Category: Business Mirror

Restoration of damaged power lines in affected areas in Masbate due to typhoon ‘Opong’ and the Southwest Monsoon will cost roughly P400 million, according to the Department of Energy (DOE).

With the scale of destruction, DOE Secretary Sharon Garin said that an estimated budget of around P400 million will be needed to repair affected power lines. Garin visited Masbate on Tuesday to inspect and assess the damage to energy infrastructure. She was joined by National Electrification Administration (NEA) Administrator Antonio Mariano Almeda, National Power Corporation (NPC) President Jericho Jonas B. Nograles.

‘This is more than an inspection, this is a commitment. We came here to see and assess the extent of the damage and to personally assure the Provincial Government of Masbate, its local electric cooperatives, and the people of Masbate that the energy sector will do everything it can to restore electricity as quickly and safely as possible,’ she said.

Meanwhile, NEA said the cost of damage to critical facilities affected by typhoons Nando, Opong, and the southwest monsoon are estimated at P52.1 million spread across 17 electric cooperatives (ECs) nationwide.

This covers the areas of ABRECO (Abra), BATANELCO (Batanes), BENECO (Benguet), BISELCO (Busuanga Island), CAGELCO 2 (Cagayan), CAPELCO (Capiz), KAELCO (Kalinga Apayao), LEYECO 5 (Leyte), LUBELCO (Lubang Island), MARELCO (Marinduque), MOPRECO (Mountain Province), NORSAMELCO (Northern Samar), OMECO, (Occidental Mindoro), ORMECO (Oriental Mindoro), ROMELCO (Romblon), SAMELCO 2 (Samar), and TIELCO (Tablas Island).

The DOE chief commended line workers from various ECs nationwide who, under Task Force Kapatid, have been arriving in Masbate since Sunday to support the Masbate Electric Cooperative, Inc. (MASELCO).

‘We are moving with urgency, but also with care. Safety remains our top priority for both workers on the ground and the public. Together, we will restore power and restore hope,’ Garin added.

Opong, which recently battered the Bicol Region, caused widespread damage to energy infrastructure, leaving many parts of Masbate without power.

West Zone concessionaire Maynilad Water Services, Inc. has officially commissioned its Cupang Water Reclamation Facility (WRF) in Muntinlupa City, which is now treating wastewater from Barangays Alabang, Cupang, and Bayanan.

Located in Brgy. Cupang, the facility has a treatment capacity of 46 million liters per day (MLD), supporting Maynilad’s long-term strategy to expand sewerage coverage and protect local waterways by removing harmful pollutants from wastewater prior to safe discharge.

To ensure full alignment with evolving environmental regulations, Maynilad has also initiated the upgrading of the facility to comply with the stricter effluent standards set under Department Administrative Order (DAO) 2016-08, as amended by DAO 2021-19 of the Department of Environment and Natural Resources (DENR). These standards prescribe limits on key wastewater parameters to safeguard public health and the environment.

‘We are not only expanding our wastewater treatment capacity-we’re also future-proofing our facilities to comply with the latest environmental standards,’ said Maynilad President and CEO Ramoncito S. Fernandez. ‘These investments reflect our commitment to sustainability and regulatory compliance as our communities continue to grow.’

The upgrade reflects Maynilad’s proactive approach to building resilient and sustainable infrastructure. The company has kept the Metropolitan Waterworks and Sewerage System (MWSS) informed throughout the process. While DAO compliance was not part of the facility’s original scope, it is now being integrated to ensure long-term regulatory alignment.

The Cupang WRF is one of two major wastewater treatment facilities recently completed in Muntinlupa. Along with the nearby Tunasan WRF, it significantly increases the city’s sewerage treatment capacity, contributing to Maynilad’s broader mission of improving sanitation conditions and promoting environmental protection across the West Zone.

Maynilad is the largest private water concessionaire in the Philippines in terms of customer base. It is a concessionaire of the Metropolitan Waterworks and Sewerage System (MWSS) for the West Zone of the Greater Manila Area, which is composed of the cities of Manila (certain portions), Quezon City (certain portions), Makati (west of South Super Highway), Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas and Malabon, all in Metro Manila; the cities of Cavite, Bacoor and Imus, and the municipalities of Kawit, Noveleta and Rosario, all in Cavite Province.

