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78Th Issue Mar. 15-21, 2021 “Radiating positivity, creating connectivity” CEBU BUSINESS Room 310-A, 3rd floor WDC Bldg. Osmeña Blvd., Cebu City You may visit Cebu Business Week WEEK Facebook page. March 15 - 21, 2021 Volume 3, Series 78 www.cebubusinessweek.com 12 PAGES P15.00 AVAIL OF TAX AMNESTY: BIR Do not wait for June 14 deadline, says officer THE Bureau of Internal if the value is P10 million By: ELIAS O. BAQUERO So, it’s better to just pay the Just pay the actual tax with Revenue (BIR) 13 urged the and above. If the value of the P2,000 or P3,000 without the original amount, interest, people to avail of the estate property is more than P10 out surcharge and interest. availing amnesty. penalty and surcharge. tax amnesty and not wait for million the BIR computation “So, the estate tax am- But if the original obliga- But normally, Darcerea the fast-approaching dead- is not more than 20 percent. nesty is the solution to all tion was P2,000 or P3,000 said an heir can save under line on June 14, 2021. If the heirs fail to file the es- heirs who failed to report to but it became P100,000 or the estate tax amnesty. Imag- Atty. Isaac “Jun” Darcera tate, there is an interest of 20 the BIR the demise of the P200,000 based on the latest ine, if the basic is just a small Jr., assistant chief of the BIR percent per annum, plus 25 original owners of the prop- property value, they may ap- amount, but with 25 percent Regional Revenue 13 legal percent surcharge for late fil- erties that they’ve inherited, ply for amnesty to reduce it. surcharge, plus 20 percent division, said the estate tax ing. hence, they also failed to file Darcera said that if the interest per year, the obli- amnesty law, passed by Con- “That’s why, without the the estate tax return that in- original property owner was gation becomes bigger and gress and signed into law by estate tax amnesty, some creased every year because of the grandfather of the heir bigger until the value of the President Rodrigo Duterte, is heirs will be forced to sell interests,” Darcera said. who died in 1960 and the es- properties may be equivalent considered a gift of the Dute- their inheritance to pay the If the heirs will avail of tate tax obligation was only or lesser to the BIR obliga- rte administration to the Fili- piling estate tax obligation to amnesty, the minimum es- P200, the grandchild may tion. pino people. the BIR,” Darcera said. tate tax must be P5,000. If es- use the old law of BIR as to Darcera said if the Atty. Jose Hector “Boom” In the estate tax amnesty, tate tax due is below P5,000 when he died. If the obliga- grandfather has died, and Baronda, the chief of the BIR the old rate is now reduced to like P2,000 or P3,000, the tion is lesser than P5,000, no the grandchildren planned 13 legal division, also urged six percent per annum, with- heirs will have to pay P5,000. need to avail of the amnesty. to sell it, the process in the the heirs of properties whose Register of Deeds is that the owners died several years ago title cannot be transferred to to apply for estate tax amnes- the names of the heirs with- ty to reduce their obligation. out first paying the estate BIR 13 which covers tax based on whose name is Cebu and Bohol is led by there in the title. Atty. Eduardo Pagulayan, the “I am urging all people director. concerned to avail of the am- Darcera told DYRC radio nesty offered by BIR as the and Cebu Business Week that deadline is fast approaching an estate tax is a privilege to on June 14, 2021. Apply for transfer the properties in the amnesty now. It’s not easy name of the deceased to his because if you have several heirs. lands, the obligation will be Darcera said that if we consolidated. An heir can follow the law, the compu- apply for estate tax amnesty tation of estate tax is when and pay to the bank. If the the property owner died, and application for amnesty is what law to be used. approved, the heir shall pay In the old law, the estate to the bank and file it back to tax was up to 20 percent rate the BIR,” Darcera said. 2 March 15 - 21, 2021 Cebu Business Week NEWS Consumers must not pay for Bantayan power cost: advocate THE power cost in Ban- the PSA, but Rivera virtually tayan Island, Cebu using a retracted that statement by private plant to supply elec- clarifying that his estimate tricity to Bantayan Electric was based on an earlier DDP. Cooperative (BANELCO) is a Junia said the explana- classic case of stranded cost tion, however, raises even from imprudent forecasting, more questions because a over-contracting and