CTA junks Petron's P68-M alkylate tax refund claim.
The Court of Tax Appeals (CTA) has turned down a petition filed by petroleum giant Petron Corporation seeking a tax credit for the importation of alkylate six years ago.
In its 15-page decision dated July 19, the tax court through Associate Justice Cielito N. Mindaro-Grulla denied Petron's petition for lack of merit and affirmed the Oct. 26, 2017 decision of the CTA's Second Division.
The CTA Second Division turned down the firm's claim for refund for excise tax paid on the importation of alkylate, which is considered as gasoline still in its "unfinished" state.
Excise taxes amounting to a total PHP67.95 million was paid by Petron for three importations of alkylate in August and December 2013.
On June 5, 2015, Petron filed an administrative claim for refund of excise tax with the Bureau of Internal Revenue.
The CTA en banc upheld the tax court division's ruling that the law does not qualify whether the mineral oil or motor fuel subject to excise tax could be commercially used.
"(T)he law is categorical when it stated that there shall be collected on refined and manufactured mineral oils and motor fuels excise taxes which shall attach to the goods enumerated as soon as they are in existence as such. Therefore, whether alkylate is not finished gasoline is immaterial, because excise tax attaches upon it as soon as it is in existence as such," the CTA said