Philippine National Railways (1)

September 28, 2007 FIRB RESOLUTION NO. 010-07 SUBJECT MATTER : Philippine National Railways (1) WHEREAS, the Philippine National Railways (PNR) is a state-owned railway system, organized under the Department of Transportation and Communications (DOTC) as an attached agency, and is also a part of the Strong Republic Transit System (SRTS) and an overall public transport system in the metropolis; ECaAHS WHEREAS, the PNR is mandated to link key cities within the Philippines, to serve as an instrument in national socio-economic development and as the backbone of all Metro Manila's regional rail services, which extend to suburbs and to provinces from Laguna to Legazpi; WHEREAS, the PNR is experiencing serious operational problems and financial difficulties, thus resulting in its not being able to pay its tax obligations to the Bureau of Internal Revenue (BIR) covering the taxable periods from January 1996 to December 2006; CAHTIS WHEREAS, the PNR does not have the financial capacity to assume the said tax liability without further impairing its railway operations; NOW, THEREFORE, BE IT RESOLVED AS IT IS HEREBY RESOLVED, to approve the application for tax subsidy of the PNR in the amount of THREE HUNDRED THIRTEEN MILLION, EIGHT HUNDRED EIGHTY-SEVEN THOUSAND, SIX HUNDRED NINETY PESOS AND EIGHTY-NINE CENTAVOS (P313,887,690.89) only broken down as follows: HIETAc A. Percentage Tax Year Basic Tax (3%) Interest 1996 P1,094,760.00 P2,341,765.84 1997 3,066,360.00 P5,945,160.98 1998 3,368,820.00 5,857,816.51 1999 3,300,570.00 5,079,027.14 2000 2,593,500.00 3,472,264.25 2001 2,947,212.90 3,356,384.29 2002 2,605,680.00 2,446,299.24 2003 2,528,410.68 1,868,074.09 2004 2,370,163.81 1,277,123.27 2005 1,230,383.44 416,894.92 2006 1,691,395.35 234,822.05 P26,797,256.18 P32,295,632.58 ============ ============ B. Value-Added Tax Year Basic Tax Interest (10%/12%) 1996 P7,931,421.70 16,937,551.04 1997 8,724,829.80 16,886,907.50 1998 13,373,916.40 23,210,431.91 1999 8,447,225.00 12,970,713.99 2000 8,549,538.50 11,417,908.67 2001 13,161,000.00 14,944,315.50 2002 13,083,080.00 12,239,221.34 2003 9,546,497.25 7,021,448.73 2004 13,918,337.42 7,453,269.69 2005 14,390,898.05 4,828,146.30 2006 13,877,713.20 1,880,430.14 P125,004,457.32 P129,790,344.81 Sub-total P151,801,713.50 P162,085,977.39 ============= ============ Grand Total P313,887,690.89 ============ 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. aDECHI (SGD.) GIL P. MONTALBO Director Department of Budget (SGD.) ELMER C. HERNANDEZ Undersecretary Department of Trade and Industry (SGD.) MARGARITA R. SONGCO Deputy Director-General National Economic and Development Authority (SGD.) JAMES H. ROLDAN Assistant Commissioner Bureau of Internal Revenue (SGD.) ANGELITO G. URSABIA Director Bureau of Customs (SGD.) LINA D. ISORENA Executive Director Head, FIRB Secretariat National Tax Research Center (SGD.) GIL S. BELTRAN Undersecretary of Finance Presiding Officer FIRB