The state-owned PTV4 has availed of the Bureau of Internal Revenue’s (BIR) tax amnesty program on delinquent accounts to settle its more than P1.1 billion tax debts.
The application of the cash-strapped network has been approved in principle.
It availed of the amnesty law (Republic Act 1121) after the BIR issued seizure warrants on the network’s vehicles and other properties.
In a letter to Quezon City Revenue Region No. 4A Director Alvin Galanza, PTV4 General Manager Julieta Lacza acknowledged the assessment but unable to settle it due to “minimal revenue.”
She said the network is in a state of constant struggle to earn revenues as it simultaneously implement its mandate as the government’s flagship television network.
Galanza said the amnesty law allows a delinquent taxpayer to pay 40 percent of the deficiency assessment which has become final and executory.
In this particular case, the network will shell out P450 million to settle the liabilities.
Due to insufficiency of funds, the network has asked the Department of Finance and the Department of Budget and Management for a subsidy, or issuance of debit memo.
The latter process does not involve actual cash, but which “payment” is considered BIR collection.
The tax liabilities covered income, value-added and withholding taxes from 2003 to 2013. (Jun Ramirez)
