Cathay cuts 8,500 jobs, closes sister airline

HONG KONG: Hong Kong airline Cathay Pacific Airways stated Wednesday it might cut eight,500 jobs and close a nearby airline as it grapples with the plunge in air tour due to the pandemic.


About five,three hundred employees primarily based in Hong Kong and any other 600 elsewhere will probable lose their jobs, and a couple of,six hundred unfilled positions can be cut. The cuts are about 24 percent of the organization's group of workers, Cathay Pacific said in a announcement.

Aside from activity cuts, Cathay Pacific is likewise shuttering its Cathay Dragon subsidiary, becoming a member of a developing list of airlines making swinging cuts as they reel from the coronavirus pandemic.

Across the globe, airways have been hammered by way of the pandemic slashing international journey and that they face an extended, tough winter after a far-was hoping-for rebound failed to materialize.
On Wednesday, Cathay Pacific published a corporate restructuring plan in an effort to result in thousands of task losses and considered one of its airways to vanish absolutely.

"The worldwide pandemic continues to have a devastating impact on aviation and the difficult fact is we must fundamentally restructure the Group to live to tell the tale," chief executive officer Augustus Tang stated in a declaration. "We need to try this to defend as many roles as viable and meet our responsibilities to the Hong Kong aviation hub and our customers."

Bosses stated 5,300 redundancies might be made a few of the airline's Hong Kong-based totally employees with a further 600 losses overseas — the equivalent of 17 percentage of its general group of workers. Including a recruitment freeze and herbal attrition, eight,500 positions will disappear in general.

Cathay Dragon, a subsidiary that primarily flies shorter-haul flights inside Asia, will stop operations. The organization is in search of regulatory approval to soak up Dragon's routes into Cathay Pacific and its budget airline HK Express.


Airline revenues plunged eighty percent within the first six months of the yr, in keeping with industry body IATA, but they nevertheless had constant expenses to cover — group, maintenance, fuel, airport levies and now aircraft garage.

Repeated efforts to reassure passengers that air tour is safe have failed to make tons of a distinction while government regulations, along with quarantines of up to fourteen days for returning passengers, have handiest delivered strain. Dozens of important airlines have slashed jobs in response.

Even earlier than the pandemic, Cathay Pacific become in a good spot. Months of huge and disruptive democracy protests in Hong Kong last year brought about a plunge in clients, specially from the rewarding mainland Chinese marketplace.

The airline additionally discovered itself punished by way of authorities in Beijing because a number of its personnel joined or voiced guide for the protests. By the time the pandemic hit on the start of the yr, Hong Kong became already in recession and Cathay Pacific in the red.

Tang stated the airline changed into currently burning through up to HK$2 billion ($260 million) in cash each month all through the pandemic.

"This is truly unsustainable. The adjustments introduced these days will reduce our coins burn by about HK$500 million per month," he added. There is scant hope at the horizon.

In a be aware to investors on Monday that designated its most positive scenario, Cathay Pacific stated it anticipated to run at half of its pre-pandemic potential subsequent yr.

One of the largest disappointments for airlines has been the absence of distinctly beneficial enterprise magnificence travellers who opt for now to depend on tele-conferencing as opposed to run the danger of catching the virus.

Airlines are hopeful that better testing tactics at airports and "journey bubbles" among nations might encourage more humans to fly.

Impact of Covid-19 restrictions on tax rules

Quarantine measures imposed with the aid of governments that restrict journey and movement because of the Covid-19 pandemic do no longer only have an effect on economies, however also tax guidelines.

In taxation and worldwide tax treaty regulations, the wide variety of days a taxpayer or its personnel and marketers live in a country might be important in determining tax status, taxability or tax exemption.


Under our National Internal Revenue Code of 1997, as amended (Tax Code), a nonresident alien who stays within the Philippines for an combination period of 180 days in any calendar yr shall be considered as such doing commercial enterprise inside the country and will be taxed within the identical way as an man or woman citizen and a resident alien.

In maximum earnings tax treaties, normal earnings generated with the aid of a resident of 1 treaty united states of america in every other might typically no longer be concern to income tax inside the latter united states of america if that profits isn't always attributable to a permanent status quo (PE) there. A PE is commonly a fixed administrative center with a few diploma of permanency, via which the enterprise of an enterprise is completely or in part carried out. It includes a department, workplace, warehouse or manufacturing facility. It also consists of a seat of control. In some income tax treaties, a PE might stand up if the nonresident taxpayer plays a few offerings or has a production interest for extra than a positive period, such as180 days in a calendar year, in that different united states of america.
Also, the compensation income of a foreign employee operating in some other state may not be situation to tax if he or she does now not stay there for greater than a positive period.

Mindful of the Covid-19-prompted travel restrictions, the Secretariat of the Organization for Economic Co-operation and Development (OECD) launched the OECD Secretariat Analysis of Tax Treaties and the Impact of the Covid-19 Crisis on April 3, 2020.

