BIR To Return P94.6 Million To Air Philippines
The Court of Tax Appeals (CTA) recently ordered the Bureau of Internal Revenue (BIR) to return P94.6 million in excise taxes paid by Air Philippines. This is due to the importation of Jet A-1 fuel for the domestic operations of the said airline for the period of March to November 2006.
In a report by Inquirer, Associate Justice Lovell R. Bautista, according to the Tax Court, said that Air Philippines has proved that it should be refunded.
The said tax refund resulted from the protests made by Air Philippines for the importations of Jet A-1 fuel done in 2006.
According to the report, Air Philippines filed a written protest together with the District Collector of Customs but to evade the lapse of the two-year recommended period of claiming a refund mistakenly collected from taxes. The said written petition was reviewed by the CTA.
The BIR respond to the said petition by saying that Air Philippines must prove the amount the firm is claiming to be “properly documented.”
“In an action for refund, the burden of proof is on the taxpayer to establish its right to refund and failure to sustain the burden is fatal to the claim,” the BIR told the CTA.
The BIR also said that the petition of the Air Philippines must be dismissed after failing to provide all administrative solutions before presenting it to the CTA.
Air Philippines, according to BIR, said that the airline firm has failed to appeal with the Office of the President the certification of the Department of Energy (DOE) which “provides that aviation fuel for use in domestic operation is locally available in reasonable quantity, quality and price.”
BIR added that the said action by Air Philippines of going straight to the Tax Court is in contrast with the requirements of the law.
But, the Tax Court ruled saying that it has a jurisdiction to act on Air Philippines’ refund claim. CTA also added that the airline firm has “sufficiently proved” basing on the documents that even the Department of Energy acknowledged its importations.
What do you think of the ruling of the CTA?