Businessmirror February 23, 2019

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DEPARTMENT OF SCIENCE & TECHNOLOGY

PHILIPPINE STATISTICS AUTHORITY

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A broader look at today’s business

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Saturday, February 23, 2019 Vol. 14 No. 136

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A GOVERNMENT worker paints over an Islamic State of Iraq and Syria flag graffiti in Solo, Java, Indonesia. GARUDEYA | DREAMSTIME.COM

AGENTS OF DEATH Foreign IS waiting for opportune time to wage terror in Mindanao, says military

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By Rene Acosta

ECURITY forces continue to scour Mindanao in search of the remaining foreign terrorists believed to be still lurking in the region and who may be waiting for the opportune moment to carry out terrorism activities.

While the overall security situation in the region may have already improved, the condition, authorities reported, remains fluid, unless the government neutralizes about 10 foreign nationals who are remnants of the Islamic State (IS) who managed to enter the country at the height, or even before, the war in Marawi City broke out in 2017.

Survivors

AT a news briefing on Thursday, Interior Secretary Eduardo Año said the remnants of the IS survived

the bloody military operations in the city almost two years ago and are now mostly holed up in camps of the Abu Sayyaf Group (ASG) in Western Mindanao. The surviving foreign fighters are composed of various nationalities that included Indonesians, Malaysians and Pakistanis. “It’s a mixture of nationalities,” said Año, who was the chief of staff of the Armed Forces of the Philippines when the Marawi siege broke out on May 23, 2017. The government said that at

least 40 foreign fighters who are members of the IS slipped into the country and joined their local counterparts during the battle that raged for more than five months. Año said half of the number has been killed during the battle, or even during the succeeding operations that were carried out by the military in various parts of Mindanao after the city was liberated.

Coddlers

ON January 27, an Indonesian couple detonated bombs at the Jolo Ca-

thedral in Sulu, killing themselves along with 21 people. The suicide bombings, which also wounded 95 others, were owned by the IS. A Yemeni bomb expert involved in the twin bombings is still being hunted by the government. The foreigner slipped into the country more than a year ago and is believed to be married to a Tausug woman. Año said the Yemeni is being harbored and accorded protection by the group of Hatib Hadjan Continued on A2

China’s richest can run from the taxman, but hiding is harder By Tom Metcalf, Chanyaporn Chanjaroen & Jinshan Hong

A

cat and mouse between the armies of accountants and asset managers working to minimize the tax payments of their clients, and the governments and regulators arrayed against them, is particularly heated in China. “After the introduction of the CRS rules, high-net-worth individuals are pretty nervous and overwhelmed,” said Liu Shuang, a former anti-avoidance specialist for the Chinese tax bureau who now leads a wealth tax management team in Beijing and has seen demand for her advice soar since last year. “In addition to concerns about back taxes, they are also worried about the exposure of overseas assets.”

Bloomberg

T home and abroad, wealthy Chinese are facing myriad new tax rules as Beijing ratchets up the pressure on tax dodgers.

State media are filled with articles trumpeting the revision of the tax code and government efforts to name and shame offenders. Familiar faces have already been caught in the clampdown. China’s highest-paid movie star, Fan Bingbing, was ordered to pay more than $100 million in back taxes and fines in October after a months-long tax probe, sending a deep chill through the domestic film industry. A global financial-disclosure system—the Common Reporting Standard—is beginning to bite for those stashing money over-

seas. Last year China started automatically exchanging information alongside roughly 100 jurisdictions about accounts belonging to people subject to taxes in each member-country. The crackdown comes as wealth in the Middle Kingdom reaches new heights. A Chinese billionaire was minted every few days in 2018, according to a UBS Group AG estimate, and Boston Consulting Group said personal wealth in the nation surged to a record $24 trillion, with $1 trillion held abroad. It means the global game of

PESO EXCHANGE RATES n US 52.0560

Some exclusions

FAN BINGBING, China’s highest-paid movie star, attends the Mad Max: Fury Road premiere at the 68th annual Cannes Film Festival on May 14, 2015, in Cannes, France. DREAMSTIME.COM

THE tax authorities of CRS member-countries share annual reports that detail reportable accounts, their balances and their beneficiaries. So if a Chinese tax resident opens a bank account in the UK, British authorities will send this Continued on A2

n JAPAN 0.4703 n UK 67.8706 n HK 6.6342 n CHINA 7.7467 n SINGAPORE 38.4546 n AUSTRALIA 36.9546 n EU 59.0419 n SAUDI ARABIA 13.8816

Source: BSP (February 22, 2019 )


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