ABS-CBN settles tax case with BIR, pays ₱152 million

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Metro Manila (CNN Philippines, March 2) — The tax court approved a settlement deal between broadcast network ABS-CBN and the Bureau of Internal Revenue (BIR).

The Court of Tax Appeals (CTA) second division, on February 27, approved the compromise agreement between ABS-CBN and the BIR to settle the broadcast network's tax case.

The BIR accepted ₱152.44 million from ABS-CBN, which is the equivalent of 40 percent of its assessed deficiency in income tax, value-added tax, and documentary stamp tax payments.

ABS-CBN Chief Financial Officer Aldrin Cerrado was authorized to enter into the compromise agreement with the BIR.

Only after the approval of the CTA did the agreement become binding on both parties.

The compromise agreement also counts as a judgment on the case.

"Once a compromise agreement is given judicial approval, hoever, it becomes more than a contract binding upon the parties. Having been sanctioned by the court, it is entered as a determination of a controversy and has the force and effect of a judgment," the CTA ruling read.

The ruling was penned by Associate Justice Juanito Castañeda, Jr.