Supreme Court
In New Coast Hotel Inc. vs Securities and Exchange Commission, the Second Division of the Supreme Court (SC) ruled that the imposition of administrative penalty for violation of Republic Act (RA) No. 7042, as amended, or the Foreign Investments Act of 1991 (FIA), is imprescriptible.
New Coast Hotel Inc. (“New Coast”), the petitioner, is engaged in the business of operating, leasing and managing hotels. At the time of its incorporation, it was wholly owned by a domestic corporation, Megaworld Corporation.
In 2003, Megaworld Corporation sold its shares in New Coast to the Philippine subsidiary of Deliver Holding, Ltd., a non-resident foreign corporation registered in the British Virgin Islands. The sale resulted in New Coast becoming a majority foreign-owned corporation.
In 2014, after filing an application for amendment of its Articles of Incorporation, the Securities and Exchange Commission (SEC) assessed an administrative penalty for petitioner’s failure to file an SEC Form F-101 (Application of an Existing Corporation to Do Business under the FIA).
On appeal to the Court of Appeals (CA), the petitioner argued that the SEC is barred by laches to penalize the violation. The CA sided with the SEC and held that the SEC was not barred by laches from penalizing New Coast since it immediately imposed a penalty upon discovery of the violation.
On petition for review on certiorari with the SC, the SC held that a violation of the FIA is imprescriptible as the FIA does not provide a prescriptive period for violation of the offense. The SC held further that when the State does not provide a prescriptive period for an administrative offense in the law, then none shall apply. The provision of a prescriptive period for administrative liability is a positive act of amnesty and liberality on the part of the State and not a demandable right. [GR No. 264667, 8 November 2023; uploaded on 18 March 2024]
- Revenue Regulations;
- Revenue Memorandum Circulars;
- Revenue Memorandum Orders;
- Other revenue issuances;
- Classification of taxpayers including, but not limited to, top withholding agents;
- Cannot be located (CBL) taxpayers;
- Revised Schedules of Zonal Values;
- List of seized, foreclosed, and acquired properties for sale;
- Notice of sale of seized, foreclosed, and acquired properties;
- Information materials such as, but not limited to, press releases, announcements/ advisories, and flyers; and
- Other similar documents or materials that require publication.
Department of Finance
The Department of Finance (DOF) with recommending approval from the Bureau of Internal Revenue (BIR) issued Revenue Regulations (RR) No. 2-2024 dated 08 February 2024 to prescribe the policies and guidelines for the publication of revenue issuances and other information materials of the BIR pursuant to Section 245(i) of the National Internal Revenue Code of 1997, as amended by Republic Act (RA) No. 11976 or the Ease of Paying Taxes Act (EoPT Law).
Based on the said RR, the BIR may publish (electronically, or otherwise) the listed BIR issuances below to implement and/or clarify relevant tax laws, rules and regulations, through the BIR's official website, Official Gazette, or in a newspaper of general circulation:
Likewise, the RR provides that the BIR may publish (electronically or otherwise) the BIR Issuances to implement and/or clarify relevant tax laws, rules and regulations through the:
- BIR Official website;
- Official Gazette; or
- Newspaper of General Circulation
The RR is applied prospectively and will be effective within fifteen (15) days following its publication in a newspaper of general circulation or in the Official Gazette, whichever comes first.
(R.G. Manabat & Co. Note: RR was published in Manila Bulletin on 04 March 2024 and became effective on 19 March 2024)
Here are the links of the issuances: New-Coast-Hotel-Inc-vs-Securities-and-Exchange-Commission-GR-No-264667-08-November-2023 and RR-No-2-2024