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NBI summons billionaire’s son to shed light on girlfriend’s death
By Joel R. San Juan @jrsanjuan1573
THE National Bureau of Investigation (NBI) has summoned Julian Roberto Ongpin, a son of billionaire and former trade minister Roberto Ongpin, to shed light on the death of his girlfriend Bree Jonson while they were together in a La Union resort on September 18, 2021.
This was disclosed by Justice Secretary Menardo Guevarra who said Ongpin would have to give his statement with regard to the circumstances of Jonson’s death.
“Julian Ongpin himself was subpoenaed by the NBI to appear on October 6 and give his own statement regarding the death of Bree Jonson,” Guevarra said.
Based on initial evidence, Ongpin was reportedly the last person seen with his girlfriend while she was still alive.
Ongpin allegedly found Jonson hanging from the bathroom of the Flotsam and Jetsam Resort in La Union, prompting him to seek assistance in bringing the latter to a hospital but was declared dead on arrival.
The police also allegedly found 12.6 grams of cocaine from Ongpin and filed possession of illegal drugs charges against him.
The drug case is now under preliminary investigation at the Department of Justice (DOJ) main office in Manila.
This developed as Jonson’s legal team announced that it has settled the issue with the Philippine National Police (PNP) with regard to the turn over of the victim’s organs to the NBI.
The Sunga, Salandanan and Ampuan Law Offices recounted that on September 20, the PNP-Region 1 Crime Laboratory conducted the first autopsy of Jonson and some organs from the body including her trachea.
On September 23, the law firm said the NBI started its parallel investigation and conducted the second autopsy of the victim where it was declared that some of her major organs were missing, specifically the trachea, heart and stomach.
Accordingly, the law firm sent a request to the PNP Region 1 Crime Lab and PNP National Crime Lab for the release of the organs and to turnover the same to the NBI.
On October 1, the law firm said they received a letter through e-mail from Police Brigadier Gen. Pascual Muñoz Jr., the director of the PNP Crime Lab, denying their request.
The law firm claimed that Muñoz told them that Jonson’s organs would not be released without a court order.
“Clearly, Bree’s family was well aware of the situation. It was because of PNP’s initial stance not to release the organs without a court order that made Bree’s grieving family publicly seek for help. It was only after Mrs. Jonson urged [PNP chief] General [Guillermo] Eleazar on the propriety of turning over the organs, and after public pressure was apparent that the instructions to release them were made. When Police General Eleazar instructed on releasing the organs, no other statement on the issue was made by the family,” Jonson’s camp said.
But the law firm added that despite this incident, the family of Jonson “genuinely thanks” Eleazar for his intervention and granting the request of the victim’s family.
“Amidst all the noise, we do not doubt his sincere desire to ferret out the truth and attain justice for Bree Jonson,” it said.
PSA: 14 Pinoys die everyday from water-borne diseases
By Cai U. Ordinario @caiordinario
AT least 14 Filipinos die everyday in the past 10 years from water-borne diseases, according to data from the Philippine Statistics Authority (PSA).
Based on PSA data, water-borne diseases such as typhoid and paratyphoid fever; bloody diarrhea; cholera; viral hepatitis; and leptospirosis killed a total of 53,066 Filipinos between 2010 and 2019.
The estimate did not include rotavirus, which killed 226 Filipinos between 2015 and 2019. The data for rotavirus was only collected starting in 2015.
“[Water borne] diseases [are] transmitted through water contaminated with human or animal waste,” PSA said in the technical notes for the Compendium of Philippine Environment Statistics (CPES) containing the data.
Based on PSA data, bloody diarrhea killed the most number of Filipinos with a total of 37,622 deaths in the past 10 years.
The PSA said there was an average of 50,058 annual averages of reported cases of waterborne diseases from 2010 to 2019.
Among these diseases, acute bloody diarrhea contributed 71,774 cases or 85 percent in 2019.
Meanwhile, an average of at least three Filipinos die everyday from vector-borne diseases in the past decade.
The PSA, citing World Health Organization data, said that vector-borne diseases are caused by parasites, viruses and bacteria that are transmitted by vectors. Vectors are living organisms that transmit infectious pathogens between humans or from animals to humans.
“Many of these vectors are bloodsucking insects, which ingest disease-producing microorganisms during a blood meal from an infected host [human or animal] and later transmit it into a new host, after the pathogen has replicated. Often, once a vector becomes infectious, they are capable of transmitting the pathogen for the rest of their life during each subsequent bite/blood meal,” PSA said.
