Business groups on Kim: Pour more ice water, please!

The Supreme Court magistrates figuratively poured a bucket of ice water on BIR chief Kim Henares when they rejected with finality the motion for reconsideration filed by Henares to obtain certified true copies of the statement of assets, liabilities and net worth  (SALN) of the SC justices from 2003 to 2012. In the resolution issued earlier, the SC also slammed Henares, saying that the powers bestowed on the BIR chief are “not absolute.”

Like the magistrates, many were also wondering why the revenue chief seemed engaged in “selective targeting” because it did not include the Sandiganbayan and lower court members in her request – only the justices of the SC, the Court of Appeals and the Court of Tax Appeals where cases involving the BIR are being heard. The SC also said Section 5(B) of the Tax Code should not be used in the conduct of a fishing expedition to hunt for any tax liability.

Businessmen were relieved to hear the SC ruling, with many saying they hope Henares – shown in the screen-grab photo (sent in by a reader) taking the ice bucket challenge issued by ABS-SBN host Anthony Taberna – would cool down her tendency to overstep the limits of her authority.  

Business groups actually have a long list of complaints against several memos and regulations issued by the BIR, among them Revenue Regulation (RR) 01-2014 where the Tax Identification Number (TIN) of all payees and income payments to them must be disclosed in the Alphalist of payees and employees subjected to withholding taxes. Business groups assailed RR 01-2014 for several reasons, one of which is the vagueness in the definition of what constitutes a “payee” since there are three different entities that could fit the category.

The said revenue regulation is also being resisted by investors saying the requirement to disclose private information such as TIN, names and addresses is a breach of confidentiality and bank secrecy laws. Besides which, non-resident “payees” do not have a TIN and this new requirement from the tax agency would increase the cost of doing business because non-residents will be compelled to hire the services of tax lawyers for the processing of TIN applications on behalf of investors. And what will we do regarding trust agreements involving minors, seniors and other individuals who have never been employed and hence do not have tax identification numbers, a businessman argued. 

Aside from private business groups, government employees’ groups as well as an association of judges have also slammed Henares for implementing new regulations that have been criticized as onerous and unlawful, with many questioning her authority in issuing Revenue Memorandum Orders (RMOs) since the power to do so is vested only in the Finance Secretary.

No one questions the right of the BIR to collect taxes, but the agency – specifically its chief – does not also have the right to overstep the limits of her authority and arrogate powers that she does not have the right to wield, several businessmen complained.

Solar Entertainment issues clarification

Solar Entertainment Corp. president and CEO Wiliam Tieng has issued a clarification regarding their divestment of news subsidiary Solar Television Network Inc. (STVN) to dispel misconceptions and speculations regarding the current ownership and management of the flagship network.

Solar Entertainment – which owns several channels that include 2nd Avenue, ETC, Jack City, JackTV, My Movie Channel, Solar Sports, Basketball TV, The Game Channel, and NBA Premium – is owned, and has always been owned, by no other entity other than the Tieng family since 1976. 

What the Tiengs completely divested are their shares in news subsidiary STVN that were bought by the group of Tony Cabangon-Chua. STVN also happens to own 34 percent of Radio Philippines Network Inc. (RPN-9), and the Tiengs decided to let go of their shares because they were “losing money.”

Part of the agreement between the Tiengs and the Cabangon-Chua family calls for the dropping of the “Solar” brand and logo by STVN, with the corporate name to be changed before the end of this year. For now, Solar News is being “temporarily rebranded” into 9TV Network – which is just as well to help people sort through the confusion.

In any case, Solar Entertainment seems to be doing very well with increased viewership especially from younger audiences for programs like Vampire Diaries, Ellen and the Big Bang Theory whose lead actor Jim Parsons just won his fourth Emmy.

Vultures at NAIA

Spy Bits has been receiving a lot of complaints about overcharging non-accredited taxis that victimize arriving passengers at the NAIA.  A Filipina who arrived from Korea said she was aghast to see Terminal 3 turned into a “fish market” with taxi drivers waving, shouting and competing for passengers. The email sender said the drivers were charging her P1,750 for a one-way trip to Marikina – over and above the P790 that an accredited airport taxi charged her when she managed to find one.

Apparently, these non-accredited taxis are being protected by a highly placed official, because they occupy several counters with a female trying to block passengers from looking for the accredited taxis that are placed at the farthest end. 

“When I reprimanded the drivers why their rates are not posted and why they are charging highly excessive fares, I was rewarded with a threatening scowl and a glare,” the reader said, adding that this kind of experience will surely turn off visitors and give the country a bad name.

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