THE Court of Tax Appeals (CTA) has denied the refund claim of OceanaGold Philippines, Inc. worth P142.24 million allegedly representing its wrongfully collected excise taxes from July to December 2017.
In a 31-page ruling dated June 1 and made public on June 2, the CTA Special First Division said the firm failed to prove its entitlement to a refund of the subject excise taxes.
“Petitioner (OceanaGold), however, failed to prove that the payments of the subject excise taxes, during the five-year period were detrimental to its recovery of the said pre-operating and property expenses,” Associate Justice Catherine T. Manahan said in the ruling.
Citing the 1994 Financial or Technical Assistance Agreement between the government and Arimco Mining Corp. to which the OceanaGold is a contractor, the court said the firm failed to prove the taxes resulted in a loss in its operating expenses.
OceanaGold, a multinational gold producer, argued that it complied with Tax Code requirements and that it is exempt from excise tax until the end of the recovery period under the Philippine Mining Act and a circular of the Department of Environment and Natural Resources.
The tribunal acknowledged the entitlement to tax incentives under the law, but it said the law mandates a contractor to prove that the taxes were detrimental to its operating expenses during the subject period.
“Petitioner must show that the collection of excise tax during the recovery period resulted in loss or harm in its person or property,” it said.
“There is no specific evidence which shows such fact, and in sum, we see no valid ground to grant the present claim for refund.” — John Victor D. Ordoñez