By: Peter Irish R. De Leon, Let’s Talk Tax - BusinessWorld Published: June 22, 2020 | 8:03 pm Full Article: Reconciling the Condominium Act and the NIRC for tax exemption Snippet: Well settled is the rule that tax exemptions are construed strictissimi juris against the taxpayer and liberally in favor of the government. As a result, exemptions must be shown to exist clearly and categorically, and supported by clear legal provisions. In other words, one who seeks an exemption must justify it by words “too plain to be mistaken and categorical to be misinterpreted.” Thus, the burden of proving that one is tax-exempt rests on the taxpayer. This rigid standard for claiming tax exemption seems to imply that any doubt respecting a taxpayer’s claim for exemption should always result in a denial. However, this is not always the case. The principles above will apply only when the taxpayer is clearly subject to the tax being levied against him. The reason is obvious: it is illogical and impractical to determine who are exempted without first determining who are covered by the provision. Thus, unless a statute imposes a tax clearly, expressly and unambiguously, what applies is the equally well-settled rule that the imposition of tax cannot be presumed. In fact, in case of doubt tax laws must be construed strictly against the government and in favor of the taxpayer.
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By: Lamudi Published: July 5, 2019 Full Article: Now is the Time to Invest in Metro Cebu’s Property Market Cebu’s property sector is on a roll and shows no signs of slowing down. Thanks to vigorous economic fundamentals, investments continue to pour in on the province’s real estate industry as more and more property developers, both major ones and boutique firms, continue to cash in on the growing demand for real estate properties across Cebu, particularly in metropolitan areas such as Cebu City, Mandaue, and Lapu-Lapu . Also known as Metro Cebu, it is almost twice the size of Metro Manila and comprises Cebu City, six surrounding cities (Carcar, Danao, Mandaue, Lapu-Lapu, Naga, and Talisay) and six municipalities (Compostela, Consolacion, Cordova, Liloan, Minglanilla, and San Fernando). A leading investment destination The continuing property boom in Metro Cebu solidifies its position as the leading investment destination in the real estate sector in the Philippines outside Metro Manila. Metro Cebu’s strong economy, large talent pool, and progressive infrastructure development are expected to turn the metropolis into a globally competitive metro area in the future. Last year’s opening of the Terminal 2 Mactan – Cebu International Airport is expected to usher in an even greater influx of tourists and investors to Metro Cebu and other tourist hotspots such as Bantayan Island, Malapascua, and Oslob. The continued improvement of major infrastructure facilities in Metro Cebu will further facilitate the inflow of capital to the area and spur its growth momentum in the foreseeable future. Double-digit growth rates A number of international property consultants are projecting double-digit growth rates over the next couple of years for office spaces in Cebu, with the business process outsourcing industry driving the healthy demand for these. This also reflects the long–term positive outlook of property consultants and property developers on Metro Cebu’s real estate sector, particularly on the office space market and the residential sector. The asking lease rates continue to grow in Cebu’s office space sector, averaging between php600 and php650 per square meter per month. Prime office spaces located in some of Cebu’s major business districts are valued between php150,000 and php200,000 per square meter. Cebu’s business districts are expected to have close to one million square meters of office spaces by next year serving the business process outsourcing industry, the information technology sector, and other business enterprises eager to set up their operations in Metro Cebu. Robust demand for residential properties, too The expected boom in the office space market would most likely result in a robust demand for residential areas, whether they are condominium units, house and lots, or townhouses. Metro Cebu has also been experiencing an influx of migration composed of residents from other parts of the Visayas—such as those coming from various towns and cities in Negros Occidental, Negros Oriental, and Bohol—due to economic opportunities available in the island. In fact, a number of residents in Metro Manila and in other parts of Mindanao such as Davao City