BusinessMirror August 20, 2015 by BusinessMirror

BusinessMirror

THREETIME ROTARY CLUB OF MANILA JOURNALISM AWARDEE 2006, 2010, 2012

U.N. MEDIA AWARD 2008

A broader look at today’s business Saturday 2014 Vol. No. 40 Vol. 10 No. 315 Thursday,18,August 20,102015

www.businessmirror.com.ph

BSP still not tempted to devalue currency T

B B C

HE Bangko Sentral ng Pilipinas (BSP) ruled out on Wednesday the likelihood of weakening the local currency on purpose, saying that such a move does not make any regulatory sense. BSP Deputy Governor for the Monetary Stability Sector Diwa C. Guinigundo said that, while exporters have reasons to be wary of currency adjustments and the devaluation of other currencies in the region, the Philippines was not likely to follow suit. “Exporters have reasons to be wary of what they call currency war. But we need to understand why they are doing it. Soft economic prospects drive some countries to devalue, because their dependence on external trade is so much,” Guinigundo said. “In the case of the Philippines, from a macroeconomic standpoint,

INSIDE

EMILE HIRSCH D2

Show BusinessMirror

Thursday, August 20, 2015

www.businessmirror.com.ph

Emile Hirsch reaches deal in studio-exec assault case, pleads guilty to misdemeanor

B N S Los Angeles Times

MILE HIRSCH has pleaded guilty to misdemeanor assault after putting a female studio executive in a chokehold during the Sundance Film Festival in January. The Into the Wild actor appeared in court in Park City, Utah, on Monday and entered his plea after reaching a deal with prosecutors, according to the Associated Press (AP). Hirsch was sentenced to 15 days in jail, ordered to pay a $4,750 fine and will have to complete 50 hours of community service to get the charge dismissed. The 30-year-old had been charged with aggravated assault in February. The Lone Survivor star was accused of violently attacking Daniele Bernfeld, a vice president for Paramount Pictures’ subsidiary Insurge Pictures,

putting her in a chokehold at Park City’s Tao nightclub on January 25. Bernfeld told the police that Hirsch dragged her across a table, body-slammed her to the floor and caused her to briefly lose consciousness, records said. The actor, who was at Sundance to debut his film Ten Thousand Saints, said he didn’t know Bernfeld but acknowledged that they did have an argument, the AP reported. In court, he admitted that he’d taken medication that may have mixed badly with alcohol and could not explain why he did what he did. After the deal, Bernfeld said she thought Hirsch’s penalty should have been harsher. “If a violent attack in front of a roomful of witnesses can be labeled a misdemeanor and dismissed, what of women who are assaulted while alone in hallways or bathrooms, or behind the closed doors of their own homes?” she said in a statement issued by her attorney to the AP. n

ACTOR Emile Hirsch appeared in court on August 17 in Park City, Utah, after pleading guilty to misdemeanor assault, after being accused of putting a female studio executive in a chokehold at a Utah nightclub during the Sundance Film Festival. AP

Donald T Trump has lost that lovin’ feeling for Heidi Klum, who pretty much doesn’t care

A SCREENCAP of Heidi Klum’s Instagram post where she responded to Donald Trump’s comment

Today’s Horoscope

By Eugenia Last

CELEBRITIES BORN ON THIS IS DA DAY: Demi Lovato, 23; Andrew Garfield, 32; Amy Adams, 41; Al Roker, 61. HAPPY BIRTHDAY: DA Don’t let yourself be DAY:

aggravated by the little things people around you do. Take your time to figure out what’s actually going on. It’s important to let everyone do his or her own thing if you don’t want others to meddle in your own affairs. Keep your personal life a secret and focus on selfimprovements rather than trying to change others. Your numbers are 7, 11, 19, 23, 31, 37, 41.

LOS ANGELES TIMES

ARIES (March 21-April 19): Have some fun. Now is not the time to sulk over what you don’t have when you should be thankful and enjoying what you do. Being positive will invite a lot more opportunities your way. Share your ideas in an entertaining fashion. HHH

TAURUS (April 20-May 20): Spend time with the people who can help you advance. You have some good ideas that need to be shared if you want to be successful. You will ease financial pressure if you find a new way to use your talents. HHH

Jesse Lucas in ‘Triple T Triple Threats: The Composers’ at CCP MUL IAWARDED composer for film, television, theater and MULT dance Jesse Lucas is the featured artist in Triple Threats: The Composers at the Cultural Center of the Philippines’s (CCP) T Tanghalang Aurelio T Tolentino (CCP Little Theater) tonight at 8 pm. Billed Full Range: The Music of Jesse Lucas, the concert charts the music interests and passions of Lucas throughout his career. Lucas has written original Filipino musicals, ballet and contemporary opera. His forays into composing music for film and television have helped define and further his range. In this concert, Lucas shows off the gems of his illustrious body of work, together with friends who have performed his creations spanning over 25 years. The show will also feature the original choreography of Chanted Journeys and Darangen ni Bantugen by Gener Caringal. Full Range: The Music of Jesse Lucas is written and directed by Floy Quintos. Guest performers include Irma Adlawan, Liesl Batucan, Natasha Cabrera, Roeder Camañag, CMKC, Sheila Francisco, Al Gatmaitan, Franco Laurel, Camille LopezMolina, Banaue Miclat-Janssen, Ayen Munji-Laurel, Sandino Martin, Rica Nepomuceno, Tex T Ordoñez, Bodjie Pascua, Sweet Plantado, Philippine Ballet Theatre, Pillowcase, Jun-Jun Quintana, and the Valenzuela City Center for the Performing Arts. Triple Threats: The Composers is presented by the CCP in cooperation with The T Talent Factory Inc. and Artist

floating his boat anymore. “I looked at her the other day, and it’s off,” Trump told Stern, dissing his supposed crush. “There’s no question.” Alas, in 2005, social media wasn’t what it is in 2015. But now it is 2015, so that’s where Klum made her stand on Monday, posting a video on Instagram in response to Trump’s NYT comment. In the video, Klum is rocking a T-shirt emblazoned with a paper “10,” T wind machine going and everything, when someone in a cheesy Trump mask comes up behind her and rips off the number—only to reveal “9.99.” The supermodel shrugs it off, blasts a smile and goes on with her photo shoot. Her caption: “#TrumpHasSpoken #sadly #9.99 #NoLongerA10 #IHadAGoodRun #donaldtrump #trumped #HeidiTrumpsT rumps rump rumpsT #BeautyIsInTheEyeOfTheBeheld.” So, Donald: Looks like Heidi’s not exactly crushing on you either.

Donald Trump informed the public almost a decade ago that he’d stopped crushing on Heidi Klum, but he brought her up again in an interview published over the weekend, and this time the supermodel talked back. “Sometimes I do go a little bit far,” the presidential hopeful told the New York Times (NYT NYT) while discussing, among other things, how he gets away with outrageous comments. “Heidi Klum,” he added after a pause. “Sadly, she’s no longer a 10.” Klum’s name, however, wasn’t just pulled out of thin air. Back in 2005, Trump was talking to Howard Stern about how his then-pregnant wife, Melania, had blown up “like a blimp—in the right places. In her case, the right places. I mean she really has become a monster—in all the right places.” He meant monster, he said, “in the most positive way.” But Klum, who at that point had given birth to two of her four children, apparently wasn’t

GEMINI (May 21-June 20): Take on the physical chores that need to be completed and you will impress others and live up to the promises you’ve made to your loved ones. Put aside time to spend with someone special. A positive personal change is in the stars. HHHHH

Playground. Individual concert tickets are P1,200, P1,000, P800 and P600. The following standard discounts apply: 50 percent for students for selected seats, 20 percent for senior citizen, persons with disabilities, military and government officials.

JESSE LUCAS

CANCER (June 21-July 22): The best way to deal with the pressure that someone puts on you is by taking care of your end of the deal. Don’t let emotions slow your progress or make you look bad. HH

LIBRA (Sept. 23-Oct. 22): Try to learn from past experiences in order to help you navigate the challenges you are currently facing. Stay focused on the important projects you have started, but put time aside to enjoy the company of someone you love. HHH

LEO (July 23-Aug. 22): The more you collaborate, the more you will learn, grow and advance. Your ability to make others feel important will help you move into a leadership position. Your suggestions and solutions will set you apart from the competition. HHHH

VIRGO (Aug. 23-Sept. 22): A business trip or discussions with potential collaborators can help you get things accomplished faster and more efficiently. Take care of institutional matters and stick to proper protocol to avoid setbacks. HHH

SCORPIO (Oct. 23-Nov. 21): Keep an eye on the people you are dealing with. Someone will try to make you look bad. Don’t get angry when doing your job superbly is your ticket to overcoming the jealousy of others. Choose intelligence and diplomacy over revenge. HHH

SAGITTARIUS (Nov. 22-Dec. 21): Learn from the mistakes made by others. Put more effort into raising your standards or improving your domestic situation. Planning a getaway for two will add spice to your life and encourage a happier future. Make love a priority. HHH

CAPRICORN (Dec. 22-Jan. 19): Be ready to take advantage of an opportunity. There is money to be made and gains that will lead to a more affluent lifestyle. Don’t let impulsive behavior take over. It’s your perfect sense of timing that will bring you success. HHHH

AQUARIUS (Jan. 20-Feb. 18): Share your thoughts, concerns and ideas with someone who can help you improve your earning potential. Look at the big picture and take into consideration all the different ways you can put your skills to better use. Don’t sell yourself short. HH

PISCES (Feb. 19-March 20): A couple of subtle changes will do you good. Discuss your plans with someone you look up to or who your decisions will affect. Set your plans in motion in order to put the past behind you. HHHHH

BIRTHDAY DAY BABY: You are relentless, forceful and focused. You are an engaging leader. DA

‘golf course’ BY OSCAR PUMA The Universal Crossword/Edited by Timothy E. Parker

43 46 47 51 52 53 57 58 59 60 61 62

ACROSS 1 30 Rock star Baldwin 5 Aberdeen toppers 9 Busy folks in Apr. 13 “...___, whatever will be, will be” 14 Skip 15 Glide via gravity 16 Chicken ___ (Ukrainian dish) 17 Great number 18 Ham’s place, sometimes 19 Queens TV character 22 Showy bloom 25 Sleep inducer 26 Hidden advantage 30 Sobbed 31 Companionless 32 Early jazz 35 Frau’s beloved 36 Allen or Martin 37 Preserve meat by smoking 38 Personals, e.g. 39 Public display of anger 40 Better 41 Shamrock color

11 12 15 20 21 22 23 24 27 28 29 32 33 34 36 37 39 40 41 42 43 44 45 48

Start the day’s broadcasting Baseball miscues Hanes offering Sheep’s cry Orchestral “tuning fork” Point a finger at Pet store purchase Young lady Mountaineer’s challenge Marine eagle “Don’t change this!” Safe cracker

DOWN 1 Name as a price 2 Festive neckwear 3 Previously, in poems 4 Chevy automobile, once 5 Tabby’s mate 6 Chinese nurse 7 Short skirt 8 Eyelid problem 9 Chung of TV 10 Heavy coat

Up to this point About 1.3 cubic yards Two of a kind Navel castaway Kentucky explorer Daniel Russian country house Having land They get what’s coming to them One with a lot of enmity “Uncle Vanya” role Humble dwelling Soaring bird of prey Batting ___ (lineup) Unskilled workers Bloodhound’s clue Medium of exchange Polished Fairy-tale creature Put in a crate Dislike, and then some Dark fur More under the weather Gather little by little Male turkeys

