Category: taxes

NO to BBM’s Maharlika Wealth Fund!

“Honorable Senators of the Republic” by Diwa C. Guinigundo https://www.bworldonline.com/opinion/2023/02/16/505267/honorable-senators-of-the-republic/

“Investing a mountain of debt?” by  Diwa C. Guinigundo https://www.bworldonline.com/opinion/2023/01/12/498061/investing-a-mountain-of-debt/

“In the bag, ho ho ho!” by Manuel L. Quezon III
https://opinion.inquirer.net/159692/in-the-bag-ho-ho-ho

“More critical than Maharlika” by Cielito F. Habito
https://opinion.inquirer.net/159649/more-critical-than-maharlika

“Maharlika is the new government” by Ma. Lourdes Tiquia https://www.manilatimes.net/2022/12/20/opinion/columns/maharlika-is-the-new-government/1870966

“Will Marcos Jr. take up Maharlika Fund at Davos?” by Satur C. Ocampo  https://www.philstar.com/opinion/2022/12/17/2231329/will-marcos-jr-take-maharlika-fund-davos

“Maharlika muddle” by Stephen CuUnjieng https://www.manilatimes.net/2022/12/16/opinion/columns/maharlika-muddle/1870530

“Maharlika foolish, corrupt – critics” by Jarius Bondoc
https://www.philstar.com/opinion/2022/12/14/2230635/maharlika-foolish-corrupt-critics

“ENRILE URGES MARCOS: Review Maharlika bill” https://www.manilatimes.net/2022/12/14/news/review-maharlika-bill/1870127

“Upping the ante by doubling down” by Manuel L. Quezon III
https://opinion.inquirer.net/159500/upping-the-ante-by-doubling-down

“Why the Sovereign Wealth Fund is still problematic on many levels” by Andrew J. Masigan
https://www.philstar.com/opinion/2022/12/14/2230636/why-sovereign-wealth-fund-still-problematic-many-levels

“Decorative” by Alex Magno
https://www.philstar.com/opinion/2022/12/13/2230386/decorative

“Maharlika Wealth Fund: Devil is in the details” by Teresa S. Abesamis
https://www.bworldonline.com/opinion/2022/12/13/492801/maharlika-wealth-fund-devil-is-in-the-details/

“Imploding” by Alex Magno https://www.philstar.com/opinion/2022/12/10/2229774/imploding

“Who Wants the Maharlika Wealth Fund?” by Solita Monsod https://marengwinniemonsod.ph/2022/12/10/maharlika-wealth-fund/

Maharlika Investment Fund ‘beyond repair,’ says Economist & National Scientist  Raul Fabella https://newsinfo.inquirer.net/1703562/mif-beyond-repair-says-natl-scientist-in-economics

Economist Winnie Monsod reacts to Maharlika Fund proposal [“Ridiculous!”] https://www.youtube.com/watch?v=919ww8jbzBk

“Fumble” by Boo Chanco https://www.philstar.com/business/2022/12/09/2229496/fumble

“Maharlika conundrum” by Stephen CuUnjieng https://www.manilatimes.net/2022/12/09/opinion/columns/maharlika-conundrum/1869617

“Death blow for a dumb idea” by Ben Kritz https://www.manilatimes.net/2022/12/08/opinion/columns/death-blow-for-a-dumb-idea/1869481

“Blink thrice if you don’t mean it” by Manuel L. Quezon III https://opinion.inquirer.net/159368/blink-thrice-if-you-dont-mean-it

“Defeat” by Alex Magno https://www.philstar.com/opinion/2022/12/06/2228787/defeat

“Drop the Maharlika fund” by Cielito F. Habito https://opinion.inquirer.net/159331/drop-the-maharlika-fund

“Maharlika Fund idea is incredibly obtuse like, ‘what are we in power for?'” by Yen Makabenta  https://www.manilatimes.net/2022/12/06/opinion/columns/maharlika-fund-idea-is-incredibly-obtuse-like-what-are-we-in-power-for/1869196

“Business groups, economists issue joint statement on ‘Maharlika’” by Ma. Stella F. Arnaldo https://businessmirror.com.ph/2022/12/06/business-groups-economists-issue-joint-statement-on-maharlika/

“Are we ready for a sovereign wealth fund?” by Randy David https://opinion.inquirer.net/159282/are-we-ready-for-a-sovereign-wealth-fund

