National Transmission Corporation (TransCo) (2)

October 8, 2012 FIRB RESOLUTION NO. 010-12 SUBJECT MATTER : National Transmission Corporation (TransCo) (2) WHEREAS, the National Transmission Corporation (TransCo) is the government corporation mandated to assume the electrical transmission function of the National Power Corporation (NPC), as well the NPC's authority and responsibility for the planning, construction and centralized operation and maintenance of high voltage transmission facilities, including grid interconnections and ancillary services under the Electric Power Industry Reform Act of 2001; AHECcT WHEREAS, the conduct of these functions has resulted in the basic Value-Added Tax (VAT) and Documentary Stamp Tax (DST) liabilities of the TransCo for the year 2008; WHEREAS, the TransCo does not have the financial resources to settle these tax obligations with the Bureau of Internal Revenue; NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED, to grant tax subsidy to the TransCo to cover its Basic Deficiency VAT and DST liabilities for 2008 in the amount of ONE HUNDRED SEVENTY ONE MILLION SEVEN HUNDRED SIXTY NINE THOUSAND ONE HUNDRED THIRTY SEVEN AND 13/100 PESOS (PhP171,769,137.13) only: Provided, that such availment shall be in accordance with the terms and conditions of Section 13 of the 2012 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 FURTHER RESOLVED AS IT IS HEREBY RESOLVED, that the TransCo is urged to exercise due diligence and prudence in complying with its tax obligations in order prevent or minimize at the least, tax subsidies resulting from tax liability deficiencies. (SGD.) LAURA B. PASCUA Undersecretary Department of Budget and Management (SGD.) ADRIAN S. CRISTOBAL, JR. Undersecretary Department of Trade and Industry (SGD.) EMMANUEL F. ESGUERRA 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.) TRINIDAD A. RODRIGUEZ Officer-in-Charge National Tax Research Center Head, FIRB Secretariat (SGD.) JEREMIAS N. PAUL, JR. Undersecretary Department of Finance Presiding Officer-FIRB