Subject: WEEKLY TAX UPDATES [NOV 21] Senator Tulfo calls for probe into BIR corruption and Letter of Authority Abuse

WEEKLY TAX UPDATES

NOVEMBER 21

  1. TAX & BUSINESS-RELATED NEWS [NOVEMBER 12-21]

  2. BIR CLARIFIES THE TAXABILITY OF HEALTH EMERGENCY ALLOWANCE

  3. COURT OF TAX APPEALS CASE ON LOCAL BUSINESS TAX

  4. PEZA CIRCULARIZES PENALTIES FOR NON-SUBMISSION OF REQUIRED REPORTS FROM 2021-2024

  5. SUPREME COURT CASE ON PEZA VAT EXEMPTION

1. TAX & BUSINESS-RELATED NEWS [NOVEMBER 12-21]

1. Senator Tulfo calls for probe into BIR corruption and Letter of Authority Abuse

2. Discayas attend preliminary investigation on BIR tax complaints

3. Fernando seeking to make Bulacan global destination

4. BIR warned vs abusing letters of authority

5. 3 ex-undersecretaries under probe for money laundering

6. ERC tells Meralco, cooperatives: Halt disconnections in November, December

7. Cagayan State University develops fully electric tricycle

8. SEC eases rules for wider REIT market

9. Gardiola-linked companies 'bought' some P22B in DPWH projects — Leviste

10. Sweden partners with PH mines to bring zero-injury tech

11. Salesforce expands Philippine presence with new Makati office

12. Wage increases in Ilocos Region and Western Visayas take effect Nov.19

13. DepEd to verify teacher credentials with new national registry to combat ‘diploma mills’

14. SEC revokes license of Villar Land appraiser

15. NU to expand 4 campuses for 125th anniversary

16. Amal, George Clooney unveil legal aid project for Pinoys

17. US reshoring measures may raise PHL office vacancies, analysts say

18. JuanHand lending gains traction, disburses P70 billion loans in 6 years

19. ARTA can’t interfere in DTI consumer appeals, says DOJ

20. Villar’s cost cuts can’t save AllDay from cash wipeout and profit freefall

21. Online sellers call DTI trustmark redundant, doubt it deters scams

22. 7 Quezon City startups get P1 million grants

23. 'Pambaon': House bill to provide P5,000 annual allowance to students in all levels

24. Philippine seafaring industry emerges as ‘economic powerhouse’

25. P6B from Leviste Foundation set aside to help students, typhoon victims

26. BatStateU opens new campus in Lipa-Malvar

27. Subsistence fisherfolk to be enrolled in insurance plan offering quick payouts

28. Shipbuilding holds potential to employ 100,000 — ambassador

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.

Senator Tulfo calls for probe into BIR corruption and Letter of Authority Abuse [The Manila Times, November 21, 2025]

He also urged the agency to temporarily suspend the issuance of LOAs while investigations proceed.

 

Discayas attend preliminary investigation on BIR tax complaints [GMA News Online, November 21, 2025]

In October, the BIR filed multiple tax complaints against the Discaya couple and a corporate officer over P7.1 billion in tax liabilities from 2018 to 2021.

 

Fernando seeking to make Bulacan global destination [The Manila Times, November 21, 2025]

Among the provincial’s master plans are major infrastructure projects such as the P870-billion New Manila International Airport in Bulakan town, the Bulacan Mega City located in the towns of Pandi, Bocaue and Balagtas, the P62.7-billion Metro Rail Transit 7 (MRT-7), and the 147-kilometer North-South Commuter Railway from New Clark City in Tarlac to Calamba, Laguna.

 

BIR warned vs abusing letters of authority [Philippine Daily Inquirer, November 20, 2025]

“Concerns have been raised regarding the excessive issuance of letters of authority or LOAs … If not carefully regulated, this may create an atmosphere of uncertainty among businesses and discourage investors who may perceive it as a sign of unpredictability or overreach in tax administration,” Ejercito said during the Senate’s marathon plenary debates on the proposed 2026 BIR budget.

 

3 ex-undersecretaries under probe for money laundering [The Philippine Star, November 20, 2025]

“Bersamin, Olaivar and Bernardo were working together in practically laundering money in the narration of Bernardo, just money laundering already,” Remulla said. “That’s already a major offense that was being committed.”

 

ERC tells Meralco, cooperatives: Halt disconnections in November, December [ABS-CBN News, November 20, 2025]

The Philippine Rural Electric Cooperatives Association, Inc (PHILRECA), which represents 121 Electric cooperatives all over the country, said they would also comply, but are worried about not being able to pay their suppliers.

 

Cagayan State University develops fully electric tricycle [GMA News Online, November 20, 2025]

A sustainable alternative vehicle to gas-run tricycles, the Converted Electric Tricycle (C-Trike) can travel up to 80 kilometers on a single charge.

