TV Network Proved Paying Taxes may lose Thousands of Jobs While POGO proven not paying taxes operate
ABS-CBN settles tax case with BIR, pays ₱152 million
The tax court approved a settlement deal between broadcast network ABS-CBN and the Bureau of Internal Revenue (BIR).
The Court of Tax Appeals (CTA) second division, on February 27, approved the compromise agreement between ABS-CBN and the BIR to settle the broadcast network's tax case.
The BIR accepted ₱152.44 million from ABS-CBN, which is the equivalent of 40 percent of its assessed deficiency in income tax, value-added tax, and documentary stamp tax payments.
ABS-CBN Chief Financial Officer Aldrin Cerrado was authorized to enter into the compromise agreement with the BIR.
Only after the approval of the CTA did the agreement become binding on both parties.
The compromise agreement also counts as a judgment on the case.
"Once a compromise agreement is given judicial approval, hoever, it becomes more than a contract binding upon the parties. Having been sanctioned by the court, it is entered as a determination of a controversy and has the force and effect of a judgment," the CTA ruling read.
The ruling was penned by Associate Justice Juanito Castañeda, Jr.
ABS-CBN: We have no outstanding tax liabilities
Broadcast network ABS-CBN on Tuesday belied allegations that they have outstanding tax liabilities with the Bureau of Internal Revenue (BIR).
In a statement, the company said they have paid a total of P70.5 billion in taxes in the past 17 years, making them one of the biggest taxpayers in the country.
ABS-CBN added that the BIR issued a Tax Clearance Certificate to them in 2019 and also named them one of the Top 200 Non-Individual Taxpayers in the country.
“ABS-CBN takes pride in adhering to its corporate values of honesty and integrity in the conduct of its businesses. We have no unpaid obligations to any bank or financial institution,” they said.
The statement comes amid accusations circulating online that the company’s tax liabilities are among the reasons that the government has taken legal action to forfeit their legislative franchise.
On Monday, Solicitor General Jose Calida filed a quo warranto petition against ABS-CBN for its alleged “highly abusive practices” such as the issuance of Philippine Depositary Receipts to foreigners.
Majority of licensed Pogos failed to pay P50B in taxes in 2019 — BIR official
Majority of the 60 licensed Philippine offshore gaming operators (Pogos) failed to pay the government an estimated total of P50 billion in withholding income and franchise taxes in 2019, an official from the Bureau of Internal Revenue (BIR) told senators Tuesday.
During the Senate labor committee hearing into the influx of illegal Pogo workers in the country, Atty. Sixto Dy Jr. from the BIR Office of the Deputy Commission for Operations disclosed that all foreign-based Pogo licensees are not paying their franchise tax.
At present, there are 60 Pogos licensed by the Philippine Amusement and Gaming Corporation (Pagcor).
Of this number, 50 are online casino operators based abroad while 10 are Philippine-based.
“One hundred percent of the offshore-based licensees are not paying franchise tax. All of them,” Dy told the Senate panel.
“Pagcor collected P8 billion at least as regulatory fee…that’s only two percent (of the operator’s gross gaming revenue). If it’s franchise tax of 5 percent, that would be at least 17 to 18 billion,” he added.
Aside from the issues regarding the payment of franchise tax, Dy said the BIR was only able to collect P5 billion in 2019.
The Department of Finance (DOF) earlier projected the government withholding tax collection from Pogos at P2.5 billion or P3 billion per month.
“That’s almost P30 billion,” Dy pointed out.
Adding the total of the projected withholding and franchise tax collection, Dy said the BIR should have collected an estimated total of P50 billion from these online gaming operators in 2019.
He then said that the BIR plans “to go after” these operators who failed to pay their taxes to the government.
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