is the opex (operating expenses). So, we just have to make our business more efficient, lower our margins, to survive these temporary hiccups,” SM Investments Corp. Vice-Chairperson Teresita T. Sy-Coson said during a panel discussion at the Philippine Stock Exchange’s InvestPH conference on Mar. 17.

 

DOLE: Private sector may adopt flexible work arrangement amid rising oil prices [GMA News Online, March 17, 2026]

Under a four-day workweek arrangement, the standard 40-hour workweek may be distributed across four working days instead of five, with the corresponding hours added from Monday to Thursday if work is suspended on Friday. 

 

Donny Pangilinan, dad Anthony reduce diesel price at own gas station [Inquirer. Net, March 17, 2026]

“Starting [March 17], we are reducing our prices for diesel products in our station in South Forbes and are absorbing part of the rising costs for the members of our community,” he stated. “The actual amounts are posted on site and we will keep it running for as long as we are able.”

 

No minimum wage hike in Central Visayas in the meantime [Cebu Daily News, March 17, 2026]

The Regional Tripartite Wages and Productivity Board in Central Visayas (RTWPB-7), moreover, last implemented a minimum wage increase in October 2025 and the law ordinarily bans another pay hike within one year.

 

Phinma takes over Southeastern Colleges for P690M [Philippine Daily Inquirer, March 17, 2026]

Conglomerate Phinma Corp. has expanded its education business after acquiring a majority stake in Pasay-based Southeastern Colleges, strengthening its presence in southern Metro Manila.

 

Villar backs OTP phaseout, eyes stronger digital security with Afasa law [Inquirer.Net, March 17, 2026]

Sen. Mark A. Villar welcomed the Bangko Sentral ng Pilipinas’ (BSP) directive requiring banks and financial institutions to phase out SMS one-time passwords (OTPs) and adopt stronger security measures by 30 June 2026.


Marcos to LGUs: End 'pass-through' fees for goods vehicles [GMA News Online, March 16, 2026]

Executive Order No. 41 prohibits all LGUs from collecting toll fees or charges on motor vehicles transporting goods or merchandise while passing through any national roads, as well as roads not constructed or funded by them.

 

Villars skip DOJ hearing on SEC case as lawyers seek filing extension [The Philippine Star, March 16, 2026]

The regulator said Villar Land released misleading information that distorted the company's share prices.

 

BSP on guard as digital banks face profit strain [Philippine Daily Inquirer, March 16, 2026]

Nearly five years after the Bangko Sentral ng Pilipinas (BSP) opened the digital banking industry, many incumbents are still struggling to turn a profit, with the regulator staying vigilant against excessive risk-taking in a sector marked by fierce competition for deposits and lending opportunities.

 

PH eyes space launch capability with CEZA's aerospace corridor [The Manila Times, March 16, 2026]

Northern Luzon’s unique geography makes it an ideal location for space launches. Rockets launched eastward from Cagayan can travel directly over the Pacific Ocean, avoiding dense population centers and providing a clean trajectory towards low-Earth orbit.

 

DHSUD hails exemption of socialized housing from farm lands conversion moratorium [GMA News Online, March 16, 2026]

In a statement, DHSUD Secretary Jose Ramon Aliling said the DA’s Department Circular No. 11, series of 2026 dated March 3 is vital in sustaining the momentum of the rollout of the Expanded Pambansang Pabahay para sa Pilipino (4PH) Program.

 

InterContinental returns to the Philippines [Philippine Daily Inquirer, March 16, 2026]

Scheduled to open in 2032, the 212-key hotel will mark InterContinental’s return to the vibrant and historic capital after more than 15 years, reaffirming IHG’s long-term commitment to the country’s tourism growth, the company said in a statement.

 

Rep. Leviste buys Germany house where Rizal once lived, wrote ‘Noli’ [Inquirer.Net, March 15, 2026]

It was in 1886 when Rizal stayed in Wilhelmsfeld while studying ophthalmology at the University of Heidelberg, upon the invitation of his friend Pastor Karl Ullmer.