 

SEC eases rules for wider REIT market [Daily Tribune, November 20, 2025]

Released for public comment on 18 November, the draft amendments to SEC Memorandum Circular No. 1, Series of 2020, seek to expand the types of income-generating  properties in a REIT portfolio, extend reinvestment periods, and ease minimum public ownership (MPO) requirements.

 

Gardiola-linked companies 'bought' some P22B in DPWH projects — Leviste [ABS-CBN News, November 19, 2025]

Leviste showed a list of projects in the 2025 National Expenditure Program as of August 30, 2024, where a number of projects were tagged as “CENTI 20”, and some were tagged as “BIP-LEADERSHIP”.

 

Sweden partners with PH mines to bring zero-injury tech [Philippine News Agency, November 19, 2025]

Swedish Ambassador to the Philippines Anna Ferry said Sweden is introducing mining technologies used in their own operations to help improve safety and efficiency in the Philippine mining industry.

 

Salesforce expands Philippine presence with new Makati office [BusinessWorld, November 19, 2025]

Looking ahead, Salesforce plans to train 12,000 Filipino workers over the next five years in AI and customer relationship management skills.

 

Wage increases in Ilocos Region and Western Visayas take effect Nov.19 [The Manila Times, November 18, 2025]

Laguesma said the wage hikes for minimum wage earners and domestic helpers were based on Wage Orders RBI-24 and RB1-DW-6 of RTWPB-I and Wage Orders. RBVI-29 and RBVI-DW-07 of RTWPB VI.

 

DepEd to verify teacher credentials with new national registry to combat ‘diploma mills’ [BusinessMirror, November 18, 2025]

DepEd reported that the new guidelines establishing a national registry of recognized teacher education programs have been finalized, allowing the department to verify credentials submitted for hiring and promotion, issue advisories to field offices, and coordinate with oversight agencies to prevent the acceptance of unaccredited programs.


SEC revokes license of Villar Land appraiser [ABS-CBN News, November 17, 2025]

The Securities and Exchange Commission (SEC) has revoked the accreditation of E-Value Phils., the appraiser who initially assessed the new investment properties of Villar Land at P1.34 trillion.

 

NU to expand 4 campuses for 125th anniversary [GMA New Online November 17, 2025]

According to the Sy-led SM Group, NU will expand its main campus in Sampaloc, Manila, and its other campuses in Clark (Pampanga), Mall of Asia (Pasay), and Fairview (Quezon City).

 

Amal, George Clooney unveil legal aid project for Pinoys [BusinessMirror, November 17, 2025]

INTERNATIONAL human rights lawyer Amal Clooney and actor-director George Clooney headlined this year’s Rappler Social Good Summit, where Amal announced the upcoming launch of a Philippine initiative aimed at giving Filipino women and journalists greater access to legal aid and counsel.

 

US reshoring measures may raise PHL office vacancies, analysts say [BusinessWorld, November 17, 2025]

The proposed Halting International Relocation of Employment (HIRE) Act and the Keep Call Centers in America Act do not impose an outright ban on offshoring, but their passage may slow down demand in the country’s office market, said CBRE Philippines Country Head Jie C. Espinosa.

 

JuanHand lending gains traction, disburses P70 billion loans in 6 years [The Philippine Star, November 17, 2025]

“We have over P70 billion loans disbursed since we started six years ago. We have over three million active users at any given time and we have over 20 million registered users. That’s why, if we’re not the leading fintech lending app in the Philippines, we’re one of the top three.”

 

ARTA can’t interfere in DTI consumer appeals, says DOJ [The Philippine Star, November 17, 2025]

In a three-page legal opinion signed by Acting Justice Secretary Fredderick Vida, the DOJ said the DTI’s handling of appeals and consumer complaints constitutes a quasi-judicial function, exempting it from ARTA’s oversight on service processing times.

 

Villar’s cost cuts can’t save AllDay from cash wipeout and profit freefall [Bilyonaryo, November 17, 2025]

Villar delivered the promised cost cuts, but with sales shrinking, interest costs surging and cash nearly drained, AllDay is starting to look less like a growth story and more like a slow-motion squeeze-out.

 

Online sellers call DTI trustmark redundant, doubt it deters scams [BusinessWorld, November 17, 2025]

“With trustmark voluntary only until Dec. 31, the group urges that it be declared permanently voluntary, not required by platforms, aspirational, and private-sector-led, with the government focusing instead on enforcing existing laws,” it added.

 

7 Quezon City startups get P1 million grants [The Philippine Star, November 16, 2025]

The grant recipients belong to the fourth cohort of the Startup QC Program – an initiative that aims to enhance the local startup ecosystem by providing support from industry practitioners, academe and the city government.

