Intercontinental Broadcasting Corporation

June 8, 2020 FIRB RESOLUTION NO. 006-20 SUBJECT MATTER : Intercontinental Broadcasting Corporation WHEREAS, the Intercontinental Broadcasting Corporation (IBC) is a government-owned-and/or -controlled corporation operating on a 25-year franchise granted by the Philippine Congress on September 2, 2000 through Republic Act (RA) No. 8954; WHEREAS, the IBC's primary purpose under its franchise is to carry on the business as operator and/or proprietor of instruments and media of mass communication such as radio, television, and/or telecommunication stations on a commercial and/or sustaining basis in any part of the Philippines; WHEREAS, the privatization of the IBC pursuant to RA 10390 (An Act Revitalizing the People's Television Network, Inc.) provides that the P2 billion of the additional P5 billion authorized capital stock of the People's Television Network, Inc. (PTNI) shall be sourced from the proceeds of the privatization of IBC and Radio Philippines Network (RPN); WHEREAS, the IBC applied for tax amnesty from the Bureau of Internal Revenue (BIR) on its outstanding tax obligations for various years amounting to P120,295,489.32; 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; aTHCSE NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED, to approve the application for tax subsidy of the IBC in the amount of One Hundred Twenty Million Two Hundred Ninety Five Thousand Four Hundred Eighty Nine and 32/100 (P120,295,489.32) only, covering the IBC's outstanding tax obligations with the BIR, broken down as follows: Taxable Year Tax Type Basic Tax Partial Payment Remaining Balance Amnesty Rate Tax Payable 2004 VT 20,138,786.51 2,013,878.65 18,124,907.86 40% 7,249,963.14 2005 VT 9,343,672.61 9,343,672.61 40% 3,737,469.04 2006 IT 1,711,281.77 1,711,281.77 40% 684,512.71 2006 VT 11,724,026.19 11,724,026.19 40% 4,689,610.48 2008 VT 13,314,376.37 13,314,376.37 40% 5,325,750.55 2011 IT 7,564,490.82 7,564,490.82 40% 3,025,796.33 2011 MCIT 27,093.17 27,093.17 40% 10,837.27 2011 VT 11,002,867.12 11,002,867.12 40% 4,401,146.85 2011 VT 3,106,254.00 3,106,254.00 40% 1,242,501.60 2004 WC 40,038,408.67 7,200,000.00 32,838,408.67 100% 32,838,408.67 2004 WE 5,116,736.35 5,116,736.35 100% 5,116,736.35 2005 WC 15,987,206.10 4,950,000.00 11,037,206.10 100% 11,037,206.10 2006 WC 14,350,326.31 14,350,326.31 100% 14,350,326.31 2006 WE 1,586,728.69 1,586,728.69 100% 1,586,728.69 2008 WE 651,289.08 651,289.08 100% 651,289.08 2008 WC 9,271,683.69 9,271,683.69 100% 9,271,683.69 2011 WE 278,032.40 278,032.40 100% 278,032.40 2011 WC 8,482,517.82 8,482,517.82 100% 8,482,517.82 2011 WC 6,314,972.25 6,314,972.25 100% 6,314,972.25 Total 120,295,489.32 Legend: IT = Income Tax FW = Final Withholding Tax VT = Value-Added Tax WC = Withholding Tax Compensation WE = Withholding Tax Expanded WG = Withholding Tax VAT and Other Percentage Tax Provided , that a Certificate of Entitlement to Subsidy (CES) shall be issued covering P120,295,489.32 only representing the total amount of IBC's tax obligation under its tax amnesty application. Provided further , that such availment shall be in accordance with the terms and conditions of Section 15 (c) of RA 11465 or the 2020 GAA, 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 (EO) 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 LUCERO-CALUBAG OIC-Executive Director National Tax Research Center Head, FIRB Secretariat (SGD.) ANTONETTE C. TIONKO Undersecretary of Finance Presiding Officer-FIRB