Diokno wants POGOs out: Money laundering risks bigger than revenues

Diokno wants POGOs out: Money laundering risks bigger than revenues

 

If he had his way, Bangko Sentral ng Pilipinas governor Benjamin Diokno would rather see the exit of Philippine offshore gambling operators than allow them to linger, posing money laundering risks.

In an interview with Reuters, Diokno said halting online gambling would have little impact on the economy, noting that the industry contributed only a few billion pesos in tax.

"There's some benefits, in terms of if they pay their taxes but there are also some risks. I tend to be risk averse. I'd rather they leave, if I have my way," Diokno said.

China earlier asked the Philippine government to ban all online gambling operations, saying a huge amount of Chinese funds are illegally flown out of China into the Philippines through cross-border money laundering.

POGOs have propped up real estate values and have even overtaken the information technology-business process management sector as the country's top demand driver for office space.

The government estimates that tax liabilities from POGOs had already accumulated to P21.6 billion. It also loses P2 billion in monthly revenues for every 100,000 unregistered POGO workers in the country.

https://bilyonaryo.com.ph/2019/10/03/diokno-wants-pogos-out-money-laundering-risks-bigger-than-revenues/?fbclid=IwAR0q1_VD45yJ9zZ3R-EWcZ5L3qyMtGwwA3sY3c9iyesiWv33KhKezK01q_g

CGRLAW & Associates

3rd Floor Builders Center, 170 Salcedo St, Legaspi Village, Makati City 1229

Tel. no. (+63 2) 985 4322, 

              (+63 2) 902 0900

                info@cgrlaw.ph

                claude.requino@cgrlaw.ph

website: www.cgrlaw.ph

This email and any files transmitted with it are confidential and intended solely for the use of the individual or entity to whom they are addressed. You are hereby notified that disclosing, copying, distributing or taking any action in reliance on the contents of this information is strictly prohibited.

Guidelines on foreign work permits, out

News Release 
Department of Labor and Employment 
12 July 2019 

Guidelines on foreign work permits, out

The much awaited guidelines that will govern the issuance of permits to foreign nationals intending to work in the Philippines has been released.

In a ceremonial signing on Thursday, Labor Secretary Silvestre Bello III, Finance Secretary Carlos Dominguez, Justice Secretary Menardo Guevarra, BIR Commissioner Cesar Dulay, PRC Chairman Teofilo Pilando, National Intelligence and Coordinating Agency Director General Alex Paul Monteagudo, Department of Foreign Affairs, the Bureau of Immigration, Department of Environment and Natural Resources, and Philippine Amusement and Gaming Corporation CEO Andrea Domingo issued Joint Memorandum Circular No. 001, series of 2019, providing the rules and regulations that spells out the reunified policy on allowing foreign workers to engage in gainful employment.

JMC 1 covers the issuance of Alien Employment Permit (AEP) by DOLE; Special Temporary Permit (STP) by PRC; Special provisional Work Permits and 9(g) visa by the BI; 47(a)2 and Authority to Employ Alien by DOJ; Authority to Hire by DENR; and the 9(g) and 47(a)2 visas by DFA.

NICA is mandated to conduct background investigations on foreign nationals to be employed to forestall possible national security implications on their entry in the Philippines.

Under the new rules, the foreign national needs to secure a Tax Identification Number (TIN) from the BIR to ensure payment of appropriate taxes, and a 'No Derogatory Record/ Information' from NICA and NBI.

Justice Secretary Guevarra said the signing of the JMC was urgent because many foreign workers were unregistered and untaxed, thus the need to regulate them is necessary to ensure they pay appropriate taxes.

Bello reiterated a rule of thumb where foreign workers cannot be given a work permit should a Filipino signify their interest to perform the available job offered to the foreign national.

Pending the development of a database, the concerned government offices are required to submit to DOLE, through the Bureau of Local Employment (BLE) and NICA, a monthly report on the permits issued for consolidation.

