Subject: WEEKLY TAX UPDATES [SEPT 15] PCCI exec: BIR corruption stays; examiner kickbacks bigger than taxes

WEEKLY TAX UPDATES

SEPTEMBER 15

  1. TAX & BUSINESS-RELATED NEWS [SEPTEMBER 7-14]

  2. COURT OF TAX APPEALS CASE ON PRESCRIPTIVE PERIOD OF CRIMINAL OFFENSE & JUDGMENT OF ACQUITTAL

1. TAX & BUSINESS-RELATED NEWS [SEPTEMBER 7-14]

1. BIR removes VAT on allowable system loss charge

2. Marcos: Substandard steel problem 'bigger than most people know'

3. Tax hike on sugary drinks could raise up to P34 B for PhilHealth – DOF

4. Veteran CPA educator faces complaints

5. BIR examiners still into ‘extortion,’ Senate told

6. Court lifts TRO vs. plebiscite on SOCOTECO II deal with Pacquiao-Razon firm

7. SMC backs Dinagat bid to tap Sabang Dam water resource

8. NCR wage board approves P60 pay hike

9. PCCI exec: BIR corruption stays; examiner kickbacks bigger than taxes

10. LIST: Palace announces 2027 regular holidays, non-working days

11. BIR seals 385 cash registers in nationwide tax crackdown

12. BSP orders banks to cooperate in 2027 anti-money laundering evaluation

13. EU, Spain join Luzon Economic Corridor to hasten infra investments

14. Visa Inc. footprint at SM’s MOA complex balloons

15. 'Negative na': Small Manila businesses cut staff, take loans over steep garbage fees

16. Ramon Ang reportedly nears 71% control of Lopez Inc

17. Palm oil expansion seen reducing imports, supplying RE feedstock

18. SBMA outlines Subic port expansion, upgrades at Luzon forum

19. Damosa Land says Anflo estate now hosts 24 operational locators

20. Pinoy tourists warned over food safety amid Vietnam poisoning outbreaks

21. BIR allows VAT refunds for exporters in transition

22. AEV developing estates to attract manufacturers

23. BoI grants registration to P19.82-B SteelAsia Batangas plant

24. PH seeks to finalize free-trade agreements with EU, Canada —DTI

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.

BIR removes VAT on allowable system loss charge [GMA News Online, September 14, 2026]

Under Revenue Memorandum Circular 097-2026, issued Monday, September 14, the BIR said the allowable system loss charge within the Energy Regulatory Commission-approved cap will no longer be subject to VAT, as it will be treated as a government-mandated pass-through cost.

 

Marcos: Substandard steel problem 'bigger than most people know' [GMA News Online, September 14, 2026]

Speaking to reporters at the end of the BRICS Summit in New Delhi, Marcos said that companies making substandard steel products began to proliferate around 2018.

 

Tax hike on sugary drinks could raise up to P34 B for PhilHealth – DOF [Inquirer.Net, September 14, 2026]

Sugary drinks are taxed at a flat P6 or P12 per liter, depending on the type of sweeteners used without yearly increases.

 

Veteran CPA educator faces complaints [The Manila Times, September 13, 2026]

The dean of the accountancy program of the Philippine School of Business Administration–Quezon City is facing multiple administrative complaints before the Professional Regulation Commission–Professional Regulatory Board of Accountancy (PRC-BOA) over alleged misuse of copyrighted CPA review materials and publication of a private chat.

 

BIR examiners still into ‘extortion,’ Senate told [Inquirer.Net, September 12, 2026]

Yolanda dela Cruz, PCCI vice president for the National Capital Region (NCR), said she received a LOA from the BIR demanding a payment of P6 million shortly after she opened a food processing machinery company.

 

Court lifts TRO vs. plebiscite on SOCOTECO II deal with Pacquiao-Razon firm [GMA News Online, September 12, 2026]

SOCOTECO II had expected some 200,000 MCOs to vote in plebiscite, which would have decided if the cooperative's deal with Ignite Power should push through. Ignite Power is a partnership between Razon-led Primelectric Holdings Inc. and Manny Pacquiao's MP Holdings.

