Philippine Deposit Insurance Corporation (2)

November 23, 2009 FIRB RESOLUTION NO. 021-09 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; NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED, to grant tax subsidy to the PDIC in the amount of THREE BILLION THREE HUNDRED FIFTY FOUR MILLION NINE HUNDRED TEN THOUSAND ONE HUNDRED TWENTY EIGHT AND 41/00 (P3,354,910,128.41) to cover its value-added tax (VAT) obligations: Provided, that the corresponding Certificate of Entitlement to Subsidy (CES) shall be issued only upon the submission by the PDIC to the FIRB of its actual VAT liability based on the assessment of the Bureau of Internal Revenue (BIR): Provided, finally, that such availment shall be in accordance with the terms and conditions of Section 13 of the 2009 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. TEcADS GIL P. MONTALBO Director Department of Budget and Management (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.) REYNALDO V. UMALI Deputy Commissioner 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