 

Senate inquiry sought on new procurement law [GMA News Online, March 15, 2026]

Gatchalian, chairperson of the Senate Committee on Finance, said Senate Resolution No. 336 calls for a status check on the implementation of the New Government Procurement Act to ensure a smooth transition to the new system.


Gov't to assist US probe into forced labor in PH — DTI [GMA News Online, March 14, 2026]

The USTR has announced it has begun a second set of Section 301 unfair trade practices probes of 60 economies, including the Philippines, in relation to what it called failures to take action on forced labor.

 

Razon’s Colombia firm plays a ‘huge buffer’ in fuel crisis [Philippine Daily Inquirer, March 13, 2026]

The Razon Group’s buyout of a major oil and gas firm in Colombia is seen to calm the Philippines’ supply woes, particularly highlighted during persistent unrest in the Middle East, analysts said.

 

Medical inflation to be felt due to Middle East conflict, says economist [GMA News Online, March 13, 2026]

Professor Emmanuel Leyco said that medical equipment like syringes, surgical equipment, oxygen masks, and gloves uses oil in their raw materials.

 

BARMM investments hit P2.4B in just two months [Inquirer Mindanao, March 13, 2026]

Pasigan said the newly approved projects reflect the Bangsamoro government’s continued efforts to strengthen key sectors such as healthcare, tourism, and agriculture, while promoting inclusive and sustainable economic growth across the region.

 

Manila Water subsidiary seals 30-year partnership with Cathay Land [Inquirer.Net, March 13, 2026]

Cathay Land, Inc., a 31-year strong and continuously growing real estate developer in the country, continues to expand in Cavite through masterplanned communities and destination developments. This collaboration aligns with Cathay Land’s commitment to delivering high-quality residential, commercial, and lifestyle experiences to its homeowners and locators.

 

BIR suspends Mandaue online seller over P211M undeclared sales [Cebu Daily News, March 12, 2026]

Investigators said the establishment, which sells various luxury items such as bags, shoes, and perfumes through online platforms, failed to properly declare its sales and pay the corresponding taxes.

 

Nueva Vizcaya village to boost salt output with DTI, BFAR [The Manila Times, March 12, 2026]

The Salinas Salt Spring in Bambang town in Nueva Vizcaya has a rich history dating back to the Spanish colonial era. The spring is a natural saltwater source that has been used for centuries to produce salt through a traditional process of boiling and evaporation.

 

SSS launches online facial verification for pensioners’ confirmation [GMA News Online, March 11, 2026]

The Social Security System (SSS) has launched an online facial verification portal to allow pensioners to comply with the Annual Confirmation of Pensioners (ACOP) requirement without having to visit SSS branches.

 

Cardinal David asks, Is PH tax system fair, serve human dignity? [GMA News Online, March 11, 2026]

The cardinal pointed out that the government must be transparent in spending public funds and protect them from corruption and misuse; the burden of taxation does not fall disproportionately on the poor and middle class; those with greater economic power contribute fairly; and government resources are used transparently for social services, food security, and genuine development.

 

Thai stevia firm to expand in PH with $30M investment [The Manila Times, March 11, 2026]

“The company is looking to establish a plantation and processing facility in the country and [also] select a 1,000-hectare site within Asean for its proposed expansion,” the agency said.

2. SEC LEGAL OPINION

REPRESENTATIVE OFFICES ARE STRICTLY LIMITED TO INFORMATION DISSEMINATION & PROMOTION OF PRODUCTS AND/OR SERVICES OF THE HEAD OFFICE

