September 15, 2009
BIR RULING [SB-(038) 582-09]
DA-464-05
Castillo Laman Tan Pantaleon & San Jose
The Valero Tower Street, 122 Salcedo Village
1227 Makati City
Attention: Atty. J. Gregson A. Castillo
Gentlemen :
This refers to your letter dated July 16, 2009 stating that San Technology, Inc. (STI) is a domestic corporation duly registered with the Securities and Exchange Commission (SEC) and is engaged in the development, manufacture and sale (excluding export) of semiconductors, computer hardware, software and equipment, telecommunications equipment, and magnetic appliances, among others; that for the past several months, STI has been experiencing a slowdown in its business; that the current global recession has resulted in a sharp decrease in production orders, the constant postponement of delivery dates and a higher rate of order cancellations; that in order to maintain the viability of its business, STI has been forced to implement cost reduction measures, such as a compressed work week, reduction of working hours, stoppage of overtime, scheduled vacation leaves and even temporary shutdowns in some plants; that however, in spite of these measures, STI has continued to suffer from...
