Philex Mining cleared in P18-M tax case

Press release photo from https://www.philexmining.com.ph

MANILA, Philippines–The government has lost its P18-million tax case against Philex Mining Corporation.

In a 13-page decision made public Thursday, the Court of Tax Appeals (CTA) en banc denied the petition for review filed by the Bureau of Internal Revenue (BIR) for lack of merit.

Philex filed its quarterly VAT return for the fourth quarter of 2009 which reflected total zero-rated sales of P2.6 billion, an importation of  goods worth P93 million with input tax of P11.162 million and purchases of services of P132 million with input VAT of P15.9 million.

Philex is contending that it is entitled to a VAT refund of P27.115 million for excess input Value Added Tax attributable to zero rated sales for the fourth quarter of 2009.

However, BIR failed to act on Philex’ claim which prompted the mining firm to take its claim before the Tax Court.

On Nov. 12, 2013, CTA 2nd division ruled in favor of Philex but instead of P27-million, it said that refund should be P18.610-million.

BIR filed an appeal but the Tax Court 2nd division stood pat on its decision which promoted to appeal the case to its en banc (full court).

The Tax Court through Presiding Justice Roman G. Del Rosario said if it were true that Philex failed to submit complete documents to justify its claim for refund, it should have denied it instead of sitting on the claim.

The Tax Court also said that cases filed before it are litigated de novo which means litigants should prove every aspect of their cases and decided based on what has been presented and formally offered by the parties during the trial.

In this case, the Tax Court said aside from final invoices, Philex was also able to present its provisional invoices, bills of lading and export declarations which prove zero-rated sales during the period of its claim.

Based on what was presented to it, the Tax Court said it “sees no reason to deviate from the conclusion reached by the Court in Division in partially granting refund as the same is supported by pieces of evidence, which prove respondent’s (Philex) compliance with the requirement for refund of its claimed input tax attributable to zero-rated  sales…”

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