49 Life sentences? 50 Close victory margin 54 “___ we having fun yet?” 55 Flashy wheel 56 Cadbury confection

SHOW Solution to yesterday’s puzzle:

IN GOOD HANDS

Sports

BOOST TO INDIAN GOLF N

BusinessMirror

EW DELHI—Anirban Lahiri’s tie for fifth at the Professional Golfers’ Association (PGA) Championship on Sunday has not only raised hopes of India producing a first major winner, it promises to fuel the aspirations of a whole generation golfers in this cricket-crazed country of over 1.2 billion. The 28-year-old shot a final-round 68 for a 13-under 275 to produce best ever finish by an Indian at a major, surpassing Jeev Milkha Singh’s joint-ninth at the 2008 PGA. The Indian golf fraternity is anticipating a major boost from Lahiri’s performance, building on the efforts of Jeev, Jyoti Randhawa and Arjun Atwal who have helped the game gain recognition in India. Lahiri’s coach, Vijay Divecha, says Lahiri’s strong finish at Whistling Straits has long been expected and will undoubtedly be “big for Indian golf.” “We knew we were on the threshold,” Divecha told the Associated Press (AP). “Being in the mix is the first step and then it’s knowing how to convert your chances at such big events.” Dubai-based Indian golf writer Joy Chakravarty says performing well in high-profile tournaments does much to boost golf in India. “This performance gives immense belief to the juniors and other professionals in the country, many of whom are as talented as Anirban, that they too can achieve something like this,” Chakravarty told AP. “It will just heighten the aspiration levels, which is always good for the sport.” Divecha says he can already see the difference at the grassroots level after Lahiri’s consistent efforts on the international circuit. “It’s huge for Indians to see his name out there on the leaderboard. It tells young and aspiring players what they can do,” he said. “A lot of players call me up and say they want to talk to Anirban, discuss golf with him. “His performances have not only instilled confidence in the younger lot, many parents now want their children to take up golf as a profession. This includes players whose parents are not golfers, which did not happen earlier,” Divecha said. India has close to 200 golf courses, but most of them are restricted by exclusive memberships that make access difficult for aspiring players. “Things are changing with some clubs taking on nonmembers for their training schemes, but opportunities are still limited. The facilities need to be more widespread and accessible to expect golf to become a bigger sport in India,” Divecha said. Lahiri has won four times on the Asian Tour, including two events co-sanctioned by the European Tour. Asian Tour Chairman Kyi Hla Han says he’s confident Lahiri can emulate South Korea’s Yang Yong-eun, the only Asian to win a major. “I believe Anirban will achieve more success internationally and he has the right credentials to lift a major title in the very near future,” he said in a statement. “He has the ability, the right work ethics and self-confidence to achieve this dream.” Jeev, India’s most successful golfer with three European Tour titles, four on the Japan Golf Tour and six on the Asian Tour, also has high hopes for a major win by Lahiri and a boost for golf in the country. “This performance will also be a massive boost to other Indian players,” Jeev said. “What Anirban has done should be the launching pad for many such success stories from our country. I wish Anirban all the best in the future and hope he will soon be hoisting a major trophy on a Sunday evening.” AP

| THURSDAY, AUGUST 20, 2015 mirror_sports@yahoo.com.ph sports@businessmirror.com.ph Editor: Jun Lomibao

B C N. P

T JASON DAY (right) gets a hug from Jordan Spieth in the final round of the Professional Golfers’ Association Championship. AP

IN GOOD HANDS

THE Indian golf fraternity is anticipating a major boost from Anirban Lahiri’s performance Professional Golfers’ Association Championship. AP

New ‘sticking point’ in DTI, DOF talks on RFI emerges

The theme coming out of the 2015 majors is that golf is in a good spot in the post-Tiger Woods era. Jordan Spieth, Rory McIlroy and Jason Day are Nos. 1-2-3 in the world, and they have combined to win five of the last six majors. Day is the old man in the group. He’s 27.

B D F The Associated Press

HEBOYGAN, Wisconsin—The last two majors should emphasize how remarkable it was that Jordan Spieth won the first two. Consider the numbers. Spieth was only the fourth player since 1960 who went to the British Open with a chance to win the third leg of the Grand Slam. He was 14-under par at Saint Andrews, a number topped only five previous times at golf’s oldest championship. This year, it didn’t even get him into a playoff. Then, he went to the Professional Golfers’ Association (PGA) Championship at Whistling Straits with a chance to join Ben Hogan and Tiger Woods as the only players to win three majors in one year. Spieth lived up to the occasion by posting 17-under par. In the 57 years of stroke play at the PGA Championship, only two players were more shots under par. Woods beat Bob May in a playoff after they finished 18 under (they were five shots clear of everyone else), and Woods was 18 under when he won at Medinah in 2006. Spieth wound up three shots behind Jason Day. Don’t feel sorry for Spieth without considering the plight of Justin Rose. He was 14 under at the Masters. He was 14 under at the PGA Championship. And he finished a combined 10 shots out of the lead. “I thought 14-under par would be great,” Rose said on Sunday at Whistling Straits. “Actually, it’s ironic that’s what I finished on, but I thought that would be a winning score.” It was only good for fourth place. The theme coming out of the 2015 majors is that golf is in a good spot in the post-Tiger era. Spieth, Rory McIlroy and Day are Nos. 1-2-3 in the world, and they have combined to win five of the last six majors. Day is the old man in the group. He’s 27. Woods had a revolving door of rivals for more than a decade. He was No. 1 even when the math said otherwise. Now there is a chance for a lasting rivalry, or rivalries. There already is talk of a modern “Big Three,” though it’s still too early for that. “We live in such a world that everything is so reactionary, and everything happens so quickly,” McIlroy said at the start of the PGA. “A year ago after I won this tournament, it was the Rory era. And then Jordan wins the Masters and it’s the Jordan era. Eras last about six months these days instead of 20 years.” And that leads to another number worth considering.

we have resilient domestic factors, including consumption, private capital formation and public spending. Thus, directly devaluing the currency or reducing interest rates to force the currency’s weakening does not make much sense, because there could be unintended, unwanted consequences on imports, debt servicing and price movements,” he added. Guinigundo stressed this point following Vietnam’s decision to devalue its currency for the third time this year, in an effort to protect its exports and boost local-output growth, as well.

Earlier this month, the People’s Bank of China devalued the yuan as part of the broader goal to reform and make its exchange rate more market-determined and internationalize the currency. That decision had a rippling impact on currencies, such as the peso, albeit in lesser magnitude compared to other currencies in the region, according to the central bank. The peso hit a five-year low as a result of this development. “Competitiveness comes easy with devaluation, but the more durable, more sustainable sources of external competitiveness go beyond that: lower cost of power, lower cost of doing business, better-quality goods, quick turnaround time,” Guinigundo said. The local currency barely moved on Wednesday, closing the day’s trading at 46.35 per dollar, or slightly stronger than Tuesday’s closing rate of 45.355 per dollar. The total traded volume at the Philippine Dealing System stood at $555.5 million on Wednesday.

With a bunker shot that only Spieth could make look easy, he birdied the 16th hole at Whistling Straits and closed with two pars to break by one shot the record Woods set in 2000. Spieth ended the year at 54 under in the four majors. Some context is in order. Spieth matched the 72-hole record at Augusta National (18 under) on a much stronger course than when Woods set the mark in 1997. Woods, however, won three majors that year, and he won the US Open and British Open by a combined 23 shots. Anyone who stood near the 18th green at Pebble Beach and gazed at that large leaderboard, with Woods at 12 under and no one else better than three over, will appreciate it as the greatest performance in major championship history. Spieth’s major season still doesn’t touch what Woods did in 2000, or Hogan in 1953 when he won all three majors he played. The low scores Spieth posted were required to even have a chance at the majors, except for his four-shot win at Augusta. Spieth knows that. Sure, he was one shot out of a playoff at Saint Andrews. He also was a 12-foot eagle putt by Dustin Johnson from having to settle for only a green jacket this year. Louis Oosthuizen, with a sweet swing and a fragile back, was one shot behind at the US Open and lost in a playoff at Saint Andrews. Day missed out on the Saint Andrews playoff by one shot and smashed his way to his first major at Whistling Straits. A year ago, the challenge for McIlroy came from Rickie Fowler, the only player to finish among the top 5 in all the majors without winning. He won the so-called fifth major this year at The Players Championship with an eagle-birdie-birdie finish. The depth is greater than ever. Anyone paying attention to golf the last two years could see that, and this year in the majors it was undeniable. McIlroy won three straight tournaments last year—two majors and a World Golf Championship—and he finished the year as the winner or runner-up in eight of his last 12 events. The only question was finding a suitable rival for the best player in the world. Nine months later, he was No. 2. Spieth already has been installed as the favorite at the Masters next year, though only slightly over McIlroy. It’s a shame we have to wait 233 days for the next major. But think big picture. “That’s what I’m looking forward to is the sheer competition of being able to fight against these guys each week and have that competition and fight against them,” Day said. “It’s going to be a lot of fun over the next five to 10 years.”

SPORTS

HE renewability of fiscal perks being enjoyed by registered companies has emerged as another “sticking point” in the discussions on the Rationalization of Fiscal Incentives (RFI) bill. Following President Aquino’s effort to highlight the importance of the bill in his final State of the Nation Address in July, the Department of Trade and Industry (DTI) and the Department of Finance (DOF) have renewed their discussions on the bill

PESO EXCHANGE RATES n US 46.3500

LEAÑO said the renewability of incentives has emerged as another key stumbling block.

that started 16 years ago, when the legislation was first proposed. While Trade Secretary Gregory L. Domingo has repeatedly said

the compromise bill was already 80-percent to 90-percent consolidated, he declined to identify the sticking points. However, in an interview on Wednesday, Board of Investments (BOI) Executive Director Efren V. Leaño said the renewability of incentives has emerged as another key stumbling block. According to him, Domingo wants the corporate income-tax (CIT) privilege reduced to no more than 15 years, renewable to another 15 years,

P.  |     | 7 DAYS A WEEK

BLAST RAISES PRESSURE FOR THAI STIMULUS AS GROWTH PILLARSTUMBLE

IN this January 12 file photo, the Erawan Shrine, a site popular among Buddhists, as well as Hindu and Sikh members of Thailand’s Indian community, is shown. NONIE REYES

ANGKOK’S deadly bomb attack this week is set to hit Thailand’s last remaining growth pillar with travel warnings and canceled trips, adding pressure on authorities to restore confidence and stimulate the economy. Weaker tourism in the next two to three quarters will probably hurt Thailand’s economic growth, and the explosion could have a longer-lasting impact on visitor numbers compared with previous incidents in the past decade, Standard & Poor’s said on Tuesday. Tourism stocks fell the most on record on Tuesday, while the baht approached its lowest level since April 2009. “Tourism is the last fully functioning engine of economic growth in Thailand,” said Santitarn Sathirathai, a Singapore-based economist at Credit Suisse Group AG. “Growth in the second half of the year could be weaker, as tourists, especially from China, react swiftly,” he said, adding that the government needs to unveil significant fiscal stimulus. Almost 25 million foreign visitors flocked to Thailand last year for its white-sand beaches and centuries-old temples, and their

spending has helped shore up growth, as manufacturing and exports slump. Now tourism, which accounts for about 10 percent of the economy, is under threat after the blast in Bangkok’s central shopping district on Monday that killed at least 20 people and prompted travel alerts from Hong Kong, the US and the UK. Tourism could drop 10 percent in the short term, said Adithep Vanabriksha, Bangkokbased chief investment officer at Aberdeen Asset Management Co. Travel agencies in Hong Kong have agreed to cancel all organized trips to Bangkok until the end of August for safety reasons, said Joseph Tung, executive director of the Hong Kong Travel Industry Council.

