Shell Pilipinas Corp. on Wednesday welcomed the decision of the Court of Tax Appeals Special Second Division which ruled that alkylate is not subject to excise tax.
Shell said in a disclosure to the stock exchange it received a copy of the CTA decision dated April 27, 2023 which granted the company’s amended petition for review dated Oct. 5, 2012.
The CTA invalidated Document No. M-059-2012 dated June 29, 2012 issued by the Bureau of Internal Revenue commissioner as well as the letter dated Oct. 1, 2012 of the Customs collector at the Port of Batangas which sought to impose taxes on Shell’s previous alkylate importations.
The company is importing alkylate as a blending component for unleaded gasoline.
“Thus, the CA prohibited the government from collecting, in any manner, excise taxes and value-added tax on SHLPH’s alkylate importations,” it said.
Shell remitted P3.49 billion under protest in 2021, representing alleged excise taxes and value added tax on fuel blending components used in its refinery from 2014 to 2020 to the Bureau of Customs.
The country’s second biggest oil company said the BOC recognized Shell’s payment under protest of the excise tax and VAT relative to its alkylate importations.
Shell said it would remit the amount under protest “taking into consideration the current economic challenges of the country as well as ensuring continued operations, uninterrupted imported fuel supply and welfare of our motoring public and consumers.”
Shell is the country’s second biggest oil company whose shares are listed at the Philippine Stock Exchange.