Tax waivers during rehabilitation proceedings

THE Financial Rehabilitation and Insolvency Act (FRIA), or Republic Act 10142, was enacted with the aim of offering debtors an avenue to preserve and maximize the value of their assets and prioritize claims and, at the same time, ensure fair treatment of creditors in similar situations. In essence, FRIA serves as a mechanism to help debtors navigate financial challenges.

One of the generous grants of FRIA is the waiver of taxes and fees due to the national and local governments found in Section 19.