For 150 years, American Standard has been part of homes around the world-helping families create spaces filled with comfort, life, and love through its trusted bathroom and kitchen products. From simple routines to cherished family moments, the brand has stood the test of time with quality, innovation, and design that enrich everyday living.

As American Standard celebrates its milestone 150th anniversary, the brand honors this remarkable journey with a grand gesture of gratitude to its loyal Filipino customers-the American Standard 150 Raffle Promotion at all Wilcon branches nationwide. Shoppers have a chance to win coveted prizes, including a Hybrid Car, a Honda EM1 Electric Vehicle, a Xiaomi Mi Smart Electronic Bike, and American Standard products.

‘American Standard 150 Raffle Promotion is our way of celebrating this milestone and thanking customers who have supported us across the years,’ says Hermie Fernando Limbo, Country Leader, LIXIL Water Technology, Philippines.

Running until February 28, 2026, the promo entitles customers to one (1) raffle entry for every P10,000 single-receipt purchase of American Standard products at participating Wilcon branches. Exciting prizes include: 1 unit BYD Hybrid Electric Sedan, 1 unit Honda EM1 Electric Vehicle, 1 unit Xiaomi Mi e-bike, and 150 units of American Standard products (Duostix Hygiene Spray, Smart Washer Manual Bidet, and Neo Modern 3-Way Rain Shower).

Winners will be notified via their registered email and contact number and will also be announced on Wilcon’s official Facebook page. For complete details, visit Wilcon Depot PH.

To mark its 150th year anniversary, American Standard is also bringing together its valued trade partners, architects, designers, and media friends for a Special Partners’ Night themed ‘Inspired by Life.’ The event will feature tributes to the brand’s heritage, inspiring showcases, and a glimpse into the future as American Standard ushers in a new era under its refreshed brand claim: ‘Life. Love. Home.’

For generations, American Standard has been a trusted companion in homes, supporting personal moments of self-care, family routines, and connections that matter most. As it steps into its next chapter, the brand remains committed to designing products that make everyday living better-continuing a legacy that began 150 years ago.

IT has been more than a decade since transfer pricing (TP) was formally introduced into the Philippine tax landscape. Yet, compared with our peers in the Asia-Pacific region, our local TP enforcement remains relatively underdeveloped.

For many taxpayers, transfer pricing is still treated as a secondary concern. However, recent developments suggest that businesses must now aim to stay ahead of the curve. The introduction of BIR Form 1709 and ongoing discussions on implementing Advance Pricing Agreements (APAs) underscore that TP is no longer a distant threat. Rather, it resembles a ticking time bomb-one that could result in significant tax exposures if left unaddressed.

Adding to this urgency, the courts have started to encounter cases that indirectly touch on transfer pricing issues. While Philippine jurisprudence has yet to provide definitive rulings on the appropriate TP methods or what constitutes an arm’s length transaction, the trajectory is clear: disputes are coming. These cases, though not always explicitly framed as TP disputes, hint at the questions and challenges that both taxpayers and the Bureau of Internal Revenue (BIR) will increasingly face.

In this article, we revisit some of the notable cases that relate to transfer pricing, drawing lessons on where the law stands today and what taxpayers can expect in the years ahead, e.g.:

CTA Case No. 5908-The CTA emphasized that while the taxpayer must first show that its transfer prices follow the arm’s length principle, once this is done, the burden shifts to the BIR to prove otherwise. The taxpayer successfully argued that its export sales could be priced lower than domestic sales because export markets were highly competitive, while the domestic market was captive under an exclusive agreement. The CTA accepted this reasoning, noting the BIR failed to provide evidence to support its position.

TP Relevance: This case is significant in Philippine transfer pricing as it underscores the importance of market differentiation, burden of proof allocation, and the practical application of the arm’s length principle.

