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SECURITIES AND EXCHANGE COMMISSION SEC Biding, EDSA, Greenhills.Mandalu/ong City, Metro Mana,Ptilippnes

Tel;(632) 726-0931 to 39 Fax;(632) 725-5293 Email: mis@sec.gov.ph

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The following document has been received:

Receiving Officer/Encoder : Catherine E. Galiza

Receiving Branch : SEC Head Office

Receipt Date and Time : October 07, 2013 03:48:15 PM

Received From : Head Office

Company Representative

Doc Source

Company Information

SEC Registration No. 0000048909

Company Name LORENZO SHIPPING CORP.

Industry CIassfication

Company Type Stock Corporation

Document Information

Document ID 110072013002904

Document Type 17-C (FORM 11 -C:CURRENT DISCL/RPT)

Document Code 17-C

Period Covered October 04, 2013

No. of Days Late 0

Department CFD

Remarks

COVER SHEET

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Document I.D.

STAMPS

Cashier

Alfredo V. Misajon ("Mr. Misajon"), the OlC - Assistant Commissioner, Large Taxpayers Service, Regular Large Taxpayers Audit Division I.

The taxes being assessed pertain to the alleged deficiency income tax, value added tax (VAT), withholding tax on compensation (WIC), expanded withholding tax (LW!), fringe benefits tax (FBT), and documentary stamp tax (DST) assessments against the Corporation for Taxable Year 2008, inclusive of surcharges, interests and compromise penalties.

2. on 17 May 2013, the Corporation filed its Formal Written Protest by way of registered mail and the same was addressed to Mr. Misajon.

3. On 15 July 2013, the Corporation received a copy of the 12 July 2013 "Letter signed by Mr. Misajon, denying the aforementioned "Formal Written Protest".

4. In its Petition for Review filed before the CTA the Corporation raised the following issues:

(a) Issue of Prescdption

Section 203 of the 1997 National Internal Revenue Code ("NIRC") provides that the government must assess internal revenue taxes within a period of three (3) years from the last day prescribed by law for the filing of the tax return or the actual date of filing of such return, whichever comes later.

Consequently, the Bureau of Internal Revenue ("BIR") only had at most until April 15, 2012 (Le. Three (3) years from actual filing of the Corporation's 2008 Income Tax Return) to issue the FAN for Taxable Year 2008.

When the undated FAN was received by the Corporation on 18 April 2013, more than four (4) years had already lapsed since the actual filing of the 2008 corporate income tax return as well as other 2008 tax returns by the Corporation.

In view of the foregoing, the right of the BIR to assess the Corporation for alleged deficiency taxes for Taxable Year 2008 has already prescribed.

b) Issue Regojclinci Existence of a Valid Waiver from the Corporation

Section 222 (b) of the NIRC provides that the period to assess and collect taxes may be extended upon a written agreement between the CIR and the taxpayer, commonly called a Waiver, executed before the expiration of the three-year prescriptive period mandated under Section 203 of the NIRC.

In the present case, Mr. Philip Roy G. Yap executed a "Waiver of Defense of Prescription", dated 8 October 2011 and 29 June 2012. Both waivers, however, failed to comply with the mandatory requirements for executing valid waivers under Revenue Memorandum Order (1MO) No. 20-90 issued on 4 April 1990 and Revenue Delegation Authority Order (RDAO) No. 05-01 issued on 2 August 2001.

Hence, the Waivers are null and void and do not bind the Corporation.

(c) Issue regarding the Validity of the Subject FAN

The last paragraph of the undated 2008 FAN received by the Corporation on 18 April 2013 failed to comply with the indispensable requirement of a period or date certain for the payment of the deficiency taxes being assessed, to wit: (i) there was no demand but a mere request to pay; and (ii) the undated six (6) Audit Result/Assessment Notices referred to in the subject undated 2008 FAN reveal that the due dates were left blank.

(d) Issue regarding the Liability of the Corporation for the Alleged Deficiency Taxes

Even assuming that the subject 2008 FAN is valid, the Corporation will still not be liable for the alleged deficiency taxes because the said 2008 FAN lack factua and/or legal bases, as shown by the specific computations contained in the Petition for Review filed before the CTA.

(e) Issue reaarding the propriety of the issuance of a Temøorary Restraining Order and/or Wt of Preliminary Injunction

The right of the BIR to issue the subject FAN has already prescribed, Moreover, there is no factual and/or legal basis to hold the Corporation liable for the alleged deficiency tax assessments for Taxable Year 2008.

As there is therefore no valid deficiency tax to speak of in the instant case, the assessment and collection by the BIR of the alleged 2008 deficiency taxes would be tantamount to an unlawful collection of taxes that would gravely prejudice and cause irreparable injury to the Corporation.

Since the resolution of the issues raised by the Corporation in its Petition for Review has a direct bearing on the alleged deficiency tax assessments made by the BIR, these issues must first be passed upon by the CTA before any amount is collected from the Corporation.

The CIA rendered a "Resolution" granting the suspension of The collection of the Corporation's alleged deficiency taxes for Taxable Year 2008 upon the posting of a surety bond by the Corporation. In granting the suspension, the CIA took into account the following factors: (a) the collection of said taxes would jeopardize the Corporation's financial position; and (b) the urgency of the action sought to be enjoined.

The Corporation is in the process of obtaining the surety bond.

SIGNATURES

Pursuant to the requirements of the Securities Regulation Code, the issuer has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized

LORENZO SHIPPINGI

Date: 4 October 2013 ARSENIO q.çABRERA, JR. Corporoto Secretary