By Jun Ramirez
The Court of Tax Appeals (CTA) has approved the amicable settlement for the P152 million in tax debts of television network ABS-CBN with the Bureau of Internal Revenue (BIR).
The two parties sued for the out-of-court settlement of the case to avoid long and expensive court litigation.
The assessed liabilities covered 40 percent of the basic deficiency income, value-added and documentary stamp taxes
It also included 100 percent of the basic expanded withholding tax and withholding tax on compensation.
In approving the amicable settlement. CTA stated that both the Civil Code and the Revised Rules of Court instruct the courts to persuade litigants to enter into a compromise.
The agreement was signed by BIR Commissioner Caesar R. Dulay and the network’s chief finance officer Aldrin Cerrado.