 

'Pambaon': House bill to provide P5,000 annual allowance to students in all levels [Manila Bulletin, November 14, 2025]

HB No.2657 or the proposed BAON Para sa Estudyante Act covers students in the elementary, junior and senior high school, and college levels enrolled in all public and private schools, including learners under the Alternative Learning System (ALS).


Philippines may take 70 years to catch up with Singapore [BusinessWorld, November 13, 2025]

“At the current growth rate, it would take the Philippines two years to catch up with the GDP per capita of Vietnam, 4 years with Indonesia, 14 years with Thailand, 26 years with Malaysia, and 70 years with Singapore, assuming their incomes remain stagnant. In reality, their GDP per capita continues to grow, which means the gap could persist or even widen,” Mr. Neri said.

 

Philippine seafaring industry emerges as ‘economic powerhouse’ [Philippine Daily Inquirer, November 13, 2025]

According to a study by the University of Asia and the Pacific (UA&P) and ALMA Maritime Group, the sector’s direct economic impact reached P331.7 billion last year, supporting nearly 400,000 jobs, while seafarer households earned P150.1 billion.

 

P6B from Leviste Foundation set aside to help students, typhoon victims [Inquirer.Net, November 13, 2025]

P6 billion in shares and proceeds from the Lingkod Legarda Leviste Foundation have been set aside to assist Filipino students and victims of recent typhoons, Batangas 1st District Rep. Leandro Legarda Leviste said on Thursday.

 

BatStateU opens new campus in Lipa-Malvar [The Manila Times, November 13, 2025]

Aboitiz donated 10 hectares of land for the campus, which was inaugurated on Nov. 11.

 

Subsistence fisherfolk to be enrolled in insurance plan offering quick payouts [BusinessWorld, November 12, 2025]

The insurance program aims to cover 14,200 fisherfolk in 24 municipalities. The payout is $100 per policy cycle to compensate for income lost when rough seas, high winds, or heavy rainfall prevent fishing activities.

 

Shipbuilding holds potential to employ 100,000 — ambassador [BusinessWorld, November 12, 2025]

Government agencies are banking on the passage of the Shipbuilding and Ship Repair (SBSR) Development bill to drive investment in the industry amid increasing interest from Europe.

2. BIR CLARIFIES THE TAXABILITY OF HEALTH EMERGENCY ALLOWANCE

Revenue Memorandum Circular (RMC). No. 105-2025, issued on November 12, 2025, clarifies the tax treatment of the Health Emergency Allowance (HEA) granted under Republic Act (RA) No. 11712, otherwise known as the Public Health Emergency Benefits and Allowances for Health Care Workers Act. The HEA, ranging from Php 3,000 for low-risk areas, Php 6,000 for medium-risk areas, and Php 9,000 for high-risk areas, is provided monthly to all eligible health care and non-health care workers during COVID-19 or other public health emergencies of national scale that may be declared in the future, subject to the requirement of at least 96 hours of actual service per month, otherwise, the benefit shall be prorated. As clarified, HEA shall be considered part of “other benefits” under Section 32(B)(7)(e) of the Tax Code and is exempt from income tax if the employee’s total benefits do not exceed the Php 90,000 annual threshold. However, individuals hired through contracts of service or job orders are considered self-employed or independent contractors; thus, the HEA they receive is subject to income tax and other applicable taxes. The circular also mandates that all recipients of HEA must be included in the employer’s annual Alphabetical List of Employees/Payees.

3. CTA CASE

[MANUFACTURERS MAINTAINING OR OPERATING A BRANCH OR SALES OUTLET ELSEWHERE SHALL RECORD THE SALE IN THE BRANCH OR SALES OUTLET MAKING THE SALE OR TRANSACTION & THE TAX THEREON SHALL ACCRUE & SHALL BE PAID TO THE MUNICIPALITY WHERE SUCH BRANCH OR SALES OUTLET IS LOCATED] [IN CASES WHERE THERE IS NO SUCH BRANCH OR SALES OUTLET IN THE CITY OR MUNICIPALITY WHERE THE SALE OR TRANSACTION WAS MADE, THE SALE SHALL BE DULY RECORDED IN THE PRINCIPAL OFFICE & THE TAXES DUE SHALL ACCRUE & SHALL BE PAID TO SUCH CITY OR MUNICIPALITY] [THE DETERMINATION OF THE ACTUAL USE OF A WAREHOUSE FACILITY IS THE BASIS FOR THE IMPOSITION OF LOCAL BUSINESS TAX]

