Compromise Agreement Abs Cbn
“Once a compromise agreement has obtained the court`s permission, it will become more than a binding contract for the parties. After being sanctioned by the court, it is recorded as a decision on a controversy and has the force and effect of a judgment,” the CTA decision reads. The ABS-CBN complied with all relevant State rules and rules regarding the payment of its taxes. It is not illegal or unusual for a company to enter into a compromise agreement with the BIR,” Tan said. Court records show that, since 2018, abs-CBN and its units have entered into four “compromise agreements” with the Bureau of Internal Revenue to settle its arrears. In a decision of the Second Division of 23 November 2018, BIR accepted the offer of ABS-CBN`s film production unit to pay a compromise amount of P3 million. [Translation: There is a big difference if you paid through a compromise agreement, instead of paying the full amount, if that is the correct valuation of BIR.] On 27 February, the Court of Tax Appeals (CTA) of the Second Division approved the compromise agreement between the ABS-CBN and the BIR to resolve the tax case of the broadcasting network. This amount corresponds to 40% of the absence of payment of income tax, VAT and documentary stamp of the ABS-CBN. Aldrin Cerrado, chief financial officer of ABS-CBN, has been allowed to enter into a compromise agreement with BIR. Tan also refuted allegations that ABS-CBN did not pay reasonable taxes in 2019 by entering into compromise agreements with BIR.