C. Co. is seeking an opinion on whether the Manila Representative Office (MRO) may engage the services of an independent contractor (IC) actively participate in implementing a service agreement between K Marine Ship Management Pte. Ltd. (KMSM) and KKK Ltd. (KKK), a company organized under Japan laws—particularly activities related to supervising a manning agent, supporting recruitment and training of seafarers, and executing an independent contractor agreement—without violating the limits of a representative office’s allowable activities under Philippine law. In reply, the SEC opined in the negative, holding that these acts go beyond the passive functions of information dissemination and promotional activities stated in the Representative Office’s license. Further, this constitutes active, income‑oriented, and commercial participation in the head office’s business. In the case of Commissioner of Internal Revenue (CIR) v. Shinko, the Supreme Court (SC) explained that representative offices cannot enter contracts on their own and they only refer contracts to the parent company. However, MRO’s acts involve the execution of contracts and payment of compensation and do not involve direct dealings with the head office’s clients. Therefore, the proposed activities are not permissible for a representative office under the Foreign Investments Act (FIA) and the specific terms of the office’s license. [SEC OFFICE OF THE GENERAL COUNSEL LEGAL OPINION NO. 26-05, MARCH 5, 2026]


DORMANT OR INACTIVE STOCKHOLDERS REMAIN STOCKHOLDERS OF RECORD & ARE ENTITLED TO ALL THE RIGHTS ATTACHED TO THEIR SHARES

Secured Bank Inc. (SBI) is seeking an opinion on the appropriate treatment of unlocated stockholders reflected in its records. These pertain to the 29 stockholders who failed to respond to notices of Special Stockholders’ Meetings and were classified as “unlocatable stockholders.” Accordingly, their status raised governance issues involving quorum validation, voting rights, dividend distribution, and subscription eligibility. In reply, the SEC clarified that an implied trust is created over the shares of dormant or inactive stockholders. SBI must record these shares in its corporate books under a trustee capacity, with the corporation acting as fiduciary for the unlocated stockholders. Despite being inactive or unlocatable, these individuals remain stockholders of record with full ownership and property rights. SBI is, therefore, required to maintain their status as stockholders and must continue exerting and exhausting all reasonable efforts to locate them. For governance purposes, all stockholders of record, including dormant or inactive ones, should continue to be factored into the denominator of the quorum calculation and cannot be excluded from the quorum count. The SEC further emphasized that the right to vote of dormant or inactive stockholders is an absolute and protected property right. SBI is, therefore, prohibited from voting the shares without proper authorization or representation. Lastly, since dormant stockholders remain stockholders of record, their right to dividends is fully protected. SBI must credit them with the full value of any declared dividends, regardless of their inactive status. [SEC OFFICE OF THE GENERAL COUNSEL OPINION NO. 26-04, FEBRUARY 20, 2026]


[AN AMENDMENT TO THE ARTICLES OF INCORPORATION IS REQUIRED TO EFFECT THE CONVERSION OF COMMON SHARES INTO REDEEMABLE PREFERRED SHARES, INCLUDING APIC] [REDEEMABLE PREFERRED SHARES MAY BE REDEEMED AT OR BELOW THE ORIGINAL ISSUE PRICE REGARDLESS OF THE EXISTENCE OF UNRESTRICTED RETAINED EARNINGS, SUBJECT TO THE CORPORATION’S SOLVENCY]

S Co. is seeking an opinion on the conversion of common shares with Additional Paid-In Capital (APIC) into Redeemable Preferred Shares (RPS) with APIC, as well as the determination of the redemption price. In reply, the SEC opined that the conversion of shares may only be effected if the corporation’s Articles of Incorporation (AOI) expressly provide for the convertibility of shares. In the absence of such provision, common shares cannot be converted into preferred shares. To formalize the conversion, an amendment of the AOI is required, provided that the conversion does not result in the watering of stock, the issuance of shares in excess of the authorized capital stock, or the distribution of corporate property to shareholders, and that it complies with the Trust Fund Doctrine. The conversion is likewise subject to approval by the SEC’s Financial Analysis and Audit Department (FAAD). The SEC further noted that the conversion of APIC-common shares into APIC-RPS is necessary to avoid confusion in the presentation of the different types of shares in the corporation’s financial statements. With respect to the determination of redemption price, the SEC stated that redeemable preferred shares may be redeemed at or below their original issue price regardless of the existence of unrestricted retained earnings, provided that the corporation remains solvent after redemption and has sufficient assets to cover its debts and liabilities, including capital stock. [SEC OFFICE OF THE GENERAL COUNSEL OPINION NO. 26-02, JANUARY 15, 2026]

