2019 FIBA BASKETBALL WORLDCUPSection 10 Legal and Regulatory10.1
- Confirm if no legal restrictions will impact ability to host
World Cup in accordance with the Host Nation Agreement (HNA)
requirements.COMMENTS/ANSWERS:As the Philippines start to prepare
events for the upcoming 2019 FIBA Basketball World Cup - assuming
that it won its bid to host the tournament there are certain legal
restrictions that may affect the Philippines ability to host the
2019 FIBA Basketball World Cup. One of the legal restrictions that
may affect the Philippines ability to host the 2019 FIBA Basketball
Cup is the host countrys law on taxation. Under Section 23 (f) of
the Philippines National Internal Revenue Code of 1997, to wit:
Except when otherwise provided in this Code, a foreign corporation,
whether engaged or not in trade or business in the Philippines, is
taxable only on income derived from sources within the Philippines.
It should be noted that under Section 22 (b) of the National
Internal Revenue Code of 1997, the term "corporation" includes
partnerships, no matter how created or organized, joint-stock
companies, joint accounts (cuentas en participation), associations,
or insurance companies, but excluding general professional
partnerships and a joint venture or consortium formed for the
purpose of undertaking construction projects or engaging in
petroleum, coal, geothermal and other energy operations pursuant to
an operating or consortium agreement under a service contract with
the Government. Certainly, one of the three taxable corporations
under the Tax Code is a non-resident foreign corporation. Here, it
must be stressed that FIBA falls under the said category of
non-resident foreign corporation and under the NIRC, a foreign
corporation, whether resident or non-resident, is taxed only on
income derived from sources within the Philippines.
Moreover, section 1, paragraph 4 of Schedule 1 of the Host
Nation Agreement provides that: the Host shall be entitled to sell
tickets to the Event and to receive 50% of all Net Revenues
received from the sale of such tickets (the remaining 50% being
allocated to the JMC as set out in Section 2 below). This means
that ticketing revenues allotted to the Host country and JMC
respectively shall be both subject to Philippine income tax in view
of the fact that these ticketing revenues are derived from sources
within the Philippines based on the source principle mentioned in
the Section 23 of the NIRC. Hence, being subject to Philippine
income tax, this may run conflict with the Schedule 2, Section 12
of the Host Nation Agreement which provides, to wit: The Host shall
ensure that FIBA and / or any FIBA representative (other than any
FIBA representative domiciled in the Host Nation) will not pay any
tax in the Host Nation as a result of the Event. For the avoidance
of doubt, FIBAs profit share from the JMC will be paid prior to the
deduction of any tax or other levies in accordance with paragraph
5.11 of Section 2 of Schedule 1.10.2 Advise any restrictions on use
of internet and internationally established social media platforms
in territory. The Cybercrime Prevention Act of 2012, officially
recorded as Republic Act No. 10175, is a law in the Philippines
approved on September 12, 2012. It aims to address legal issues
concerning online interactions and the Internet in the Philippines.
Among the cybercrime offenses included in the bill are
cybersquatting, cybersex, child pornography, identity theft,
illegal access to data and libel.
10.3 - Describe any entry visa restrictions for FIBA staff,
competitors/teams & VIPs traveling temporarily to nation.10.3.1
Explain any formalities or restrictions that may prohibit groups
from entering nation for World Cup and how will it be
addressed10.3.2 - In particular, please confirm if no restriction
on basis of nationality10.4 Confirm that no taxes or duties will be
levied re temporary import/export of materials and equipments by
FIBA, media and/or teams for the duration of World Cup10.4.1
Summarize any necessary exemptions applied for and any assurances
they will be granted 10.5 Confirm that JMC incomes and profits will
be exempt of any fees and taxes
Section 11 Marketing, Sponsoring and Brand Protection11.6
Provide any details of statutory protections that currently exist
and any other protection proposed to combat/ambush marketing and
sale of counterfeit merchandise11.7 Provide details of any
national/local laws restricting or prohibiting certain types of
sponsorship (e.g., tobacco, alcohol, gambling, etc.)
Section 19 Additional guarantees which may be required19.1
Additional guarantees may be required in the event that candidate
or public sector guarantor is not an appropriate entity to
guarantee bid elements (e.g., if the venue is privately owned).
Supply detail of guarantor providing following guarantees19.1.1
Venue availability and suitability19.1.2 Hotel availability and
suitability
*citizenshiphttp://www.philstar.com/sports/802426/fiba-cracks-down-ineligibles
*IPhttp://www.lawinsport.com/articles/intellectual-property-law/item/brand-protection-trademarks-and-the-event-that-shall-not-be-named-event-specific-legislation-and-the-olympic-games
*transfer of
playershttp://ec.europa.eu/sport/library/documents/cons-study-transfers-final-rpt.pdf
http://www.wipo.int/ip-sport/en/ Schedule 1: Section 1 (4)
HOSTING RIGHTS
Event MarksThe JMC shall develop a logo comprising the FIBA logo
alongside with a symbol specific to the Event and the Host Nation,
or such other logo as may be developed upon agreement by the JMC to
designate the Event (the Event Logo). The JMC will develop a
creative Event word mark solution whereby only the designation of
the Event appears (name), without any symbol, except that this word
mark will include the FIBA logo or word as determined by the JMC. A
set of secondary elements and patterns will be also develop to work
alongside with the Event Logo and word mark and help the
development of the Event Branding. All such above Event Brand
Identity elements will be Event Marks for the purposes of this
Agreement.The Host shall have the non-exclusive worldwide right
during the Term to use (and to licence to the Host Cities and the
Host Nation to use), the Event Marks in the Hosts (and Host Cities
and Host Nations) advertising, marketing and promotions in relation
to the Event subject to the terms and restrictions of this
Agreement and provided in every case that any such use shall be
subject to the prior written approval of FIBA and strictly in
accordance with the Branding Guidelines and any other instructions
or terms of use as may be communicated by FIBA to the Host from
time to time. See IP Code
Branding OpportunitiesThe Event Logo and/or other Event Marks
will have the following branding and promotional references as
follows: During qualification games for the Event; During
promotional activities leading up to the Event; Dressing and
signage at the Venues and in the Host Cities; Event Staff Uniforms;
In the Official Programme; On the official Event Website; and In
additional promotional materials produced by the JMC. See IP
Code
Official Website and Social MediaFIBA shall establish and
operate an official Event Website relating to the Event, and
maintain the same throughout the Term (see paragraph 8 of Section 3
below). In addition, FIBA shall be responsible for establishing and
operating social media activities relating to the Event during the
Term (which it may at its discretion delegate to the JMC). The Host
will have opportunities to submit content featuring the Host, Host
Nation and/or Host Cities for inclusion on such website/ platforms
(as further set out in Paragraph 2 of Section 7 (Media and
Communications) of Schedule 2). FIBA shall conduct regular meetings
with the Hosts web staff, ensuring that relevant content, official
information, official data and images are displayed before and
during the Event.FIBA shall arrange regular workshops between FIBA
and the Host, in order to deliver a successful website and to
inform the Host of the social media strategy. To this goal, FIBA
will organise as many workshops as FIBA deems necessary and the
Host shall ensure attendance of the required personnel. In general,
these workshops can be divided into two timeframes, namely:
Pre-launch workshops (strategy, workflow, training); and
Post-launch workshops (reviews, brainstorming, actions).The exact
date and location of each workshop will be agreed between FIBA and
the Host in due time. Check applicable laws
