The Bureau of Customs’ upcoming collection of P3.49 billion in excise and value-added taxes on the alkylate imports of Pilipinas Shell Petroleum Corp. from 2014 to 2020 “levels the playing field” as other oil companies were paying the same on their shipments of the product, Finance Secretary Carlos Dominguez III said.
Dominguez, in a recent executive committee meeting of the department, commended the BOC for the upcoming collection of the amount.
Pilipinas Shell earlier said it would remit “under protest” P3.49 billion to the Bureau of Customs, representing supposed excise and value added taxes on fuel blending components used in refinery operations from 2014 to 2020.
The country’s second biggest oil company said the BOC recognized Pilipinas Shell’s intent to pay under protest the excise tax and VAT relative to alkylate importations.
“Congratulations on collecting the tax on the alkylate imports. Even though it’s under protest, I think it’s a real move forward,” Dominguez told Customs Commissioner Rey Leonardo Guerrero.
Guerrero said in a letter to Pilipinas Shell the BOC recognized the oil firm’s intent to pay the back taxes and directed it to submit its first payment on or before Dec. 27 this year.
Guerrero made it clear to Pilipinas Shell president and chief executive Lorelei Osial that the possible suspension of the oil firm’s accreditation in case it fails to pay the taxes “was not whimsically raised nor is the same a threat, but rather a proper recourse of the bureau pursuant to existing rules and regulations and in view of the dissolution by the Supreme Court of the temporary restraining order previously issued” on the government’s demand for payment.
The Supreme Court lifted the TRO that barred the government from collecting taxes on Shell’s alkylate imports in March.
The high court also remanded the case to the Court of Tax Appeals, where Pilipinas Shell filed a motion to pursue its previous TRO application to stop the government from collecting taxes on its alkylate shipments.
“In the event of default for the payment as agreed upon, the suspension of the accreditation of PSPC shall be forthwith imposed subject to existing rules and regulations, and without prejudice to any other available administrative and judicial remedies which the BOC may exercise,” Guerrero said in his letter.