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Business

Pilipinas Shell to pay P3.49 billion taxes for Alkylate imports

Catherine Talavera - The Philippine Star

MANILA, Philippines — Pilipinas Shell Petroleum Corp.(PSPC) will pay, under protest, P3.49 billion to the Bureau of Customs (BOC) for alleged taxes on alkylate importations made in 2014 to 2020.

“The BOC recognized Pilipinas Shell’s intent to pay, under protest, the excise tax and VAT relative to Pilipinas Shell Petroleum Corp.’s (Pilipinas Shell) alkylate importations, pursuant to the demand letter of the Port of Batangas in view of the dissolution by the Supreme Court of the Temporary Restraining Order (TRO) previously issued, as a result of the matter being remanded to the CTA (Court of Tax Appeals),” PSPC said in a statement over the weekend

“Taking into consideration the current economic challenges of the country, as well as ensuring continued operations, uninterrupted imported fuel supply, and welfare of our motoring public and consumers, Pilipinas Shell will remit a total of P3.49 billion, under protest, representing alleged excise taxes and VAT (value-added tax) on fuel blending components used in our refinery for years 2014-2020 to the BOC,” PSPC added.

The company said this would allow it to continue to provide to its customers and to the general public who rely on its products, and mindful of the thousands of Filipinos whose livelihood depends on the firm’s ability to maintain its operations.

“The case on whether Alkylate is subject to excise tax is yet to be decided by the courts,” PSPC said.

According to news reports in July, the SC lifted a TRO issued in July 2014, which prevented the government from imposing taxes on PSPC for its alkylate imports.

In August, PSPC affirmed that it received a copy of the SC decision dated March 15, in which the SC affirmed the suspension order by the CTA for PSPC’s alkylate importation from January 2010 to June 2012 amounting to P1.99 billion.

The SC also affirmed the power of the CTA to issue TRO/Writ of Preliminary Injunction (WPI) to stop the government from collecting excise taxes on PSPCs subsequent alkylate importation.

Following the Supreme Court’s directive to remand the case to the CTA, PSPC earlier said that it has filed a motion to pursue a previous TRO application with the CTA to whom the matter has been remanded.

In an earlier disclosure to the Philippine Stock Exchange in July, PSPC said it would continue to preserve and protect its rights and remedies under the law.

PSPC is an integrated downstream refining and marketing company. It focuses on turning crude oil into a range of refined products, which are moved and marketed for domestic, industrial and transport use.

In the nine months of the year, PSPC reported a net income of P3.4 billion, a turnaround from  the P13.9 billion net loss in the same period last year.

BOC

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