The Petitioner, Alaska Milk Corporation, filed a Petition for Review seeking to reverse and set aside the Decision of the Regional Trial Court (RTC) of Davao City-Branch 16, which denied its earlier Petition for Review and Motion for Partial Reconsideration. The Petitioner argued that it does not maintain a “branch” or “sales office” in Davao City, as its Davao warehouse neither conducts nor transacts sales. It further argued that the assessment of Local Business Tax (LBT) against it is null due to a lack of legal basis and for being an ultra vires act in violation of Section 150 of the 1991 Local Government Code (LGC). On the other hand, the Respondent, Office of the City Treasurer of Davao City, countered that the tax assessment is validly issued based on Section 79 of the Davao City Ordinance No. 0291-17, and that it is within the Respondent’s authority and duty to assess and collect taxes. In addition, the Petitioner has been doing business in Davao City and continuously paid the LBT due, thereby negating its claim that its Davao warehouse was purely utilized for storage purposes. In ruling, the Court held that while the Respondent is empowered to impose LBT on manufacturers and other entities, such authority is subject to the rule on tax situs. Thus, to determine whether the Petitioner is subject to LBT, it is necessary for the Court to examine the evidence presented by the parties to determine the actual use of the Davao warehouse, whether it is used exclusively for storage purposes, for manufacturing its products, or as a branch or sales office. However, the lower court merely directed the parties to submit their memoranda, without presentation of evidence. Consequently, the Court cannot determine the merits of the parties’ arguments. The case is REMANDED to the RTC of Davao City-Branch 16 for trial and presentation of evidence to determine the factual and legal issues. [ALASKA MILK CORPORATION VS OFFICE OF THE CITY TREASURER AND/OR DAVAO CITY, CTA AC NO. 272, OCTOBER 22, 2025]

4. PEZA CIRCULARIZES PENALTIES FOR NON-SUBMISSION OF REQUIRED REPORTS FROM 2021-2024

Philippine Economic Zone Authority (PEZA) Memorandum Circular No. 2025-058, issued on October 15, 2025, reiterates the guidelines under Memorandum Order No. 2025-002 on the computation, imposition, and payment of penalties for the late or non-submission of required reportorial requirements of PEZA-Registered Business Enterprises (RBEs) from CY 2021 to 2024. The circular clarifies that reduced penalty rates under PEZA Board Resolution No. 21-090 applied only as a one-time relief for CY 2021, while penalties from CY 2022 onwards shall follow regular rates. The Enterprise Services Division (ESD) has begun issuing penalty notices for CY 2021 and will release computations for CY 2022–2024 starting December 2025 to the first quarter of 2026. RBEs must pay assessed penalties upon receipt of official notice but may appeal through a formal letter addressed to the Director General with supporting documents. Developer/Operator enterprises without fiscal or non-fiscal incentives are exempt from penalties but must still submit required reports on time. Penalty computation is based on working days and reckoned from the date of initial report upload in the Annual Compliance Management System (ACMS). Starting January 2025, RBEs are granted an additional seven (7) working days beyond the prescribed due dates to submit reports via ACMS, after which late submission penalties will apply.

5. SUPREME COURT CASE

PEZA REGISTRATION DOES NOT AUTOMATICALLY EXEMPT ALL TRANSACTIONS FROM VAT AS ONLY THOSE CONDUCTED WITHIN THE ECOZONE QUALIFY FOR EXEMPTION OR ZERO-RATING

Petitioner Coral Bay Nickel Corporation filed a Petition for Review on Certiorari assailing the Decision and Resolution of the Court of Tax Appeals (CTA) En Banc denying the claim for refund for unutilized input Value-Added Taxes (VAT) from its purchase attributable to its zero-rated sales for the year 2012. In ruling, the Court held that the main issue was whether services rendered outside the ecozone to a PEZA-registered enterprise should be subject to 12% VAT or treated as zero-rated. While PEZA enterprises enjoy incentives under the Republic Act (RA). No. 7916 or the Special Economic Zone Act of 1995, they are not absolutely VAT-exempt. Zero-rating applies only to goods or services consumed within the ecozone under the “Cross-Border Doctrine” and “Destination Principle.” Since the services in question were rendered and consumed outside the ecozone, they are subject to 12% VAT. Further, PEZA registration does not automatically exempt all transactions from VAT, only those performed within the ecozone qualify as zero-rated. Therefore, the Petitioner is not absolutely VAT-exempt and may incur input VAT on purchases made outside the zone. Refunds are granted only for input VAT directly attributable to zero-rated sales and duly supported by sufficient evidence. The Court reinstated the CTA Third Division’s computation, granting the Petitioner a reduced VAT refund of Php 11,873,651.48, representing only the portion of unutilized input VAT attributable to its zero-rated sales for the taxable year 2012. Hence, the Petition for Review on Certiorari is GRANTED, and the Decision and Resolution of CTA En Banc are REVERSED and SET ASIDE. [CORAL BAY NICKEL CORPORATION VS COMMISSIONER OF INTERNAL REVENUE, G.R. NOS. 251333-34, MARCH 05, 2025, UPLOADED AUGUST 4, 2025]


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