Shell posts surety bond for alleged tax deficiency

The Philippine government and Pilipinas Shell Petroleum Corp. have reached a compromise in connection with the Php7.34 billion (US$159.01) in alleged unsettled tax obligations of the oil refinery, averting a possible fuel shortage and pull out of its operations in the country. Through the Office of the Solicitor General (OSG), the government accepted Shell’s counter-proposal to post a bond in lieu of cash to secure the claim of the Bureau of Customs (BoC) in the event that a final judgment will be rendered against the oil firm in the tax case. Shell posted the surety bond with the Court of Tax Appeal (CTA) as security for its alleged tax deficiency. (February 25, 2010)