Another dent

THE evening rush-hour blast came hours after a report showed expansion slowed to 2.8 percent last quarter from a year earlier, with the National Economic and Social Development Board cutting its forecasts for gross domestic product growth and exports. Overseas sales are set to contract for a record third straight year. C  A

C  A

n JAPAN 0.3727 n UK 72.6073 n HK 5.9773 n CHINA 7.2492 n SINGAPORE 33.0128 n AUSTRALIA 34.0034 n EU 51.1333 n SAUDI ARABIA 12.3590 Source: BSP (19 August 2015)

News

BusinessMirror

Thursday, August 20, 2015

news@businessmirror.com.ph

New ‘sticking point’ in DTI, DOF talks on RFI emerges Continued from A1

subject to the approval of the board of the various investment-promotion agencies (IPAs). Finance Secretary Cesar V. Purisima, however, wants the 15-year period scrapped altogether. For the DTI, as long as the company can justify continued enjoyment of incentives, renewing the privilege by another 15 years should be okay, Leaño said in a spot interview on Wednesday. Leaño, likewise, said the authority to extend the timebound

incentives should remain with the DTI, but to be determined by the various IPAs. In an earlier BusinessMirror report, an initial consolidated draft on the incentives bill was endorsed by the two agencies for e x por ters, reg a rd less of whether they are registered with the Philippine Economic Zone Authority (Peza). In the draft, Peza-registered export enterprises have two available packages. The first package includes a four-year income-tax holiday (ITH), or a reduction from

the current six to eight years. The four-year ITH is nonrenewable and nonextendable. After the ITH’s expiry, companies may be granted either a 5-percent tax on gross income earned (GIE), but they still need to pay value-added tax (VAT) and real-property tax (RPT) for 11 years; or pay 15-percent reduced CIT in lieu of local and national taxes, and still pay VAT and RPT for 11 years. In the second package, Peza-registered firms—in the absence of an ITH—will pay 5-percent tax on GIE in lieu of local and national taxes

Megaworld set to open 2 upscale malls in Fort Bonifacio Continued from A8

spaces, while Uptown Parade is a 25,000-square-meter dining strip that will have international restaurants. “Finally, we are introducing our flagship mall with new, innovative concepts and offerings. From the retail mix to the mall facilities and amenities, Uptown Place is envisioned to be a major shopping, dining and leisure destination in Fort Bonifacio,” Tan said. The two developments belong to the company’s plan to have 20 new malls by 2020. The total gross-leasable area of the company’s malls, which includes the two new Uptown areas, now stands at 414,000 sq m and will increase it further to 1.4 million sq m

by 2020, Tan said in a briefing. Megaworld currently has 11 commercial centers, most of which are in its township projects across Metro Manila. Uptown Place will have its own food hall featuring 11 new food concepts and offering international cuisines and cinemas, among others. Anchor tenants include Rustan’s Supermarket, Toys R Us, True Value, National Bookstore and Hamley’s. Uptown Parade, meanwhile, will showcase new dining concepts and foreign brands that are coming to the Philippines for the first time. It will feature al-fresco dining and tree-lined walkways. Its anchor tenant is the The Palace Superclub, which claims to be the biggest night club in Asia and the

largest nightlife destination in the country today. The facility has over 8,000 sq m of party space that can accommodate around 10,000 people. It now houses the Valkyrie Nightclub and The Palace Pool Club, the country’s first day club and pool club. “We will bring together some of the world’s most interesting restaurant and dining brands, as well as the country’s best party makers in one destination,” Tan said. In 2012 Megaworld has allocated P65 billion to build Uptown Bonifacio as its integrated urban township for a period of 10 years to 20 years. It is projected to serve 45,000 employees from the business-process outsourcing sector, and 6,000 family residents in its condominiums. VG Cabuag

except VAT and RPT for 15 years, or 15-percent reduced CIT in lieu of local and national taxes, VAT and RPT for 15 years. For non-Peza-registered exporters in ecozones and free ports, they either get a 5-percent tax on GIE in lieu of local and national taxes, except VAT and RPT, for a period of 15 years, or pay 15-percent reduced CIT for 15 years. For exporters outside ecozones and free ports, there are two packages, as well. In the first package, Peza may allow them to enjoy a four-year ITH,

plus a reduced CIT of 15 percent for 11 years. In the second package, without an ITH, enterprises may enjoy a 15-percent reduced CIT for 15 years, a VAT refund plus duty-free importation of capital equipment and VAT and duty refund on imported raw materials, supplies and semifinished products. For BOI-registered enterprises, the proposed package is 15-percent reduced CIT for 15 years. Another point of debate, according to Leaño, is the prospective implementation of the new incentive schemes.

Leano said the DTI’s stand is to allow the registered enterprises to continue enjoying their existing incentive privileges even after the RFI bill has become a law. For the DOF, however, the new scheme should be followed immediately once the law becomes effective. “We will still discuss that.” The House of Representatives convened a hearing on the RFI just last week. The chairman of the House Ways and Means Committee, Rep. Romero “ Miro” S. Quimbo, assures passage of the bill in the lower house by December.

Blast raises pressure for Thai stimulus as growth pillars tumble. . . Continued from A1

A second blast on Tuesday sent water flying into the air at a busy Bangkok boat pier, though no injuries were reported. “Economic headwinds are mounting,” said Jin Lai Chan, a Singaporebased economist at BMI Research. “Investors’ sentiment has been wavering for some time and this attack just puts another dent in Thailand’s armor.”It also increases the probability that the Bank of Thailand will cut interest rates again this year, according to Credit Suisse, Australia & New Zealand Banking Group Ltd., Nomura Holdings Inc. and BMI. “It reinforces our view of further monetary easing ahead,” said Weiwen Ng, a Singapore-based economist at ANZ, who estimates tourism accounts for 20 percent of the economy,

including indirect effects. “Domestic demand—which is already sluggish —will be derailed. Bank of Thailand will also probably allow some baht weakness to help boost exports.”

Strong response

The central bank sees growth risks from China’s slowdown and drought, according to minutes of the August 5 policy meeting released on Wednesday. The benchmark rate was held then. The blast occurred as the government is also distracted by an imminent Cabinet reshuffle, with Prime Minister Prayuth Chan-Ocha saying on Tuesday that he is seeking the king’s approval on a revised list of Cabinet members. It is a “politically sensitive time,” with a

new constitution up for a vote in September, Nomura economists said in an August18 note. “The incident could elicit a strong response from the military government which is already under pressure in part due to a weak economy under its watch, raising the risk of the reimposition of martial law, or even an invocation of more sweeping powers if further incidents take place,” Nomura economists Euben Paracuelles and Lavanya Venkateswaran said.“These could prove disruptive to economic activity.”

Big issue

The SET Index rose 0.2 percent as of 10:23 a.m. in Bangkok on Wednesday, while the baht slipped 0.2 percent.

Lorenz S. Marasigan and Bloomberg News

news@businessmirror.com.ph

The Nation BusinessMirror

High cost of electing president bad for democracy—Puno

AYING that the high cost of election in a presidential-unitary system is one reason to change the 1987 Constitution and shift to a parliamentary-federal system, former Chief Justice Reynato Puno warned that election-campaign spending in the billions of pesos “may be good for the economy, but definitely bad for democracy.” In a forum on constitutional reform at the University of the East, Puno said next year’s national elections “could very well be the most critical in the last 100 years of the nation’s history,” and yet “the ugly signs” are all over the place that the forthcoming electoral exercise will “again betray the expectations of the people” and become just as “another opportunity lost.” “The stakes could not be any higher,” the leading light and voice of the movement Bagong Sistema, Bagong Pag-asa said, stressing that whoever will be elected president next year should have not only “the capability to heal the deep divisions and cleavages in our society, [but] also the wisdom to handle with dexterity our foreign affairs and prevent our people from losing our territory to more powerful countries without provoking a war which we cannot win.”

He was referring to the West Philippine Sea problem that remains a thorn in Philippine-China relations. But he warned that, as in years past, the next elections could again be dominated by traditional politicians and political parties that are “mere loose and temporary alliances of self-seeking individuals with no vision of the greatest good for the greatest number, and are controlled by men made mighty not by the Almighty but by the purchasing power of the peso.” “Woefully, we may again see an election where the people’s will may be muted by the money of the elite,” he said, noting the billions of pesos that candidates for the country’s top posts have to spend. “How much does it cost to get elected President?” Puno asked. If candidates for president or vice president were to follow the law strictly, they could not spend more than P15 per registered voter. With an estimated 55 million voters for next year’s polls, that means each of them can spend no more than P825 million, Puno calculated, adding that if there were at least four candidates for president and vice president, as much as P6.6 billion could flood the economy during the campaign period which starts in February. Jonathan Mayuga

Labor leader assails PhilHealth TV ads for losing administration bet

By Jovee Marie N. dela Cruz

HE Trade Union Congress of the Philippines (TUCP) on Wednesday scored the Philippine Health Insurance Corp. (PhilHealth) for allegedly using its funds to pay for the television advertisements of a soon-to-be administration senatorial candidate.

Former Sen. Ernesto Herrera, TUCP president, said the money spent by PhilHealth for the TV ads would have been better spent to help upgrade the health-insurance benefits of its members, especially minimum-wage workers and salaried employees. The TV advertisements supposedly cost at least P442,000 plus valueadded tax every time they are aired for 30 seconds. “We must stress that PhilHealth’s governing board has a

Strike vs smugglers

Chrisler Cabbarubias, chairman of the Confederation of Guardians in the Philippines, and the group’s other members ask the Bureau of Customs to open some of the 89 container vans in Manila that, they say, contain smuggled goods from China.

City resilience study focuses on Marikina By Claudeth Mocon-Ciriaco Correspondent

EING one of the areas hardest hit by Typhoon Ondoy in 2009, Marikina City has been chosen by a pioneering research program on building sustainable and resilient cities in the Philippines. The study, a first in the AsiaPacific region, was organized by Pilipinas Shell together with multisectoral stakeholders, such as the Metropolitan Manila Development Authority, the European Chamber of Commerce of the Philippines, League of Cities of the Philippines, as well as some non-governmental organizations. The city resilience study revealed challenges and opportunities that can enhance Marikina’s economic potential, livability and resiliency against urbanization and climate change, according to Suiee Suarez, Shell global campaign manager for Future of Energy. “It was a product of intensive engagement that identified the challenges of the

city and resulted in a better understanding of its needs,” Suarez explained. The study follows a research publication on urbanization and resiliency dubbed “New Lenses on Future Cities,” which Shell unveiled during its annual Powering Progress Together (PPT) Forum–Asia held in Manila in 2014. The report reviewed 500 cities around the globe with more than 750,000 inhabitants, as well as 21 megacities with over 10 million inhabitants in order to understand various energy uses that would support city planning and development. The PPT is a global dialogue on sustainable development fostered by Shell that engages thought-leaders and actionmakers from the public, private and civil-society sectors. With its work in scenario-building for more than 40 years, Shell is studying cities to better understand challenges and opportunities posed by urbanization, one of which is developing resilience to various stresses.