multi- BANELCO DDP prior to ple contracting parties, and Covid19 should have been the consumers must not pay more robust and optimistic for this. given the growth trajectory Power Advocate Romeo of Bantayan’s tourism in- “Butch” Junia has the Ener- dustry at that time. Tourism, gy Regulatory Commission unfortunately, took a big hit (ERC) about this, being one in the pandemic and Rive- of the payors to Univer- ra, also noting that, changed sal Charge for Missionary tunes on BENALCO’s 2020 Electrification (UCME) that DDP projections claiming subsidized Bantayan Island they were no longer valid. power consumers. He said the ERC will In the Interim Power have to take a close and hard Supply Agreement (IPSA), look at the numbers and fig- the monthly cost of P27.00 ures submitted by BANELCO pkWh for 255,000 kwh is with their PSA application about P6.8M. The Power because their sole witness Supply Agreement (PSA) land Power Corporation (BI- not become their wiggle out 12.05MW, 3MW short of the undercut them in his per- cost, on the other hand, will PCOR) must first be taken wedge, he added. take-or-pay GDC indicating a sonal testimony. While reg- depend on the approved cap- before BANELCO taps into Junia cited the 2020 significant amount of unused ulation is not exact science ital recovery fee (CRF) ap- INEC’s supply. If BIPCOR Distribution Development but paid capacity. it cannot just be haphazard plied to the 15MW GDC. delivers sufficient power until Plan submitted by BANEL- Worst case scenario, ac- and mere guesswork. In an ERC hearing, BA- November, IPSA energy and CO where a 15-MW peak cording to Junia, is Rivera’s Junia noted that BANEL- NELCO General Manager PSA capacity from INEC will demand is not reached until declaration in his Judicial Af- CO members should be just Lee Rivera admitted that Isla have nowhere to go, yet we 2025-2026. For the years be- fidavit “that by the fifteenth as vigilant on UCME rates Norte Energy Corporation will have to pay INEC for them fore 2026 BANELCO mem- (15th) year of the PSA, BA- because they, too, pay it just (INEC) plant for PSA could if the contracts are approved bers and all other consumers NELCO would need fifteen like everybody else. When be operational in July 2021. by ERC, Junia warned. who pay the UCME will sub- (15) megawatts of power.” rates obtained or awarded Rivera confirmed the BANELCO has painted sidize the take-or-pay penal- That would mean that all under imprudent contracts take-or-pay provisos in IPSA itself into a corner and we ty. Junia noted that for 2022, consumers will be carrying are recovered from UCME, and PSA but also attested that have to make sure that rates the first full year of the PSA, the take-or-pay cost of un- we all bear the unfair burden, all supply from Bantayan Is- to us for unused power do the peak demand forecast is used capacity for 14 years of Junia said. October becomes Cooperative Month THE House of Represen- operative month. improve the cooperatives. (BIR) so there are about tatives has passed a bill into Canama also said that Canama noted that the 10,000 which did not avail law declaring every October Congress also passed a law Cooperative Development of the tax exemption as em- of the year as Cooperative making mandatory the po- Authority (CDA) said there bodied in the 1987 Consti- Month to recognize the im- sition of a cooperative of- are more or less 27,000 reg- tution. portance of cooperativism. ficer in every municipality, istered coops in the entire Canama initiated meet- Rep. Sabeniano “Ben” city or province. country. However, because ings with the CDA and BIR. Canama of the Coop NATC- The Lower House is also some of them are micro, the The BIR listened to their CO Party-List said that looking for ways on how to active ones in operation are issues and concerns, and cooperatives in the entire extend help to the commu- about 18,000. has a commitment to help. country celebrated cooper- nity, So, there are about There are now several coop- ative month every October. In the Cebu City Govern- 9,000 which are not any- eratives which will receive He said the House of Rep- ment, there is a special body more in operation and can- CTEs after long delay of its resentatives, through the called Cebu City Coopera- REP. SABENIANO CANAMA celled registration. issuance. House Committee on Coop- tive Development Council Canama said he is sad- There are still cooper- eratives, make it stronger (CCCDC) but there is no co- Government Unit (LGU) to dened by the fact that of atives which said that it is by passing a law.
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