Also, the Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) eighty three-2020 on August 17 to tackle the taxpayer's residency fame and PE introduction due to the aforementioned restrictions.

On the exchange in the house status of people
The OECD Secretariat Analysis gives that a transient dislocation of individuals due to Covid-19-prompted travel regulations have to don't have any tax implications.


RMC 83-2020 presents that an character will not be appeared as being present within the Philippines for tax residence functions for the length after the scheduled day of departure. Thus, the BIR considers the length of the tour restriction as a "pressure majeure" and disregards this in determining an character's tax house. This is, but, difficulty to the circumstance that this person leaves the us of a as quickly as situations would permit, like when the regulations and/or quarantine measures were lifted.

On the introduction of the everlasting establishment
Home Office PE. Because of the Covid-19 crisis, many are compelled to work from home.
Both RMC 83-2020 and the OECD Secretariat Analysis provide that operating from home would not create a PE for a overseas company within the Philippines due to the fact the behavior of a business in such a vicinity lacks a sufficient degree of permanency or continuity, and that the house workplace isn't on the disposal of the overseas business enterprise. They recognize that this corporation has no get right of entry to or manage over the home office of its personnel inside the Philippines.

However, the house workplace can be considered a PE if it is used constantly to carry at the enterprise activities of the overseas corporation even after the Covid-19 disaster, and if this corporation has required the character to apply that location to carry on those activities.

Construction Site PE. Both RMC 83-2020 and the OEC Secretariat Analysis country that the period of the brief interruption of production sports due to the pandemic should be covered in determining the existence of a domain and whether or not a construction website online constitutes a PE.

Dependent Agent PE. A PE is likewise deemed to rise up if a treaty resident appoints within the different state a structured agent, or when someone habitually concludes contracts or performs the most important role main to the conclusion of contracts which might be mechanically concluded with out material amendment through the corporation.

The OEC Secretariat Analysis gives that the pastime of an worker or agent in every other nation would no longer be taken into consideration habitual if he or she is most effective working at home in that nation for a brief duration because of pressure majeure or shielding measures from the government.

Under RMC 83-2020, the BIR disregards the ongoing presence of an worker, companion or agent of a nonresident foreign corporation inside the Philippines due to travel regulations in determining the reputation of the company on whose behalf the employee, partner or agent has been acting. In different phrases, the period of extended live of the worker, partner or agent isn't always taken into consideration in counting the taxable presence of that company inside the usa. This is concern to the situation that the employee, associate or agent should depart the u . S . As soon as situations permit.

On the resident repute of a business enterprise or location of powerful control
The OECD Secretariat Analysis offers that a transient change within the area of the leader executive officials and other senior executives is an outstanding and temporary situation due to the Covid-19 crisis and will no longer trigger a exchange in house of the employer.

The place of powerful management is commonly in which key management and business choices essential for the behavior of the entity's business as a whole are or in substance made.

Indeed, Covid-19 restrictions have given rise to some of issues, which includes the dedication of tax rules. It is a relief that the BIR and the OECD have considered that these regulations need to no longer provide upward push to tax implications

Goldman Sachs ready to pay US $2.8B

NEW YORK: Global economic titan Goldman Sachs is getting ready to admit wrongdoing inside the big 1MDB Malaysian bribery scandal and pay the USA government $2.Eight billion, The Wall Street Journal pronounced Tuesday (Wednesday in Manila).

The deal could quit the crook probe into the corruption case related to the Malaysian authorities's funding fund, the newspaper said, mentioning human beings familiar with the problem.


An Asian subsidiary involved inside the case is expected to plead guilty this week, allowing Goldman to avoid pleading guilty — a key development, as this type of plea could harm its capability to do business, in keeping with the file.

A spokesperson for the bank declined to comment on the reputation of the case.
The Justice Department has said more than $four.Five billion changed into stolen from 1MDB via excessive-degree officials at the fund and their buddies among 2009 and 2015.

Goldman helped boost $6.Five billion for the fund, and two ex-bankers are accused of misappropriating billions, bribing officials and giving false statements when it comes to bond troubles they arranged for the fund.

The Malaysian government dropped the charges against Goldman in July after accomplishing a $three.Nine billion settlement with the economic massive.

The firm, which posted earnings of $three.Five billion within the modern-day area, had set aside greater than $3.1 billion as of September 30 "for litigation and regulatory proceedings."
According to Searca Director Glenn Gregorio, EIG is powered by Searca's "innovEIGhts" version of fostering collaboration most of the academe, enterprise and government.