Editor: Dionisio L. Pelayo • Thursday, August 20, 2015 A3

The joint study highlighted five fundamental challenges that could hinder Marikina City’s potential for growth and sustainability which are: affordable and dependable electricity; road and public transport infrastructure; waste management; flood management; and governance and coordination implementation. An integrated solution was also provided in the study to help the city government and its constituents develop a more “green,” resilient and sustainable city. From the five identified challenges, the range of solutions proposed are the use of a distributed energy system integrating alternative and conventional power systems inside the city; efficient transport utilizing compressed natural gas or liquified natural gas technology with corresponding road networks; waste management, recovery and recycling that includes waste-to-power options, flood management and implementation of sustainable projects.

fiduciary duty to conserve the hard-earned contributions of workers for current and future benefit payments,” said Herrera reacting to PhilHealth’s decision to sponsor a series of ads featuring former Party-list Rep. Theresia HontiverosBaraquel of Akbayan, a staunch ally of President Aquino. Hontiveros-Baraquel, who took her oath of office as PhilHealth board member only on June 30 this year, has been assured of a slot in the Liberal Party’s Senate slate in

the 2016 elections, he said. She ran for the same position but lost in the 2013 elections. “The members of the board of directors [of PhilHealth], even if they are all political appointees, are supposed to insulate the state-run insurer and its funds from partisan political activity,” Herrera said.

NP for Duterte?

NACIONALISTA Party stalwart Sen. Alan Peter Cayetano’s virtual endorsement of Davao City Mayor Rodrigo Duterte’s presidential candidacy has fueled speculations that an alliance between Duterte’s Partido ng Demokratikong Pilipino-Lakas ng Bayan (PDP-Laban) and Cayetano’s Nacionalista Party is already in the making. Cayetano was personally invited by Duterte to the opening of the 30th Kadayawan Festival on Monday. It was during the program that Cayetano pointed to Duterte as having an edge over other presidential aspirants because there is a genuine clamor for the Davao City mayor to seek the presidency in

next year’s elections. “Duterte’s case is unique because there’s a genuine clamor from people asking him to run,” Cayetano later told a new conference at the Grand Men Seng Hotel. Cayetano pointed out that Sen. Grace Poe and Interior Secretary Manuel A. Roxas II only rely on surveys and that the clamor for them to run are coming from either their friends or their respective political parties. He also admitted that he remains clueless as to who Duterte will pick as his running mate if he decides to join the presidential race next year. Cayetano rated high in the last Pulse Asia survey for vice presidential wannabes where he placed a strong second to fellow Sen. Francis Escudero. Cayetano’s virtual endorsement of Duterte was followed by former Sen. President Aquilino Pimentel Jr.’s direct call to the Filipino electorate to support the presidential bid of the Davao City mayor. Pimentel is chairman emeritus of the PDP-Laban of which Duterte is a stalwart.

Economy

A4 Thursday, August 20, 2015 • Editors: Vittorio V. Vitug and Max V. de Leon

BusinessMirror

news@businessmirror.com.ph

Labor turnover rate flat at 0.53% in Q1–PSA

By Cai U. Ordinario

etro Manila’s labor turnover rate (LTR) was flat at 0.53 percent in the first quarter of 2015, according to the Philippine Statistics Authority (PSA).

The LTR is the percent difference between the accession rate, which is the rate of hiring workers; and the separation rate, which is the rate of the combined employee resignations and layoffs. The PSA said the LTR was the slowest since the first quarter of 2013 when it was at negative 0.02 percent. The LTR in the first quarter of 2014 was 0.59 percent. “The slowdown reflects the past pattern of weak demand for labor in the first quarter of the year. This can be observed in 12 subsectors, which recorded negative net turnover rates,” the PSA said. “This decline, however, was matched by continuous employment expansion, particularly in administrative and support-service activities, which include BPO [business-process outsourcing], agriculture, forestry and fishing; and mining and quarrying,” it added. The PSA said the accession rate at 10.7 percent slightly exceeded separation rate at 10.17 percent. This suggested that there was an addition of five workers per 1,000 employed. Some 107 workers per 1,000 employed were added to the enterprise work force due to expansion or replacement, while 102 workers per 1,000 employed were terminated

or quit their jobs. In terms of hiring or accession, most of the increase came from replacement of workers rather than expansion. The PSA said accession due to replacement of workers at 6.75 percent continued to outpace accession due to expansion of business activities at 3.95 percent. Data showed that 15 major industries registered higher accession due to replacement than accession due to expansion. This was seen in mining and quarrying at 10.61 percent; wholesale and retail trade, repair of motor vehicles, motorcycles at 10.23 percent; agriculture, forestry and fishing at 6.32 percent; and accommodation and food service activities at 5.67 percent. Higher accession due to expansion than accession due to replacement were noted in administrative and support service activities at 10.92 percent and water supply, sewerage, waste management and remediation activities at 2.17 percent. The PSA said professional, scientific and technical activities posted same expansion rate and replacement rate at 3.28 percent. Meanwhile, employer-initiated separations or layoffs at 5.86 percent edged employee-initiated separa-

River ferry A banca transports people across the Pasig River from Guadalupe Tambo Road near the Guadalupe Bridge to the other side behind the Robinsons Department Store in Makati City on Tuesday. PNA

tions or quits at 4.31 percent. More layoffs were noted in eight subsectors but was the most evident in construction at 15.13 percent; mining and quarrying, 7.3 percent; and wholesale and retail trade, repair of motor vehicles and motorcycles at 7.79 percent. The PSA said there were more

quits than layoffs were reported in the rest of the subsectors. The top 3 were real-estate activities at 6.38 percent; accommodation and food service activities at 4.95 percent; and information and communication at 3.76 percent. The Labor Turnover Survey is a quarterly sample survey of enter-

binay to trillanes: justify consultants’ ‘exorbitant’ fees

The camp of Vice President Jejomar C. Binay has asked Sen. Antonio Trillanes IV to explain the hiring of “overpriced” consultants, including his brother, who allegedly raked in P71,200 a month, or almost half a million in six months last year. Senate documents revealed that Trillanes hired 55 consultants and paid P7.5 million in fees, which is P4.46 million more than the P3.04 million allotted for hiring consultants. Trillanes also hired his brother Juan Antonio Trillanes for P71,200 per month, one of the most highly paid consultants of the 55 consultants. From July to December 2014, the brother took home P427,000. Lawyer Rico Quicho, spokesman for political affairs, said Trillanes “should not be too onion-skinned if the people demand that he explain such exorbitant expense for his consultants.” The fact that the Commission on Audit (COA) stressed that Trillanes consultants’ failed to submit accomplishment reports or even their respective résumés to justify the fees paid to them shows an utter failure to comply with COA rules, he said. “Surely, a person like the senator’s brother and other consultants who were paid P71,200 a month in fees would have solid credentials worthy of being mentioned in Google or LinkedIn but a cursory search yielded zero results,” Quicho said. Recto Mercene

jobs at freeport area in bataan expand

dti provides training to fernandino lantern makers

CITY OF SAN FERNANDO, Pampanga—The city government, in partnership with the Department of Trade and Industry (DTI), has provided training to 72 Fernandino lantern makers in an effort to enhance their knowledge and skills on electrical installation and maintenance. The lantern makers underwent training conducted by the Technical Education and Skills Development Authority to equip, give proper and basic instruments needed to ensure the quality of the lanterns being produced in the city. The lanterns from this city are well known worldwide, as those were already exhibited in several countries like the United States, the United Kingdom, China and European states. City Mayor Edwin Santiago, in his message to the graduates, emphasized the need of having proper training and skills to create a more stable product, and also enhance the capability of a person, further honing their talents and skills. PNA

served as respondents to the firstquarter 2015 LTS. The sample enterprises were drawn from the 2013 Metro Manila List of Enterprises of the PSA, which was updated by the 2013 LTS sampling frame. The retrieval rate for this quarter was placed at 94 percent.

Angara studying proposal to give Customs officials better pay to stamp out corruption

briefs

Jobs at the Freeport Area in Bataan (FAB) are expanding reflecting the industry growth inside the FAB. Authorities at the Freeport Area in Bataan (AFAB) said four registered locators are in need of 1,384 new employees to address operation requirements. AFAB Chairman and Administrator Deogracias G.P. Custodio said the increasing job opportunities at the FAB is pushed by the AFAB’s effort to strengthen strategic sectors and industries that will provide greater employment multipliers. High-end shoe manufacturer Perpetual Prime Manufacturing Inc. (PPMI) is hiring 1,000 production operators, a finance manager, a bookkeeper and an accountant. Business-process outsourcing firm Grand Innovasia Concept Corp. is in need of 205 female employees. Electronics manufacturer Mitsumi Phils. Inc. requires 150 operators and 10 technicians, while Luenthai Group of Cos. subsidiary is hiring an industrial engineer supervisor, three industrial engineer staff, six injection machine operators, five stitching line leaders and a finance manager. PNA

prises conducted by the PSA since the third quarter of 2002. The survey aims to capture “job creations” and “job displacements” in large business enterprises based in Metro Manila by collecting quarterly data on accessions and separations of workers. A total of 921 enter prises

Colored chicks

Two girls check out a flock of caged colored chicks in Blumentritt, Manila. Sold at an average of P5 per head, the chicks get their color from hydrogen peroxide and ammonia injections before hatching, while some get their colors from “harmless” food coloring. Kevin dela Cruz

en. Juan Edgardo Angara on Wednesday said he will look into the proposal to exempt officials of the Bureau of Customs (BOC) from the Salary Standardization Law (SSL) in a bid to stamp out corruption in one of the most perceived corrupt and underperforming government agencies. Angara said his proposal will be part of the reforms under the proposed Customs Modernization and Tariff Act (CMTA), which his Senate Committee on Ways and Means tackled on Monday. “By exempting the BOC from the government’s salary cap, we could provide better pay for our Customs officials that would allow us to hire more competent employees and reward honest officials,” Angara said. “But before we make any increase in their pay scale, there should be improved qualification and performance benchmarks in place to further professionalize its ranks,” he explained. Angara has earlier expressed his support for the Bureau of Internal Revenue’s (BIR) exemption from the SSL, as long as it entails higher responsibility and accountability from the second-biggest revenue agency. The lawmaker also urged the BOC to implement Republic Act 9335, or the Lateral Attrition Law, which provides for a system of reward and punishment for Customs officials and employees depending on their performance. Under the law, officials and person-

nel of government collection agencies, such as the BIR and the BOC, may receive financial incentives for surpassing collection targets, but may be relieved or dismissed from their post for failing to meet the goals. The BOC has since been the subject of criticism for consistently failing to meet its revenue targets. The exemption of the BOC from SSL was brought up by Customs Deputy Commissioner Agaton Uvero during the recent public hearing on CMTA, a bill which primarily seeks to implement full automation of customs procedures that would facilitate ease of doing business, and to streamline customs valuation and inspection procedures to make them more transparent. CMTA is among the priority economic bills identified by President Aquino and by both houses of Congress. “With the modernization and computerization of the BOC, less human contact would be required. We want to minimize the discretion of officials to eliminate the alleged rampant corruption practices in the bureau,” the Senator said. The BOC tops the list of the most corrupt government office in the country, based on the 2013 SWS Survey of Enterprises on Corruption. Moreover, the proposed measure aims to increase the outdated amount of fines and penalties against misdeclaration or underdeclaration of goods under the Tariff and Customs Code of the Philippines.