Vector-borne diseases between 2010 and 2019 killed a total of 12,062 Filipinos. This only includes data for Dengue and Malaria.
Of the two vector-borne diseases, Dengue killed the most at 11,832 Filipinos in the past 10 years. Malaria killed 230 Filipinos during the period.
“Dengue and Malaria are vector-borne diseases with 208,170 and 2,308 annual average number of cases recorded from 2010 to 2019, respectively. In 2019, 22.5 percent of reported dengue cases were children between 5 to 9 years old,” PSA said.
Another vector-borne disease, Chikungunya disease killed five Filipinos between 2016 and 2019. However, there were 1,138 cases per 100,000 population.
PSA said based on the WHO, the disease is also transmitted to humans through infected mosquitoes. It is caused by the chikungunya virus, an RNA virus that causes infected persons to suffer fever and severe joint pain.
In some cases, infected persons experience muscle pain, joint swelling, headache, nausea, fatigue and rashes. It is considered a debilitating disease that can vary in duration.
The CPES-Human Settlements and Environmental Health compiles statistics on the environment where people live and work, especially those that detail their living conditions and environmental health.
This component has two subcomponents: human settlements and environmental health. Human settlements cover statistics describing the basic services and infrastructure put up where humans live and work.
The data deals with the totality of the human community where people reside, may it be large cities, towns, or villages.
The subcomponent on environmental health focuses on how the environmental factors and processes affect and alter the health of an individual.
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Tuesday, October 5, 2021 • Editor: Angel R. Calso
editorial We can help stop vegetable smuggling
Vegetable smuggling has been going on in the country since 2007, according to benguet vegetable traders. Smuggled Chinese vegetables are reportedly being sold in Divisoria, balintawak, Cagayan de Oro, Cebu, Iloilo, and bicol. In 2019, the bureau of Customs (bOC) seized P53 million worth of smuggled carrots and onions from China.
The Kilusang Magbubukid ng Pilipinas said in a statement that for many years now, Filipino farmers have been competing against smuggled agricultural produce, like carrots and onions, from China and other countries, although the surge in smuggled vegetables was only highlighted recently. “Whether these smuggled vegetables entered the country via technical smuggling at ports or open seas, the government must remain vigilant and decisive in stopping smuggling that affects local farmers and traders,” the KMP said.
Senator Imee Marcos last week asked the Senate to open a deeper inquiry into the suspected economic sabotage involving “excessive” importation of vegetables from China, resulting in “rotting local produce” harvested from Benguet and other farms in Cordillera. As chairperson of the Senate Committee on Economic Affairs, Marcos is paving the way for a Senate scrutiny to ferret out vegetable importers and officials in the Department of Agriculture (DA) and BOC suspected to be involved in agricultural smuggling (See, “Imee
seeks Senate probe into ‘massive’ veggie importation, calls it economic sabotage,” in the BusinessMirror, October 1, 2021).
“We don’t learn; vegetable smuggling happened before,” Marcos said, recalling that “the same thing occurred in 2020 and the DA was provided with Kadiwa trucks,” as well as personnel and funds to buy the vegetable and pork supply from local traders. Marcos wondered aloud: “Why does the DA still refuse to buy Filipino? Why do they favor imported goods? Is it true they’ve already changed their name to Department of Importation, instead of Agriculture?”
The senator reminded concerned authorities that “smuggling of agricultural products is a form of economic sabotage and is punishable under the Anti-Agricultural Smuggling Act of 2016, or Republic Act 10845.” She lamented that local farmers have been battered by the pandemic and crippled by debt while their harvests have been left unsold. “Their vegetables would not have been left to rot and discarded and could have benefited Metro Manila, if only the DA were more proactive,” she added.
In an earlier story in BusinessMirror, however, the DA explained that the dumping of 6,000 kilos of tomatoes in Ifugao was not the result of oversupply but by the non-arrival of buyers, who were barred from entering the area due to a “no vaccination, no entry” policy enforced by local government units.
At the House of Representatives, Bayan Muna Rep. Eufemia Cullamat last week filed House Resolution 2263 requesting an investigation by the House Committee on Agriculture and Food. “The rampant smuggling of carrots since August is disturbing. Farmers and traders have called the attention of the DA secretary but he has not acted on it,” she said.
