Scope of Tax Subsidy

October 13, 1994 FIRB RESOLUTION NO. 031-94 SUBJECT : Scope of Tax Subsidy WHEREAS, subsidy provisions as administered by the FIRB are a form of expenditures (in particular, to settle the tax and duty liabilities of government-owned and -controlled corporations), which are intended to assist the latter in the effective and efficient conduct of their primary undertakings; WHEREAS, the FIRB, pursuant to FIRB Resolution No. 1-94 has put a cap on tax subsidy approvals by it, in order to ensure the effective allocation and efficient utilization of public resources, in the light of the public sector deficit and the need to trim it down if only to reduce the unwarranted pressures on already delimited public resources; WHEREAS, certain applications for tax subsidy have indicated initiatives by applicants therefor in undertakings other than their primary undertakings as specified in their charters and/or enabling laws as to result in greater demand for tax subsidy; and WHEREAS, such a disposition runs counter to the rationale for tax subsidy and tax subsidy cap implemented, pursuant to FIRB Resolution No. 1-94: NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED, that the FIRB shall henceforth limit the grant of tax subsidy only to transactions which have something to do with the primary undertakings of applicants therefor, as specified in their charters and/or enabling laws. (SGD.) JUANITA D. AMATONG Acting Secretary of Finance Presiding Officer FIRB Reference : FIRB meeting dated October 12, 1994