Uber’s TNC operations now legal, LTFRB says By Lorenz S. Marasigan

he operations of Uber Manila as a transport network company (TNC) are now legal, the regulator said on Wednesday, but its drivers are still required to secure their own accreditation. Land Transportation Franchising and Regulatory Board Chairman Winston M. Ginez said his

office is now waiting for Uber Manila’s drivers to file for their accreditation as transport network vehicle service (TNVS) operators. “We approved today [Wednesday] Uber’s application for accreditation as TNC. Uber partners may now file their application for franchise for TNVS,” he said. Uber Manila’s franchise requirements were

filed on Monday. Ginez noted that his staff rendered work on Wednesday, despite the holiday in Quezon City, to accommodate the petitions before the August 20 deadline. “We are awaiting TNVS applications of Uber partners now,” he said. The application fee for the issuance of a fran-

chise for TNVS operators is only P520 for the first two units. A fee of P70 per unit will be added for the excess. No other fee is required to be paid other than the application fee. The transport agency and the regulator allowed the operations of app-based ride-hailing services in late May, requiring them to secure their accreditation from the LTFRB.

Economy BusinessMirror

news@businessmirror.com.ph

Impose MCP to gain higher cigarette tax take, group tells govt By Cai U. Ordinario

Palace ready to face budget-misuse rap lodged against two Cabinet secretaries

F the government will impose a separate tax per cigarette pack rather than a Minimum Cigarette Price (MCP), the Action for Economic Reform (AER) said this could lead to higher value-added tax (VAT) collections. AER economist Jo-Ann Diosana said raising the tax rate to P44 per cigarette pack from the current level of P21 would quadruple the VAT collections under the MCP. “We should not let the companies keep the profit. Make the tax P44 per pack instead; that way, the gain from the tax goes to the public, unlike a minimum price wherein the gain goes to the tobacco company,” Diosana said. The proposed MCP prohibits the sale of cigarettes below P44 per pack in 2016 with the supposed intention of preventing the youth from smoking. Diosana said this would add another P1.5 billion to VAT collections. However, if the tax rate is increased to P44 per cigarette pack, the VAT collections could reach P6 billion. At present, the tax rate is P21for a pack cigarettes with a net retail price of P11.50 and below and P28 for a pack of cigarettes with a net retail price above P11.50. “Increasing the excise taxes to P44 quadruples the amount, which, in turn, can be channeled to finance public goods, particularly for health,” she explained. AER and organizations like Youth for Sin Tax are part of the Sin Tax Coalition that are currently opposing the MCP saying that it would only increase the profits of tobacco firms. The coalition also explains that the bill is disguising itself as an antismoking measure but is, in fact, an anticompetition strategy. The MCP settles at the price that is favorable for tobacco giant, Philip Morris Fortune Tobacco Corp., and disadvantageous for smaller companies. Jose Endrinal, coconvener of the Youth for Sin Tax, explained that the MCP proposal is founded on cherrypicked information that deliberately overshadows the success of the sintax law to his fellow youth. “It’s a wonder why MCP proponents tag the sin-tax law as a failure. The same SWS [Social Weather Station] survey they are using actually points to a reduction of smoking prevalence of the youth from 35 percent to 18 percent,” Endrinal said. Dr. Tony Leachon, head of the Philippine College of Physician Foundation said increased tobacco profits could be used for amplified advertising to the youth that would then counter several tobacco control efforts. New Vois Association of the Philippines head Engr. Emer Rojas added that the proposal would only increase enforcement costs. “It is better to focus on enforcing compliance of the sin tax and graphic health warnings laws,” he said. The Sin Tax Coalition is composed of civil-society organizations, medical professional groups, health advocates, economic think- tanks, and youth organizations, that supported the passage of the Sin Tax Reform Act (Republic Act 10351).

Thursday, August 20, 2015 A5

By Butch Fernandez

alacañang on Wednesday took up the cudgels for beleaguered Budget Secretary Florencio B. Abad and Health Secretary Janet Garin, who came under fire from former Sen. Panfilo Lacson for alleged technical malversation in declaring and realigning “midyear savings,” a practice that, Lacson said, had already been outlawed by the Supreme Court (SC).

harvest time

Farmers walk along the trail of a pineapple farm in Tagaytay City on Wednesday as they prepare to harvest and market the ripe fruits. Aside from being a staple fruit among many Filipinos, pineapple leaves are used to produce the textile fiber piña commonly used as the material for men's barong tagalog and women’s baro’t saya. Kevin dela Cruz

House think tank raises alarm on rising unliquidated cash advances of government execs and employees

he think tank of the House of Representatives has asked that the government to address the problem of rising unliquidated cash advances (CAs) among its agencies. The Congressional Policy and Budget Research Department (CPBRD), in its discussion paper written by Aurea Hernandez-Sempio, said that despite the existence of policies on the grant and liquidation of CAs, the amount of unliquidated CAs has been continuously rising. “When the rules are unfairly and selectively used, compliance becomes an issue. There must be ways to address the seeming lack of initiative in imposing the CAs policies,” the department said. Under Presidential Decree (PD) 1445, or the Auditing Code of the Philippines, CAs must be liquidated after the purpose for which the CA was granted has been served. According to CPBRD, government agencies CAs from 2010 to 2013 was only 56 percent lower compared with 2007 to 2009 when liquidation rate was between 81 percent and 88 percent. It said that the regional offices get the highest CAs with close to three-fourths (71 percent) of CAs for the regions were liquidated in 2010 and 2013, but liquidation ratio was so low at 37 percent in 2012—thus, pulling down the overall liquidation rate to 39 percent for that year. The national government which receives the second-biggest amount of CAs every year had the lowest average liquidation rate of 53 percent, while the average liquidation ratios of the other sectors were slightly higher and 66 percent for the local government sector (LGS), and 60 percent for the corporate government sector (CGS). The CPBRD said that CA system is a mechanism to ensure the smooth operation of government programs and projects, especially in instances when it is very impractical to issue checks. It added that cash advances are granted to facilitate the payment of obligations, especially those requiring small amounts of money.

Challenges

The CPBRD also said that despite the existence of control measures, the cash advance system

is confronted with some challenges such as the lack of political will to implement CA regulations, nonenforcement of some agreements under the Solana Covenant, absence of a CA manual, long and tedious process in prosecuting erring accountable officer and/employee, and obsolete and unfair imposition of penalties. The CAs are broadly categorized into regular and special CAs. Regular cash advances are released to pay salaries and wages; commutable allowances; honoraria and other similar payments; and petty operating expenses which cannot be paid conveniently by check or those that need immediate payments. On the other hand, special CAs are allowed for purposes such a current operating expenditures of the agency field office or for activities undertaken on field, and travel expenditures, including transportation fare, travel allowance, hotel room/ lodging expenses and other expenses that may be incurred in connection with official travel. “Since 2002, the annual Appropriations Law explicitly states among others, that CAs shall not be granteduntilsuchtimethattheearlierCAsavailedof by the officials or employees concerned shall have been liquidated pursuant to pertinent accounting and auditing rules and regulations,” the paper said. The think tank also noted the non-enforcement of some agreements in Solana Covenant. The Solana Covenant is a tripartite anticorruption plan that the Commission on Audit, Office of the Ombudsman (OMB), and the Civil Service Commission(CSC)signedin2004.Thethreeoversightbodies agreed to monitor unliquidated cash advances as among their other collaborative concerns. According to CPBRD the three basic agreements in the covenant include: the COA to submit reports on unaccounted funds of presidential appointees and elective officials to the OMB, and of non-presidential and appointive officials to the CSC; consolidate yearly reports on all unliquidated cash advances for public reporting; and hyperlink with each other for mutual publication in agency web site of information on sanctionedofficialsandemployeeswithunliquidated cash advances and disallowances. “The last two agreements under the Solana

Covenant appear to have been overlooked. None of the web site of the three agencies has a report on unliquidated advances and information on sanctioned officials and employees. It was noted that the covenant is silent on who among the signatories will take charge of the consolidation and the publication of the report,” the research body said. It also said that annual the General Appropriations Act mandates that “the head of agency and the COA auditor shall be jointly responsible for the preparation and submission to the House Committee on Appropriations and Senate Committee on Finance, either in printed form or by way of electronic document, the Annual Report on Cash Advances indicating the names of the recipients, the items of expenditures for which said cash advances are disbursed, and the dates of liquidation as reflected in the Agency Books of Accounts. According to the CPBRD, compliance to rules and regulations on cash advances could be difficult in the absenceofanupdatedmanualorcodifiedCA-related policies. The CPBRD, meanwhile, said that obsolete, unfair imposition of penalties should be amended. “Presidential Decree 1445, which was approved in 1978 sets the fine of not exceeding P1,000 and imprisonment of not exceeding six months for violation of the cash advance system. Obviously, the fine and penalty stipulated in the Audit Code are already obsolete,” it said. “The maximum fine of P1,000 or imprisonment of not more than six months under PD 1445 is already obsolete and does not deter acts of misappropriating public funds. A graver penalty should be imposed for violators so that the system will not be prone to abuse,” the CPBRD added. It also said that the accumulation of unaccounted cash advances needs immediate attention and decisive action, saying government’s vigilance against graft and corruption has to be coupled with the imposition of relevant and creative accountability measures not only to prevent abusive tendencies in the utilization of public resources but also to secure enough funds for priority programs such as education, health, and other development needs. Jovee Marie N. dela Cruz

Communications Secretary Herminio B. Coloma Jr. on Wednesday sought to play down Lacson’s plan to hold the two Aquino Cabinet officials liable for reviving the fund-transfer scheme, known as Disbursement Acceleration Program (DAP) earlier declared as unconstitutional. Asked if there was basis for exLacson’s technical malversation charges against Abad and Garin, Coloma said the two would respond to the Lacson’s allegations “at the proper forum.” “Government follows all existing laws and jurisprudence and will be ready to answer questions on budget execution before the proper forum,” Coloma assured. Lacson was reported to have obtained documentary evidence against Abad and Garin for reviving

the outlawed DAP, citing Department of Health (DOH) documents detailing the fund transfers and realignments of “midyear saving” in violation of existing laws. The former Senator wondered how the two officials could have declared savings in the middle of the year and realign these funds, saying the act constitutes technical malversation. For instance, Lacson said some P360-million funding had been released under the DOH’s 2015 capital outlay funding allocation for State-run hospitals “infrastructure and equipment needs” in Mindanao but the DOH and the Department of Budget and Management only released P50 million for the Northern Mindanao General Hospital in Cagayan de Oro City.

BCDA set to name winner in CGC housing design tilt By Catherine N. Pillas

TATE-OWNED Bases Conversion Development Authority (BCDA) will soon name the winner in the housing design competition on the residential mixedincome and affordable housing community in Clark Green City. The BCDA in early May launched the competition as a prelude to developing the residential complex of mixed-income and affordable housing units inside the Clark Green City, a 9,450-hectare lot within the Clark Special Economic Zone in the province of Tarlac, that is envisioned to be the country’s first smart, green and disasterresilient metropolis. The grand winner of the competition will be given the award on August 20 at the Mind Museum in Bonifacio Global City, BCDA President and CEO Arnel Paciano Casanova said. “Plans to attain slum-free communities must always be included in future development efforts, that is why the vision and innovation of the Green City are geared toward inclusion,” Casanova said, citing the usual proliferation of informal settlers around central business districts and urban centers owing to non-

inclusive development plans. “The concept of inclusion is aimed to uplift human dignity in a new metropolis where opportunities abound,” he added. The winning design will be considered in the BCDA’s joint housing project with Pag-IBIG (Home Mortgage and Development Fund) for the construction of an initial 2,000 lowcost houses intended for some 85,000 daily-wage earners inside the Clark economic zone. “Green City employees will have the convenience and proximity to their workplace and to their families. We will try to help improve the quality of their lives,” Casanova said. Thirty participants submitted their design entries to the BCDA on July 3. Five finalists were chosen and were awarded $3,000 prize each on July 22. The finalists will submit the refinements of their designs for the final presentation, where the grand winner will receive $40,000 with the winning design to be used as model for implementation. A total of 279 hectares has been allotted for the mixed-use development of the Green City’s rental housing community. The CGC is expected to be launched in 2016.