The DA confirmed it received reports that cheap imported carrots and other vegetables were being sold in wet markets nationwide. Agriculture Secretary William Dar vowed to go after smugglers and confiscate the smuggled vegetables that are currently flooding the local markets. “We will confiscate all smuggled vegetables. That’s the direction,” Dar told the media in a virtual briefing last week. He said the DA has launched an investigation to locate all smuggled vegetables, which will also be examined to ensure food safety. Based on initial reports, Dar said the vegetable shipments, originating from China, entered the country via Subic port, and were misdeclared.
The growth of agriculture is key to our food security. Agriculture creates employment and contributes to poverty alleviation. As Senator Marcos maintained, “protecting our local farmers is the solution to long-term national food security, not the importation of agricultural produce, legal as that may be.” We urge concerned agencies to curb vegetable smuggling, identify and make public the importers responsible for these vegetable shipments. We can also help our farmers if we stop buying cheap vegetables from China and other countries.
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Rewarding the vaccinated
Manny B. Villar THE EnTrEprEnEur
eVerybODy agrees that vaccination is the solution to the pandemic and the key to reopening further the economy. With more vaccinated people, the nation should reopen safely and start generating jobs with reduced risks.
The vaccination rate in the Philippines is far from ideal, but more and more people are getting jabs with the arrival of contracted vaccine supplies, especially in Metro Manila. The health authorities and the country’s policymakers, in my opinion, should now look at the expanding number of vaccinated Filipinos and use this data as major criteria for further reopening the economy.
Major private sector companies, like my Villar Group, have procured vaccines for all their employees as their contribution to the pandemic solution. They invested in this health-care solution and shared their resources to the government in the hope of speeding up the economic recovery. Now that both the private sector and the government have vaccinated more workers and consumers, it is high time that we reward them by reopening more sectors of the economy.
Their accommodation in more dine-in outlets, gyms and recreation centers, and even in hotels, among others (on proof of vaccination), is a compliment to their efforts in helping the state overcome the pandemic. In the same manner, a shorter quarantine period for vaccinated returning overseas Filipino workers should be accorded. The reward or incentive to the vaccinated is also one way of convincing the unvaccinated population to get their dose and change their perception of the Covid vaccine.
We can expect the number of vaccinated Filipinos to increase in the coming months. And I see no reason why they should remain cooped up in their homes or be prevented from engaging in economic activities once they get the dose.
The Philippines has already administered a total of over 45 million doses of Covid-19 vaccines as of Thursday last week, or roughly 40 percent of the total Philippine population. According to the National Covid-19 vaccination dashboard, over 21.1 million have already acquired full protection against the virus, while over 24 million are waiting for their second dose.
I am confident that the government will accelerate and expand the coverage of the vaccination rollout in the next few months. It is allotting 29 million doses for the vaccination of minors aged 12 to 17 years old, starting with the pilot inoculation of adolescents in five hospitals in Metro Manila.
In the meantime, I personally believe that health authorities should have eased the restrictions further in Metro Manila, instead of extending the pilot implementation of the Alert Level System in the national capital region by two weeks to October 15.
The Inter-Agency Task Force on Covid-19, perhaps as a compromise to the clamor of businessmen, agreed to expand the allowable indoor capacities of dine-in services, in-person religious services, and personal care services in areas under Alert Level 4 for fully vaccinated individuals by an additional 10 percent. The task force also approved the reopening of fitness studios and gyms at a limited 20-percent capacity for fully vaccinated individuals, as long as all gym workers are fully vaccinated.
But I personally do not see any logic in putting a cap on dine-in capacity or the number of people allowed in studios and gyms for fully vaccinated people. Vaccinated customers, including the restaurant crew and gym trainers, pose very minimal risks to each other.
And with the increasing number of vaccinated people, Metro Manila should have been placed at least under Alert Level 3 with less quarantine restrictions starting this fourth quarter. Minimum health standards, of course, should be maintained to contain the virus infection.
Reopening further the economy with fewer restrictions is our obligation to the millions of workers who lost their jobs in August. The unemployment rate in August increased to a four-month high of 8.1 percent from 6.9 percent in July after the enhanced community quarantine in Metro Manila restricted mobility, shut down many commercial establishments and laid off a great number of Filipino workers.
