The Court of Tax Appeals (CTA) has approved the amicable settlement agreement between the Bureau of Internal Revenue (BIR) and the Philippine Basketball Association (PBA) over the latter's multi-million peso tax debts.
 
The court's Second Division issued the 12-page resolution after receiving the compromise deal signed jointly by BIR Commissioner Caesar Dulay and PBA Commissioner Willie Marcial.
 
The parties agreed to settle the case to avoid costly and protracted court litigation.
 
 Under the accord, PBA is obligated to remit to the BIR P48.5 million, representing deficiency percentage and withholding taxes for 2000 and prior years.
 
The payment was in lieu of the P532 million deficiency tax assessment, interest and surcharges slapped by the BIR against the professional basketball league.
 
Initially, the BIR rejected the compromise offer but eventually accepted it for the immediate collection of the back account.
 
Records also showed that the PBA availed of the BIR's Voluntary Assessment and Abatement Program in 2002 and paid P3 million in deficiency taxes.