Duterte administration urged to collect supposed unpaid taxes of Pilipinas Shell

MANILA — President Rodrigo Duterte was urged to collect the supposed multi-billion unpaid taxes of oil company Pilipinas Shell Petroleum Corp. (PSPC) on its importations amounting to almost Php10 billion.

In a letter to the Chief Executive, Duterte’s campaign lead coordinator for Batangas and publisher of weekly newspaper Headlines Dhess Aclan called on the government to implement the provisions of the Tax Code of the Philippines (TCP), noting other oil companies are paying their excise taxes and value-added-taxes to the Bureau of Customs.

“Said large amount, if and when collected by the government, will surely augment the coffer of your administration for the delivery of services, especially to the marginalized ones whom you most loved,” she added.

Aclan noted that the government is being deprived of Php 50 million a month from July 2014 or Php1.3 billion as of May 2016 in addition to the still unpaid taxes amounting to Php7.8 billion and Php 1.9 billion, for the importation of catalytic cracked gasoline (CCG) and light catalytic cracked gasoline (LCCG) and supposed collection on the Akylate importations, respectively.

“Indeed, the temporary restraining order (TRO) granted to Pilipinas Shell had hampered, and is continuously hampering the government’s collection of taxes – its lifeblood, as without the taxes, how can the government effectively serve the people,” she said.

Shell was able to secure a TRO from the Court of Tax Appeals enjoining the BOC from collecting Php 21 billion from the oil company representing its unpaid taxes on its importation of CCG and LCCG for the years 2006 to 2008.

Earlier, former BOC Commissioner Alberto Lina said it would be up to the Duterte administration to follow up on the tax cases against Shell, including the Php 21 billion claim against PSPC.

The oil firm has insisted it was not supposed to pay excise taxes for imported raw materials for making unleaded gasoline. The company argued it is importing raw materials and not the product itself, which is taxable.

Under the TCP, imported unleaded gasoline is subject to an excise tax of Php4.35 per liter.

But, PSPC argued that it has no tax liabilities since company imported CCG which it uses in making unleaded gasoline. Ferdinand Patinio/PNA/northboundasia.com