Current Covid-related data, however, strongly supports economic reopening. The number of Covid-19 and active cases in the Philippines is declining. Daily infections have stabilized between 13,000 and 15,000 last week, while active cases are down to 130,268 as of last Friday. The decreasing trend and the rising number of vaccinated Filipinos should serve as cue to recalibrate our Covid response once again.
Another cycle is coming
John Mangun OuTSIDE THE BOX
IN mid-2015, I started writing about the cyclical turning point that would lead to “political chaos” in 2016. that turning point occurred on September 30-October 2015.
When a cycle turning point happens, the evidence of that turning can come suddenly like a car crash or be prolonged like the gestation period of an African elephant. It does not matter because the results play out over time. The other thing to consider is that the turning point is one piece in the process going forward. And it is all connected.
The traffic accident—often depending on the severity—has long-term effects. The birth of the elephant will probably affect the herd for decades to come. German philosopher Johann Gottlieb Fichte wrote in 1800 that “you could not remove a single grain of sand from its place without thereby... changing something throughout all parts of the immeasurable whole.” One thing leads to another. Fichte’s statement is the foundation of the concept of the butterfly effect that says “a butterfly flapping its wings in Tokyo leads to a storm in Manhattan.”
The political “chaos” came, found in two words: Brexit and Trump. Note also that the September 28, 2015 Pulse Asia presidential survey had Duterte with 16 percent of the vote, trailing Poe at 26 percent, Roxas at 20 percent, and Binay at 19 percent. By the end of February 2016, Duterte and Roxas were tied at 21 percent, with Poe in the lead at 26 percent.
As of April 26th, Duterte was surveyed with 35 percent, leading Poe by 12 percent and double the percentage of Roxas. On September 28, 2015, 55 percent intended to vote “Remain.” In April 2016, Actor Tom Hanks said, “Donald Trump will be president when spaceships come down filled with dinosaurs in red capes.”
As part of the cycle, political upheaval is always followed by economic “chaos.” As late as Thursday, September 26, 2019 (2020: Be Prepared For Anything), I wrote, “The period of Political Chaos began in October 2015. The period of Economic Chaos will begin in January 2020.” The turning point date was January 18, 2020.
Two Philippine newspaper headlines from that day: “Agri losses from Taal blast reach P3.06B” and “Coronavirus: new disease spreading in Asia revives SARS fears.”
We have another turning point coming on March 14, 2022. Are you ready?
The cycle that began in January 2020 will not end until the middle of the second quarter of 2024, therefore the one on March 14, 2022 is a minor cycle period. I can give you a long list of reasons to be distressed, including that it is a mid-term election in the US. With the recent elections in Canada and Germany, we are going to have a minor Panic Cycle in politics for 2022.
Reopening further the economy with fewer restrictions is our obligation to the millions of workers who lost their jobs in August. The unemployment rate in August increased to a four-month high of 8.1 percent from 6.9 percent in July after the enhanced community quarantine in Metro Manila restricted mobility, shut down many commercial establishments and laid off a great number of Filipino workers.
However, as it appears that the localized spread of Covid is diminishing, there is light at the end of the tunnel. There is a chance that even as the cycle turning forecasts another round of both political and economic trouble, I see the Philippines doing better than the rest. But it all depends on how soon do we get this economy opened up.
For comments, send e-mail to mbv_secretariat@vistaland.com.ph or visit www.mannyvillar. com.ph
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Politics at the dinner table
Lyca Balita OnwArDS
Our teachers tell us that Filipino politics is rooted in what people say at the dinner table. however, most families now forbid talks of politics because of the presumption that it will be uncomfortable. however, political discussions are necessary, especially today. And contrary to popular belief, they don’t always have to be heated.
First, most political discussions only become hostile because of the manner of discussion, not the content. We go in with furrowed eyebrows, heated chests, and the firm aim of disproving the other party. But we should remember that this isn’t a formal debate—it should be a respectful discussion with our family and friends, where we go in with the intent of educating and learning.
Even if you don’t finish this piece, I hope you leave with this: join political discussions with respect and an open mind. Others may not initially be as respectful as you are, but stay respectful and open-minded anyway.
It’s tempting to participate in discussions with unregulated passion. But when we join political discussions with an open mind and without the unwavering intent to disprove everything the other party is saying, conversations become educational and ideas actually develop. It’s really all about tone, word choice, and a genuinely open mind. Who wouldn’t be frustrated talking to people who raise their voice all the time when new ideas are presented? Don’t be that guy. Respect.
