Money

Swish! PBA reaches compromise agreement with BIR on P533M, 22-year tax deficiency case

The Philippine Basketball Association (PBA) has scored a slam dunk after the Court of Tax Appeals approved its compromise agreement with the Bureau of Internal Revenue involving P533 million in unpaid taxes (including interest and penalties) from 1988 to 2000.

“The Judicial Compromise Agreement is hereby APPROVED and this Judgment Based on Compromise Agreement is hereby rendered in accordance therewith. The parties are hereby enjoined to faithfully comply with all the terms and conditions of the aforesaid Judicial Compromise Agreement. Accordingly, this case is now deemed CLOSED AND TERMINATED,” said the Court of Tax Appeals Second Division.

The 21 September 2020 decision was penned by Associate Justice Juanito C. Castaneda and concurred by Associate Justice Jean Marie Bacorro- Villena.

The compromise agreement was signed by PBA Commissioner Willy Marcial and BIR Commissioner Ceasar Dulay on 22 July 2019. Based on the settlement deal, PBA paid P72 million or 40 percent (the minimum compromise rate) of its original tax deficiency of P165 million. PBA paid the balance of P49 million in 2019.

The PBA was initially assessed with a total of P165 million in back taxes from 1998 to 2000.

The PBA offered to settle its tax dues under the Voluntary Assessment and Abatement Program in 2002 for P24 million or roughly 15 percent of its deficiencies. The BIR rejected the offer and issue dragged for more than a decade and the basketball league’s obligations ballooned to over half a billion.

The PBA got a break when Dulay took over BIR in 2016. The two agree to settle the isue with

The association of basketball clubs is owned by Alaska Milk, Asian Coatings Philippines (Rain or Shine), Columbian Autocar (Kia), Ever Bilena Cosmetics (Blackwater), Ginebra San Miguel, Manila Electric Company, Metro Pacific Tollways (NLEX), Philippine Long Distance and Telephone Company (TNT), Phoenix Petroleum, San Miguel, San Miguel Pure Foods, and Sultan 900 Capital (Globalport).

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