CTA Case No. 4724-The taxpayer was engaged in the marketing of various products in the areas of pharmaceutical, animal health and nutrition, and crop protection chemicals as well as medical devices. The tax authorities issued an assessment for deficiency income tax, arising from (a) overstatement of cost of goods due to transfer pricing of products, namely; aurofac and minocycline, which taxpayer purchased from its parent company, American Cyanamid; and (b) unnecessary and unreasonable payment of royalties to the latter company for the supply of technical know-how.

The CTA ruled in favor of the taxpayer and cancelled the BIR’s deficiency tax assessments. The BIR had argued that the taxpayer overstated its cost of goods in purchases from its parent company and made unnecessary royalty payments for technical know-how.

The CTA disagreed, finding the BIR’s actions arbitrary and unsupported. It noted that the products compared under the Comparable Uncontrolled Price (CUP) method were not sufficiently identical to justify price adjustments. On royalties, the Court upheld their validity, stressing that the licensing agreement was duly approved and essential for the taxpayer’s continued operations in the Philippines.

TP Relevance: The case highlights the importance of proper comparability analysis under the CUP method and the necessity and reasonableness test for royalty payments in related-party transactions.

CTA Case No. 8809-The CTA set aside the BIR’s tax assessment. The BIR had attempted to impute ‘theoretical interest’ on the taxpayer’s non-interest-bearing loans to its affiliates.

Relying on the Supreme Court’s ruling in the Filinvest case, the Court reiterated that the Commissioner of Internal Revenue (CIR) has no authority under the Tax Code to impute interest where none was contractually agreed. Under Philippine law, interest is only due if expressly stipulated in writing. Since there was no such agreement, and the BIR failed to show that the taxpayer received any interest income, the assessment was deemed baseless.

TP Relevance: The case reinforces that interest cannot be imputed on intercompany loans without a written agreement, and any tax assessment must be grounded on clear statutory authority and evidence.

CTA Case No. 6156-The BIR issued an assessment against the taxpayer under Section 43 (now Section 50) of the NIRC, alleging that the taxpayer’s cash advances to affiliates constituted loans subject to documentary stamp tax (DST) under Section 180. The CIR argued that inter-office memos, letters of instruction, and vouchers evidencing the advances were effectively in the nature of promissory notes. Moreover, the CIR imputed ‘imaginary’ interest income on the advances, asserting that the taxpayer understated taxable income by not charging its affiliates.

The Court ruled predominantly in favor of the BIR, upholding the CIR’s authority under Section 43 to allocate income among controlled taxpayers to reflect arm’s length results. While the taxpayer claimed exemption, the Court allowed imputation of interest on unsubstantiated advances amounting to P106.3 million, applying a 16.2 percent rate to arrive at P5.48 million of undeclared interest income. The ruling affirms that interest-free advances to affiliates may be recharacterized as loans, and tax authorities can impute interest under transfer pricing rules to prevent income distortion.

TP Relevance: Illustrates application of transfer pricing principles in financial transactions, highlighting the treatment of intra-group advances and the authority of the CIR to impute arm’s length interest.

Why these cases matter

What we can glean from the cases mentioned above is that it is only a matter of time before we see developments in transfer pricing disputes. Most, if not all, of these cases address familiar topics including:

Intra-group services.

Intercompany loan arrangements.

Royalties.

These areas are likely to be the primary focus of challenges from the Bureau of Internal Revenue (BIR). To defend deductions effectively, robust documentation and benefit tests will be crucial.

It is important to note that economic substance is prioritized over contractual form. Additionally, transactions involving goods and financing arrangements may soon face increased scrutiny.

To support their position in transfer pricing disputes, taxpayers must ensure they have comprehensive transfer pricing documentation and a proper comparability analysis. In summary, taxpayers can no longer afford to treat transfer pricing as an afterthought. Although the legal precedents are still developing, the trend is clear: there will be stricter enforcement and higher compliance expectations moving forward.

Transfer pricing in the Philippines may not yet have the maturity of other Asia-Pacific jurisdictions, but the warning signs are telling. Recent cases and regulatory moves indicate that TP is fast becoming a central pillar of tax enforcement.

Asia’s quietest revolution is unfolding not in parliaments or protests, but in its fields. Over the past 30 years, agriculture’s grip on the region’s workforce has loosened dramatically. Fewer people are farming. This is not news.

