Subject: WEEKLY TAX UPDATES [OCT 8] 2 BIR employees arrested for direct bribery, corruption

WEEKLY TAX UPDATES

OCTOBER 8

  1. TAX & BUSINESS-RELATED NEWS [SEPTEMBER 29-OCTOBER 7]

  2. BIR EXTENDS THE OCTOBER 2025 FILING DEADLINES FOR TAXPAYERS AFFECTED BY THE RECENT CEBU EARTHQUAKE

  3. PEZA CIRCULARIZES THE REVISED TEMPLATE OF CETI PRESCRIBED BY FIRB

  4. PEZA REVISES THE APPLICATION FORM & CHECKLIST OF DOCUMENTARY REQUIREMENTS FOR EXTENSION OF INCOME TAX HOLIDAY

  5. CTA CASES

1. TAX & BUSINESS-RELATED NEWS [SEPTEMBER 29-OCTOBER 7]

1. SEC asks Villar Land appraiser to explain property value

2. Spanish firms being considered for infra, port projects in Casiguran economic zone

3. AMLC to track foreign assets linked to corruption scandal

4. Most insurers compliant with Insurance Commission order

5. American call center boss ‘locked doors and made staff work through earthquake’

6. DOLE-7 to BPO firm: Stop operations until violations are corrected

7. Anthony Taberna’s past endorsement of insurance firm allegedly linked to Discayas resurfaces

8. SC: Borrowers should be given chance to pay loan agreed on by parties

9. Redevelopment deal signed for John Hay Mile Hi complex

10. SEC eyes creation of Unified Lending Identification for easy credit access

11. House bill seeks to ensure compensation, humane work conditions for interns

12. Palace declares special non-working holidays in 7 areas

13. Manila Subway wins: Corinthian Gardens residents settle for ₱222.2 million in landmark right-of-way easement deal

14. Deposit today, cash out tomorrow: AMLC ices Discaya niece’s Landbank account after P14M in DPWH funds flow in

15. Anscor sells minority stake in The Bistro Group for P1.9 billion

16. Ayala to retire its Honda dealership biz by end-2025

17. 2 BIR employees arrested for direct bribery, corruption

18. ‘Nakakahiya’: Catholic schools call out graduates caught in corruption scandal

19. SEC OKs Damosa Land ‘condotel’ rental pool program

20. SSS rolls out new ID card with bank debit function

21. SEC to enforce 9-year term cap for independent directors

22. Cagayan Valley ranks lowest in minimum wage compliance in PH

23. VAT cut to 10% could hurt government finances – DOF

24. 8 firms bid for Bataan-Cavite Interlink project's package 1

25. Tax hike on sugar-­sweetened beverages eyed

26. SSS and UnionBank launch LoanLite for accessible credit to members

27. SC: Domestic Market Enterprises Entitled to Zero-Rated VAT under CREATE Act

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.

SEC asks Villar Land appraiser to explain property value [ABS-CBN News, October 7, 2025]

The Securities and Exchange Commission (SEC) has asked E-Value Phils. Inc, the asset valuer of Villar Land Holdings Corp., to explain why it should not be penalized over its valuation of properties of companies under the Villar Land group.

 

Spanish firms being considered for infra, port projects in Casiguran economic zone [BusinessWorld, October 7, 2025]

THE Aurora Pacific Economic Zone and Freeport Authority (APECO) said it is exploring potential partnerships with Spain’s IDOM Consulting, Engineering, Architecture S.A.U. and Fira Barcelona to develop a logistics hub and port infrastructure in the Casiguran ecozone.

 

AMLC to track foreign assets linked to corruption scandal [The Manila Times, October 7, 2025]

This was being conducted through mutual legal assistance treaties that allow the Philippines to request the filing of civil forfeiture petitions in foreign jurisdictions.

 

Most insurers compliant with Insurance Commission order [The Philippine Star, October 7, 2025]

A total of 131 insurance providers complied with the Insurance Commission (IC)’s directive to submit a complete inventory of their products and service offerings, ensuring regulatory compliance and transparency in the industry.

 

American call center boss ‘locked doors and made staff work through earthquake’ [interaksyon, October 6, 2025]

A boss at an American-owned call center allegedly locked the doors and forced staff to work through an earthquake that killed 68 people in Cebu.