“Cronies wealth fund?” by Boo Chanco  https://www.philstar.com/business/2022/12/05/2228516/cronies-wealth-fund

“The Maharlika Fund: A Pricey Stud Or A Milking Cow?” by Heneral Lunacy https://heneralunacy.wordpress.com/2022/12/05/the-maharlika-fund-a-pricey-stud-or-a-milking-cow/

“Keep your hands off our SSS, GSIS money” by Jarius Bondoc https://www.philstar.com/opinion/2022/12/02/2227919/keep-your-hands-our-sss-gsis-money

“Maharlika Fund: Dubious, pretentious and self-serving” by Sonny Africa https://www.ibon.org/maharlika-fund-dubious-pretentious-self-serving/

“The Maharlika Wealth Fund” by Filomeno S. Sta. Ana https://www.bworldonline.com/opinion/2022/12/04/490838/the-maharlika-wealth-fund/

“13 reasons why WE OPPOSE House Bill 6398 (Maharlika Investment Fund/PH Sovereign Wealth Fund)” by David Michael San Juan https://www.facebook.com/lastrepublic/posts/pfbid0scC3HnBcZyvpdS1fr7ZP1j1ZH2jyUW1vcYgnBAk6mmUoWnmLC1Pxp4iUcdBfUengl

“Galawang Marcos. Another Corruption Scheme in the Making!” by Ed Lingao https://www.facebook.com/100083035164368/videos/679806213550044/

“More fun(d) in the Phl” by Ana Marie Pamintuan https://www.philstar.com/opinion/2022/12/05/2228532/more-fund-phl

“tax reforms” para kanino?

President Duterte will leave behind 40 finished flagship infrastructure projects worth P365.2 billion by the end of his term, such that his economic team wants the succeeding Marcos Jr. administration to prioritize infrastructure development, to be partly funded by another round of tax reforms, under the proposed fiscal consolidation and resource mobilization plan.

That’s from Inquirer‘s “Marcos urged to sustain infra devt., tax reforms“.

Ito ang sagot sa Facebook ng abogadong si Ruben Carranza na dating PCGG commissioner, now with the International Center for Transitional Justice (ICTJ), New York.

CARRANZA. … ang “tax reforms” ay pinagandang tawag lang sa pag-taas ng buwis at ang maniningil nito ay pamilyang ayaw magbayad ng buwis. Dapat lang magalit sa kabastusan ng sitwasyon na yan: nagnakaw na ng $10B, hindi nagbabayad ng P23B at ngayon sila pa ang pipiga ng dagdag na buwis sa 110M na Pilipino? [At tandaan na kasama sa magbabayad ng mataas na buwis na yan ang 31M, 14M at lahat ng milyon na hindi man lang botante].

MERON PA AKONG REKLAMO tungkol diyan sa mapaglinlang na “tax reforms.” Sino ba ang may gusto nito (at bakit “reform” ang tawag nila)? Ang may gusto nito ay ang mga dayuhang nagpapautang sa mga ‘developing country’ katulad ng Pilipinas at ang International Monetary Fund o IMF na mas concerned pa na mabayaran ang nagpapautang maski mamatay na sa gutom ang mga sinisingil ng mas mataas na buwis.

“Reform” lang yan para sa mga naninigurong mabayaran sila ng utang at wala silang paki-alam kung ang perang inutang ay ninakaw — ganyang pag-paparaya sa korupsiyon ang ginawa ng IMF (at World Bank) noong panahon ni Marcos Sr. Halimbawa, umabot na sa $18B ang utang ng Pilipinas noong 1981, pero si Marcos Sr, niregalohan pa si Imelda ng apat na building sa New York na ang isa lang ay $71M ang halaga!

FINALLY: ang ganitong style ng pagkakasulat ng mga balita tungkol sa taxes [at] ekonomiya — na para bang mga malalaking kapitalista at ekonomista lang ang magbabasa at maapektuhan ng balitang “tax reforms” — ang nakakapagpalalá ng fake news. Kung hindi mabasa o maintindihan ng ordinaryong botante ang balitang tax increase na disguised as “tax reform,” madaling maipasa ito ng mga gobyernong manloloko. Ang “business news” ay para din dapat sa manggagawa at dapat isulat sa paraang maiintidihan ng mas marami. At ito yung isa pang dahilan kung bakit madaling makapag-kalat ng kasinugalingan si Marcos at Duterte — ang ganitong news reporting tungkol sa ekonomiya na nakakatulong kay Marcos at Duterte para itago ang kanilang pagiging ipokrito sa mga salitang “tax reforms.” cc: [Sino ba ang “business news editor” ng Inquirer?]

