English: The chairperson of the Committee on Ways and Means noted that the said RMC cites as a basis a Supreme Court decision on Aces Philippines Cellular Satellite Corp. vs. Commissioner of Bureau of Internal Revenue, where the high court ruled that the satellite airtime free payments by Aces Philippines, a domestic corporation, to Aces Bermuda, a NRFC, is subject to final withholding tax. In the SC ruling, the airtime free payments are being given as a consideration for the use of satellite communication services.
Filipino: Bilang chairperson ng Committee on Ways and Means, sinabi ni Gatchalian na ang ang batayan ng nasabing memorandum circular ay ang desisyon ng Korte Suprema sa kaso ng Aces Philippines Cellular Satellite Corp. vs. Commissioner ng Bureau of Internal Revenue, kung saan nagpasya ang Korte Suprema na ang satellite airtime free payments ng Aces Philippines, isang lokal na korporasyon, sa Aces Bermuda, isang non-resident foreign corporation, ay papatawan na ng final withholding tax. Sa desisyon ng SC, ang airtime free payments ay ibinibigay bilang konsiderasyon sa paggamit ng mga serbisyo ng satellite communication.