Second, most of the time, facts just need to be verified to develop political stands. This doesn’t need to be emphasized further: fake news is everywhere, especially in the comments sections.
To illustrate, I recently read one comment where someone confidently proclaimed to the public that this person authored several great laws, so the latter deserves to be elected to his aspired office. This commenter appeared certain with his statement. But a researcher replied and respectfully disputed each allegation with facts. He replied with screenshots and links to the laws proving that the aspirant did not actually author the enumerated laws. The researcher was able to change the commenter’s mind, and the minds of other persons who saw his reply. That’s a more fruitful discussion than pure ad hominem.
Fact-checking can be done at the dinner table, too. When another alleges a fact, we can always respectfully verify this. “Oh, thank you, I didn’t know that. Let me verify.” If the allegation is true, the debate on that sub-issue ends. Otherwise, minds change, and ideas grow.
Lastly, in case of debates where both sides are backed by facts, there’s one effective way to have fruitful discussions that don’t go in circles: issue-spotting.
Before I entered law school, I thought cases just involved one question: who’s the winner? So the parties just throw facts at each other, and the most persuasive wins. But it turns out, effective resolutions are deeper than that. There is always a real and more specific main issue which is the key to correctly answering the question.
For instance, here’s a controversial question: was XYZ a good president?
Obviously, this question is pretty general. Today, we tend to spend most of our time discussing questions such as: How was the economy? Were there human-rights violations? What are the long-term effects of the policies?
But there was never really much dispute on these questions. These questions can be answered by data and cold, hard facts. We can’t keep throwing these facts at each other and expect to arrive at a conclusion both parties believe in.
It really boils down to the most important issue which should be Let’s be real. Aspirants are beginning to file Certificates of Candidacy. These people will potentially run our country for the next three to six years. With the future of our country at stake, it’s time that we start respectfully talking about politics at the dinner table, especially when there are registered voters present. It’s time we discuss different perspectives and form educated opinions. As I emphasized in my previous column, echo chambers are dangerous. Sometimes, they kill.
answered before anything: what is the definition of a good president anyway?
This is where the disconnect lies. The issue has always been on the definition. For instance, some focus solely on the economy during the President’s term, so they’re on one side; others focus on human rights, so they’re on another. Thus, it’s useless throwing human-rights violations at the former, and the economy at the latter.
This is where we realize the root of why the debates haven’t been resolved in so long: we have different definitions of what we’ve been debating about all along. If we go on like this, the debate will just go in circles, and we form the pros and the antis who just throw undisputed facts at one another.
Hence, before anything, establish definitions. So we ask: what are the elements of a “good” president? Which factors are indispensable? Should the “goodness” be determined based on the full tenure, or the first 6 years to be fair when compared to other Presidents? The list goes on. This is where we should have focused first.
Once we figure this out and agree on a solid definition, we can apply the facts and all else will follow smoothly. We could finally agree on an answer that takes into account all perspectives.
This should apply to other debates, too—figure out the real issue where the disconnect lies, and start there.
Let’s be real. Aspirants are beginning to file Certificates of Candidacy. These people will potentially run our country for the next three to six years. With the future of our country at stake, it’s time that we start respectfully talking about politics at the dinner table, especially when there are registered voters present. It’s time we discuss different perspectives and form educated opinions. As I emphasized in my previous column, echo chambers are dangerous. Sometimes, they kill.
It’s true that some don’t believe in facts. We can’t change everyone’s minds. But at least we can open the discussion and let everyone express their sides, and we can all form educated opinions based on all the different perspectives.
When we stop talking about politics at the dinner table, the future suffers. The youth don’t learn from the past, the older ones don’t learn from the present, and we lose the chance to educate and to learn from our own families and friends. Besides, is your opinion really educated if you’ve been listening to just one side the entire time and blocking everyone else?
Opinion BusinessMirror The words of the President
Manny F. Dooc TELLTALES
The people’s deep distrust of our government mirrors the bankrupt moral state of our country. Something is gravely wrong when our people cannot even take the words of our own President at their face value. The big news that erupted on Friday last week and splashed on the front pages of every newspaper was President Duterte’s surprise announcement regarding his withdrawal from seeking the vice presidency in the 2022 elections.
