Subject: WEEKLY TAX UPDATES [SEPT 1] Employers ask court to cut P10B bond over NCR pay hike

WEEKLY TAX UPDATES

SEPTEMBER 1

  1. TAX & BUSINESS-RELATED NEWS [AUGUST 24-31]

  2. COURT OF TAX APPEALS CASES

1. TAX & BUSINESS-RELATED NEWS [AUGUST 24-31]

1. BSP plans liquidity tests for big banks

2. PLM students question Marcos’ honorary degree, cite Hilao’s legacy

3. Search opens for Gesmundo's successor as chief justice

4. Filipino sardine brand reaches US mainstream market

5. Special holidays declared in 5 areas

6. Alex Eala opens up about how she manages her earnings and finances

7. Philippines mineral production breaches P200 billion in H1

8. SC directs respondents in petition on NCR wage hike to submit comment

9. Sumitomo Mitsui seals 30% stake in RCBC Leasing

10. SSS issues violation notices to over 400 employers

11. DMCI Homes venturing into MICE segment

12. SM Prime spending over P4 billion to expand 3 regional malls

13. Auto perks rollout to follow CARS dues payment — DTI

14. Megaworld rolling out new hotel developments

15. Toyota Philippines leads Batangas port revenue collection

16. BSP adds time deposits to PERA investment options

17. Employers ask court to cut P10B bond over NCR pay hike

18. PAGCOR fines gaming firm P1 million over Ivana Alawi cellphone giveaway

19. India’s largest airline moves to enter PH market

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.

BSP plans liquidity tests for big banks [The Philippine Star, August 31, 2026]

The Bangko Sentral ng Pilipinas (BSP) plans to require domestic systemically important banks to maintain access to its short-term lending facility and to test that access every year, as part of reforms intended to speed up liquidity support during periods of funding stress.

 

PLM students question Marcos’ honorary degree, cite Hilao’s legacy [Inquirer.Net, August 30, 2026]

In a separate statement on Sunday, the PLM College of Law Student Council (CLSC) called for clarification on the conferment of the honorary Doctor of Laws degree on Mr. Marcos “in the interest of preserving the trust and credibility of PLM and the distinctions it confers.”

 

Search opens for Gesmundo's successor as chief justice [The Philippine Star, August 30, 2026]

The Judicial and Bar Council has opened applications for the next chief justice of the Supreme Court ahead of Chief Justice Alexander Gesmundo's retirement on November 6.

 

Filipino sardine brand reaches US mainstream market [The Philippine Star, August 30, 2026]

Filipino food brand Mega Sardines will soon be more accessible in the United States with its products set to reach around 2,750 stores under Kroger and its affiliated supermarket chains.

 

Special holidays declared in 5 areas [The Philippine Star, August 29, 2026]

Malacañang has declared special non-working days in five areas to allow residents to participate in local festivals and commemorative activities.

 

Alex Eala opens up about how she manages her earnings and finances [ABS-CBN News, August 29, 2026]

Despite her growing success, Alex said she tries not to focus too heavily on money, explaining that she does not want financial considerations to affect her development as an athlete.

 

Philippines mineral production breaches P200 billion in H1 [The Philippine Star, August 29, 2026]

The value of the country’s metallic mineral production reached more than P200 billion in the first half, driven by price rallies for gold and nickel.

 

SC directs respondents in petition on NCR wage hike to submit comment [ABS-CBN News, August 28, 2026]

The Supreme Court directed respondents to comment on a petition seeking to set aside orders on the Metro Manila P85 wage hike, including one from the Pasig City Regional Trial Court (RTC) for a temporary restraining order (TRO) against the increase.

 

Sumitomo Mitsui seals 30% stake in RCBC Leasing [Philippine Daily Inquirer, August 28, 2026]

Sumitomo Mitsui Finance and Leasing Co. Ltd. (SMFL) has completed its acquisition of a 30-percent stake in the leasing arm of Rizal Commercial Banking Corp., giving the Japanese firm a bigger foothold in the Philippines.