 

SMC backs Dinagat bid to tap Sabang Dam water resource [Mindanao News, September 12, 2026]

The development comes at a critical time for the province. Dinagat Islands was recently placed under a state of calamity due to a severe water crisis triggered by a prolonged dry spell. Rivers and local gravity-fed systems have dried up, leaving over 18,000 residents vulnerable to acute water shortages.

 

NCR wage board approves P60 pay hike [ABS-CBN News, September 12, 2026]

Wage Order No. 28 was recently approved by the Regional Tripartite Wages and Productivity Board-National Capital Region (RTWPB-NCR).

 

PCCI exec: BIR corruption stays; examiner kickbacks bigger than taxes [Inquirer.Net, September 11, 2026]

During Friday’s hearing of the Senate committee on trade, commerce, and entrepreneurship, PCCI vice president for the National Capital Region Yolanda dela Cruz that after she opened Nisco Philippines, a food processing machinery company, BIR sent her a letter of authority (LOA) demanding a payment of P6 million.

 

LIST: Palace announces 2027 regular holidays, non-working days [ABS-CBN News, September 11, 2026]

Malacañang released Friday a list of holidays and special non-working holidays for 2027.


BIR seals 385 cash registers in nationwide tax crackdown [Philippine News Agency, September 10, 2026]

The Bureau of Internal Revenue (BIR) flagged 842 establishments and sealed 385 unregistered or non-compliant cash registers and point-of-sale (POS) machines during a recent nationwide sweep.

 

BSP orders banks to cooperate in 2027 anti-money laundering evaluation [Manila Standard, September 10, 2026]

The evaluation seeks to assess and analyze the country’s anti-money laundering, countering terrorism and proliferation financing (AML/CTPF) framework and provide focused recommendations to strengthen the system. Its main components are technical compliance and effectiveness.

 

EU, Spain join Luzon Economic Corridor to hasten infra investments [Philippine News Agency, September 10, 2026]

The LEC was launched by the Philippines, the United States and Japan to accelerate strategic infrastructure investments, strengthen connectivity and supply chains, and enhance the Philippines’ competitiveness as an investment and production hub.

 

Visa Inc. footprint at SM’s MOA complex balloons [Philippine Daily Inquirer, September 10, 2026]

The new Four E-com facility houses the Visa Philippines Solution Center, which brings together administrative, financial and technology functions under a 24/7 operating model.

 

'Negative na': Small Manila businesses cut staff, take loans over steep garbage fees [The Philippine Star, September 10, 2026]

Already struggling with operating costs, business owners interviewed by Philstar.com said the higher fees have pushed their finances further into the red, forcing some to cut staff or take out loans. At least one establishment was also ordered closed by the Manila local government over unpaid permit-related fees.

 

Ramon Ang reportedly nears 71% control of Lopez Inc [Bilyonaryo, September 10, 2026]

Mergermarket reported, citing two sources familiar with the matter, that the heirs of Manolo Lopez and Presy Lopez Psinakis are nearing an agreement to sell their combined 45.3% holding to Ang.

 

Palm oil expansion seen reducing imports, supplying RE feedstock [BusinessWorld, September 10, 2026]

Agriculture Secretary Francisco P. Tiu Laurel, Jr. told a House of Representatives budget hearing this week that the government needs to fund an increase in palm oil production, noting that  imports currently account for nearly 90% of palm oil demand.

 

SBMA outlines Subic port expansion, upgrades at Luzon forum [Inquirer.Net, September 10, 2026]

The push to develop Subic’s port infrastructure comes as the area assumes a larger role in the Luzon Economic Corridor, a government-backed initiative aimed at improving connectivity and linking industrial, manufacturing and logistics hubs across Luzon.


Damosa Land says Anflo estate now hosts 24 operational locators [BusinessWorld, September 10, 2026]

DAMOSA LAND, Inc. (DLI), the property development arm of the Anflocor Group, said its Anflo Industrial Estate (AIE) in Panabo City, Davao del Norte, now hosts 24 operational locators, 70% of which are engaged in export-oriented manufacturing.