In carefully couched words, the President vowed that he is yielding to the clamor of the people. He categorically stated that he would shelve his dream of sliding down to the position of the vice president after his term ends on June 30, 2022. “The overwhelming sentiment of the Filipinos is that I am not qualified, and if it would be a violation of the Constitution to circumvent the law, the spirit of the Constitution. And so in obedience to the will of the people, who after all placed me in the presidency many years ago, I now say sa mga kababayan ko na sundin ko ang gusto ninyo. Today, I announce my retirement from politics.” Unfortunately, the President’s words were cautiously, if not unbelievably, received by many people. Social media were peppered with incredible comments from all sectors doubting the announcement of the President. One was so uncharitable by saying: “I will only believe he is retired from politics when he is taking his last breath on his deathbed.” Another one chided: “Paawa effect lang iyan.” A blogger joined in by claiming that “a snake is dangerous, even long after its head is severed.” And one sober comment reads: “This sudden change of heart is not only an admission of his total failure as the President but also another instance of his utter incompetence and unstable mind. Will he withdraw this announcement the moment the survey change[s] to his favor by some meandering of the Filipino voters’ fickle mind?” These are mostly unkind words directed at the highest public official of our land. Who will you believe if you cannot even rely on the word of a king?
Despite his past records, I would be inclined to give the President the benefit of the doubt. Once upon a time, he was a young, idealistic and crime-busting prosecutor and mayor of Davao City whose reputation for political will and good government preceded him far and wide. It would not be hard to pick up the pieces and go back to one’s principles as he wraps up his service to our people. This is now the legacy moment for him. In the final stretch of his term, he should keep his words. Retiring from politics means removing oneself from the rough-and-tumble game. It is rising above partisanship and behaving like a statesman. It is thinking what is best for the people and the country, and not what is good for oneself and his party. Anointing a protégé for a successor to shield him from Among many of our current government leaders, there is an absence of dedication to serve the public interest; rather, what is easily palpable is that selfinterest is the primordial consideration in holding their public office. Every action is motivated by self-aggrandizement, selfpreservation and with an eye for reelection.
criminal prosecution at home and abroad is a huge misstep. Instead, the President should help install a president whose vision and platform will promote the people’s welfare. As President, he should respect and enforce the rule of law. People will love him if he allows the ongoing Senate Blue Ribbon hearings to run its full course unimpeded by threats and obstructions. Finally, he must ensure honest and peaceful elections next year and renounce the use of the military, the police, and political goons to thwart the people’s will. A leader goes down in history as a hero or a heel. It’s your call, Mr. President.
n n n CERTAINLY there is a lack of nobility and character among our so-called government leaders, particularly in the current Congress where the two Houses do not even see eye-to-eye on the ongoing legislative investigation of the alleged anomaly in the procurement of medical supplies by the DOH and the PS-DBM. Looking at the same questions covering the same subjects and actors, the investigating committees in the two chambers seem to arrive at completely incompatible answers as if they were investigating totally different matters. It is a threat to democracy when one House of Congress is pitted against the other to skew the truth and subvert justice. When one House allows itself to be used to undermine the work of the other House of Congress, the institution will be irreparably damaged. They cannot both be right, so one of them must have forsaken their oath of fealty to the people, and serve their best interests.
Digital tax bill is wanting
Atty. irwin C. nidea Jr. TAx LAw FOr BuSinESS
The digital economy presented new challenges as the current tax rules were contemplated to apply only on brick-and-mortar establishments and not on new disruptive business models. To address this, the house of representatives recently approved the bill (house Bill 7425) amending the value-added tax (VAT) law to expressly include in its coverage goods that are electronic in nature and services rendered electronically as well as digital services.
As an added measure to fuel the economy, the bill further clarified which digital goods and services traded through digital service providers will be subject to VAT. These include: n Electronic market place (e.g., Lazada, Shopee, Facebook Marketplace). n Online auctions. n Supplier of digital/streaming services in exchange for a regular subscription fee (e.g., Netflix, Spotify). n Online licensing of software, updates and add-ons, website filters and firewalls. n Mobile applications, video games and online games. n Webcast and webinars. n Digital content such as music, files, images, text and information. n Online advertising spaces, search engine services, social networks, database and hosting, online training. n Payment processing services (e.g., GCash, PayMaya).
The bill also provisioned exempt transactions, which include: n Books and other printed materials sold electronically or online. n Online courses and webinars rendered by private educational institutions, duly accredited by the DepEd, CHED and Tesda, among others.