 

SSS issues violation notices to over 400 employers [ABS-CBN News, August 28, 2026]

The SSS National Capital Region conducted its Run After Contribution Evaders (RACE) operations in various parts of the metro. The over 400 delinquent employers cover 3,484 employees with a total delinquency of P145.3 million.

 

DMCI Homes venturing into MICE segment [The Philippine Star, August 27, 2026]

DMCI Homes president Alfredo Austria said the company would open by February next year a convention center at the Solmera Beach Park Resort.

 

SM Prime spending over P4 billion to expand 3 regional malls [The Philippine Star, August 27, 2026]

The projects covering three malls in the Western Visayas, Calabarzon and the Bicol Region will introduce a broader mix of retail, dining, entertainment and commercial offerings, as well as brands and concepts making their debut in these markets.

 

Auto perks rollout to follow CARS dues payment — DTI [Inquirer.Net, August 27, 2026]

Roque said it “would be better” for the Department of Trade and Industry (DTI) first to resolve all unpaid incentives owed to Toyota Motor Philippines Corp. and Mitsubishi Motors Philippines Corp., the two automakers that participated in the Comprehensive Automotive Resurgence Strategy (Cars) program.

 

Megaworld rolling out new hotel developments [The Philippine Star, Augst 27, 2026]

The company is targeting nearly 12,000 rooms by 2032, with new hotel developments and continued expansion in major tourism and business hubs nationwide.


Toyota Philippines leads Batangas port revenue collection [The Philippine Star, August 26, 2026]

The country’s leading automotive firm Toyota Motor Philippines Corp. (TMP) was recognized as the top revenue contributor to the Bureau of Customs (BOC) - Port of Batangas (POB) as it remitted P23.66 billion in customs duties and taxes from January to July.

 

BSP adds time deposits to PERA investment options [GMA News Online, August 25, 2026]

Under the latest PERA guidelines issued last Thursday, August 20, 2026, by the Bangko Sentral ng Pilipinas (BSP), banks that meet prudential requirements may offer PERA-eligible time deposits that may qualify for applicable tax incentives, unlike regular time deposits.

 

Employers ask court to cut P10B bond over NCR pay hike [The Manila Times, August 25, 2026]

THE legal row over Metro Manila’s P85 minimum wage hike has intensified, with two construction firms asking a Pasig Regional Trial Court (RTC) to preserve its injunction against the wage order but to reduce the P10 billion bond post.

 

PAGCOR fines gaming firm P1 million over Ivana Alawi cellphone giveaway [GMA News Online, August 25, 2026]

The Philippine Amusement and Gaming Corp. (PAGCOR) has fined a gambling firm P1 million for sponsoring celebrity influencer Ivana Alawi’s giveaway of 100 cellphones without securing the necessary approval for the promotion, a top official said.

 

India’s largest airline moves to enter PH market [Philippine Daily Inquirer, August 24, 2026]

As India’s largest carrier with a fleet of more than 400 aircraft, IndiGo’s entry could provide a sizable boost to air connectivity between the Philippines and India, where direct services are currently operated by only one airline.

2. CTA CASES

[REFUND CLAIMS FOR ERRONEOUSLY PAID VAT MAY BE GRANTED UPON SUFFICIENT PROOF THAT THE AMOUNT CLAIMED WAS NOT PREVIOUSLY UTILIZED AS INPUT TAX CREDIT] [REPORTING REQUIREMENTS UNDER RMC NO. 99-2021 CANNOT BE APPLIED RETROACTIVELY TO REFUND CLAIMS FILED BEFORE ITS ISSUANCE] [A PETITION FILED WITHOUT THE OFFICE OF THE SOLICITOR GENERAL’S IMPRIMATUR IS DEFECTIVE & DISMISSIBLE]