What is telling is why-and where the exodus leads. In Vietnam, former rice farmers now assemble electronics in industrial parks near Ho Chi Minh City. In China, many have become urban service workers or returned to larger, mechanized family plots that operate more like agribusinesses than subsistence farms.

But in the Philippines, the path out of the paddies often ends at a sari-sari store, behind the wheel of a tricycle, or on a construction site with no contract, no benefits, and no certainty beyond tomorrow’s wage.

The numbers speak plainly enough. Agricultural employment in the Philippines has fallen from 45 percent of the workforce in 1990 to just 23 percent in 2023. On the surface, this mirrors regional trends. But look closer. In countries that managed their agrarian transition well, workers moved into formal, higher-productivity jobs. In the Philippines, they moved into informality. More than one-third of Filipino workers (37 percent according to the Philippine Statistics Authority) now operate outside the formal economy-selling snacks, driving for ride-hailing apps without insurance, or taking odd jobs with no safety net.

This is not economic transformation. It is economic evasion.

Part of the problem lies in stubbornly low agricultural productivity. Philippine rice yields average just over 4 metric tons per hectare- well below Vietnam’s nearly 6 and China’s 7 or more. Fertilizer use tells part of the story: Filipino farmers apply about 90 to 100 kilograms of nitrogen per hectare, compared to Vietnam’s 180 to 200.

But the issue is not reluctance-it is access. With the vast majority of farms under 2 hectares, most smallholders simply cannot afford the inputs that would boost their output, even when the math says they should. And without reliable irrigation, only about half the country’s cropland has it. Filipino farming remains a gamble with the weather, not a profession with predictable returns.

Then there is government policy, or the performance of it. The 2019 Rice Tariffication Law was hailed as a bold step toward modernization- replacing import quotas with tariffs and creating a dedicated fund for farmer support. Five years later, the results are underwhelming. A significant portion of that fund has yet to reach actual producers. Instead, it lingers in administrative limbo or flows toward projects that benefit middlemen and agro-dealers more than the men and women knee-deep in mud at planting season.

China’s experience offers both warning and wisdom. After decades of chemical-intensive farming that degraded soils and polluted waterways, Beijing reversed course. It capped fertilizer use, invested in precision agriculture, and encouraged consolidation through cooperatives and larger operational units. Yields did not collapse-they held steady or even improved slightly.

The Philippines has no such strategy. Fertilizer runoff continues to foul rivers like the Pasig and lakes like Laguna de Bay, yet enforcement of environmental safeguards remains inconsistent at best. Climate-resilient rice varieties-many developed right here in Los Baños-exist in abundance, but they rarely reach the farmers who need them most, thanks to a skeletal extension system that has not been meaningfully updated in decades.

Land reform remains the ghost that haunts every agricultural discussion. The agrarian reform program launched more than three decades ago did distribute millions of hectares, but much of it was marginal upland or forested terrain. The best rice lands in Central Luzon and other prime regions remain tightly held by political families and corporate entities. Without secure tenure or the possibility of scale, smallholders cannot invest, cannot innovate, and cannot compete-not even with their neighbors.

And let us not overlook the women. They constitute more than one-third of the agricultural labor force. They plant, weed, harvest, dry, mill, and sell. Yet they hold a tiny fraction of land titles and are routinely excluded from credit programs, training sessions, and decision-making forums. Their labor is essential-but their agency is optional in the eyes of many policymakers.

Rural youth see all this and make the rational choice: they leave. Not because they hate the land, but because the land no longer offers a future with dignity, security, or respect. Until that changes-until farming becomes a viable livelihood, not just a cultural relic-no amount of political theater about ‘rice self-sufficiency’ will fill the fields. The ships will keep arriving. And the quietest revolution in Asia will remain the one the Philippines keeps postponing.

DESPITE infrastructure and warehouse damages caused by recent typhoons, the country’s buffer rice stock remains sufficient to feed Filipinos for 12 days, the National Food Authority (NFA) said.

NFA Administrator Larry Del Rosario Lacson said on Tuesday that the agency currently has 446,000 metric tons or about 8.9 million bags of milled rice, enough to last for nearly two weeks.

