The Supreme Court has ruled in favor of Pilipinas Shell Petroleum Corp. filed by the Bureau of Customs (BOC) over the former’s failure to pay nearly P1 billion in duties and taxes on crude imports.
In a disclosure to the Philippine Stock Exchange yesterday, the oil company said the SC reversed the lower court’s decision over its tax case amounting to P936, 899, 855.90.
“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 was filed in 1996 by the Commissioner of Customs (COC) with the Court of Tax Appeals (CTA).
The CTA ruled in favor of the COC, and in turn, Shell appealed the decision on the grounds that the payments were delayed because of disputes regarding the computation of the payables.
In 2010, the CTA dismissed the petition and ordered Shell to pay nearly a billion to cover the dutiable value of the 1996 crude oil imports.
Shell has made provisions amounting P1.36 billion to cover its financial exposure in the event that the final decision will not rule in their favor.
“We welcome the positive developments on the decision made by the Supreme Court regarding the abandonment case with the Bureau of Customs. PSPC is now waiting for 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,” the company said.