 

DOLE-7 to BPO firm: Stop operations until violations are corrected [Cebu Daily News, October 6, 2025]

An order issued after DOLE-7 investigated and verified a complaint by six employees of the BPO firm, claiming that they were exposed to danger when they were ordered to return to their workstations after the magnitude 6.9 earthquake that hit Cebu on September 30.

 

Anthony Taberna’s past endorsement of insurance firm allegedly linked to Discayas resurfaces [interaksyon, October 6, 2025]

In a statement, the Stronghold Insurance Company said that it is among the companies authorized to issue surety bonds for DPWH contractors, as required by law.

 

SC: Borrowers should be given chance to pay loan agreed on by parties [GMA News Online, October 6, 2025]

“Being potestative, the principle of mutuality of contracts, found in Articles 1308 and 1309 of the Civil Code, could not have been present, making the provisions on interest void. Being void, the subsequent foreclosure proceedings could not have been held validly,” it added.

 

Redevelopment deal signed for John Hay Mile Hi complex [BusinessWorld, October 6, 2025]

THE Bases Conversion and Development Authority (BCDA) said it tapped the consortium of the Istana Development Corp. (IDC) and Meridian Commercial Centers, Inc. (MCCI) to lead the P560-million redevelopment of the Mile Hi commercial center in Camp John Hay.


SEC eyes creation of Unified Lending Identification for easy credit access [GMA News Online, October 6, 2025]

“And since our national ID system is still not reliable, we intend to introduce the Unified Lending Identification or the ULI,” SEC Commissioner Rogelio Quevedo said during a Senate hearing.

 

House bill seeks to ensure compensation, humane work conditions for interns [ABS-CBN News, October 5, 2025]

Akbayan party-list Rep. Chel Diokno, with his co-party-list Reps. Perci Cendaña, Dadah Kiram Ismula, and Dinagat Islands Rep. Kaka Bag-ao fiied House Bill No. 5081 or the 'Interns’ Rights and Welfare Act,' which seeks to “establish a national framework that guarantees humane working conditions, just compensation, and protection against abuse and exploitation for students undergoing internship programs.”

 

Palace declares special non-working holidays in 7 areas [Philippine News Agency, October 4, 2025]

Malacañang has declared a series of special non-working holidays in October and November in recognition of significant local events.

 

Manila Subway wins: Corinthian Gardens residents settle for ₱222.2 million in landmark right-of-way easement deal [Gulf News, October 4, 2025]

fter weeks of debate, residents of one of Metro Manila’s most exclusive enclaves have agreed to grant government easements for the Manila Subway, settling for ₱222.2 million ($3.83 million) in compensation rather than risk a protracted court battle – with no payout.

 

Deposit today, cash out tomorrow: AMLC ices Discaya niece’s Landbank account after P14M in DPWH funds flow in [Bilyonaryo, October 3, 2025]

The Anti-Money Laundering Council (AMLC) has frozen the sole bank account of Roma Angelie Discaya Rimando, the niece of alleged flood-control king Curlee Discaya, after tracing millions of pesos in government-sourced funds to the account.


Anscor sells minority stake in The Bistro Group for P1.9 billion [GMA News Online, October 2, 2025]

A. Soriano Corp. (Anscor) has inked a deed of sale to sell its minority stake in TBG Food Holdings Inc., the operator of casual dining chain operator The Bistro Group, to Inoza Business Holdings Inc. for P1.914 billion.

 

Ayala to retire its Honda dealership biz by end-2025 [Philippine Daily Inquirer, October 2, 2025]

The Ayala group’s mobility solutions unit will soon let go of its Honda dealership business after more than three decades. The group cited the need to focus on key growth areas, including electric vehicles.

 

2 BIR employees arrested for direct bribery, corruption [GMA News Online, October 1, 2025]

NBI Director Jaime Santiago said the two assessed a corporation in Taguig and found that it should pay P36 million. But after negotiating with the corporation, the two lowered this to P6 million and further reduced it to P800,000.

 

‘Nakakahiya’: Catholic schools call out graduates caught in corruption scandal [The Philippine Star, October 1, 2025]

(It's a shame if you're a Catholic school graduate and then you are corrupt, because you're living lives contrary to the very essence of the values that we have taught you.

