Bureau of Customs denies Shell plea on tax arrears

MANILA, Philippines - The Bureau of Customs (BoC) is set to deny the second motion for reconsideration filed by the Pilipinas Shell Petroleum Corp. (PSPC), requesting for an additional time to pay the P7 billion excise tax arrears and for the agency not to place their future shipments of unleaded gasoline on hold.

BOC Commissioner Napoleon Morales said the BOC’s verification committee would be working overtime just to finish its deliberation on the PSPC case.

“We are set to deny the second motion for reconsideration filed by Shell on the grounds that there was no new argument presented, there was no new evidence presented...We are just trying to carefully deliberate on all the legal aspects,” Morales said.

The BOC chief said that once the agency comes out with a decision, they will give PSPC five days from the date of receipt, to pay the P7 billion in excise tax areas.

The BOC said that the oil firm reportedly failed to pay the P7 billion in excise tax that covered the import entries declared as catalyctic crack gasoline (CCG) filed in 2004 to 2009. Shell’s CCG shipments reportedly passed through the Port of Batangas.

The PSPC had earlier complained that they would not be able to pay the hefty sum in little time and that they had to consult their head office in Geneva, Switzerland.

But the BOC had said that it was willing to allow them to pay in staggered basis or until Dec. 29 since the two succeeding days, Dec. 30 and Dec. 31, are holidays.

Morales proposed that since there are still five weeks before the deadline, the company can pay the BOC P1 billion every week, and pay the remaining on Dec. 29.

Morales said that while they are taking these steps to improve the agency’s collection, he is very much aware that the PSPC can avail of other legal remedies. They could file a motion for reconsideration to the Department of Finance (DOF), then raise it before the Court of Tax Appeals (CTA) until it reaches the final arbiter, the Supreme Court (SC).