SOLONS EYE NEW PROBE ON ANOMALOUS DEAL
Banks ask SC to stop 20% tax on PEACe bonds
By Benjamin B. Pulta 10/18/2011Some of the country’s biggest banks sought the Supreme Court’s (SC) intervention in issuing an order to restrain the Bureau of Internal Revenue (BIR) from imposing a 20 percent final withholding tax on the Poverty Eradication and Alleviation Certificate Bonds or the so-called PEACe bonds 10 years late and when the government debt papers are scheduled for payout today, a move which could mean potential losses of income amounting to P5 billion for bond investors.
Banks involved in the float are asking the SC to issue a temporary restraining order (TRO) to stop Malacañang from imposing and collecting a 20 percent final withholding tax (FWT) on P35 billion worth of government bonds which will mature today.
The banks noted that the government had assured investors including them that the income derived from these bonds are exempt from 20 percent tax under section 27 of the National Internal Revenue Code.
The banks’ argument got support from Sen. Edgardo Angara saying whatever were the defects in the issuance of the bonds, these remained an obligation of the government..... MORE
Source: The Daily Tribune
URL: http://www.tribuneonline.org/headlines/20111018hed1.html
1 comment
naku, tax na lang sa peace bonds virtual scam na yan tinututulan pa. mga hnypk kayo.
"“Having voluntarily entered into contracts with the investors that relied on its representations, the government cannot belatedly and arbitrarily withdraw such representation, as the same amounts to, among others, a confiscation of property without due process of law, a violation of the principle of inviolability of contracts… and a contravention of the principle of equitable estoppels,” the petitioners said."
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