3. CTA CASES

[PROOF OF MAILING IS NOT EQUIVALENT TO PROOF OF VALID SERVICE] [THE RESIDENCE OF AN INCORPORATOR DOES NOT AUTOMATICALLY BECOME THE CORPORATION'S AUTHORIZED ADDRESS FOR SERVICE OF OFFICIAL NOTICES]

Petitioner Oroville Resources And Ventures, Inc. filed a Petition for Review with Motion to Quash Warrant of Distraint and Levy seeking to nullify and set aside the 2017 assessments issued by Respondent Commissioner of Internal Revenue (CIR).  Petitioner argues that the assessment is void for violation of due process and improper service of the Letter of Authority (LOA), that it did not receive the Preliminary Assessment Notice (PAN) and Final Assessment Notice/Formal Letter of Demand (FAN/FLD), and that the deficiency taxes and compromise penalties lack legal and factual basis. Meanwhile, Respondent contends that the Court lacks jurisdiction due to Petitioner’s failure to protest the FLD/FAN, and that due process was observed under Revenue Regulations (RR) No. 18-2013 and the notices are deemed received. In ruling, the Court held that the assessment was void for violation of due process because the Respondent failed to prove proper service of the LOA, PAN, and FAN/FLD. The LOA was served on an unauthorized person at an address other than the taxpayer’s registered address without proof of valid prior attempts at personal service, while the PAN and FAN were likewise improperly served in violation of Section 228 of the Tax Code and RR No. 12-1999. It was admitted that the LOA was served upon Mr. Enriquez at the alleged known address, and despite knowing during cross-examination that he was merely the son of an incorporator and not an authorized representative of the corporation, the Revenue Officer still proceeded to serve the LOA on him. Although Mr. Enriquez received the LOA, Respondent failed to prove proper service, relying only on unsubstantiated claims without sufficient evidence to justify substituted service. Consequently, since the assessment was VOID, the WDL issued by the BIR was also declared void and without legal effect. [OROVILLE RESOURCES & VENTURES, INC. VS. COMMISSIONER OF INTERNAL REVENUE, CTA CASE NO. 10243, FEBRUARY 27, 2026]


FAILURE OF THE BIR TO CONSIDER & ADDRESS THE TAXPAYER’S REPLY IS A VIOLATION OF DUE PROCESS UNDER SECTION 228 OF THE TAX CODE

Petitioner Promesso Business Solutions Corp. filed a Petition for Review seeking to reverse and set aside the Final Decision on Disputed Assessment (FDDA) issued by the Respondent Commissioner of Internal Revenue (CIR), which held Petitioner liable for deficiency assessment. Several issues were raised on the propriety of the assessment findings, which were all countered by the Respondent asserting that tax assessments are presumed correct, pursuant to the presumption of regularity in the performance of the Revenue Officer’s investigation. In ruling, the Court held that it may resolve related issues not raised in the pleadings when necessary for a just and orderly disposition of the case, specifically it invalidated the assessment after finding that the Revenue Officers lacked authority to conduct the audit. Likewise, Petitioner’s right to due process was violated since the Final Assessment Notice failed to state a specific due date for payment, negating the existence of a valid demand—an essential element of a FAN. Moreover, despite the Petitioner’s reply to the PAN, the PAN and the FLD/FAN contained identical findings, differing only in the amount of interest. Applying the doctrine in Commissioner of Internal Revenue vs. Avon Products Manufacturing, Inc., the Court reiterated that the BIR must not only receive the taxpayer’s reply but also consider and address it. Otherwise, the due process requirements under Section 228 of the Tax Code are violated. Therefore, the Petition was GRANTED, and the assessment was declared VOID. Top of FormBottom of Form [PROMESSO BUSINESS SOLUTIONS CORP. VS. COMMISSIONER OF INTERNAL REVENUE, CTA CASE NO. 10529, FEBRUARY 5, 2026]


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