National Power Corporation (1)

March 24, 2011 FIRB RESOLUTION NO. 006-11 SUBJECT MATTER : National Power Corporation (1) WHEREAS, the National Power Corporation (NPC) is mandated to undertake the development of hydroelectric generation of power and the production of electricity from nuclear, geothermal and other sources, as well as the transmission of electric power on a nationwide basis under its original charter and to perform the missionary electrification function under the Electric Power Industry Reform Act of 2001; WHEREAS, the conduct of these functions has resulted in the Basic Deficiency Income Tax liabilities of the NPC for the years 2006 and 2007; WHEREAS, the NPC does not have the financial resources to settle these tax obligations with the Bureau of Internal Revenue; WHEREAS, the grant of tax subsidy to the Expanded Withholding Tax Liabilities of the NPC may set a precedent for other tax subsidy applicants and encourage future instances of non-compliance, negligence, erroneous or incorrect withholding; NOW, THEREFORE: BE IT RESOLVED, AS IT IS HEREBY RESOLVED, to grant tax subsidy to the NPC to cover its Basic Deficiency Income Tax liabilities for 2006 and 2007 in the amount of SEVEN BILLION, FOUR HUNDRED SIXTY SEVEN MILLION FIVE HUNDRED EIGHTY-THREE THOUSAND FIFTY TWO PESOS AND SEVENTY CENTAVOS (P7,467,583,052.70) only: Provided, that such availment shall be in accordance with the terms and conditions of Section 13 of the 2011 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; BE IT FURTHERMORE RESOLVED, AS IT IS HEREBY RESOLVED, to deny tax subsidy on its 2003 Expanded Withholding Tax liabilities. (SGD.) LAURA B. PASCUA Undersecretary Department of Budget and Management (SGD.) CRISTINO L. PANLILIO Undersecretary Department of Trade and Industry (SGD.) MARGARITA R. SONGCO Deputy Director-General National Economic and Development Authority (SGD.) MARISSA O. CABREROS Assistant Commissioner Bureau of Internal Revenue (SGD.) RAMON G. CUYCO Director Bureau of Customs (SGD.) DANTE V. SY Executive Director National Tax Research Center Head, FIRB Secretariat (SGD.) GIL S. BELTRAN Undersecretary of Finance Presiding Officer-FIRB