and Cagayan de Oro City are making Metro Cebu their new home. This wave of migration has been driving demand for residential properties in Metro Cebu. The continued growth of Metro Cebu’s real estate market has also opened up economic opportunities in other parts of the province, such as those in the fringes of the metropolitan areas, and in nearby provinces in the Visayan region. Cebu’s economic boom helps facilitate the economic growth of those areas outside Metro Cebu. Iloilo and Bacolod, for instance, continue to experience a surge in commercial and development activities. By: Lourdes O. Pilar, Researcher - BusinessWorld Published: June 19, 2020 | 4:55 pm Full Article: Tourism contribution to national output in 2019 biggest since at least 2000 Snippet: THE TOURISM industry’s contribution to the economy grew in 2019, Philippine Statistics Authority (PSA) data released on Friday showed. Preliminary data from the PSA showed tourism’s direct gross value added (TDGVA) accounting for 12.7% of gross domestic product (GDP) in 2019, bigger than the revised 12.3% in 2018. TDGVA measures the tourism-related value created by various industries. It is based on the results of the Philippine Tourism Satellite Accounts report, in which the PSA compiles from the Department of Tourism. Last year, the combined economic contribution of tourism activities amounted to P2.48 trillion, up 10.8% from the previous year’s P2.24 trillion. Last year’s TDGVA was the highest since 2000, based on available PSA data. By: Sunstar Business Published: June 12, 2020 Full Article: Debt watcher upgrades PH’s rating to A- Snippet: THE Japan Credit Rating Agency (JCR) has upgraded the Philippines’ credit rating by a notch from BBB+ to A- , citing the country’s resilience amid a pandemic that has slowed down growth, impaired fiscal positions and hurt credit ratings of economies across the globe. JCR assigned a “stable” outlook on the new rating, which indicates that the “A-” will be maintained over the near term. Strong fundamentals In a report released Thursday, June 11, 2020, the JCR said its decision to raise the Philippines’ credit rating came on the back of its assessment that the impact of the Covid-19 crisis on the domestic economy and the government’s fiscal standing will be temporary, given the country’s strong fundamentals going into the crisis, the massive relief measures, as well as the pursuit of important legislation, such as the Corporate Recovery and Tax Incentives for Enterprises Act under the Comprehensive Tax Reform Program. “JCR holds that a downturn will be limited given the country’s strengthened economic base, resilient external position, and the government’s economic stimulus package totaling more than nine percent of the gross domestic product. JCR also considers that the fiscal soundness will not be impaired because while the fiscal deficit may widen, the package at this time is justifiable and the government debt will remain comparatively subdued,” the JCR said. “The A- rating upgrade from JCR, which comes at a time when economies across the world are reeling from what could likely become the worst global downturn in nearly a century, is a solid recognition of the Philippines’ capability to stage a quick and strong recovery from this health crisis,” said Finance Secretary Carlos Dominguez III. By: Morexette Marie B. Erram - Multimedia Reporter - CDN Digital Published: June 11,2020 - 12:20 PM Full Article: PH, Japan formalizes loan agreement for 4th Cebu-Mactan bridge Snippet: CEBU CITY, Philippines – The Japanese and Philippine government has formalized an agreement involving loans of two big-ticket projects here, including the 4th Cebu-Mactan bridge. In a statement released earlier this week, the Embassy of Japan in the Philippines announced that Ambassador Haneda Koji and Foreign Affairs Secretary Teodoro Locsin Jr. has signed and exchanged notes for loans amounting to a total of 154 billion yen, or roughly P73 billion, for the construction of two infrastructure projects. These are the 4th Cebu-Mactan Bridge and Phase 2 of the Davao City Bypass. According to the press release, the former is estimated to cost 119 billion Yen (P56 billion) while its 35 billion yen (P17 billion) for the latter. “These yen loan projects to be financed by Japan seek to tackle connectivity and traffic congestion concerns confronting the rapidly developing metropolitan areas of Cebu and Davao,” the statement read. “Both projects form part of the ‘Build Build Build’ program to which Japan remains strongly committed,” it added. |
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