THE Court of Tax Appeals (CTA) has ordered Pilipinas Shell Petroleum Corp. granted a tax refund or credit certificate worth P70.77 million for excise tax overpayments in 2019, partially approving the company’s request.
In a decision dated September 23, the Third Division of the Tax Court ruled that the company is entitled to a tax return of just over P70 million out of the P71 million for which it filed. P414,864 was disallowed because the company sold fuel to an airline without a valid foreign airline license (FACP).
“[The] petitioner has sufficiently proven that the excise taxes he paid for the imported Jet A-1 fuel and subsequently sold to duty-exempt international airlines were improper and therefore refundable… 34-page ruling by Associate Justice Catherine T. Manahan read.
“Only sales of imported Jet A-1 fuel to airlines with a valid FACP may qualify for the refund or issuance of a tax credit certificate of the excise duties improperly paid,” it added.
The CTA denied about 103,000 liters of imported jet fuel out of the 17.7 million liters petitioned after finding that Pilipinas Shell Petroleum Corp. had sold it to a European airline without a valid FACP. — Kenneth Christiane L. Basilio