Bureau of Customs

February 26, 2020 FIRB RESOLUTION NO. 004-20 SUBJECT MATTER : Bureau of Customs WHEREAS, the Bureau of Customs is a government agency under the Department of Finance in charge of the assessment and collection of customs duties and all other lawful revenues from imported articles, and a withholding agent for money payments to domestic and international suppliers of goods and services imposed under Sections 57 (A) and 114 (C), in relation to Section 58 of the National Internal Revenue Code (NIRC), delegated and authorized by the Commissioner of Internal Revenue (CIR); WHEREAS, the P5,814,194,564.65 is due Bureau of Internal Revenue (BIR) for tax deficiency taxes for taxable years 2009 and 2015. These assessments were submitted to the DOF for review which ruled that: "The BOC can avail of tax amnesty on delinquencies under the Tax Amnesty Act." WHEREAS, the BOC applied for tax subsidy with the FIRB to cover its tax obligation amounting to P2,172,107,490.94. WHEREAS, section 19 of Republic Act No. 11213 or the Tax Amnesty Act and Section 5 of the Revenue Regulations No. 4-2019 provide, that the availment of the tax amnesty on delinquencies shall be considered fully complied upon submission of the proof of availment and payment of tax amnesty amount within the one (1) year from the effectivity of the implementing rules and regulations. WHEREAS, Section 15 (c) of RA 11465 or the "2020 General Appropriations Act" (GAA) reiterates the authority of the Fiscal Incentives Review Board (FIRB) to grant tax subsidies; NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED, to approve the application for tax subsidy of the BOC in the amount of Two Billion One Hundred Seventy-Two Million One Hundred Seven Thousand Four Hundred Ninety and 94/100 Pesos (P2,172,107,490.94) only, to cover BOC's outstanding tax obligations, broken down as follows: IAETDc Taxable Year 2009: Final VAT Withheld P164,817,701.16 P164,817,701.16 Taxable Year 2015: Final Income Tax P1,435,482,476.33 Final VAT Withheld P571,807,313.45 P2,007,289,789.78 GRAND TOTAL P2,172,107,490.94 ============== Provided , that the Certificate of Entitlement to Subsidy (CES) shall be issued covering P2,172,107,490.94 only representing the amount of the BOC's Final VAT Withheld, Final Income Tax and Final VAT Withheld tax liability under the Certificate of Tax Deliquencies/Tax liabilities from BIR. Provide, further , that such availment shall be in accordance with the terms and conditions of Section 15 (c) of Republic Act 11465 or the "2020 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. (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.) MARISSA O. CABREROS Deputy Commissioner Bureau of Internal Revenue (SGD.) REY LEONARDO B. GUERRERO Commissioner Bureau of Customs (SGD.) MARLENE L. CALUBAG OIC-Executive Director National Tax Research Center Head, FIRB Secretariat (SGD.) ANTONETTE C. TIONKO Undersecretary of Finance Presiding Officer-FIRB