Filtered By: Money

ABS-CBN agrees to pay P152.44-M to BIR to settle tax case

Broadcast network ABS-CBN Corporation has agreed to pay P152.44 million as part of a compromise agreement approved by the Court of Tax Appeals in its tax deficiency case.

In a February 27 resolution from the Second Division, the tax appellate court said the Bureau of Internal Revenue has accepted ABS-CBN's offer to pay the total "judicial compromise amount."

"The BIR has accepted the amount equivalent to 40 percent of the basic tax assessed for deficiency income tax, value-added tax and documentary stamp tax and the amount equivalent to 100 percent of the basic tax assessed for deficiency expanded withholding tax, compensation withholding tax, and final withholding tax," the CTA said.

The CTA did not state the total dues of ABS-CBN, but said the amount the corporation agreed to pay represents its alleged tax deficiency for 2009.

ABS-CBN Chief Financial Officer Aldren Cerrado requested for the compromise, according to the CTA.

It said the agreement was granted for the parties to resolve their differences and put an end to the trial, noting the resolution effectively renders judgment on the case.

"After careful scrutiny of the documents submitted by the parties in support of the judicial compromise, the court finds the same in order and in compliance with the established laws, rules and regulations. Hence, the court approves the same," the CTA said.

Associate Justice Juanito Castaneda Jr. penned the decision and had the concurrence of Associate Justice Cielito Mindaro-Grulla. —JST, GMA News