 

SEC OKs Damosa Land ‘condotel’ rental pool program [Philippine Daily Inquirer, October 1, 2025]

Under rental pool arrangements, buyers acquire units that are collectively managed by the developer or a third-party operator. In return, buyers receive a share of income earned from renting out the units.

 

SSS rolls out new ID card with bank debit function [Philippine Daily Inquirer, October 1, 2025]

SSS President and CEO Robert Joseph De Claro said the MySSS Card acts would replace the long-standing Unified Multi-Purpose Identification (UMID) card.

 

SEC to enforce 9-year term cap for independent directors [Manila Standard, October 1, 2025]

The Securities and Exchange Commission (SEC) has issued draft rules to strictly enforce a nine-year term limit and fixed three-year tenure for independent directors of publicly listed companies, public companies and registered issuers.

 

Cagayan Valley ranks lowest in minimum wage compliance in PH [ABS-CBN News, October 1, 2025]

According to DOLE data, Region 2 has a wage compliance rate of only 60.38%.

 

VAT cut to 10% could hurt government finances – DOF [The Philippine Star, September 30, 2025]

While the proposal to cut VAT rate to 10 percent has gained public attention, Finance Undersecretary Karlo Adriano said the reduction is equivalent to one percent of gross domestic product or around P330 billion a year on average.

 

8 firms bid for Bataan-Cavite Interlink project's package 1 [Philippine News Agency, September 30, 2025]

The 32.15-kilometer BCIB Project, which will be the longest water-spanning bridge in the Philippines, is a flagship infrastructure initiative of the Marcos administration aimed at significantly reducing travel time between the provinces of Bataan and Cavite.

 

Tax hike on sugar-­sweetened beverages eyed [BusinessMirror, September 30, 2025]

Under the proposal, the excise tax on SSBs will rise from P6 per liter to P20 per liter for drinks using caloric, non-caloric, or mixed sweeteners while beverages containing high fructose corn syrup (HFCS) will be taxed at P40 per liter, up from P12 per liter. Flavored and fermented milk, flavored non-dairy milk, and sweetened coffee products will also be covered, while plain milk, infant formula, roasted ground coffee, and beverages sweetened with coconut sap sugar or steviol glycosides remain exempt.

 

SSS and UnionBank launch LoanLite for accessible credit to members [The Manila Times, September 30, 2025]

This initiative is mainly for SSS members, especially those vulnerable to predatory lending practices, de Claro said in a statement.

 

SC: Domestic Market Enterprises Entitled to Zero-Rated VAT under CREATE Act [Supreme Court, September 29, 2025]

In a Decision written by Associate Justice Mario V. Lopez (retired), the SC En Banc declared Rule 18, Section 5 of the CREATE Act’s Implementing Rules and Regulations (IRR), as well as several Bureau of Internal Revenue (BIR) issuances, void for unlawfully limiting which businesses could avail of the VAT incentive.

2. BIR EXTENDS THE OCTOBER 2025 FILING DEADLINES FOR TAXPAYERS AFFECTED BY THE RECENT CEBU EARTHQUAKE

Revenue Memorandum Circular (RMC) No. 88-2025, issued on October 2, 2025, provides an extension of deadlines for the filing, payment of taxes, and submission of documents due in October 2025 for taxpayers affected by the recent Cebu earthquake, moving the deadline to October 31, 2025.

3. PEZA CIRCULARIZES THE REVISED TEMPLATE OF CETI PRESCRIBED BY FIRB

PEZA Memorandum Circular No. 2025-051, issued on September 23, 2025, circularizes the revised template of Certificate of Entitlement to Tax Incentives (CETI) pursuant to Fiscal Incentives Review Board (FIRB) Advisory No. 007-2025. Highlights include the revised format for transitory, new, and expansion projects under Republic Act (R.A.) No. 12066, or the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act.

4. PEZA REVISES THE APPLICATION FORM & CHECKLIST OF DOCUMENTARY REQUIREMENTS FOR EXTENSION OF INCOME TAX HOLIDAY

PEZA Memorandum Circular (MC) No. 2025-048, issued on September 15, 2025, introduces the revised application form and checklist of documentary requirements for extension of Income Tax Holiday. The circular takes immediate effect on the date of publication.

