SC reverses tax court ruling in favor of Pilipinas Shell

The Supreme Court has ruled in favor of Pilipinas Shell Petroleum Corp. in a case filed by the Bureau of Customs (BOC) before the Court of Tax Appeals more than two decades ago.

In a disclosure to the Philippine Stock Exchange on Wednesday, the newly-listed oil company said it was served a copy of the high court decision on January 9. The decision was dated December 5, 2016.

In the December 5 decision, Pilipinas Shell noted the high court has found that “a perusal of the records reveals that there is neither any iota of evidence nor concrete proof offered and admitted to clearly establish that petitioner committed any fraudulent acts” and “that there is no factual finding of fraud established herein."

"We welcome the positive developments on the decision made by the Supreme Court regarding the abandonment case with the Bureau of Customs," Cesar Abaricia, Pilipinas Shell media relations manager, told GMA News Online.

"PSPC is now waiting for the the finality of the decision, rest assured that PSPC will continue to work hand in hand with the government as part of its commitment to nation-building," Abaricia noted.

In 1996, the Commissioner of Customs (COC) filed a case against the oil company alleging that Pilipinas Shell failed to pay on time the duties and taxes on its crude imports.

The CTA then ruled favor of the COC, prompting the company to appeal the decision on grounds that the payments were delayed in view of the disputes regarding the computation of the payables.

In a 2010 decision, the CTA dismissed the petition for review and ordered the Pilipinas Shell to pay P936,899.883.90 to cover the dutiable value of its 1996 crude oil imports which were been abandoned in favor of the government.

But the SC granted the company's petition and revised and set aside the decision of the Court of Tax Appeals, dated May 13, 2010, and a resolution dated February 22, 2011.

Shell has earmarked P1.360 billion to cover its financial exposure should the final decision favor the Customs commissioner.

The company said it will wait for the SC decision to become final before reversing the provisions made for possible losses. — Ted Cordero/VS, GMA News