CTA grants PAL’s P402-M tax refund plea

CTA grants PAL’s P402-M tax refund plea
A steady stream of travelers line up at PAL counters at the Bacolod-Silay Airport in this file photo taken in August, 2019. (Photo by Nate C. Barretto/THEPHILBIZNEWS)

By Benjamin Pulta

The Court of Tax Appeals (CTA) ordered the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) to refund PHP402.8 million in taxes to Philippine Airlines Inc.

In a 20-page amended decision promulgated on Sept. 26 and released to media Tuesday, Associate Justice Esperanza R. Fabon-Victorino of the tax court’s Special Third Division, granted the petition for review filed by PAL in connection with the sum representing specific taxes on its importation of jet fuel for its domestic operations.

The aggregate sum was paid under protest by PAL at various dates in 2009.

Associate Justice Ma. Belen M. Ringpis-Liban concurred in the decision.

In October 2015, the court originally denied PAL’s petition for insufficiency of evidence, citing that PAL failed to prove the imported jet fuel was used for its transport and non-transport operations and likewise failed to prove that at the time, jet A1 fuel was not locally available in reasonable quantity, quality or price.

In June 2016, the court, upon motion of the PAL, allowed the reopening of the case for the presentation of additional evidence.

PAL then presented the testimony of its fuel supply and operations manager Roberto R. Razal and the court-appointed Independent Certified Public Accountant Joel C. Romano to assert its case. (FIrst published by PNA, Oct. 1, 2019)

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