Philippine Postal Corporation (1)

July 16, 2007 FIRB RESOLUTION NO. 008-07 SUBJECT MATTER : Philippine Postal Corporation (1) WHEREAS, Section 14 (c) of Republic Act No. 9401, otherwise known as the 2007 General Appropriations Act, provides that tax subsidies granted by the FIRB to government owned and/or controlled corporations (GOCCs), in accordance with E.O. No. 93, as amended, including those for tax obligations assumed by GOCCs pursuant to a valid agreement are deemed automatically appropriated; cDTIAC WHEREAS, the Philippine Postal Corporation (PhilPost) was created under R.A. 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 PhilPost 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 P398,745,242.00 thereon; EcASIC WHEREAS, the PhilPost is likewise being assessed the Minimum Corporate Income Tax (MCIT) for the years 2004 and 2005; WHEREAS, the PhilPost does not have the financial capacity to assume the said VAT and MCIT assessments; CHATcE NOW, THEREFORE, BE IT RESOLVED AS IT IS HEREBY RESOLVED, to approve the application for tax subsidy of the PhilPost in the amount of FOUR HUNDRED THIRTEEN MILLION SIX HUNDRED NINETY ONE THOUSAND SIX HUNDRED NINETY ONE Pesos (P413,691,691.00) only broken down as follows: Type of Tax/Taxable Year Amount (In Pesos) Value Added Tax Actual 2006 167,672,654.00 Projected 2007 231,072,589.00 Sub-total 398,745,243.00 Minimum Corporate Income Tax (MCIT) Actual 2004 9,740,966.00 Actual 2005 5,205,482.00 Sub-total 14,946,448.00 Grand Total 413,691,691.00 ============ Provided, That such availment shall be in accordance with the terms and conditions of Section 14 of the 2007 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. ADEaHT (SGD.) GIL S. BELTRAN Undersecretary of Finance Presiding Officer FIRB Reference: FIRB Meeting dated July 16, 2007.