5. CTA CASES

[PROOF OF ACTUAL REMITTANCE IS NOT A CONDITION TO CLAIM FOR A REFUND OF UNUTILIZED TAX CREDITS; IT IS THE PAYOR WITHHOLDING AGENT & NOT THE PAYEE-REFUND CLAIMANT, WHO IS VESTED WITH THE RESPONSIBILITY OF WITHHOLDING & REMITTING INCOME TAXES] [ONCE THE OPTION TO CARRY-OVER EXCESS QUARTERLY INCOME TAX TO FUTURE PERIODS HAS BEEN MADE, SUCH OPTION SHALL BE CONSIDERED IRREVOCABLE FOR THAT TAXABLE PERIOD & NO CASH REFUND OR TAX CREDIT WILL BE GRANTED]

Petitioner Ford Group Philippines, Inc., filed a Petition for Review seeking a refund or issuance of Tax Credit Certificate (TCC) in the aggregate amount Php 202,930,607.00 representing its excess and unutilized creditable withholding taxes (CWTs) for the Taxable Year (TY) 2020. The Petitioner argued that its tax credits for TY 2020 exceeded its tax liability, giving it the option to either carry over the excess or claim a refund. In addition, the withholding was properly supported by Certificates of Creditable Tax Withheld at Source (BIR Form No. 2307) issued by various payors, showing the payments and corresponding taxes withheld. On the other hand, the Respondent Commissioner of Internal Revenue (CIR) countered that the Petitioner is not entitled to refund due to the lack of supporting documents proving that the income related to the claimed CWT was reported in the Annual Income Tax Returns (AITR). In ruling, Section 76 of the Tax Code of 1997 provides that once the carry-over option is taken actually or constructively, it becomes irrevocable for that taxable period. Moreover, a taxpayer must meet three (3) conditions to claim a refund or tax credit for unutilized excess CWTs: (1) the claim must be filed within the two-year period under Sections 204(C) and 229 of the Tax Code of 1997; (2) the withholding must be proven by a certificate from the payor indicating the income and tax withheld; and (3) the income must be reported in the taxpayer’s return. In the case at bar, since the Petitioner submitted its administrative refund claim to the BIR on December 22, 2021, and filed the current judicial claim on April 4, 2023, both claims for the refund of unutilized or excess CWTs were filed within the two (2)-year prescriptive period. Additionally, the Court determined that the Petitioner proved tax withholding but only to the extent of Php 201,650,043.10, supported by BIR Form No. 2307s from clients, Summary Alphalist of Withholding Taxes, and Schedule of CWT Certificates for 2020, all reviewed by the Court-commissioned ICPA. Citing the CIR vs. Philippine National Bank case, the Supreme Court affirmed that a properly completed BIR Form No. 2307 serves as valid evidence of tax withholding. However, the Petitioner failed to prove that income payments subjected to CWTs were reported as part of its gross income in its AITR. Notably, the total income payments tied to the refund claim exceed the gross income reported in the 2020 AITR, raising doubts about whether these payments were properly reported. Consequently, due to its failure to establish compliance with the third (3rd) requisite, Petitioner has not adequately proven its eligibility for the refund. In view of this, the Petition was DENIED for lack of merit. [FORD GROUP PHILIPPINES, INC. VS. COMMISSIONER OF INTERNAL REVENUE, CTA CASE NO. 11128, OCTOBER 1, 2025]


PAN MUST BE ACTUALLY RECEIVED BY THE TAXPAYER BECAUSE IT IS A MANDATORY REQUIREMENT OF DUE PROCESS IN TAX ASSESSMENT PROCEEDINGS

