NTC, BIR urged to investigate ABS-Zoe blocktime deal

On Wednesday, new House Minority Leader Joseph Stephen Paduano said that the National Telecommunications Commission (NTC) and Bureau of Internal Revenue (BIR) should look into the blocktime agreement between ABS-CBN and Zoe Broadcasting Network for possible legal and tax issues after its shows returned to free TV last October 10.

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There is a legal issue about it. Let’s just see what will happen there,

said Paduano.

Paduano, who now heads a 23-member bloc in the House of Representatives, also hinted another congressional inquiry against the former broadcast giant.

Let the NTC do the study or investigation on that matter. Then NTC will recommend it to Congress, to the committee on franchise, and the committee will act on it. We also have the responsibility and the right to investigate it,

he said, citing Congress’ oversight function.

Apart from legal matters surrounding the blocktime deal, Paduano said there could also be a tax issue that the BIR should look into since ZOE TV has a tax-exempt status being a religious broadcasting entity.

Once you’re a commercial TV or network, you have to pay your taxes. That’s my issue with ABS-CBN. The profits of ABS-CBN go to Big Dipper (because they are accredited by Philippine Economic Zone Authority). That’s tax evasion. There’s really an issue there. You have to pay your taxes,

he said.

The BIR should check on it; and the NTC (too). If you’re a commercial entity you have to pay your taxes,

he insisted.

But Anakalusugan party-list Rep. Mike Defensor did not see anything wrong with the blocktime deal.

I have no problem with that, because this blocktime arrangement – it is not a utilization of the franchise; it is the franchise of ZOE and they are buying into it,

he explained.

So ABS-CBN is still a corporation and it is within their right to do so,

Defensor said.

Zoe TV is owned by Jesus is Lord Church leader and CIBAC party-list Rep. Eddie Villanueva. Villanueva is a deputy speaker in the current 18th Congress.