Defensor wants Congress to check tax-related issues of other broadcast firms

MANILA, Philippines — A lawmaker wants to look into tax-related issues of all broadcasting stations in the country to create a semblance of fairness as the House of Representatives investigates alleged tax violations of media network ABS-CBN Corp.

Anakalusugan party-list Rep. Mike Defensor on Thursday urged House panels on legislative franchises and good government and accountability to likewise look into the tax regime as well as other issues of other broadcasting companies.

“In the interest of fairness, tingnan natin ang (let’s look into the) position ng lahat ng (of all) broadcasting stations on the following issue: the cost of digitalization, position on transfer pricing, and ‘yung (the) tax regime na kanilang sinusunod at ginagampanan sa ngayon (that they are following and doing right now),” he said during the House joint panel hearing on ABS-CBN’s franchise.

The House joint panels have been tackling alleged tax violations of ABS-CBN, which is seeking another 25-year legislative license to operate.

During previous hearings, it has been established that ABS-CBN has paid its proper taxes every year and it does not have any tax delinquencies, as attested by the Bureau of Internal Revenue.

BIR Assistant Commissioner Manuel Mapoy said during an earlier public hearing that the broadcasting company has paid over P15.3 billion in taxes from 2016 to 2019.

ABS-CBN Group chief financial officer (CFO) Ricardo Tan likewise attested that ABS-CBN Corp. and its subsidiaries have paid P71.5 billion in taxes to the government in the past 17 years.

“From 2003 to 2019, ABS-CBN as a group paid P71.5 billion in taxes,” he noted during the hearing.

Further, Tan said ABS-CBN did not violate the terms and conditions of its legislative franchise when it availed of tax incentives through its subsidiary Big Dipper Digital Content Design Inc.

It was alleged that ABS-CBN used Big Dipper Digital Content Design Inc. as a tax-shield.

“Big Dipper Digital Content and Design Inc. is not a tax avoidance scheme. We did not deprive the government of revenues nor did we violate the terms of our franchise,” Tan said.

KGA