Philippine Deposit Insurance Corporation (2)

November 22, 2011 FIRB RESOLUTION NO. 011-11 SUBJECT MATTER : Philippine Deposit Insurance Corporation (2) WHEREAS, the Philippine Deposit Insurance Corporation's (PDIC) primary mandate is to implement a deposit insurance system for the protection of bank deposits; WHEREAS, the PDIC charter was amended by Republic Act (RA) No. 9576 (April 29, 2009) for the purpose of promoting and safeguarding the interest of the depositing public by way of institutional and financial strengthening of the PDIC as a regulatory agency exercising governmental functions with responsibility to provide safeguards against risks of bank failures; WHEREAS, the strengthening of the deposit insurance system will make it more flexible and responsive to the needs of the depositors while promoting secure and sound banking activities; WHEREAS, in recognition of the PDIC's institutional and financial strengthening reform package, RA No. 9576 provides that all tax obligations of the PDIC shall be chargeable to the Tax Expenditure Fund (TEF) in the annual General Appropriations Act (GAA) for a period of five (5) years reckoned from the date of effectivity of the Act on June 1, 2009; WHEREAS, the PDIC was granted tax subsidy for 2011 in the amount of P4,705,822,568.13 only per FIRB Resolution No. 5-11; WHEREAS, there is a need to ensure the efficient utilization of the balance of P2,158,914,492.84 out of the P4,705,822,568.13 tax subsidy earlier granted to the PDIC under FIRB Resolution No. 5-11; aCHcIE NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED, to allow the PDIC to realign the tax subsidy previously granted to it in the amount of ONE BILLION ONE HUNDRED NINETY NINE MILLION NINE HUNDRED NINETY FOUR THOUSAND EIGHT HUNDRED EIGHTY FOUR AND 88/100 PESOS (P1,199,994,884.88) only, broken down as follows: P1,197,674,794.39 to cover its deficiency basic income tax for 2010 and P2,320,090.49 to cover its deficiency basic VAT for 2010. Provided, however, that the CES shall be limited to P1,199,994,884.88 only per Annex A. Provided, further, that such availment shall be in accordance with the terms and conditions of Section 13 of RA No. 10147 or 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. (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.) TRINIDAD A. RODRIGUEZ Officer-In-Charge National Tax Research Center Head, FIRB Secretariat (SGD.) GIL S. BELTRAN Undersecretary of Finance Presiding Officer-FIRB