Petitioner Commissioner of Internal Revenue (CIR), filed a Petition for Review seeking to reverse the earlier Decision and Resolution of the Court of Tax Appeals (CTA) First Division, which partially granted the refund claim of the Respondent Boehringer Ingelheim (Philippines), Inc., for erroneously paid Value-Added Tax (VAT) on its importation of prescription drugs and medicines for diabetes, high cholesterol, and hypertension from January 23, 2020 to April 20, 2020. The Petitioner argued that the Respondent failed to substantiate its claim for refund at the administrative level and that the subject VAT had already been reported and claimed as input tax credits. On the other hand, the Respondent maintained that it submitted sufficient evidence before both the Bureau of Internal Revenue (BIR) and the CTA to prove that the VAT sought to be refunded was never utilized as input tax credits. Likewise, Revenue Memorandum Circular (RMC) No. 99-2021 was inapplicable since the claim was filed before its issuance. In ruling, the Court held that the BIR counsels lacked authority to file the Petition because no written deputization from the Office of the Solicitor General (OSG), the principal counsel of the Government, was attached. Furthermore, the Respondent sufficiently established that the VAT subject of the claim for refund was not utilized as input tax credits and that the Petitioner failed to identify any evidence showing otherwise. Consequently, the Petition for Review is DENIED for lack of merit, and the earlier Decision and Resolution on the partial grant of refund are AFFIRMED. [COMMISSIONER OF INTERNAL REVENUE VS. BOEHRINGER INGELHEIM (PHILIPPINES), INC., CTA EN BANC CASE NO. 3108, JULY 28, 2026]


[OFFICIAL RECEIPTS/INVOICES MUST CLEARLY STATE THE NATURE OF THE SERVICES RENDERED AS REQUIRED BY SECTION 113] [A GENERIC DESCRIPTION SUCH AS "SERVICE FEE" IS INSUFFICIENT TO SUBSTANTIATE ZERO-RATED SALES] [STRICT COMPLIANCE WITH INVOICING REQUIREMENTS IS REQUIRED FOR VAT REFUND CLAIMS]

The Petitioner, NCH Customer Support Services, Inc., filed a Petition for Review seeking the refund or issuance of a Tax Credit Certificate (TCC) for its alleged unutilized input Value-Added Aax (VAT) attributable to its zero-rated sales for the fourth (4th) quarter of Taxable Year 2019. The Petitioner argued that it had complied with all requisites for a refund or issuance of a TCC under Section 112 of the National Internal Revenue Code (NIRC), as amended. Specifically, it maintained that it was a VAT-Registered taxpayer, timely filed both administrative and judicial claims, rendered services to Non-Resident Foreign Corporations (NRFCs) not doing business in the Philippines, received payments in acceptable foreign currency duly accounted for in accordance with Bangko Sentral ng Pilipinas (BSP) rules, and properly substantiated its claimed input VAT attributable to its zero-rated sales. On the other hand, the Respondent, Commissioner of Internal Revenue (CIR), contended that the Petition should be denied for failure to sufficiently substantiate its administrative claim for refund and that the partial denial of the claim by the BIR VAT Credit Audit Division was proper. In ruling, the Court held that while the Petitioner established the timely filing of its administrative and judicial claims and proved that its clients were NRFCs, it failed to sufficiently establish the zero-rated nature of certain services it rendered. Specifically, the Petitioner failed to present the original Service Agreement covering the subject period for the services rendered to Ladbrokes Digital Australia Pty. Ltd. (LDA), thereby failing to prove that the services fell within those contemplated under Section 108(B)(2). The Court further found that the Official Receipts (ORs) presented as proof of its zero-rated sales merely described the transactions as “Service Fee” without specifying the nature of the services actually rendered as required under Section 113(B)(3) of the NIRC. The Court emphasized that a generic description such as “Service Fee” is insufficient to satisfy the substantiation requirements for VAT refund claims. In view of this, the Petition for Review is DENIED for lack of merit. [NCH CUSTOMER SUPPORT SERVICES, INC. VS. COMMISSIONER INTERNAL REVENUE, CTA CASE NO. 10842, JULY 10, 2026]


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