Land Bank of the Philippines

May 3, 2000 FIRB RESOLUTION NO. 004-00 SUBJECT : Land Bank of the Philippines WHEREAS, the Land Bank of the Philippines (LBP) applied for tax subsidy to settle its 1982 income tax liability under the terms and conditions of Presidential Decree (PD) No. 1177, the provisions of which were administered by the Department of Budget and Management (DBM); WHEREAS, as a result of such application, the LBP was granted the corresponding Payment Compliance Certificate (PCC) evidencing its entitlement to the tax subsidy under PD No. 1177; WHEREAS, Executive Order (EO) No. 93 phased out the tax subsidy provision under PD No. 1177 and replaced it with another tax subsidy provision to be implemented by the Fiscal Incentives Review Board (FIRB) in the case of government-owned and/or-controlled corporations (GOCCs) such the LBP, and by the DBM in the case of national government agencies and local government units; WHEREAS, the LBP applied with the FIRB for tax subsidy to settle its 1982 income tax liability but was denied such tax subsidy under FIRB Resolution Nos. 33-92, 30-94 and 27-97, in view of FIRB's policy to apply current tax subsidy to current tax and duty liabilities and because of the financial capability of the LBP then to shoulder the burden of its income tax liability; WHEREAS, Section 13 of Republic Act (RA) No. 8760, the 2000 General Appropriations Act which is the budgetary basis of the tax subsidy provision explicitly enumerates the GOCCs qualified for tax subsidy; WHEREAS, the LBP is not among the GOCCs enumerated under Section 13 of RA No. 8760 and, thus, its application for a reconsideration of previous FIRB action thereon is not within the present jurisdiction of the FIRB; NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED to refer the application of the LBP to the DBM as the latter was the entity responsible for the administration of the tax subsidy provision under PD NO. 1177. DHcESI (SGD.) CORNELIO C. GISON Undersecretary of Finance Presiding Officer FIRB Reference: Joint FIRB Technical Committee Meeting dated May 2, 1999