BLE Director Dominique Tutay reported that prior to the release and signing of the JMC, the department has observed an increase of up to 60 to 70% of AEP applications compared to last year's statistics due to the efforts to regulate.

"Because of this JMC, DOLE has been given an additional 500 labor laws compliance officers. We can now strengthen our inspection and catch these illegal foreign workers," Bello said.

Last May, various agencies signed an agreement with DOLE to formulate a joint guideline in allowing foreign nationals to work in the Philippines.

The JMC will take effect after 15 days from the date of its publication in the official gazette or in a newspaper of general circulation.

https://www.dole.gov.ph/news/guidelines-on-foreign-work-permits-out/

Government offers Amnesty on Tax Delinquencies

Government offers Amnesty on Tax Delinquencies

By Eleonor Capili

STARTING APRIL 24, 2019 until April 24, 2020, qualified taxpayers with tax delinquencies are given the chance to clean their tax records and avoid facing possible criminal charges and stiff penalties through availment of the Tax Amnesty on Delinquencies being offered by the government under Republic Act (RA) No. 11213 (Tax Amnesty Act).

To implement the Tax Amnesty provisions on tax delinquencies, the BIR has issued Revenue Regulations (RR) No. 4-2019 on April 8, 2019.

The Tax Amnesty, when granted, is final and irrevocable. Taxpayers who availed of the Tax Amnesty and fully complied with all the conditions set forth in RR No. 4-2019 shall enjoy certain immunities and privileges, such as the lifting of notices of levy, attachments or warrants of garnishments issued, if any; settlement of the tax delinquency(ies); and termination of criminal case and its corresponding civil or administrative case in connection therewith.

The availing taxpayer shall also be immune from all suits or actions, including the payment of said delinquency or assessment, as well as additions thereto, and from all appurtenant civil, criminal and administrative cases, and penalties under the 1997 Tax Code, as amended, as such relate to the internal revenue taxes for the taxable years that are subject of the Tax Amnesty availed of.

All persons, whether natural or juridical, with internal revenue tax liabilities covering taxable year 2017 and prior years, may avail of the Tax Amnesty on Delinquencies under any of the following instances: 1) With Delinquent Accounts as of April 24, 2019 (effectivity of RR No. 4-2019); 2) With pending criminal cases with the Department of Justice (DOJ)/Prosecutor's Office or the courts for tax evasion and other criminal offenses under Chapter II of Title X and Section 275 of the Tax Code, as amended,

with or without assessments duly issued; 3) With final and executory judgment by the courts on or before April 24, 2019; and 4) Withholding tax liabilities of withholding agents arising from their failure to remit withheld taxes.

The abovementioned Delinquent Account pertains to tax due from a taxpayer arising from audit of the BIR, which had been issued Assessment Notices that have become final and executory due to the instances specified in the Regulations. These accounts include i) Delinquent Accounts with application for compromise settlement either on the basis of doubtful validity of the assessment or financial incapacity of the taxpayer, whether the same was denied by or still pending with the Regional Evaluation Board or the National Evaluation Board, as the case may be, on or before April 24, 2019; ii) Delinquent Withholding Tax liabilities arising from non-withholding of tax; and iii) Delinquent Estate Tax liabilities.

The Tax Amnesty to be paid by the taxpayer shall be computed based on the Basic Tax Assessed, which shall be as follows: 40% for Delinquent Accounts and assessments which have become final and executory; 50% for tax cases subject of final and executory judgment by the courts; 60% for those with pending criminal cases filed with the DOJ/Prosecutor's Office or the courts for tax evasion and other criminal offenses under Chapter II of Title X and Section 275 of the Tax Code, as amended; and 100% for Withholding Agents who withheld taxes but failed to remit the same to the BIR (which shall also apply in all cases of non-remittance of Withholding Taxes).

