January 20, 2018, 5:09 pm
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P1.4B windfall for Shell after SEC rules in its favor

Pilipinas Shell Petroleum Corp. yesterday reported the Supreme Court has ruled in its favour on a tax case that dates back to 1996.

The court ruling in effect saves the company, P1.4 billion it had already set aside in case the court does not rule in its favor.

Shell said the High Tribunal granted its petition to reverse and set aside the decisions of the lower court on the case involving customs duties for imported crude oil prior to the effectivity of the Downstream Oil Industry Deregulation Act or Republic Act 8180. 

“In the said decision, the Supreme Court stated 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’,” Shell said.

The case stemmed from a 1996 case filed by the Bureau of Customs (BOC) alleging that Shell had failed to timely pay duties and taxes on its crude imports. 

BOC assessed Shell’s bill to be at P936.9 million. 

The lower court decided in favor of BOC, but Shell appealed the decision before the SC saying the delay in payment was due to disputes regarding the computation of the amounts. 

The Court of Tax Appeals in its May 12, 2010 decision ruled that apart from the original amount, Shell should pay an additional six percent per annum covering legal interest and “accruing from the date of promulgation of this decision until its finality,” and another 12 percent per annum until it was paid when the court decision is deemed final and executory.

Shell said as of June 30 last year, it has made provisions worth P1.36 billion for its financial exposure if the final decision is not in its favor.
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