Biz Buzz: Caesar says…
Change has truly come to some government agencies, it seems, especially the Bureau of Internal Revenue.
During the previous administration, the BIR (along with the Bureau of Customs) was at the frontline of the government’s efforts to improve the state’s revenues. Under the current dispensation, it still is. But early indications point to a very different style of doing things at the agency.
Biz Buzz learned that the new BIR leadership—under Commissioner Caesar Dulay—has issued a sternly worded memo reminding all officials to clear everything with top authorities before they release official documents (or open their mouths) to print or broadcast media, or post information on the website of the agency.
The stated reason is noble, of course.
“It is to the interest of the BIR and the general public that taxpayers be informed of all tax and tax-related issues and developments in the BIR in a clear, correct and unmistakable manner so that they can better avail (themselves) of all tax assistance and tax compliance services by the agency, and enjoy to the fullest the opportunities available for the protection and enhancement of their rights,” the memo read.
“Strictly for this reason, all advisories, revenue actions or decisions, and policy statements that substantially affect the basic rights and remedies of the taxpayer relative to the assessment and collection of taxes or put in issue the government’s exercise of its taxing powers and tax administration responsibilities, shall not be posted in the BIR website, or released to the print and broadcast media, without prior approval of the commissioner,” it added.
So does that mean no more “name and shame” campaigns favored by the previous leadership? Or is the new boss just centralizing and streamlining the information flow process?
Whatever it is, the new BIR chief warned that “appropriate disciplinary action” would be imposed on employees found to have violated his directive.
Well, the new BIR boss isn’t named “Caesar” for nothing. Daxim L. Lucas
Razon’s sacrifice
THE DUTERTE administration is not shy about asking the wealthy in the private sector to shoulder some of the cost in easing the burden for the greater number of Filipinos.
Within the first month of the administration, the transportation department, led by Arthur Tugade, has been busy making the rounds among business groups. So far, airlines have been tapped to keep ill-maintained airport toilets clean while the PLDT group would shell out about P1 billion to provide free wifi in 21 public transport spots.
Now comes air traffic congestion at the Ninoy Aquino International Airport. There’s no quick-fix here, but the department wanted general aviation moved out of Naia and into the Sangley Point Air Base in Cavite. This would allow more commercial flights to operate in Naia.
To be sure, the plan is not new. But previous department heads failed to implement this for one reason, or maybe a billion reasons. After all, powerful tycoons with private jets would be affected by such a move.
It’s different today, and maybe that has to do with the so-called political will that a good number of people believe this administration has. A move to Sangley would either be fully studied or even implemented within the first 100 days of the administration, Tugade said.
So far, tycoon Lucio Tan has publicly announced he would make his own sacrifice and move his “small fleet” of private aircraft out of Naia.
Other tycoons are expected to follow suit. This includes Enrique Razon Jr., a ports and gaming billionaire, who uses his Gulfstream jets to also ferry casino VIPs from overseas to Naia. Depending on the traffic, it’s usually a short drive to his Solaire Resort and Casino.
Biz Buzz sources in Razon’s camp downplayed talk the tycoon was disappointed about moving out of Naia and said a move to Sangley Point was not expected right away. Even when it happens, VIP gamers—and their deep pockets — can avoid Metro Manila’s clogged roads and take a two-minute helicopter ride from Sangley Point straight to Solaire’s gaming tables. Miguel R. Camus
Beefing up Federal Land
IT’S STILL in its early days but Ty family-led GT Capital Holdings is reserving for itself the option of consolidating into property arm Federal Land Inc. its newly acquired mass housing unit Property Company of Friends Inc. (Pro-Friends).
Most other big property developers like SM Prime Holdings and Megaworld Corp. have taken such consolidation route. “We’re open to the idea but it’s too early,” GT Capital president Carmelo Bautista said.
It’s likewise too early to bring Federal Land to public hands. “It’s still getting some momentum. Federal Land is still young and how property companies are valued is just (based on) the value of the land. So you want values to improve before you take it to market,” he said.
Note that the two property arms are now at par in terms of net profit in the first six months: P705 million for Federal Land and P750.1 million for Pro-Friends, although GT Capital increased its ownership in the latter to 51 percent only last July. GT Capital is very upbeat on the prospects for mass housing. “Our problem is, we can sell it faster than we can build it so we are tempering sales so we can construct faster,” he said.
Meanwhile, like other big property developers, Federal Land is now embarking on large-scale, mixed-use development, beginning with the Blue Wave area near Manila Bay where it recently completed the consolidation of 40 hectares of property (some of which were held by family members).
It is in this area that Federal Land is building its very first shopping mall. With 25,000 square meters of leasable space, this is much smaller than the nearby Mall of Asia. But Bautista said it was a “specialty mall” or a “destination mall” supported by its own mixed-use community in the area. Doris Dumlao-Abadilla
‘Suspicious housecleaning’
THE COUNTRY’S new e-passport is set to be rolled out next week, but the detractors of the deal that saw the vital travel document manufactured by government-owned APO Production Unit are not about to give up the fight.
Last week, no less than Foreign Affairs Secretary Perfecto Yasay Jr. made known his dislike for the deal (sealed under the previous administration), along with a so-called “expert witness” who also assailed the scheme in a radio program. Of course, the radio program was anchored by another crusading radio personality who also attacked APO and its joint venture partner, United Graphic Corp. (Ugec).
The APO camp now thinks there is an organized demolition job against it meant to derail next week’s e-passport rollout.
This witness was touted by the radio program’s anchor as someone who lost millions of pesos when he was the “integrator” of materials when the passport was being printed by the Bangko Sentral, an arrangement that seems to be favored by the current DFA leadership.
This Filipino-Chinese guy—who allegedly has a Taiwanese passport—has managed to win the sympathy of the powers that be in DFA, starting with the machine readable passport up to the e-passport program with the backing of a foreign company.
But contrary to what was touted during the radio program, he is not a subcontractor but a mere supplier of materials for the project.
Of course, the line being sold to the public was that former Presidential Communications Operations Office Secretary Herminio Coloma Jr. made a 10-percent commission from the APO-Ugec joint venture.
Sadly, our sources tell us that Yasay has yet to see for himself the state-of-the-art facilities of APO in Batangas, but has apparently chosen to believe its detractors. This is despite the government firm’s commitment to produce e-passports for the next 10 years at a fixed price of P950 per booklet, regardless of inflation or increases in the prices of raw materials.
But if you think that both sides are squabbling over a mere printing deal, note that the contract to print e-passports for the DFA over the next decade is worth at least P38 billion. Maybe that explains why everyone is interested in the issue. Daxim L. Lucas
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