Opinion BusinessMirror

A6 Thursday, August 20, 2015

editorial

This latest Greek deal is nothing to celebrate

T the end of last week, amid much smiling and hand-shaking, European finance ministers said they were ready to give Greece a new bailout of €86 billion. It’s the third time in five years they’ve declared victory in the battle to revive the Greek economy. This latest triumph shows every sign of being, as durable as those previous failures. The first challenge is to get the deal, regardless of its merits, up and running. Germany’s parliament is due to vote on it this week, and rebellion is stirring in Chancellor Angela Merkel’s party. The bailout is thought likely to pass despite the protests, thanks to support from other parties in the Bundestag— but skepticism in Germany and some other euro-area countries runs deep. That’s a problem because it suggests low or zero tolerance of any departure by Greece from the program it has agreed to—an extraordinarily demanding series of tax increases, spending cuts and structural reforms. The scope of the plan all but guarantees some backsliding. Greece is resentful and agreed to the terms only under extreme duress. Prime Minister Alexis Tsipras’s ruling Syriza party is deeply split on the issue, and fresh elections may soon be necessary. Supposing that these difficulties can be overcome, and the program is followed conscientiously, will it work? That depends on what “work” means. The program assumes that output will contract even further both this year and next. Recovery after that, according to the International Monetary Fund (IMF) and most observers, will depend on new debt relief. Speaking after last week’s meetings, IMF Managing Director Christine Lagarde said: “I remain firmly of the view that Greece’s debt has become unsustainable and that Greece cannot restore debt sustainability solely through actions on its own.” This complicates things even more. The IMF is rightly embarrassed by its participation in the two previous bungled bailouts, and has warned that it won’t join the third, unless debt relief, “well beyond what has been considered so far,” is part of the plan. Germany and its supporters, on the other hand, have opposed new debt reduction throughout—while insisting that IMF participation in the new bailout is vital. Merkel this weekend said lower-interest rates and new maturity extensions—though not, presumably, outright writedowns—were possible, and she was confident the IMF would sign up. German Finance Minister Wolfgang Schaeuble, who has spent most of this year insisting on steely eyed clarity about Greece’s obligations, says he is “assuming” the fund will get on board. If this is clarity, one shudders to think what confusion would look like. Greece still needs the same three things it has needed since 2010: a homegrown commitment to structural economic reform; a program of fiscal consolidation, sufficiently forward-looking to leave room for short-term recovery; and outright reduction of debts that it has no hope of being able to repay. The deal announced last week might be better than nothing and will probably succeed in postponing the next crisis by a few months. It fails nonetheless in all three respects. Bloomberg editorial

Since 2005

BusinessMirror A broader look at today’s business Ambassador Antonio L. Cabangon Chua Founder Publisher Editor in Chief

T. Anthony C. Cabangon Jun B. Vallecera

Associate Editor News Editor City & Assignments Editor Special Projects Editor

Jennifer A. Ng Dionisio L. Pelayo Vittorio V. Vitug Max V. de Leon

Online Editor

Ruben M. Cruz Jr.

Research Bureau Head Creative Director Chief Photographer Chairman of the Board & Ombudsman President VP-Finance VP-Corporate Affairs VP Advertising Sales Advertising Sales Manager Group Circulation Manager

Dennis D. Estopace Eduardo A. Davad Nonilon G. Reyes

Publishing, Inc., with offices on the 3rd floor of Dominga Building III 2113 Chino Roces Avenue corner De La Rosa Street, Makati City, Philippines. Tel. Nos. (Editorial) 817-9467; 813-0725. Fax line: 813-7025. (Advertising Sales) 893-2019; 817-1351, 817-2807. (Circulation) 893-1662; 814-0134 to 36. E-mail: news@businessmirror.com.ph.

www.businessmirror.com.ph

regional offices

n DXQR -93dot5 HOME RADIO CAGAYAN DE ORO E-MAIL ADDRESS: homecdo@yahoo.com ADDRESS: Archbishop Hayes corner Velez Street, Cagayan de Oro City CONTACT NOs.: (088) 227-2104/ 857-9350/ 0922-811-3997 n DYQC -106dot7 HOME RADIO CEBU E-MAIL ADDRESS: homecebu@yahoo.com ADDRESS: Ground Floor, Fortune Life Building, Jones Avenue, Cebu City CONTACT NOs.: (032) 253-2973/ 234-4252/ 416-1067/ 0922-811-3994 n DWQT -89dot3 HOME RADIO DAGUPAN E-MAIL ADDRESS: homeradiodagupan@ yahoo.com ADDRESS: 4th Floor, Orchids Hotel Building,

John Mangun

OUTSIDE THE BOX

N response to the bombing of the Erawan Shrine in Bangkok, Thailand, this week, Defense Minister Prawit Wongsuwan was quoted as saying: “The perpetrators intended to destroy the economy and tourism.”

Minister Wongsuwan is probably correct. More than 20 people were killed and more than 120 injured, and in the aftermath of the bombing, it was reported that there was a sudden wave of cancellations for medical procedures and operations by incoming tourists who flock to Thailand for this purpose. However, the person, or persons, responsible for the attack could have accomplished the same goal of impacting the economy without a single death or injury. Rather than a killer bomb being detonated at the popular and busy location, a “fake” bomb with lots of noise and drama could have had the same effect, as long as a note reading “Next time this will be for real and you may be killed” was left behind. The Philippine Stock Exchange composite index (PSEi) will have been down for five consecutive months if August ends on the negative. During this period we have seen progressively more selling by

Rizal Street, Dagupan City CONTACT NOs.: (075) 522-8209/ 515-4663/ 0922-811-4001 n DXQM – 98dot7 HOME RADIO DAVAO E-MAIL ADDRESS: home98dot7@gmail.com ADDRESS: 4D 3rd Floor, ATU Plaza, Duterte Street, Davao City CONTACT NOs.: (082) 222-2337/ 221-7537/ 0922-811-3996 n DXQS -98dot3 HOME RADIO GENERAL SANTOS E-MAIL ADDRESS: homegensan@yahoo.com ADDRESS: 2nd Floor, Penamante Clinic Tiongson Street, General Santos City CONTACT NO.: 0922-811-3998 n DYQN -89dot5 HOME RADIO ILOILO E-MAIL ADDRESS: homeiloilo@yahoo.com

ADDRESS: 3rd Floor, Eternal Plans Building, Ortiz Street, Iloilo City CONTACT NOs.: (033) 337-2698/ 508-8102/ 0922-811-3995 n DWQA -92dot3 HOME RADIO LEGAZPI E-MAIL ADDRESS: homeradiolegazpi@ yahoo.com ADDRESS: 4th Floor, Fortune Building, Rizal Street, Brgy. Pigcale, Legazpi City CONTACT NOs.: (052) 480-4858/ 820-6880/ 0922-811-3992 n DWQJ -95dot1 HOME RADIO NAGA E-MAIL ADDRESS: homenaga@yahoo.com ADDRESS: Eternal Garden Compound, Balatas Road, Naga City CONTACT NOs.: (054) 473-3818/ 811-2951/ 0922-811-3993

Printed by brown madonna Press, Inc.–San Valley Drive KM-15, South Superhighway, Parañaque, Metro Manila

foreigners leaving the local stock market. Some months ago, I noted this was happening and said then that historically, foreign money has tended to sell and also buy with incorrect timing but that, perhaps this time, that foreign money would be correct. On April 10 the PSEi closed at what would be its daily historic high at 8,127. The PSEi now has fallen about 10 percent, which would qualify in textbook terms as having “corrected” from the high. Billions of dollars of foreign money has consistently been liquidating out of Philippine stocks. Why? Several years ago when the PSEi was trading at 4,000, there were several of us in the business who estimated—predicted is far too generous a word—that the market was headed to the 8,000 area. We each had our own reasons for picking that 8,000 level, mine based on long-term trend lines going back to 1996 and 1997. Once 8,000 was hit, the question

then became, what’s next? Sure, PSEi 10,000 looked great when written down, but while I echoed that sentiment also, there was no firm basis in reality for choosing that number except it sounded nice. Over the last five months, every day that the PSEi went down, the daily commentary trying to rationalize the drop has sounded like a small child trying to choose a flavor of ice cream: “Chocolate, no, ube, wait, I want queso”. On days the market went up, it was because investors suddenly decided to ignore whatever the reason that was given for the decline the day before. Corporate earnings were good and investors bought. Corporate earnings were bad and investors sold. Corporate earnings were disappointing but investors bought, ignoring the earnings. Currently, the blame is on China, which is always an acceptable excuse in the Philippines. But the reason that the foreigners have been getting out is because the US Federal Reserve (the Fed) has been setting off a series of “fake” bombs about an interest rate hike since last September 2014. At that time, a plurality—not majority—of economists and stock-market professionals expected a rate increase in March 2015. March came and went without that hike. But the Fed had made clear that an interest rate increase would be on the table at the June 2015 meeting. The PSEi hit its long-term target

Emerging Asia can’t just rely on China

Judge Pedro T. Santiago (Ret.) Benjamin V. Ramos Adebelo D. Gasmin Frederick M. Alegre Marvin Nisperos Estigoy Aldwin Maralit Tolosa Dante S. Castro

BusinessMirror is published daily by the Philippine Business Daily Mirror

HOM

Where have all the foreigners gone?

