ABS-CBN paid proper taxes — exec

ABS-CBN has no tax liability with the government and has been properly paying taxes, according to an executive of the television network.

An official of the embattled broadcast giant said this during the continuation of hearing of the House joint committees on legislative franchises and good government and public accountability on the network’s franchise renewal application.

ABS-CBN Group chief financial officer Ricardo Tan denied allegations that the network paid zero taxes in 2018, violated its franchise by availing itself of tax incentives and that its charitable arm is being used as a tax shield.

“(The allegation that) ABS-CBN managed to avoid paying taxes in 2018 is not true. In 2018, ABS-CBN, as a group, paid a total of P5.2 billion in various taxes, P465 million of which was income tax... The BIR even issued a tax clearance to ABSCBN for 2018,” Tan said.

He said the taxes paid by the ABS-CBN Group from 2015 to 2018 reached P24.6 billion.

Not compliant

After confirming that ABSCBN was “fully compliant” with labor laws and standards, the Department of Labor and Employment (DOLE) denied yesterday the network is a compliant company.

“The facts bear us out. Our labor inspectors found violations of laws and standards by ABS-CBN. And on account of those findings, the company took steps to correct those violations,” DOLE said in a statement.

The DOLE said there are 67 pending cases against ABS-CBN before the National Labor Relations Commission and various courts.

The agency also denied it approved of the seasonal work status for the broadcast firm’s program employees.

DOLE said it was misleading for the network to volunteer to the House committee Policy Instruction No. 40 issued by the then labor minister in 1979 as the basis for ABS-CBN’s work arrangement.

“It conveniently leaves the impression that the policy was that of current Labor Secretary Silvestre Bello III. We are not letting this to pass,” the statement said.