<\/p>\n
THE Court of Tax Appeals (CTA) has partially granted the refund claims of Shell Pilipinas Corp. totaling P134.94 million in excise taxes, and ordered the Bureau of Internal Revenue (BIR) to issue a refund or a tax credit certificate.<\/p>\n
In a 39-page decision promulgated on April 21, the CTA Special First Division ruled on three consolidated petitions involving excise taxes Shell paid on imported bunker fuel oil later sold and delivered to Pioneer Float Glass Manufacturing, Inc. (PFGMI) between January and September 2021.<\/span><\/p>\n Shell Pilipinas, which shifted from refining to importing petroleum products in August 2020 through its Tabangao Import Facility, originally sought a complete refund of P135.54 million.<\/p>\n The corporate argued that because PFGMI is a Philippine Economic Zone Authority (PEZA)-registered entity operating inside the Asahi Special Economic Zone, its purchases of raw materials and supplies are exempt from internal revenue taxes under Republic Act No. 7916 and Section 135 of the National Internal Revenue Code (NIRC).<\/span><\/p>\n The commissioner of internal revenue opposed the claim, saying Shell, because the importer, is the statutory taxpayer accountable for excise taxes at the purpose of importation.<\/p>\n The commissioner also argued that tax exemptions have to be strictly construed against the taxpayer and apply only to buyers, to not sellers or importers.<\/p>\n \u201cExcise tax on petroleum products is basically a tax on property, the direct liability for which pertains to the statutory taxpayer (i.e., manufacturer, producer or importer),\u201d the tax court said within the ruling penned by Associate Justice Jean Marie A. Bacorro-Villena.<\/p>\n The court said the tax-exempt status of petroleum products is set upon sale to entities covered under Section 135 of the NIRC.<\/p>\n \u201cConsidering that the status of the petroleum products as tax-exempt solidifies upon the sale to any of the entities enumerated under Section 135 [of the NIRC], any excise taxes which were previously paid thereon would then be regarded as \u2018erroneously or illegally collected\u2019 and, subsequently, subject to refund,\u201d it added.<\/p>\n The CTA partially granted the claim after it excluded about 100,000 liters of fuel deliveries attributable to missing PEZA Form No. 8105 documentation or discrepancies between declared volumes and Shell\u2019s internal records.<\/span><\/p>\n \u201cSubstantial justice dictates that the federal government shouldn’t keep money that doesn’t belong to it,\u201d the court said, noting that Shell had established its entitlement to the refund. \u2014 Erika Mae P. Sinaking<\/b><\/p>\n<\/p><\/div>\n <\/p>\n","protected":false},"excerpt":{"rendered":" PILIPINAS.SHELL.COM.PH THE Court of Tax Appeals (CTA) has partially granted the refund claims of Shell Pilipinas Corp. totaling P134.94 million in excise taxes, and ordered the Bureau of Internal Revenue (BIR) to issue a refund or a tax credit certificate. In a 39-page decision promulgated on April 21, the CTA Special First Division ruled on […]<\/p>\n","protected":false},"author":1,"featured_media":328632,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[5101,50798,3795,2456,32811,5962,2780],"class_list":["post-328631","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-credit","tag-cta","tag-orders","tag-pilipinas","tag-refund","tag-shell","tag-tax"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/posts\/328631","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/comments?post=328631"}],"version-history":[{"count":2,"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/posts\/328631\/revisions"}],"predecessor-version":[{"id":328634,"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/posts\/328631\/revisions\/328634"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/media\/328632"}],"wp:attachment":[{"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/media?parent=328631"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/categories?post=328631"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/tags?post=328631"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}