ABS-CBN must resolve ‘tax’ issue before franchise–President Durterte

MALACAÑANG on Tuesday said companies with unpaid taxes, including ABS-CBN Corporation, will not be allowed to get a franchise until they settle liabilities with the government.

President Duterte stressed this in his public address late Monday, throwing a monkey wrench on revived efforts to get Congress to grant the network giant a franchise, which it failed to get last year, forcing the shutdown of its broadcast operations.

“For all I care, you can have a thousand franchise. You will not see the light of day there until you come to government with clean hands,” Duterte said.

Duterte particularly singled out a company, which he said is applying for a franchise but allegedly had unpaid property taxes. He did not name ABS-CBN, but media and congressional watchers mostly surmised the Lopez-led company was being referred to by Duterte.

“Settle your accounts with government and… ’yung lupa ninyo na ang binabayad ninyong taxes, you are occupying something like 44,000 square meters, nasa sinubmit [submit] ninyo na mapa ng lupa is four hectares [Settle your accounts with government and… that property you only paid taxes …you are occupying something like 44,000 square meters, but in the map you submitted of your property, it is four hectares],” Duterte said in Filipino.

To recall, Sagip Party-list Rep. Rodante Marcoleta filed a resolution last year seeking an investigation on the land title of ABS-CBN’s 44,027-square-meters property on Mother Ignacia Street in Quezon City.

Presidential spokesperson Harry Roque confirmed that the statement of the President applies to ABS-CBN.

“I guess it is a safe conclusion, it is also applicable to ABS-CBN but it applies to all those who want a franchise,” Roque said in an online press briefing on Tuesday.

The Bureau of Internal Revenue (BIR) earlier cleared ABS-CBN from any tax liability last year, when tax officials were among those invited to congressional hearings on the franchise application.

Duterte issued the statement amid moves in the Senate and the House of Representatives to pass a bill granting ABS-CBN its broadcast franchise.

Last year, the House of Representatives rejected the renewal of the ABS-CBN’s franchise, citing the media broadcasting network’s alleged violations of the law including illegal contractualization scheme, foreign ownership,  non-compliance with the terms of its franchise; and using a dummy company.

The denial caused extensive disruption in the operations of ABS-CBN, which has since gained headway in its digital operations.