PSE Circular for Brokers No. 235-98

February 27, 1998 PSE CIRCULAR FOR BROKERS NO. 235-98 SEC FORM 11-C CURRENT REPORT UNDER SECTION 11 OF THE REVISED SECURITIES ACT (RSA) AND RSA RULE 11(a)-1(b)(3) THEREUNDER 1. February 26, 1998 Date of Report (Date of earliest event reported) 2. SEC Identification Number PW-55 3. BIR Tax Identification No. 000-488-793 4. Philippine Long Distance Telephone Company Exact name of registrant as specified in its charter 5. Philippines Province, country or other jurisdiction of incorporation 6. (SEC Use Only) Industry Classification Code: 7. Ramon Cojuangco Building Makati Avenue, Makati City, Philippines ______________ Postal Code Address of principal office 8. (632) 817-5460 Registrants telephone number, including area code 9. Not Applicable Former name or former address, if changed since last report 10. Securities registered pursuant to Sections 4 and 8 of the RSA Title of Each Class Number of Shares of Common Stock Outstanding and Amount of Debt Outstanding ________________________________________________ ___________________ 11. Indicate the item numbers reported herein Item 5 Item No. 5 Legal Proceedings The Court of Tax Appeals in a decision rendered on February 18, 1998 on CTA Case No. 5178 entitled Philippine Long Distance Telephone Company (Petitioner) vs. The Honorable Commissioner of Internal Revenue (Respondent), ordered the respondent to refund or to issue in favor of petitioner a Tax Credit Certificate in the amount of P223,265,276.00 representing erroneously paid value-added taxes, compensating taxes, advance sales taxes and other BIR taxes on its importation of equipment, machineries and spare parts for the period covering the taxable years 1992 to 1994. The Company has been informed by its tax counsels Atty. Antonio M. Meer, that to-date the respondent, Commissioner of Internal Revenue, has not filed a Motion for Reconsideration or an appeal from the said decision. PHILIPPINE LONG DISTANCE TELEPHONE COMPANY By: (SGD.) ENRIQUE D. PEREZ Senior Executive Vice President