PPC (1)

June 30, 2006 FIRB RESOLUTION NO. 005-06 SUBJECT : PPC (1) WHEREAS, Section 14(c) of Republic Act No. 9336 otherwise known as the 2005 General Appropriations Act, as reenacted, provides that tax subsidies granted by the FIRB to government owned and/or controlled corporations (GOCCs), in accordance with EO No. 93, as amended, including those for tax obligations assumed by GOCCs pursuant to a valid agreement are deemed automatically appropriated; WHEREAS, the Philippine Postal Corporation (PPC) was created under RA No. 7354 to operate a nationwide postal system with a network that extends or makes available provisions of mail services at affordable prices; WHEREAS, in view of this mandate, the PPC did not impose the value-added tax (VAT) on its domestic postal services, thus resulting in its not being able to pay the BIR's VAT assessment of P1,333,795,883.00 thereon; WHEREAS, the PPC does not have the financial capacity to assume the said VAT assessment; NOW, THEREFORE, BE IT RESOLVED AS IT IS HEREBY RESOLVED, to approve the application for tax subsidy of the PPC in the amount of One Billion Three Hundred Thirty Three Million Seven Hundred Ninety Five Thousand Eight Hundred Eighty Three Pesos (P1,333,795.893.00) only, broken down as follows: Year Amount 1999 P197,047,422 2000 186,978,062 2001 173,605,394 2002 189,545,907 2003 188,982,590 2004 205,852,786 2005 191,783,702 TOTAL P1,333,795,883 =========== Provided , That such availment shall be in accordance with the terms and conditions of Section 14 of the 2005 General Appropriations Act, as reenacted, 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. cDIaAS (SGD.) GIL P. MONTALBO Director Department of Budget and Management (SGD.) ELMER C. HERNANDEZ Undersecretary Department of Trade and Industry MARGARITA R. SONGCO Deputy Director-General National Economic and Development Authority (SGD.) JAMES H. ROLDAN Assistant Commissioner Bureau of Internal Revenue (SGD.) RAMON G. CUYCO Director Bureau of Customs (SGD.) LINA D. ISORENA Executive Director Head, FIRB Secretariat National Tax Research Center (SGD.) ROBERTO B. TAN Undersecretary Alternate Presiding Officer FIRB