Salamat kay Carranza for calling out business news editors and reporters na kung magsulat at magreport tungkol sa “tax reforms” ay walang bahid ng kritisismo–para bagang aprub na aprub sila, gayong pigang-piga na ang nakararaming taxpayers na hindi naman totoong nakikinabang.  Time to level up, guys.

Beating the TRAIN

Milwida M. Guevara

… The TRAIN corrects some of the infirmities in the tax system but adds some more.  By opening more gaps, there are various ways by which taxpayers can get ahead of the station before the TRAIN does.

1  It is better to incorporate than to run a business as an individual. The highest rate on individual taxpayers will be 35% compared to 30% if he incorporates. If he pays himself in the form of a dividend, instead of wages, his tax burden will even be lower at 10%.

2  It is even better to organize the business into a cooperative. Cooperatives remain exempt from income taxation, including the VAT — except for electric cooperatives whose exemption has been withdrawn.

3  I cannot understand the preferential treatment for pickups. The TRAIN exempts them from excise taxation. Could it be that some lawmakers are in the pickup business (pun not intended)? But, nevertheless, shift your preference for pick- ups to escape the excise tax.

4  For taxpayers going to the great beyond, postpone the date until the Implementing Rules are formulated. The transfer tax has been lowered from 20% to 6%. Plus, the deductions have been brought up to P5.0 million pesos. And, several tax reliefs are given – family homes valued at P10.0 million are exempt, and the tax can be paid by the heirs in installment within a two-year period.

5  Postpone giving donations until next year. The donor’s tax has been lowered from 20% to 6%. Now it does not make a difference if you transfer your wealth while you are alive or when you have gone to the great beyond.

6  Do not rent houses for more than P15,000 a month – otherwise the rent will be subject to VAT. Do not buy houses that are more than P2.0 million. Buy adjoining  units that are P2.0 million each to escape the VAT.  And then later, connect the houses or rebuild them to give way to a much bigger house.

7  If you must get sick, choose diabetes and hypertension over cancer. Prescription medicine for these ailments is VAT exempt.

8  If you have not converted the engine of your motor vehicle to diesel, do so now. The preferential rate for diesel remains. Compare P2.50 per liter with P7.00 on unleaded gasoline in 2018.  And stick with diesel, by 2020, the tax rate will be at P4.50 compared to P10.00 for unleaded gas.

9  There is even a bigger advantage for cars powered by LPG. The tax rate is only P1.00 and will remain at P2.00 in 2020.

10  And, start patronizing tea and coffee from Starbucks, UCC, Bo’s, Coffee Bean, among others. The sweetened beverages that are prepared in these cafes will not be subject to the excise tax. Of course, it would be better to drink mineral water, including Evian and Pellegrino.  They are not subject to excise tax.  Beverages that are sweetened by sugar from coconut are also free from tax.

11  But the biggest winners are producers of motor vehicles. The excise tax rate has been lowered on those that are priced above P600,000. They used to be subject to rates ranging from 20% to 60%.   Now the tax rate has been lowered to 10% -50%.   I wonder why.

Indeed some are more blessed than the others when it comes to public policies.

shabu, semento, senado

i started writing, thinking on, this post yesterday soon after senator panfilo lacson, in aid daw of the blue ribbon committee’s hearings on shabu smuggling sa customs, delivered that privilege speech accusing ex customs chief nic faeldon and his oakwood gang of being on the take, big time.  kararating pa nga lang, may pasalubong na.

