BIR Ruling

November 13, 1996 Punongbayan & Araullo 6th Floor Vernida IV Building Alfaro Street, Salcedo Village Makati City Re: Makati Stock Exchange, Inc . (1990 deficiency tax assessment) Gentlemen : This refers to the 1990 internal revenue tax case of your client, MAKATI STOCK EXCHANGE, INC., involving the aggregate amount of P3,314,808.09. In this connection, please be informed that after a careful review of the facts of the case and the law applicable thereto, this Office has finally decided to accept your compromise offer to pay 100% of the basic deficiency income tax in the amount of P336,694.00; 30% of the basic deficiency value-added tax (VAT) in the amount of P350,579.88; and a voluntary payment of P13,514.47, which is equivalent to 30% of the erroneous expanded withholding tax assessment in the amount of P40,048.24; or the total amount of P700,785.44, as a complete settlement of the 1990 deficiency tax assessment of your client. The said amount of P700,785.44 must be paid within five (5) days from receipt of this notice to the nearest Revenue District Office of your clients' place of business in order that the said deficiency tax assessment may be closed and terminated. cdtech Very truly yours, (SGD.) LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue November 13, 1996 MEMORANDUM FOR: The Commissioner This refers to the protest letter with an offer of compromise by Punongbayan and Araullo against the 1990 assessment of its client, MAKATI STOCK EXCHANGE, INC., (MKSE) involving the total amount of P3,314,808.09. Upon review of the facts of the case and the laws applicable thereto, we are of the opinion that the recommendation of the Legal Division, Revenue Region No. 8, Makati, for acceptance of the taxpayer's offer of compromise by paying the following amounts: 100% of the basic deficiency income tax in the amount of P336,691.00; 30% of the basic deficiency value-added tax (VAT) in the amount of P350,579.88; and a voluntary payment of P13,514.47, equivalent to 30% of an erroneous expanded withholding tax assessment in the amount of P40,048.24, or the total amount of P700,785.44, is in order and may be be given due course under Section 204 of the Tax Code, as amended. (SGD.) ALICIA P. CLEMENO Assistant Commissioner Legal Service