Pilipinas Shell to contest decision of Supreme Court

Pilipinas Shell Petroleum Corporation said it will file a motion for reconsideration on or before May 22 to contest the Supreme Court’s decision which turned down the oil firm’s petition to get a tax refund from the Philippine government, amounting to PHP95 million (US$2.2 million). Roberto S. Kanapi, vice president for communications, referred to Section 135 (a) of the National Internal Revenue Code of 1997. Kanapi said that this tax ruling, which was previously upheld by the appellate court, allows Pilipinas Shell to claim a refund from the Bureau of Internal Revenue, for the excise taxes the company had paid. But the Supreme Court rejected the company’s claim for a refund, citing another provision under the law, which stipulates that petroleum products should be subjected to excise taxes before they are removed from the production site. (May 17, 2012)