Power Sector Assets and Liabilities Management Corporation (PSALM) (1)

May 31, 2016 FIRB RESOLUTION NO. 003-16 SUBJECT MATTER : Power Sector Assets and Liabilities Management Corporation (PSALM) (1) WHEREAS, the Power Sector Assets and Liabilities Management Corporation (PSALM) is mandated to manage the efficient and orderly sale, disposition and privatization of all existing National Power Corporation (NPC) generation assets, liabilities, Independent Power Producer (IPP) contracts, real estate and all other disposable assets of the NPC under Republic Act No. 9136 (Electric Power Industry Reform Act of 2001); WHEREAS, the conduct of these functions has resulted in the basic Value-Added Tax (VAT) liabilities of the PSALM for the year 2012; WHEREAS, the PSALM Board of Directors through its Board Resolution No. 2016-0219-07 (April 20, 2016) has approved the settlement within CY 2016 of the deficiency basic VAT for 2012 in the amount of PhP2,627,776,453.40, through cash payment in the amount of PhP800,000,000.00 and tax subsidy in the amount of PhP1,827,776,453.40; WHEREAS, the PSALM does not have the financial resources to settle the deficiency basic VAT liability of PhP1,827,776,453.40 with the Bureau of Internal Revenue; NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED, to approve the tax subsidy request of the PSALM to cover its Basic Deficiency VAT liabilities for 2012 in the amount of ONE BILLION EIGHT HUNDRED TWENTY SEVEN MILLION SEVEN HUNDRED SEVENTY SIX THOUSAND FOUR HUNDRED FIFTY THREE AND 40/100 (PhP1,827,776,453.40) only: Provided , that such availment shall form part of the 2016 tax expenditure program, in accordance with the terms and conditions of Section 16 of RA 10717 or the 2016 General Appropriations Act, subject to the availability of funds therefor and pursuant to the terms and conditions of the Rules and Regulations to Implement the Subsidy Provision under Executive Order No. 93. (SGD.) LAURA B. PASCUA Undersecretary Department of Budget and Management (SGD.) CEFERINO S. RODOLFO Undersecretary Department of Trade and Industry (SGD.) ROSEMARIE G. EDILLON Deputy Director-General National Economic and Development Authority (SGD.) ESTELA V. SALES Deputy Commissioner Bureau of Internal Revenue (SGD.) VICTOR PABLO C. TRINIDAD Chief of Staff, Assessment and Operations Coordination Group Bureau of Customs (SGD.) TRINIDAD A. RODRIGUEZ Acting Executive Director National Tax Research Center Head, FIRB Secretariat (SGD.) SOLEDAD EMILIA J. CRUZ Assistant Secretary of Finance Presiding Officer-FIRB