EIG is the flagship program in Searca's eleventh Five-Year Plan that is targeted on "Accelerating Transformation through Agricultural Innovation," or Attain.
"The challenging task of [weaning away] our farmers from obsolete ways of farming that is restricted to a production angle in the direction of an agribusiness attitude in an revolutionary agriculture ecology called 'Agriculture four.Zero' requires working collectively with partners and corporations who proportion this purpose," Gregorio stated.

The program turned into launched on Wednesday through the Searca Online Learning and Virtual Engagement (Solve) platform in a public occasion called "Launching Attain Agri four.0."

During the launch of innovEIGhts, the keynote audio system who took element have been distinguished personalities in agribusiness incubation and agritechnology switch: Ana Margarita "Ginggay" Hontiveros-Malvar, senior adviser for GoNegosyo AgriPreneurship; and Paco Magsaysay, the leader govt officer of Carmen's Best Ice Cream.

Rico Ancog, Searca EIG software lead, stated innovEIGhts called for institutional partnerships throughout Southeast Asia and beyond to foster an open collaboration way of life that harnesses the power of engaged minds to co-create progressive answers to convert the lives of farmers and farming families.


He brought that innovEIGhts consisted of factor gear that companions should draw upon for designing tasks and scaling them up to Attain Agri 4.Zero.

These encompass "Index," that is the studies and facts arm to degree and make certain the impact of innovation projects on the properly-being of farming households; "Serves," which presents hands-on technical advisory for farming network livelihood tasks and sensible revolutionary answers to continual farming challenges; and "iDeates," which specializes in agri-innovation competition enticing the youth, youngsters, college students and wonderful minds to modernize agriculture and build local rural innovation ecosystems.

Other components are "Blocks," that's an open, shared-service hub promoting domestically adaptable agritechnologies, prototypes and practices for small farmers and rural groups; "A4Life," which builds neighborhood and community-primarily based innovation environment and inclusive agribusiness price chains to provide a era of green startups and agripreneurs; and "Space," that is a effective innovation and open collaboration nearby gateway for agri-incubation and generation transfer records, applications, resources and networks.

Netflix viewers, shares sliding

DENVER: Netflix shares slid on Tuesday (Wednesday in Manila) after america streaming tv titan reported that subscriber boom slowed in the these days ended zone, after booming within the early days of the pandemic.



While Netflix introduced 28.1 million paying subscribers to date this year, most effective 2.2 million of them came within the third region, the employer stated in an profits release letter.

"We assume that is broadly speaking due to our record first 1/2 effects and the pull-forward effect," Netflix stated within the letter. The streaming tv massive, now going through an array of competition, pronounced it has barely more than 195 million subscribers.

Growth become most powerful within the Asia-Pacific region, according to the earnings figures. "We're thrilled with the progress we're making in this vicinity and, particularly, that we've accomplished double digit penetration of broadband homes in each South Korea and Japan," Netflix said.
"While this is encouraging, we nonetheless have plenty work to do and we're running hard to copy this success in India and different nations."

Chief working officer Greg Peters stated in an profits interview that Netflix is trying to enhance boom with promotions which includes presenting the streaming tv carrier loose for a weekend, which it'll strive out in India.

The streaming tv service predicted to feature 6 million new subscribers in the course of the cutting-edge area, bringing the full quantity of members delivered for this year to a record-placing 34 million.

"As anticipated, the pace at which Netflix delivered subscribers throughout the early quantities of the pandemic did now not retain," said eMarketer forecasting analyst Ross Benes, noting that the agency has nonetheless crowned club growth expectations for this yr.


With subscriber increase slowing regionally, sales boom at Netflix will likely come from charge increases, Benes reasoned.

Netflix assesses its line-up of nearby content material, capability to preserve members and extra in each united states of america before figuring out whether or not to "ask the ones contributors to pay a touch bit extra," Peters answered when asked approximately the capacity to elevate subscription quotes.

"We assume we're an extremely good enjoyment price and we very tons want to remain an great price as we retain to enhance and grow," Peters stated, not ruling out the potential for fee changes.

Netflix mentioned a internet earnings of $790 million on revenue of $6.4 billion, handily topping the same length closing year. Netflix stocks were down extra than 5 percent in after-market trades
following the release of the profits figures.

"Good and cautious development" is being made with regards to producing unique content material deemed critical to prevailing and preserving subscribers, according to Netflix.

Production, derailed within the pandemic, is returned on course for hit indicates including "Stranger Things" and "The Witcher," as well as on an motion movie starring Gal Gadot, Dwayne Johnson, and Ryan Reynolds, the agency stated.

Netflix expressed self belief it'd complete capturing on over one hundred fifty productions by using 12 months-quit, and that the quantity of Netflix originals released in 2021 could pinnacle the wide variety launched this yr. "Competition for clients' time and engagement remains vibrant," Netflix said.

"Linear tv and other large classes of amusement, like video video games and consumer generated content material from YouTube and TikTok are all vying for purchasers' interest and are strong drivers of display screen time utilization."