Tax Court denies Petron excise tax refund claim

THE Court of Tax Appeals has denied a tax refund claim of Petron Corp. covering excise collected on alkylate imports amounting to P67,947,122, saying the petition lacks merit.

Petron Corp.’s imports in 2013 were taxed an aggregate amount of P67,947,122.

Petron Corp., on June 5, 2015, filed an administrative claim for refund of excise tax with the Bureau of Internal Revenue.

“Petitioner asserts in both its administrative and judicial claim for refund that its alkylate importations are not subject to excise taxes because alkylate is not among those articles subject to excise tax under Title VI of the National Internal Revenue Code of 1997, as amended,” the court noted.

However, the Commissioner of Internal Revenue ( CIR), on Nov. 9, 2015 pointed out that the petition was dismissible, claiming that the CIR is not party to the action, but the Bureau of Customs, which received the payments.

“Petitioner cannot claim for refund and implead CIR herein considering that the amounts involved are collections of Bureau of Customs and are never transferred to the Bureau of Internal Revenue,” the tax court noted.

On the specific issue of the applicability of excise tax, the court ruled: “The petitioner’s alkylate importations are subject to excise tax. Hence, the denial of its claim for refund is in order. Wherefore, premises considered, the instant Petition for Review is denied for lack of merit.”

The 25- page decision dated Oct. 26, 2017 was written by Associate Justice Juanito C. Castañeda. Concurring were Associate Justices Caesar A. Casanova and Catherine T. Manahan. —