29 Dec 2021
The Power Sector Assets and Liabilities Management Corporation (PSALM) and the Bureau of Internal Revenue (BIR) entered into a mutually advantageous global settlement of all the pending tax issues between them, consistent with the whole-of-government approach promoted by President Rodrigo R. Duterte.
Today, December 29, 2021, PSALM remitted the total amount of PHP517,707,336.81 to the BIR in order to end long outstanding tax cases covering taxable years 2006 up to 2016 as well as the various disputed tax assessments for the taxable years 2017 and 2019. BIR amicably accepted the amount offered by PSALM.
PSALM President and Chief Executive Officer, Atty. Irene Besido-Garcia, said “This global settlement of all the tax cases and disputed assessments marks a major accomplishment for PSALM as it resolves and ends many years of conflict between PSALM and the BIR. We fully recognize the advantage of following the whole-of-government approach to resolve pending issues with other government offices. We sincerely thank the BIR headed by Commissioner Caesar Dulay for being very fair to PSALM and for accepting our offer.”
This government-to-government arrangement with the BIR ensures a clean slate for PSALM. It will also lead to the dismissal of numerous pending tax cases between the two agencies. This means that time and resources of both government agencies spent on protracted litigations, will be saved.
PSALM utilized its unrestricted and available funds to settle the tax obligations with the BIR since all the proceeds from its privatization activities are earmarked for the payment of stranded contract costs and stranded debts absorbed from the National Power Corporation.
The remittance of PSALM will also contribute to the revenue collection efforts of the BIR, towards achieving its 2021 collection target.
Corporate Communications Division