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2005 ANNUAL REPORT7527.3 OthersIn the normal course of the Group’s operations, there are various outstanding commitments and contingent liabilities such as guarantees,commitments to extend credit, etc., which are not reflected in the accompanying financial statements. The Group recognizes in its booksany losses and liabilities incurred in the course of its operations as soon as these become determinable and quantifiable. Managementbelieves that, as of December 31, 2005, no additional material losses or liabilities are required to be recognized in the accompanyingfinancial statements as a result of the above commitments and transactions.Following is a summary of the Group’s commitments and contingent accounts:ConsolidatedParent2005 2004 2005 2004Trust department accounts (see Note 22) P 111,783,142 P 88,466,004 P 111,783,072 P 88,466,004Unused commercial letters of credit 6,576,081 5,812,902 6,576,081 5,812,902Bills for collection 1,669,243 886,813 1,669,243 886,813Outstanding guarantees issued 849,335 3,255,702 849,335 3,255,702Late deposits/payments received 501,330 515,857 501,330 515,857Others 19,099,537 11,185,687 5,743,124 2,827,247The Group, together with a number of other banks in the Philippines, has been challenged by the BIR with respect to its practice ofaccepting passbook deposits for higher interest rate fixed-term deposits and its FCDU transactions. The BIR claims that documentarystamps tax is payable upon the opening or acceptance of such passbook deposits and has claimed up to P308,290 in taxes from the Groupin respect of the past ten years. The Group has filed a protest against these claims, and the Group believes that it has a valid defenseagainst these proceedings. The BIR also claims that GRT, DST and VAT are due on the FCDU transactions of the Bank and BDO Private,and a majority of the banks operating in the Philippines.The Group is also a defendant in various cases pending in courts for alleged claims against the Group, the outcome of which are not fullydeterminable at present. As of December 31, 2005, management believes that, liabilities or losses, if any, arising from these claims wouldnot have a material effect on the financial position and results of operations of the Group.