PSE Circular for Brokers No. 363-98

March 13, 1998 PSE CIRCULAR FOR BROKERS NO. 363-98 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. March 11, 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 incorporation 6. (SEC Use Only) Industry Classification Code 7. Ramon Cojuangco Building Makati Avenue, Makati City, Philippines Address of principal office Postal Code 8. ( 632) 817-5460 Registrant's telephone number, including area code 9. Not Applicable Former name or former address, if changed from 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 A decision was rendered by the Court of Appeals, Sixteenth Division, on February 16, 1998 on the case entitled "Commissioner of Internal Revenue, Petitioner versus Philippine Long Distance Telephone Company, Respondent, SP-40811, whereby the petition filed by the Commissioner of Internal Revenue was denied due course and dismissed by the said Court. cdlex The Petition filed by the Commissioner of Internal Revenue was for the review of the December 18, 1995 decision of the Court of Tax Appeals in C.T.A. Case No. 5106 entitled "Philippine Long Distance Telephone Company vs. The Honorable Commissioner of Internal Revenue" ordering the Commissioner of Internal Revenue to issue in favor of PLDT a Tax Credit Certificate in the amount of P428,730,320.00 representing erroneously and illegally paid VAT on importation of equipment, machineries and spare parts for the period of May 3, 1992 to February 29, 1994. Atty. Antonio M. Meer, Senior Partner of Meer, Meer & Meer Law Offices, who handled the case for the Company, has advised that to date the Commissioner of Internal Revenue has not disclosed the action she may want to make on the above matter. PHILIPPINE LONG DISTANCE TELEPHONE COMPANY By: (SGD.) ENRIQUE D. PEREZ Senior Executive Vice President