 

Pinoy tourists warned over food safety amid Vietnam poisoning outbreaks [interaksyon, September 9, 2026]

The Philippine Embassy in Vietnam on Tuesday, September 8, recommended that Pinoys secure travel insurance when visiting the country, noting that it can cover medical and other emergencies.


BIR allows VAT refunds for exporters in transition [Daily Tribune, September 9, 2026]

The BIR issued Revenue Memorandum Circular No. 96-2026 on 7 September, clarifying the treatment of input VAT for qualified export-oriented enterprises during the transition to the new VAT zero-rating certification system.

 

AEV developing estates to attract manufacturers [The Manila Times, September 9, 2026]

ABOITIZ Equity Ventures Inc. (AEV) is expanding its industrial infrastructure and energy investments as it positions its economic estates to attract more manufacturing locators.

 

BoI grants registration to P19.82-B SteelAsia Batangas plant [BusinessWorld, September 9, 2026]

SLWI will be the country’s first High-Value Domestic Market Enterprise (HVDME) registered under Republic Act No. 12066, or the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the  Economy Act (CREATE MORE), according to the BoI.


PH seeks to finalize free-trade agreements with EU, Canada —DTI [GMA News Online, September 7, 2026]

The Philippines is working to conclude free-trade agreements (FTAs) with major trading partners as the government seeks to further expand markets for Philippine-made products, including emerging agricultural exports such as ube and calamansi, according to the Department of Trade and Industry.

2. CTA CASES

IN CRIMINAL TAX CASES FOR FAILURE TO PAY DEFICIENCY TAXES, THE GOVERNMENT'S RIGHT TO PROSECUTE PRESCRIBES IN FIVE (5) YEARS; HOWEVER, NO CRIMINAL LIABILITY CAN ARISE FROM A VOID ASSESSMENT & CORPORATE OFFICERS CANNOT BE HELD LIABLE ABSENT PROOF OF THEIR ACTIVE PARTICIPATION IN THE ALLEGED TAX VIOLATION

Petitioner People of the Philippines filed criminal Information against Respondents Lincoln Port Parkways Warehousing and Logistics, Corp. and its alleged President, Medardo P. Pineda, for violation of Section 255, in relation to Section 253(d) and Section 256 of the Tax Code based on their alleged willful failure to pay deficiency Income Tax and Value-Added Tax (VAT) for taxable year (TY) 2017 after the assessments supposedly became final and executory. Petitioner argued that the assessments had already become final, executory and demandable after the corporation failed to file a valid protest against the Formal Letter of Demand/Final Assessment Notice (FLD/FAN). It maintained that the criminal cases were timely instituted within the five-year prescriptive period under Section 281 of the Tax Code and that the Respondents willfully failed to pay the assessed deficiency taxes despite demand and collection efforts by the Bureau of Internal Revenue (BIR). On the other hand, Respondents contended that the assessments were void for non-compliance with the due process requirements under Section 228 of the Tax Code because the BIR failed to properly conduct and establish the required Notice of Informal Conference and other assessment procedures. Respondent Pineda likewise denied active participation in the corporation's tax affairs and questioned the sufficiency of the evidence linking him to the alleged violation.  In ruling, the criminal actions were filed within the applicable five-year prescriptive period and were therefore not barred by prescription. However, the Court found that the Prosecution failed to establish compliance with the due process requirements for the issuance of deficiency tax assessments, particularly the proper conduct of an Informal Conference and the valid issuance of assessment notices. As a result, the Preliminary Assessment Notice (PAN) and FLD/FAN were declared VOID, and without a valid assessment there could be no lawful obligation to pay the alleged deficiency taxes. Likewise, the Prosecution failed to prove that Respondent Pineda actively participated in or was responsible for the alleged offense, noting inconsistencies regarding his involvement with the corporation and the absence of direct evidence linking him to the non-payment of taxes. Consequently, the essential elements of the offense under Section 255 of the Tax Code were not established beyond reasonable doubt. Respondents were ACQUITTED, and the bail bonds posted by Respondent Pineda were ordered CANCELLED. [PEOPLE OF THE PHILIPPINES VS LINCOLN PORT PARKWAYS WAREHOUSING & LOGISTICS, CORPORATION & MEDARDO P. PINEDA, CTA CRIMINAL CASE NO. O-1079 & O-1080, SEPTEMBER 3, 2026]