William Pesek

BLOOMBERG VIEW

F you think Federal Reserve (the Fed) Chair Janet Yellen is stressed, spare a thought for Agus Martowardojo. On Tuesday the governor of Indonesia’s central bank had to choose between cutting interest rates to support growth or hiking them to prop up his currency. He ultimately decided to split the difference and do nothing. Martowardojo’s dilemma is emblematic of the increasingly chaotic situation in the world’s emerging markets. Six months ago, the biggest fear for Martowardojo and his peers in emerging markets from Seoul to Brasilia was that Yellen would soon announce the first tightening of US interest rates in a decade. Now action by the Fed seems almost harmless by comparison with the threat posed by China’s slowdown, currency devaluation and stock crash (stocks were down another 6.2 percent on Tuesday). What’s more, the number of fragile emerging nations has expanded since 2013, when Martowardojo took the top monetary job in Jakarta. Back then, Southeast Asia’s biggest economy joined Brazil, India, South Africa and Turkey as a member of the Fragile Five, Morgan

Stanley’s list of emerging economies at risk of stagnation. Today the bank’s strategists are expressing worry about what could be termed the Troubled Ten. These include Asian economies Singapore, South Korea, Taiwan and Thailand along with Brazil, Chile, Colombia, Peru, Russia and South Africa. But, of these countries, it’s Beijing’s neighbors who are most at risk. For years, China’s 10-percent growth and voracious demand for commodities and manufactured goods boosted Asia’s gross domestic product. That masked the inherent weaknesses in the region’s financial systems and growth models, while taking pressure off politicians to push reforms—until now. Indonesia is Exhibit A for this chronic complacency. Since taking over the presidency in October, President Joko

Widodo has been slow to take steps to reduce red tape, improve productivity or strengthen competiveness. Now, he’s paying the price as China’s devaluation intensifies downward pressure on the rupiah, one of Asia’s worst-performing currencies this year. Exports fell 19.2 percent in July, while imports plunged 28.4 percent—a sign that demand is weak both outside and inside the nation. Or consider Malaysia, whose currency, the ringgit, is at levels last seen during the Asian financial crisis in 1998. Already battered by political scandals and falling commodity prices, Malaysia’s capital flight is now accelerating as investors get more skittish about China’s yuan. The same goes for the Thai baht, which had already been under pressure, thanks to the clueless economic policies of the military junta ruling the nation (a mysterious explosion in Bangkok on Monday that killed at least 20 hasn’t helped matters). Korea’s won is also sliding. Asia’s fourth-biggest economy isn’t just struggling to deal with the slowdown in China (which accounted for 30 percent of South Korea’s exports in 2014), but Japan’s renewed flirtation with recession. Japan contracted an annualized 1.6 percent in the second quarter, increasing the odds the Bank of Japan will seek to reduce the value of the yen. The last thing Korean President Park Geun-hye needs is a race to the bottom between high-tech Japan and low-cost China. The cracks are starting to show in the

in April, just in time for foreigners to move out in anticipation of the June rate increase. But everyone knows for certain that the Fed is going to raise US interest rates, if not in June, then it absolutely must happen in September. So when June came and went without the Fed increase, there was even more urgency to sell local shares to get ready for September. Look at the PSEi trend. We dropped 2.8 percent in April and then 1.74 percent in May getting ready for the June rate hike. But in June and July the decrease was only 0.21 percent and 0.19 percent, respectively, after the no-show June rate hike armageddon. However, the September Fed meeting is almost on us and the PSEi is down 3 percent in August. Regardless of what happens at that September meeting, the Fed “bomb scare” will be over. If rates are raised—and it depends greatly on how much—foreign money will slowly begin to flow to the Philippines. If rates are not raised, the Fed’s credibility will be virtually gone and its “threats” will be ignored. Everything changes at the end of September. E-mail me at mangun@gmail.com. Visit my web site at www.mangunonmarkets.com. Follow me on Twitter @mangunonmarkets. PSE stock-market information and technical analysis tools provided by the COL Financial Group Inc.

cheery story Asia’s officials and investors used to tell about the region’s growth. For too long, that narrative, together with China’s rapid expansion and central bankers’ willingness to indulge in quantitative easing, sapped the urgency for painful structural upgrades to diversify sources of growth, lower trade barriers and reduce corruption. In years past, the region’s central banks would have shored up growth by simply cutting interest rates. But China’s slowdown is limiting Asia’s options. Former Economist editor Bill Emmott described the situation in a Project Syndicate op-ed: “Although countries can ride waves of growth and exploit commodity cycles despite having dysfunctional political institutions, the real test comes when times turn less favorable and a country needs to change course.” The region now faces that pressure amid declining investment returns, high local-debt levels and skittish world markets. This hardly means a return to the crisis days of 1997 and 1998. For all Asia’s vulnerabilities, its financial systems, debt markets and central banks are plenty capable of fending off the current global turmoil. But a decade of lazily riding China’s coattails has left Asia ill-prepared for the slow-growth period that’s to come. So great is the uncertainty about China that Yellen, too, will undoubtedly be factoring it into her decisions at the Fed. In that sense, she and Martowardojo have more in common than they might realize.

Opinion BusinessMirror

opinion@businessmirror.com.ph

Application for refund is a mere scrap of paper Atty. Irwin C. Nidea Jr.

Tax law for business

or several years now, taxpayers are painstakingly waiting for the rules on value-added tax (VAT) refund to be crystal clear. The frequent flip-flopping of rules by the Bureau of Internal Revenue (BIR) and the belated clarifications by the Supreme Court (SC) on the confusion is always to the detriment of taxpayers. Whenever the rules change, almost always, it will be retroactive and without regard to the plight of taxpayers. The story of the VAT-refund confusion started with the reversal of the Atlas case (GR 141104 & 148763, June 8, 2007) by the Mirant case (GR 172129, September 12, 2008), where the SC clarified that VAT refund must be claimed within two years from the close of the taxable quarter and not two years from the end of filing of the VAT return. As a result, claims that were filed based on the prescriptive period laid down in the Atlas case were all dismissed for having been filed out of time. Billions of pesos worth of input VAT that taxpayers are entitled to went down the drain. After several years, the landmark case of Aichi (GR 184823, October 6, 2010) was promulgated by the SC. In this case, aside from affirming that VAT-refund claims prescribe in two years counting from the end of every quarter, it interpreted the neglected “120day” provision of the Tax Code of 1997, which provides that “…the commissioner shall grant a refund or issue a tax credit certificate for creditable input taxes within 120 days from the date of submission of complete documents in support of the application filed in accordance with subsection (A) thereof.” The new rule laid down by Aichi, which was applied retroactively (with some exceptions), limits the time within which the commissioner may act on an application for VAT refund to 120 days from the filing of the administrative claim, as opposed to the old rule where the taxpayer may choose to wait for the commissioner’s decision for as long as two years. Many claims for refund were also dismissed because of the retroactive application of the Aichi case. Some were ruled to have been filed to the Court of Tax Appeals (CTA) prematurely, since the taxpayer did not wait for the 120-day period to expire. Other claims were dismissed for having been filed late, since the appeal to the CTA was made beyond 30 days after the expiration of the 120day period. There were lingering questions on what happens if the commissioner does not issue a decision within the 120-day period. This concern was laid to rest by the SC in the recent case of ROHM, (GR 168950, January 14, 2015), where it was further clarified that the inaction of the commissioner within the 120-day period is equivalent to a decision. Thus, a taxpayer has 30 days to appeal the inaction to the CTA. Unfortunately, the Aichi case is not clear when to reckon the counting of the 120 days. The law provides that the 120-day period must be reckoned from the date of submission of complete documents, and not from the filing of the application for tax refund. This fumes confusion, since filing of an application for refund and submission of complete documents are two different actions under the law. In tax assessments, it is clear that a taxpayer must file his protest within 30 days from receipt of the Formal Letter of Demand, and he has 60 days thereafter to submit supporting documents. In a claim for refund, however, there is no specific period provided by law within which the taxpayer must submit the complete documents.

It appears that the taxpayer has the discretion when to submit the complete documents and, in effect, has also the power to determine when the counting of the 120-day period should commence. The SC in the very recent case of Hedcor Inc. (GR 207575, July 15, 2015) had the opportunity to finally clarify this matter. The Chief Justice said, “The law intends the filing of an application for a refund to necessarily include the filing of complete supporting documents to prove entitlement for the refund. Otherwise, the mere filing of an application without any supporting document would be as good as filing a mere scrap of paper.” In ruling against the taxpayer, the Chief Justice reasoned, “To allow petitioner’s allegations to prevail would set a dangerous precedent, as the reckoning period for the 120 days would be at the mercy of taxpayers. They will then submit complete supporting documents, even after the two-year prescriptive period for filing an administrative claim has lapsed. This is obviously not the intention of the law.” Because of this ruling, it is now clear that filing of an application for refund must be simultaneous with the submission of complete documents. Failure to submit the complete documents, together with the application for refund, is tantamount to filing a mere scrap of paper. Piece by piece, the SC is doing its part to enrich jurisprudence that would clarify the rules on VAT refund. There are, however, many issues that are still left unresolved. The BIR usually issues a letter of authority (LOA) once a taxpayer files a claim for refund. The said LOA is accompanied by request for documents. The CTA in recent cases counted the 120-day period from the submission of additional documents by the taxpayer, because the additional submission arose from a BIR letter request. Does the Hedcor rule apply in such case? The BIR in Revenue Memorandum Circular (RMC) 54-2014 listed down the documents that a taxpayer must submit before a claim for refund may be acted upon. How can this RMC be reconciled with the consistent ruling by the CTA, that it is the taxpayer that determines what a complete document is? From the Atlas case to the Hedcor case, all these new jurisprudence are generally applied retroactively to the detriment of taxpayers. It is, therefore, important that taxpayers know the current jurisprudence, and they must also learn how to preserve their rights in a very fluid and hostile environment. The author is a partner of DuBaladad and Associates Law Offices (BDB Law), a member-firm of World Tax Services (WTS) Alliance. The article is for general information only and is not intended, nor should be construed as a substitute for tax, legal or financial advice on any specific matter. Applicability of this article to any actual or particular tax or legal issue should be supported, therefore, by a professional study or advice. If you have any comments or questions concerning the article, you may e-mail the author at irwin. nidea@bdblaw.com.ph or call 4032001, local 330.

To whom shall we go? Msgr. Sabino A. Vengco Jr.

Alálaong Bagá

any are the troubles of the just one, but out of them all the Lord delivers him (Psalm 34:2-3, 16-17, 18-19, 2021). Hard teachings can send people away. But to whom shall we go? Who has the words of eternal life? (John 6:60-69).

He saves those crushed in spirit For the third Sunday in a row, Psalm 34 serves as a refrain for the messages of the readings. The selected verses of the psalm still start off with the overflowing praise of God, proclaiming the appropriateness of blessing God at all times and with one’s whole being. The psalmist takes leave to glorify God as though in an assembly at worship where other lowly ones (the anawim), who trust and depend on the Lord, are gathered and can hear the doxology and be glad. The reason for glorifying God is because His eyes are on the just and His ears are open to their cry, while His face is against evildoers. God is the protector of the vulnerable who invoke Him sincerely. Many may be the afflictions of good people, but when they cry for help, the Lord hears and delivers them out of all their troubles. He is near to the brokenhearted and saves the crushed in spirit. What

truly identifies the just man is his repentance and humble recourse to the Lord. A broken and contrite heart God will not despise (Psalm 51:17). And God watches over all the bones of the just ones and not one of them will be broken. They may experience suffering, but they will survive death; just as bones survive death, the bones of the just ones will not be broken. Symbolically, no bone of the Passover lamb was broken (Exodus12:46); physical death in the case of Jesus under the protection of the Father cannot destroy His life (John 19:36).

Many disciples no longer accompanied him

The words and deeds of Jesus were not always met with welcome and belief. What is shocking is that unbelief came also from some of His own disciples. To these followers, it was scandalous that Jesus claimed to be the Son of Man who had come down from heaven, the bread come

Thursday, August 20, 2015

down from heaven that gives eternal life to those who eat it. It was a hard saying as far as they were concerned and they could not accept it. Rather than soften the hardness of His message that He descended from heaven, Jesus intensified it further by challenging them what would be their reaction if they were to see Him ascending back to heaven where He was originally. Jesus implied that since they could not believe that He descended from heaven in the first place, they would probably be as unbelieving even if He ascended back to heaven. Instead, Jesus pointed out to His antagonists that they were behaving according to the flesh, the human way of being in the world, which cannot give them life. What gives life is the Spirit, and His words and teaching are both Spirit and life. But those of them who do not believe His words, therefore, do not have Spirit and life. For one thing, as He has already told them, no one can come to Him and believe in Him, unless it is granted by His Father in heaven. The disciples who felt they just could not take it left Jesus and returned to their former way of life. They journeyed with Him no more.