“Loud whispers in the four corners of the Bureau of Customs compound tell of a 100-million-peso ‘pasalubong’ to the newly-installed Commissioner, a quarter of which, or 25 million pesos was retained as finder’s fee by his middleman named Joel Teves.”

what, “loud whispers” lang?  no documents, no affidavits by witnesses, no hidden CCTV that prove/show that money illegally changed hands?  interesting.  a former top cop playing like bato’s cops: “shoot” now, explain later.  but not too surprising, given senator ping’s long colorful history.  twice he was the accused in very high-profile cases — the kuratong baleleng shoot-out / rub-out in 1995 and the bubby dacer – alex corbito murders in 2000.

lacson pleaded innocent in both cases and in due time each was dismissed. kuratong baleleng was more easily won.  dacer-corbito was not; ping had to run for it, just before he was charged in court; he was a fugitive for 15 months, there was an arrest order out for him, even the interpol was on the lookout.  umuwi lang siya after the supreme court dismissed the case, affirming the court of appeals’ earlier ruling that the principal witness was neither credible nor trustworthy.  same witness recanted his testimony sometime in 2015.

i’ve always believed that lacson is one very powerful man.  back in the days of erap, when he was PAOCTF chief, there was a lot of talk that he had dossiers on everyone, which inspired fear.  he could be truly innocent of the dacer-corbito murders but i have no doubt that he knows more about these murders than he has ever let on, and that’s like being complicit in protecting the guilty, isn’t it?

but to get back to yesterday when he lashed out at faeldon.  kahit pa sabihin, for the sake of argument, na guilty as charged si faeldon, nagulat ako at the viciousness of lacson’s attack.  guilty until proven innocent.  bakit siya galit na galit kay faeldon? pareho sila ni trillanes, actually.  what do they know about faeldon that makes them so mad at him (or vice versa), but which the president either does not mind or does not know?  is it for PMA’er’s ears only?

this morning faeldon struck back at lacson with a vengeance, wondering what lacson’s motive was for accusing soldiers whom lacson himself knows daw are innocent of corruption.  and then he went on to make kuwento about a cement importer by the name of panfilo lacson jr. whose small company has been bringing in shiploads of cement, tone-toneladang semento, na misdeclared, undervalued (at $8/metric ton) by some 50 percent of market price.  106M pesos worth of cement in 3 shipments over 3 days in july 2016.  nakaka-67 shipments na daw by now.  and like tish, faeldon has documents.

tanong ni faeldon: alam mo ba ito, senator lacson?  kasi kung hindi, kung hindi mo alam ang ginagawa ng anak mo sa customs, then wala kang alam tungkol sa customs.

sagot ni lacson: it’s a big big lie …  i am not my son’s keeper … faeldon’s $16 for cement is too high.

also the senator said that he would not have made yesterday’s exposé re faeldon if he himself were involved in customs corruption in any way.  and anyway why did it take faeldon so long to make sumbong?

hmm.  it is not beyond imagination that lacson made the exposé — even if he himself was not beyond reproach — out of hubris, over-confidence, thinking no one would dare mess with him, or that faeldon in particular would not dare challenge him.  just as it’s perfectly understandable that faeldon was in no hurry to tangle with the senator, as who would be? until he had his documents in order.  and if he is NOT on the take, then it makes sense that faeldon would hit back at the senator with everything he’s got just about now.

it’s not quite as hateful or scandalous as the shabu smuggling — after all, di naman illegal substance ang semento — but undervaluation in aid of paying less in taxes is technical smuggling, a crime that cheats government of millions, maybe billions, in revenue, and which is punishable with fines and imprisonment.

hindi bale sana kung dahil nakamura sa customs ay mas mura nilang ibinebenta ang semento sa mercado.  asa pa.

meanwhile, senate prez pimentel and senators drilon and aquino were quick to express support for their colleague.

PIMENTEL. “We have to make sure that this is not pang lihis lang ng isyu. And Faeldon should state everything he knows about everyone involved in suspicious activities in Customs and not only concentrate his return fire on the person who exposed the tara system in BOC.”

DRILON. “I have full faith in the uprightness of Sen. Lacson and his family. Without any evidence other than Faeldon’s allegation, I will oppose any investigation. It will be a waste of time and will simply be used as a venue for character assassination.”

AQUINO said he is confident Lacson could defend himself against the allegations of Faeldon that his son’s company is the “number one cement smuggler in the country.”

if not for faeldon, we wouldn’t now know that senator lacson’s son is a  customs player pala.  nakakapagpaisip, di ba?  sino pa kaya sa mga senador ang may anak, kapatid, pamangkin, pinsan, at / o inaanak na customs players din.  imposible naman na si lacson lang.  time to circle the wagons indeed.