THE Power Sector Assets and Liabilities Management Corp. (PSALM) and the Bureau of Internal Revenue (BIR) agreed to settle all their outstanding tax disputes, PSALM said in a statement.
PSALM remitted around P517.71 million to the BIR, which covered outstanding tax cases dating from 2006 to 2016, and disputed assessments from 2017 to 2019.
“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,” PSALM President and Chief Executive Officer Irene B. Garcia said.
The settlement is expected to lead to the dismissal of all pending tax litigation.
PSALM said it tapped available funds to settle its tax obligations with the BIR. Proceeds from privatization activities are designated to go towards the payment of contract costs and stranded debt absorbed from the National Power Corp.
“The remittance of PSALM will also contribute to the revenue collection efforts of the BIR, towards achieving its 2021 collection target,” according to the statement. — Luisa Maria Jacinta C. Jocson