‘Right now, our buffer stock stands at almost 12 days nationwide. It can feed all Filipinos for 12 days,’ Lacson said in a press briefing.

According to Lacson, recent storms caused minor damage to some NFA facilities, such as leaks and flooding, but did not result in major losses and rice stocks remained unaffected.

He added that the NFA is currently assessing the volume of rice that got wet during the storms, noting that some may still be dried and recovered. Initial reports point to only a few hundred bags being affected, the agency administrator said.

‘There is nothing that needs rehabilitation. These are just minor repairs, just some leaks.The recent storm did not cause any damage to our stocks.’

P20 rice in Masbate

Lacson said the NFA started releasing P20-per-kilo rice on Tuesday in Masbate, one of the provinces hardest hit by the recent storms.

‘We also carried out an immediate dispersal in Masbate, which was severely hit by the typhoon. As of now, I think they still don’t have electricity. We are even looking for a generator there so we can run our rice mill and continue providing rice in the area,’ he added.

Under the agency’s directive to speed up augmentation, he said trucks were immediately deployed to the affected area, adding that additional supplies from other regions are also being considered.

Lacson explained that the government has been expanding the rollout of President Ferdinand ‘Bongbong’ Marcos Jr.’s P20-per-kilo rice nationwide, but because Masbate was severely affected by the calamity, it was prioritized for distribution through Kadiwa outlets.

More than 3,000 bags of rice have so far been distributed in the province, while dispersals were also conducted in Regions 8 and 4, said Lacson.

This came as the Department of Social Welfare and Development’s (DSWD) gave out relief aid to families and communities in provinces, including Masbate, hit by the recent major weather disturbances due to typhoon ‘Opong.’

The DSWD said on Tuesday that it has so far distributed more than 309,000 family food packs (FFPs) to households affected by recent typhoons. The largest share of assistance went to the Bicol Region with over 82,000 packs, followed by Western Visayas with 52,000 and the Ilocos Region with nearly 44,000.

According to Lacson, the P20 per kilo of rice in Masbate ensures that residents have an accessible food source once relief supplies and FFPs are depleted. He noted that power restoration in the province may take time, making DSWD food packs insufficient to meet daily consumption needs.

Lacson added that other provinces severely hit by typhoons would also automatically be given priority for the P20-per-kilo rice rollout.

‘Right now, we haven’t met yet with the DA and the Kadiwa team. But definitely, when it comes to the priority session, that will suddenly move up. As long as an area is hit by a typhoon, it will move up in priority. That’s for sure,’ he said.

SECURITY Bank Corp. announced last Tuesday the appointment of Victor Lee Meng Teck as its next President and CEO.

A statement issued by the lender read that Lee is set to assume the role in early January 2026, following the completion of his work permit, visa and other regulatory requirements. He will succeed Sanjiv Vohra, who will continue to lead the bank until that time. Upon stepping down, Vohra will transition to the role of Senior Advisor to the Board.

Lee is a Singaporean banker with over 30 years of leadership experience throughout Asia. Most recently, he served as CEO of CIMB Singapore and CEO of Growth Markets for CIMB Bank Berhad.

At CIMB Singapore, Lee spearheaded a period of strong growth, doubling revenue and raising return on equity to nearly 20 percent, according to the lender. Under his leadership, the bank was recognized by The Straits Times as one of the Top 3 institutions for customer experience for three consecutive years (2023-2025). He also fostered a culture where employees felt more engaged and valued, with satisfaction levels rising significantly during his tenure, the statement read.

Vohra assumed leadership of the bank just months before the onset of the global pandemic. Despite unprecedented challenges, he led the organization through transformational change-strengthening digital and customer-first strategies, building a culture that has made Security Bank an Employer of Choice, advancing its sustainability agenda, and positioning the bank for long-term profitability.

‘We’re grateful to Sanjiv for his steady leadership during one of the most challenging periods in recent history. His vision and dedication have left the bank stronger, more resilient, and well-prepared for the future,’ Security Bank Chairman Cirilo P. Noel was quoted in the statement as saying.