Petitioner Lakeside Food & Beverages Corp. filed a Petition for Review seeking the reversal of the Assailed Decision issued by the Respondent Commissioner of Internal Revenue (CIR), which upheld the Final Decision on Disputed Assessment (FDDA) demanding payment of deficiency tax assessment. The Petitioner argued that the tax assessment is void because it never received a Preliminary Assessment Notice (PAN), which is a mandatory requirement. It emphasized that the Respondent failed to prove that a PAN was issued or served, presenting no registry receipts, return cards, or other documents to show actual receipt. Also, the Respondent failed to follow its own rules on verifying Third-Party Information, thus, violating the Petitioner’s right to due process. Finally, the Petitioner rejected the Respondent’s defense of laches, asserting that procedural violations cannot be cured by delay or inaction. On the other hand, the Respondent countered that the Petitioner should not be allowed to question the non-receipt of the PAN for the first time on appeal, as this issue was never raised during the administrative proceedings. Likewise, due process was not violated since the PAN was properly issued and served. Further, the findings of undeclared sales and additional income based on the BIR's RELIEF system are valid. In ruling, a perusal of the evidence revealed that the Respondent failed to properly serve a PAN, which is a crucial part of due process in tax assessment proceedings. When the Petitioner denied having received the PAN, the burden is shifted to the Respondent to prove actual receipt of the PAN. The Court found no sufficient proof of such receipt, and even the Respondent’s own witness admitted there was no evidence of service. Due to this failure to observe due process, the Court ruled that the Assailed Decision was declared NULL. Consequently, the assessment was CANCELLED. [LAKESIDE FOOD & BEVERAGES CORPORATION VS. COMMISSIONER OF INTERNAL REVENUE, CTA CASE NO. 10627, SEPTEMBER 17, 2025]

 

[IF THE CIR DOES NOT ACT UPON THE PROTEST & THE TAXPAYER DOES NOT FILE A PETITION WITHIN 30 DAYS FROM THE LAPSE OF THE 180-DAY PERIOD, THE TAXPAYER'S ONLY RECOURSE IS TO AWAIT THE CIR'S DECISION & FILE A PETITION 30 DAYS AFTER THAT] [THE TAXPAYER'S FILING OF A PROTEST TO THE FDDA, AFTER SUBMISSION OF ITS SUPPORTING DOCUMENTS, DID NOT PRODUCE A NEW 180+30-DAY PERIOD]

Petitioner Empire Automation Phils Inc. filed a Petition for Review seeking the reversal and nullification of the assessment for alleged deficiency income tax and value-added tax (VAT) for taxable year 2015. The Petitioner argued that the Petition was timely filed, 180+30 days after it filed its Request for Reconsideration to the Final Decision on Disputed Assessment (FDDA), at which point the Court assumed jurisdiction over this case. Contrarily, the Respondent Commissioner of Internal Revenue (CIR) asserted that the law does not grant the CIR an additional 180-day period to act on protests to FDDA. Therefore, the Petition was filed late, and the Court lacks jurisdiction on the matter. In ruling, the Court cited the Supreme Court case of Nueva Ecija II Electric Cooperative, Inc. Area II vs. CIR (NEECA case), which ruled that while Revenue Regulations (RR) No. 12-99, as amended by RR No. 18-13, allows a taxpayer to further administratively protest a FDDA, it does not provide a new 180-day period for the CIR's action on such and consequently does not provide a new 180+30 day period for the filing of a Petition. This principle was likewise affirmed in the case of Segaya vs. CIR. In the case at bar, the 180+30-day period for the filing of a Petition began on March 12, 2019, when the Petitioner filed additional documents in support of its protest to the Final Assessment Notice (FAN). This meant the deadline was October 8, 2019. Neither Respondent's issuance of the FDDA on November 23, 2021, nor Petitioner's filing of a Request for Reconsideration to said FDDA on December 20, 2021, produced a new 180+30-day period. That period already lapsed on October 8, 2019. Since the Petitioner chose not to file a Petition after receiving the FDDA and instead pursued further administrative remedies, its only valid recourse was to await Respondent's decision on its Request for Reconsideration and, if still necessary, file a Petition within 30 days of receiving that decision. However, the Petitioner failed to take this step, rendering the instant Petition prematurely filed. As a result, the Court concluded that it no longer had to address the other arguments raised by the parties, as it lacked the jurisdiction and authority to do so. In view of this, the Petition was DISMISSED for lack of jurisdiction. [EMPIRE AUTOMATION PHILS INC. VS. COMMISSIONER OF INTERNAL REVENUE, CTA CASE NO. 10924, SEPTEMBER 15, 2025]


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