Nonresident Digital Service Providers (nonresident DSP), which include Amazon and Netflix, are liable to register for VAT if: a. Gross sales/receipts for past 12 months before date of filing for VAT return, other than those considered as exempt, exceeded P3 million; or b. Reasonable grounds to believe that gross sales/receipts for next 12 months from date of filing VAT return, other than those considered as exempt, will exceed P3 million.
The registration requirement for a nonresident DSP is conditioned on the establishment by the BIR of a simplified automated registration system. The implementing rules and regulations are still being developed Our country must participate in international discussions on the income taxation scheme that must be applied on cross-border digital services transactions. We must be proactive in protecting our share as a consumer-driven economy on the allocation of income tax.
and will be issued by the Department of Finance upon the recommendation of the BIR and in coordination with the Department of Information and Communications Technology.
Amazon, for example, may be required to register as a VAT entity if it reaches the threshold enumerated above. It has international sellers generating income from Filipino consumers through its digital platform. The services are essentially rendered in the Philippines by non-resident foreign proprietors. Will they be subject to tax?
They will be subject to VAT. To capture these sales, the bill proposes to widen the coverage of current administrative tax issuances dealing with the taxation of online businesses and transactions by specifically requiring nonresident digital service providers to register for VAT. Amazon, for example, is now responsible for assessing, collecting, and remitting the VAT on the transactions that go through its platforms.
What is glaringly missing though is a provision on income tax. The bill only addressed the liability of nonresident DSPs as far as VAT is concerned, but it is erringly silent on the income tax liability of a nonresident DSP like Amazon and Netflix.
Our country must participate in international discussions on the income taxation scheme that must be applied on cross-border digital services transactions. We must be proactive in protecting our share as a consumer-driven economy on the allocation of income tax.
Understandably, the home country of the non-resident DSPs wants more share of the income tax pie. But we must make sure that our country secures its fair share of the pie. The consumer as well as the actual sale of the goods and services are performed in the country. We should not only be content on imposing VAT to these nonresident DSPs. We must also make sure that they pay the proportionate income tax that is due for our country.
Digital taxation is an unchartered territory with several issues and factors to consider. Enforcement will be critical but equally challenging due to the volume of transactions. It is a welcome development that the bill is trying to address the VAT liability of the players of the digital economy. But it must also not shy away in pushing for an equitable income tax share for our country.
Tuesday, October 5, 2021 A11
n n n AMONGmany of our current government leaders, there is an absence of dedication to serve the public interest; rather, what is easily palpable is that self-interest is the primordial consideration in holding their public office. Every action is motivated by self-aggrandizement, self-preservation and with an eye for reelection. One easily suspects crass motive in many political moves they undertake. The public should be more skeptical and perspicacious, lest they’ll fall for their guise and wiles. The ABS-CBN franchise hearings demonstrated how a legislative power can be misused and abused. In the ongoing Senate Blue Ribbon Committee investigation, the deafening silence of a notable number of legislators who were once a voice of prudence and truth to avoid offending power is disheartening. People will remember who answers the clarion call. The search for truth and justice is not just the business of the opposition; it is the concern of everyone who proudly calls himself a public servant and a tribune of the people. The legislature’s lack of independence and fawning attitude to the Executive department, which can make or break one’s political career, bespeak of the abysmal state of politics we have plunged into. Former US President Harry S. Truman had aptly described them as “the Do-Nothing Congress.” Now, they have the temerity to seek our vote and re-elect them to their legislative seats. Voters will be wiser this time. As one blogger widely protested: “Let’s reject them and throw them under the bus.”
The author is a senior partner of Du-Baladad and Associates Law Offices, a member-firm of WTS Global.
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.c.nideajr@ bdblaw.com.ph or call 8403-2001 local 330.
Mangun. . .
begun. Global “Transitory Inflation” is about as temporary as my shiny bald head. Secretary Karl Kendrick Chua, head of National Economic and Development Authority, says it will take a decade to return to pre-Covid growth levels. I think he is being a bit pessimistic, but it will take the world longer than that.
However, as it appears that the localized spread of Covid is diminishing, there is light at the end of the tunnel. There is a chance that even as the cycle turning forecasts another round of both political and economic trouble, I see the Philippines doing better than the rest. But it all depends on how soon do we get this economy opened up.
