Metro Manila (CNN Philippines, January 19) — President Rodrigo Duterte’s warning to companies to settle their tax obligations before seeking a franchise applies to broadcast giant ABS-CBN, his spokesperson said Tuesday.
In his briefing, Presidential Spokesperson Harry Roque said Duterte’s pronouncement during the weekly Inter-Agency Task Force for the Management of Emerging Infectious Diseases meeting applies to all firms, including the media network that failed to renew its franchise bid after it was shut down by the administration.
“Lahat iyan ay addressed sa mga nag-a-apply ng prangkisa (All of this is addressed to those applying for a franchise). Insofar as ABS-CBN is one of them, I guess it’s a safe conclusion that it is also applicable to ABS-CBN and all those who want a franchise,” he said.
In his public address late Monday evening, Duterte did not name any specific company, but stressed that those who cannot pay their dues “will not see the light of day” until they come clean.
“For all I care, you can have a 1,000 franchise, you will not see the light of day until you come to government with clean hands. Wala akong galit, bayaran mo lang ang gobyerno, sasaludo ako sa inyo limang beses (I’m not angry. Just pay your taxes to the government and I will even salute to you five times),” he said.
The alleged tax-avoidance schemes of ABS-CBN Corporation has been pointed out as one of the reasons for the broadcast giant’s non-franchise renewal by the House of Representatives last July. The National Telecommunications Commission ordered ABS-CBN to cease their broadcast last May 5 with their franchise expiration.
However, the Bureau of Internal Revenue cleared ABS-CBN in February 2020 of any tax liability, saying the company paid ₱70.5 billion in taxes in the past 17 years.
Duterte has been vocal in the past about shutting down ABS-CBN after accusing the network of refusing to carry his 2016 campaign ads.
Senate President Tito Sotto and Batangas 6th District Rep. Vilma Santos-Recto have filed separate bills seeking to renew ABS-CBN’s franchise for 25 years.
Lawmakers previously voted to deny ABS-CBN a fresh franchise, citing supposed tax avoidance schemes, ownership and labor issues, and alleged biased reporting.