You have the words of eternal life

Jesus must have felt it that some of His followers abandoned Him. He turned to the others to ask what they would do: Do they also want to leave Him? Neither asking them to stay nor giving them permission to go,

The thrill of ‘shooting’ African wildlife

By Mary Ann Anderson | TNS

he open-sided Land Rover bumped along a dusty red dirt road and through a scraggly forest peppered with thorny acacias. Across the Malilangwe Wildlife Reserve in southeastern Zimbabwe, I spotted a small herd of elephants in the late afternoon, their enormous gray bodies reflecting long streaks of golden sunlight. The elephants didn’t concern me, nor did the dozens—no, hundreds— of gazelles, zebra, giraffe and the occasional sable or Cape buffalo grazing nearby. I had only one animal in mind to find, and that was a lion, a big, black-mane male, if possible, for I thought him the most captivating creature in all of Africa. How desperately I wanted his head to hang in my office so I could look at it time and time again to remind me of Africa and of Zimbabwe. I urged my guide, Tengwe Siambwada, to keep going until we found lions. The reserve, which shares a border with Gonarezhou National Park between Zimbabwe and Mozambique, spreads before us, its 150,000 acres the perfect place to hunt lion. Across its vastness, we drove for another hour, maybe longer, along the way stopping to see a mother cheetah, at the sound of the Land Rover, rush her two cubs into the dense underbrush. She watched us warily, but it wasn’t cheetah I wanted. Tengwe pressed on, as I had only ngala, the word the local tribe of the Shangaan use for lion, in my sights. By then, the sun, hot and blistering during the day, was beginning its descent in the west. A dramatic cool-down had begun, but that is the way of Africa. Brain-frying heat in the day, and at night, air so cool one often needs fleece. As the air grew colder, the sky had turned an unreal shade of orange, and as the minutes passed, streaks of pink and crimson melded into the mix. The color of the earth, as red as Georgia clay, deepened into richer tones of burnt ginger and umber. A tawny lion would be difficult to see against a backdrop almost the same color as he. Tengwe slowed as we drove nearer to a small lake, where it seemed to be happy hour at the watering hole. Giraffes and zebra took turns drinking alongside warthogs and impala, each bowing its head gracefully to slurp water. A chorus of hornbills serenaded the wildlife with their haunting and melodious songs. Tengwe drove around to the other

side of the small lake, and there, in a shady stand of trees, lay the lions, so camouflaged into the warm, rusty hues of the ground that I almost didn’t see them until Tengwe, with his excellent eyesight, pointed them out. We had been hunting for them most of the day, and finally they were before me. Most of the other animals, sensing something amiss, snorted deeply and bounded away, their hoofs pounding against the earth and sending up clouds of dry dust into the wind. We were practically alone with the pride of three females. From across the dusty plain, I saw a big male sauntering toward the watering hole. Everything I knew about lions came to me as I silently watched him. Lions are confident creatures, assured of their top rung in the food chain. One swipe of a huge paw or a rip with its razor-sharp teeth and any animal near it is kitty kibble. They grow up to 9 feet from the tip

of their nose to their strong, muscleladen tails and can weigh more than 400 pounds. Both males and females have those powerful roars, which can sometimes be heard from up to 5 miles away. The sound is mesmerizing and paralyzing, stopping anything or anyone in its tracks. The mane of the lion before me was golden, not black as I had hoped, but no matter. On that day, he would be mine and all mine. The stunning, regal beast drew closer, and since we were on a reserve, in the waning light I saw that he had a radio collar. I didn’t care. I wanted—no, had to have— my shot at him. Oh, but he would be some kind of beauty hanging on my wall back home in Georgia. Seeing him so vulnerable and alone stirred something primal in me. It was time to get my shot. Slowly, as not to disturb the stunning beast, I raised my arms and took a bead on the creature. Just as I put my finger on the trigger, he looked straight at me. For a moment, I thought he could see into my soul with his ambercolored eyes. “I’ve got you now,” I whispered quickly as I fired off the first shot, and then another and another. He popped his head up, at first only slightly startled at the sound. Unbelievably he still kept coming straight toward me. Still I fired away, shooting him

Jesus leaves it all to their own decision. Peter makes a triple declaration of faith and calls Jesus Master; there is nobody else quite like Jesus to whom they could go. Second, Peter confesses that he and the others accept what Jesus has been teaching about eternal life; they believe that Jesus is the bread from heaven to give man life without end. The third and final affirmation of Peter is an amazing declaration and conclusion: They are convinced that Jesus is the Holy One of God. This messianic title identifying Jesus means that all the claims of Jesus are trustworthy: He is, indeed, the bread of life come down from heaven which gives life to the world and the life Jesus gives to those who believe in Him and receive Him is everlasting. Peter for himself and his other companions have made their decision: Jesus is their savior and mediator with God. Alálaong bagá, we all must make our decision whether we shall go the way of Jesus, believing in Him as the one who has for us the words of eternal life. We make decisions based on our experience: Is Jesus for us God’s face of mercy and compassion delivering us from our afflictions? He is God’s goodness to us and we have nobody else to go to! Join me in meditating on the Word of God every Sunday, 5 to 6 a.m. on DWIZ 882, or by audio-streaming on www.dwiz882.com.

over and over and over again. It didn’t seem to faze him, nor did he roar in protest. He merely panted heavily and then coughed, long and loud. “Turn around! Turn around! Get behind him!” I snapped to Tengwe. “Lure him back to us! Don’t let him get away!” He quickly spun the Land Rover around, with clouds of red dust settling inside the vehicle, just so that I could fire off a few more shots. With the sudden crunching of smooth tire against gravelly dirt, from the corner of my eye I watched as the startled lionesses leapted up and moved toward the male although he was clearly beyond needing any help. Even with all the shots I had fired, Ol’ Ngala kept toddling toward the trio of lionesses. But then, as he did, it seemed as if all the light suddenly was wrenched from out of the day, and darkness enveloped us. It was time to go. In just seconds the last of the sun faded away beneath the horizon. I laid my camera with all its gorgeous shots back into its protective case, took a long last look at Ol’ Ngala and his ladies, and thought how beautiful those photographs would be framed and hanging on my office wall. I then sat back as Tengwe shoved the Land Rover into first gear and we began the long journey back to the lodge.

Artist Mark Balma paints a mural of Cecil, a well-known lion killed by Minnesota dentist Walter Palmer during a guided bow-hunting trip in Zimbabwe, as part of a silent protest outside Palmer’s office in Bloomington, Minnesota, on July 29. Palmer said that he had no idea the lion he killed was protected and that he relied on the expertise of his local guides to ensure the hunt was legal. AP

2nd Front Page BusinessMirror

A8 Thursday, August 20, 2015

BOP surpasses 2015 govt target in July

By Bianca Cuaresma

he country’s transactions with the rest of the world, more known as the balance of payments (BOP), exceeded in July the government’s expectations for the entire year. The Bangko Sentral ng Pilipinas (BSP) said on Wednesday the BOP stood as a surplus totaling $354 million in July, albeit at a lower level than that in June, when this aggregated $485 million. This was the second month in a series when the country’s BOP yielded a surplus. The BOP also stood as a surplus totaling $501 million in July last year. The BOP is a summary of the country’s transactions with the rest of the world. This means that the country’s foreign-currency earnings were more than enough to cover its foreign-currency expenses. The BOP surplus in July also brought the country’s BOP past the assumed excess in the BOP this year. Data show the BOP surplus from

Guinigundo said the surplus in July was made possible, in part, by the BSP’s foreignexchange operation— including investments abroad and foreigncurrency deposits from the national government.

January to July totaled $2.038 billion. The government earlier projected the BOP to hit $2 billion by the end of the year. The seven-month total BOP surplus is a turnaround from the $3.6-billion deficit reported in the same seven-month period last year. BSP Deputy Governor for the

Monetary Stability Sector Diwa C. Guinigundo said the BSP remains “cautiously optimistic” the surplus state of the BOP would be sustained for the rest of the year, no matter the volatilities seen, as a result of the anticipated interest-rate adjustment in the US and the foreignexchange market turbulence that came with the recent devaluation of the Chinese yuan and the Vietnamese dong. “This cautious optimism owes to the strong fundamentals of the Philippine economy and the structural flows that have proven to be resilient,” Guinigundo told reporters. Guinigundo also said the surplus in July was made possible, in part, by the BSP’s foreign-exchange operation— including investments abroad and foreign-currency deposits from the national government. “This was made possible by the sustained foreign-exchange inflows from remittances, BPOs [business-process outsourcing] and foreign portfolio investments. The sur plus position was moderated by the national government’s external-debt payments,” he added.

www.businessmirror.com.ph

Ayala Land to spend P12.5 billion to boost office-leasing assets in Nuvali By VG Cabuag

roperty developer Ayala Land Inc. (ALI) said it is spending some P12.5 billion through 2020 to double its leasing space in Nuvali in Laguna, the company’s biggest development. John Estacio, Nuvali general manager and part of the company’s strategic land-banking management group, said ALI will be building additional office spaces with total gross floor area of between 30,000 and 32,000 square meters. For retail space, it will add more or less 10,000 sq m. At the moment, the company has about 31,000 sq m of gross floor area as office space and a total of 55,000 sq m of retail space with the recent opening of Solenad 3. “We are focusing on office space, as our mall areas are already [on a] at par with the shopping malls in Metro Manila,” Estacio said. He said one of the company’s major targets in the coming years is to build or locate offices at its mixed-used urban dis-

trict, providing potential business locators two types of office formats. The first is its typical office for the business-process outsourcing (BPO), firms similar to One and Two Evotech, and second is its built-to-suit product, wherein Nuvali can build for a locator its own building, based on specific requirements. “I think we are progressing in Nuvali as planned. This is how we envisioned it to be. But things are happening much faster. Yes, that’s [the P12.5-billion] part of the budget, but it’s brought forward because we feel the market has grown much faster than we originally thought,” said Anna Ma. Margarita Dy, ALI senior vice president. The 2,290-hectare estate has developed 78 percent of its land area and continues to grow as a community, with over 12,000 residential units sold, has 86,000sq-m gross leasable areas of retail and office spaces and 150 hotel rooms. Also within Nuvali are two BPO buildings, an events center, two schools and several recreational attractions.

Nuvali, located in the city of Santa Rosa, Calamba, and the municipality of Cabuyao, Laguna, accounts for 20 percent of ALI’s revenues for the past five years and 15 percent of its net asset value. For its residential products, Nuvali’s offering starts from P1.8 million to P20 million worth of lots and houses. “In a couple of years, we will begin to have mid-density residential offerings for our higher-end brands,” Estacio said. Nuvali currently has about 4,000 employed people within its property, and will add about 2,500 people more with the opening of its new bigger shopping mall and S&R membership grocery store by the end of the year. QualiMed Hospital, meanwhile, will open in the second quarter of 2016. Aside fro Xavier School and Miriam College, Nuvali also partnered with the Legionaries of Christ-the Everest Academy, which will be the first international Catholic school in the area. In total, Nuvali has a student population of 990, which is seen doubling every year.

Megaworld set to open 2 upscale malls in Fort Bonifacio

EGAWORLD Corp. said it will start operating its first batch of additional shopping malls in its Fort Bonifacio property in Taguig City this year, after spending P4 billion in the venture. Kevin Tan, the company’s first

vice president and head of commercial division, said the company will open later this year two of its fullscale flagship malls in Uptown Bonifacio, adding 110,000 square meters in Megaworld’s gross floor area. Tan, son of Megaworld chair-

man Andrew L. Tan, said the company will have Uptown Place and Uptown Parade in the development. Uptown Place is a five-level upscale mall covering 85,000 sq m of retail and commercial Continued on A2