Philippine Deposit Insurance Corporation (2)

May 23, 2014 FIRB RESOLUTION NO. 004-14 SUBJECT MATTER : Philippine Deposit Insurance Corporation (2) WHEREAS, the Philippine Deposit Insurance Corporation's (PDIC) primary mandate is to implement a deposit insurance system for the protection of bank deposits; WHEREAS, the PDIC charter was amended by Republic Act (RA) No. 9576 (April 29, 2009) for the purpose of promoting and safeguarding the interest of the depositing public by way of institutional and financial strengthening of the PDIC as a regulatory agency exercising governmental functions with responsibility to provide safeguards against risks of bank failures; WHEREAS, the strengthening of the deposit insurance system will make it more flexible and responsive to the needs of the depositors while promoting secure and sound banking activities; WHEREAS, in recognition of the PDIC's institutional and financial strengthening reform package, RA No. 9576 provides that all tax obligations of the PDIC shall be chargeable to the Tax Expenditure Fund (TEF) in the annual General Appropriations Act (GAA) for a period of five (5) years reckoned from the date of effectivity of the Act on June 1, 2009; WHEREAS, the PDIC was granted tax subsidy for 2014 in the amount of PhP3,825,000,000 per FIRB Resolution No. 1-14, PhP1,492,074,032.33 of which has been covered by CES Nos. 152 and 154; WHEREAS, there is a need to ensure the efficient utilization of the balance of PhP2,332,925,967.67 out of the PhP3,825,000,000 tax subsidy earlier granted to the PDIC under FIRB Resolution No. 1-14; NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED, to allow the PDIC to realign the TWO HUNDRED MILLION PESOS (PhP200,000,000) of its approved income tax subsidy per FIRB Resolution No. 1-14 to cover its Value-Added Tax (VAT) liabilities for the months of April and May 2014. Provided, that the availment of tax subsidy shall be in accordance with the terms and conditions of Section 15 of RA No. 10633 or the 2014 General Appropriations Act, subject to the availability of funds therefor, pursuant to the terms and conditions of the Rules and Regulations to Implement the Subsidy Provision under Executive Order No. 93 and Bureau of Internal Revenue (BIR) Revenue Regulations No. 6-2010. (SGD.) LAURA B. PASCUA Undersecretary Department of Budget and Management (SGD.) ADRIAN S. CRISTOBAL, JR. Undersecretary Department of Trade and Industry (SGD.) EMMANUEL F. ESGUERRA Deputy Director-General National Economic and Development Authority (SGD.) ESTELA V. SALES Deputy Commissioner Bureau of Internal Revenue (SGD.) ALEXIS F. MEDINA Director Bureau of Customs (SGD.) TRINIDAD A. RODRIGUEZ OIC-Executive Director National Tax Research Center Head, FIRB Secretariat (SGD.) JEREMIAS N. PAUL, JR. Undersecretary of Finance Presiding Officer-FIRB