ONLY THE OFFICE OF THE SOLICITOR GENERAL (OSG), OR BIR LAWYERS PROPERLY DEPUTIZED BY THE OSG, MAY REPRESENT THE PEOPLE OF THE PHILIPPINES IN APPELLATE PROCEEDINGS; A JUDGMENT OF ACQUITTAL CANNOT BE REVIEWED THROUGH A PETITION FOR REVIEW WITHOUT VIOLATING THE ACCUSED'S CONSTITUTIONAL RIGHT AGAINST DOUBLE JEOPARDY

Petitioner People of the Philippines, represented by the Bureau of Internal Revenue (BIR), filed a Verified Petition for Review seeking the reversal of the CTA First Division's dismissal of its Petition for Certiorari, as well as the Regional Trial Court (RTC) Orders that granted the Demurrer to Evidence and acquitted Private Respondents Lily Pedroso, Ernesto Pedroso, and Elvin Louie Pedroso Reyes of charges for violations of Sections 254 and 255 of the Tax Code. Petitioner argued that the CTA First Division erroneously ruled that its Petition for Certiorari was filed out of time. It maintained that BIR lawyers, as deputized prosecutors, had authority under the Tax Code and existing arrangements with the Department of Justice (DOJ) and Office of the Solicitor General (OSG) to prosecute and pursue tax cases. Petitioner further contended that the 60-day period for filing the Petition for Certiorari should be reckoned from the BIR's receipt of the RTC Order and not from the earlier receipt by the Public Prosecutor. It also asserted that the RTC gravely abused its discretion in granting the Demurrer to Evidence based on erroneous and shifting grounds, including the alleged absence of a valid assessment and the non-inclusion of the partnership as an Accused. On the other hand, Respondents argued that the Petition for Certiorari was correctly dismissed for being filed beyond the reglementary period because the Public Prosecutor had received the RTC's Order earlier than the BIR. They likewise maintained that the RTC properly dismissed the criminal cases after finding that the Prosecution failed to establish guilt beyond reasonable doubt and that the partnership, allegedly liable as taxpayer, was not even impleaded in the Information. Respondents further questioned the BIR's legal standing to independently pursue the appellate proceedings without proper authority from the OSG. In ruling, the BIR had no legal authority to independently represent the People of the Philippines in appellate proceedings absent proof of deputization from the OSG, which remains the government's principal counsel in appeals. The Court found that the BIR lawyers failed to present the requisite OSG authorization, rendering the Petition fatally defective. More importantly, the Court ruled that the remedy pursued was improper because it effectively sought a review of the RTC's judgment of acquittal. Since the RTC had granted the Demurrer to Evidence and acquitted the Accused on the merits after trial, legal jeopardy had already attached. Any attempt to reopen, review, or reverse the acquittal would violate the constitutional protection against double jeopardy. The CTA En Banc emphasized that a judgment of acquittal is immediately final and unappealable, even if allegedly erroneous, absent a showing that the Prosecution was denied due process. Finding no such denial, the Court upheld the ACQUITTAL and DISMISSED the petition. [PEOPLE OF THE PHILIPPINES VS REGIONAL TRIAL COURT OF THE CITY OF MANILA ET AL., CTA EN BANC CASE NO. 3072, AUGUST 13, 2026]


Powered by:
GetResponse

    This is an online snapshot of a newsletter created by the owner of WEEKLY TAX UPDATES (7F Don Jacinto Building, Dela Rosa corner Salcedo Sts, 1200 Legaspi Village, Makati City, Philippines) and sent via GetResponse on 2026-09-15. Report abuse