Tax perks for lawyers eyed

if he/she cannot afford one.

By Jovee Marie N. dela Cruz @joveemarie

GIVE pro bono lawyers a break; a tax break, that is.

T his is the spirit behind House Bill (HB) 7867, which seeks to amend Republic Act 8371 (The Indigenous Peoples’ Rights Act of 1997), in order to institutionalize the provision of pro bono legal services to the indigent indigenous cultural communities/ indigenous peoples (ICCs/IPs).

“In recognition of the selfless and committed efforts of these legal counsels who tirelessly give pro bono services to the underprivileged and marginalized, particularly indigent ICCs/IPs, the said legal counsels must then be entitled to tax credits which shall be deducted from their gross income,” explained co-authors Davao City Rep. Paolo Z. Duterte and Benguet Rep. Eric G. Yap.

Duterte added that the Bill of Rights guarantees the right to an independent and competent legal counsel of any person undergoing an investigation for a commission of an offense. The same provision also enunciates the mandate of the state to provide a legal counsel for the said person ties for the covered reportorial requirements shall be implemented.

Under the guidelines, the SEC will provide amnesty on the un-assessed and/or already-assessed unpaid fines and penalties imposed by the SEC for the non-filing and late filing of the GIS for the latest and prior years, the finance chief said.

“The amnesty program reduces the penalty for the non-filing and late filing of GIS and AFS for Non-Compliant Corporations to P5,000,” Diokno said.

He added that the rates will apply provided that the corporation or entity will submit the latest reportorial requirement due at the time of the application, and comply with MC 28.

Meanwhile, revoked or suspended corporations will only need to settle 50 percent of the total assessed fines, encompassing all violations on the nonfiling and late filing of GIS and AFS.

Furthermore, the P10,000 fine for the noncompliance with MC 28 for both non-compliant and revoked or suspended corporations will be waived.

Pursuant to the “Guidelines on the Imposition of Fines or Penalties for Non-Compliance with Reportorial Requirements,” a corporation that fails to submit their GIS or AFS is fined for P1,000 to P10,000 per report per year, depending on the retained earnings reflected in the corporation’s latest AFS. vation projects,” the ADB said. Narrowing the infrastructure financing gap will be critical for economies to meet their economic and social goals. Private sector participation is key. Currently, more than $200 trillion of private capital is invested in global capital markets. Innovative finance mechanisms are needed to catalyze private and institutional finance for infrastructure, and to scale them up to meet the growing needs of the region as Asean-plus-3 economies bounce back from the pandemic.

Yap, on the other hand, said that a significant number of the country’s ICCs/IPs are living below the poverty line. Thus, once investigated or held as accused, these ICCs/ IPs rights to counsel becomes prejudicial, given that no legal counsels are immediately available on their behalf.

Yap added that under the proposed measure, the National Commission for Indigenous Peoples (NCIP) would be empowered to appoint counsel de oficio for indigent ICCs/IPs with pending cases before it. The appointed pro bono counsel shall be entitled to tax free honoraria or per diem as the NICP provides under its rules.

The proposal also highlights that any member of the Philippine Bar, who has rendered free legal services to the indigent ICCs of at least 100 hours within one year shall be entitled to direct deduction from his income tax due in the amount of P100,000.

To make sure that HB 7867 would be implemented in accordance with its desired objectives, the NICP would be working closely with the Bureau of Internal Revenue and the Integrated Bar of the Philippines.

THE Bureau of Customs Port o f Zamboanga (BOC-POZ) announced it has destroyed a total of 19,419 cases and 667 reams of smuggled cigarettes in a warehouse in Zamboanga City over the weekend, marking the biggest haul of illicit cigarettes ever in the history.

A report this week by POZ Acting District Collector Arthur G. Sevilla Jr., the bulk of the goods were found in a warehouse in Indanan, Sulu back in March. Sevilla said the BOC condemned the cigarettes worth P1.43 billion, which were seized after anti-smuggling operations in the Zamboanga Peninsula, Basilan, Sulu and TawiTawi in the first quarter of this year. The CIIS at the Manila International Container Port (MICP) was responsible for the anti-smuggling operations in Indanan, Sulu, that resulted to the major apprehension of a warehouse of 19,000 master cases.

On the other hand, a nonstock corporation is fined P500 to P5,000 for non-filing of their GIS and AFS.

The late filing of reportorial requirements, for both stock and nonstock corporations, is subject to a fine equivalent to 50 percent of the fines imposable for non-filing of reports.

For the covered entities, Diokno said the amnesty will be extended to corporations, including branch offices, representative offices, regional headquarters, and regional operating headquarters of foreign corporations and foundations.