In cases where the delinquent taxes have been the subject of application for compromise settlement, whether denied or pending, as well as cases with partial/installment payments, the amount of payment shall be based on the net basic tax/net amount as certified by the concerned office.

In case the delinquent account/assessment consists only of unpaid penalties due to either late filing or payment, and there is no Basic Tax Assessed, the taxpayer may avail of the Tax Amnesty without any payment due.

The Notice of Issuance of Authority to Cancel Assessment shall be issued by the BIR to the taxpayer availing of the Tax Amnesty on Delinquencies within fifteen (15) calendar days from submission of the Acceptance Payment Form (APF) and Tax Amnesty Return (TAR). Otherwise, the stamped "Received" duplicate copies of the APF and TAR shall be deemed as sufficient proof of availment.

The documentary requirements, place of filing of the Tax Amnesty Return (TAR) and procedures on how to avail the Tax Amnesty on Delinquencies are specified in the Regulations. (See full text of RR No. 4-2019 and other related revenue issuances at the "Tax Amnesty" portion of www.bir.gov.ph) 

CGRLAW & Associates

3F Salcedo One Centre, 170  Salcedo Street, 

Legaspi Village, Makati City
Tel. No. (+63 2) 985 4322

             (+63 2) 902 0900

email: claude.requino@cgrlaw.ph

            info@cgrlaw.ph

website: www.cgrlaw.ph

This email and any files transmitted with it are confidential and intended solely for the use of the individual or entity to whom they are addressed. You are hereby notified that disclosing, copying, distributing or taking any action in reliance on the contents of this information is strictly prohibited.

BI Reminds Public on Scope of Balikbayan Privilege

BI Reminds Public on Scope of Balikbayan Privilege

MANILA, Philippines—The Bureau of Immigration (BI) reminded the public on the scope of the Balikbayan Program intended for former Filipinos visiting the Philippines.

"Under Republic Act No. 6768, the 1-year Balikbayan visa privilege is exclusively given to former Filipinos naturalized abroad, and their spouse and children who are travelling with them," BI Commissioner Jaime Morente reiterated.

Said reminder came after an unnamed budding local celebrity, was reported to have had an outburst in the immigration area of the Ninoy Aquino International Airport Terminal 1 last 03 January 2019.

The celebrity, who the agency refused to name, is an American passport holder who reportedly shouted expletives when he was only given a 30-day stay. He was allegedly furious at immigration for "giving him a hard time, despite him being a celebrity, with people wanting to take pictures with him".

Immigration Spokesperson Dana Krizia Sandoval clarified that those who have Philippine lineage do not necessarily qualify for the Balikbayan Privilege.

"The privilege is for former Filipinos, and their immediate family members who are traveling with them only," clarified Sandoval. "If these family members are not traveling with the Filipino or former Filipino, they are not qualified for the one year visa free privilege," she added.

She further explained that those who are admitted as Balikbayans are given an initial stay of one year, which they may extend for another one, two, or six months. Those who do not qualify, but are within the list of 157 countries eligible for visa free entry pursuant to Executive Order No. 408, get an automatic 30-day visa upon their arrival.

Sandoval likewise issued a warning against foreign nationals who disrespect immigration officers. "While our immigration officers have been instructed to observe maximum tolerance, it is against the law to disrespect immigration authorities, and violating aliens may be excluded and blacklisted from the Philippines," she said. "Showing disrespect to symbols of authority is essentially showing disrespect to the country," she added.

CGRLAW & Associates

3F Salcedo One Centre, 170  Salcedo Street, 

Legaspi Village, Makati City
Tel. No. (+63 2) 985 4322

             (+63 2) 902 0900

email: claude.requino@cgrlaw.ph

            info@cgrlaw.ph

website: www.cgrlaw.ph

This email and any files transmitted with it are confidential and intended solely for the use of the individual or entity to whom they are addressed. You are hereby notified that disclosing, copying, distributing or taking any action in reliance on the contents of this information is strictly prohibited.