“It shall also cover associations, partnerships, and persons under the jurisdiction and supervision of the Commission that failed to comply with MC 28,” he said.

However, the amnesty program does not cover corporations whose securities are listed on the Philippine Stock Exchange (PSE); those whose securities are registered but not listed on the PSE; those considered as public companies; those with intra-corporate dispute; those with disputed GIS; and, other corporations covered under Section 17.2 of Republic Act 8799 (Securities Regulation Code), according to Diokno.

An example is the blending of different financing instruments to de-risk investments and lower the cost of capital. The report provides a user-friendly policy toolkit on the approaches for public–private partnerships, including how governments can collaborate with companies, investors, and financing agencies through these financing platforms. With the wider adoption of these financing solutions, governments can strategically employ public funds to attract private investment, accomplish key development goals, meet shareholder expectations for investment returns and make the Asean-plus-3 region a more attractive destination for infrastructure investment.

Attitude and opportunities

“The Chinese use two brush strokes to write the word ‘crisis.’ One brush stroke stands for danger; the other for opportunity. In a crisis, be aware of the danger—but recognize the opportunity.”

—John F. Kennedy

“A nation is a totality of men united through community of fate into a community of character.”

—Otto Bauer and seemingly insurmountable challenges to become an economic superpower in a span of one generation.

IN Europe, there is the Russian adventurism in Ukraine running for more than a year. In Africa, there is the Sudan “domestic war” between two leaders driving foreigners and locals to evacuate. In Myanmar, the continuing displacement of the populace due to militarism that has been featured intermittently in international news seems to be far from ending.

In the South China/West Philippine Sea, tension seems to be escalating in affected countries and/or jurisdictions due to sovereign claims by the second biggest economy and second biggest populated country in the world. And the Philippines is very much in the midst of the tension at the South China/West Philippine Sea.

Chaos, tensions and crises seem to be the order of the day.

Another country that faced similar challenges and overcame them was Germany. Now the question is: if Japan, Germany and a host of other nations could do it, can we also do it? Can we overcome our current challenges and rise together as a nation. Do we have the right attitude and can we foster it across our social strata. I believe we can.

First things first. We have to rid ourselves of our “critical” attitude and start believing that if we don’t help ourselves, no one else will.

The condemned master cases of cigarettes were seized for violating Section 117 of Republic Act 10863 (Customs Modernization and Tariff Act of 2016) in relation to Executive Order 245 (“Amended Rules and Regulations Governing the Exportation and Importation of Leaf Tobacco and Tobacco Products”).

The BOC explained that during the condemnation, the cigarettes were drenched in water and repeatedly crushed by a payloader as members of BOC’s partner agencies watch. “The big bulk of the smuggled cigarettes was seized in Indanan, Sulu, and it’s now destroyed and will be disposed in a sanitary landfill,” BOC Intelligence Officer 3 Alvin Enciso was quoted in the statement as saying.

The transporting process will carry on for about three days to five days because of the considerable volume of the destroyed cigarettes. Raadee S. Sausa

A lot of the country’s politicians and opinion writers are not shy in criticizing whatever may be the apparent direction being taken by the government. All these happenings are firsts and there may be no template or model available to be adopted. What could be the optimal approach to the predicament we are in?

The key is ‘attitude’ ALTHOUGH there is no proven best way forward, let me focus on the one thing that would form the core of any solution. I believe the key is “attitude.”

When I think of how the attitude of citizens can impact a nation’s progress, the first country that comes to mind is Japan. Japan’s story of progress as a nation from the ruins of World War II to becoming one of the largest economies in the world is an inspiring one. World War II left the Japanese economy in shambles and virtually destroyed the morale of its citizens. However, with a “can-do” and positive attitude Japan overcame adversity

We have to start believing that what happens to the Philippines is not your neighbor’s problem or the government’s problem: it is your problem and my problem as well. We have to start taking responsibility for our collective decisions. We have to reduce our tolerance for mediocrity at the personal as well at national level.

Indeed, the only way we can get out of the growing tensions is by believing in ourselves and, at the same time, executing this belief through smart thinking, determination and sacrifice. We owe it to ourselves and our future generations to make our country ride the turbulence and emerge as a better people with conviction and love of country.

Let us use the “crisis” as a prequel to opportunities. Let us work together as a people to address the situation and seize the opportunities that come with the “crisis.” As they say, if you play your cards well, you will win!

Conchita L. Manabat is the President of the Development Center for Finance. A past President of FINEX and past Chair of the International Association of Financial Executives Institutes, she serves as the Chair of the IAFEI Advisory Council. She is a member of the Consultative Advisory Groups of the International Auditing & Assurance Standards Board (IAASB) and the International Ethics Standards Board for Accountants.