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Showing posts with label SHELL SMUGGLING. Show all posts
Showing posts with label SHELL SMUGGLING. Show all posts

Wednesday, September 14, 2016

Aquino faces graft over P100-B uncollected taxes


Aquino faces graft over 

P100-B uncollected taxes

Carolyn Bonquin, ABS-CBN News
Posted at Sep 14 2016 03:06 PM | Updated as of Sep 14 2016 07:04 PM

MANILA – Former President Benigno "Noynoy" Aquino III, former finance secretary Cesar Purisima and executives of oil giant Pilipinas Shell Petroleum Corp. are facing graft charges before the Ombudsman over an alleged P100-billion state revenue losses on wrongfully declared and classified petroleum products.
The complainants, former customs commissioner Napoleon Morales, former customs collector Juan Tan and Batangas-based journalist Lourdes Aclan, claim the government lost about P100 billion after the Aquino administration failed to demand tax payments from Shell.
The subject of the complaint stemmed from the smuggling issue Shell faced in 2010.
Shell allegedly skipped tax payments starting 2004 after declaring import entries of unleaded gasoline as "tetrapropylene." The firm had claimed tetrapropylene is not subject to excise tax under the National Internal Revenue Code.
The classification of unleaded gasoline, Catalytic Cracked Gasoline (CCG) and Light Catalytic Cracked Gasoline (LCCG), was also changed from an "exclusively for sale" finished product to a mere "blending component."
Despite this, the Bureau of Customs still demanded P7.348 billion tax payment.
Instead of complying, Shell changed the name of the declared gasoline shipment from "CCG" and "LCCG" to "Alkylate," which was classified as non-taxable waste material.
Prior this, Shell paid taxes for CCG and LCCG in 2001 to 2004.
The complainants said the P7.348-billion worth of taxes supposedly collected from CCG and LCCG, and P1.9 billion from Alkylate shipments has ballooned to over P100 billion in six years.
They added, Aquino and Purisima snubbed Aclan's letter which called on the administration's attention over the uncollected taxes.
"Kung isasama ang interest, surcharge at 800% penalty, lahat yan aabot ng P100 billion 'yan," said Tan.
(If we will include the interest, surcharges and 800% penalty, it will reach P100 billion.)
"Pera ng gobyerno 'yan. For more than six years ang pera nasa Shell, ginagamit ng Shell."
(That’s the government’s money. For more than 6 years the money is with Shell.)
Aquino, Purisima and Shell executives Edgar Chua, Robert Kanapi, and Nigel Avila have yet to comment on the complaint.
They are complained of violating the "Tariff and Customs Code" and the "Doctrine of Command Responsibility in all Government Offices."
Shell has a pending case filed before the Court of Tax Appeals. In the petition, the company asked the tax court to stop the tax collection from previous importations.
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Graft, smuggling charges filed vs Noy, Purisima


Former BOC commissioner Napoleon Morales, publisher Lourdes Aclan and former BOC collector Juan Tan attest to the graft complaints they filed against former president Benigno Aquino III, former finance secretary Cesar Purisima and officials of Pilipinas Shell Petroleum Corp. MICHAEL VARCAS

Graft, smuggling charges filed vs Noy, Purisima

 (The Philippine Star) | 

MANILA, Philippines – Former president Benigno Aquino III and former finance secretary Cesar Purisima were charged yesterday with graft and smuggling before the Office of the Ombudsman for allegedly allowing Pilipinas Shell Petroleum Corp. to bring unleaded gasoline into the country without paying the right taxes.
Charged with them are officials of Shell led by chairman Edgar Chua.
Former customs commissioner Napoleon Morales, tax collector Juan Tan, and journalist Lourdes Aclan accused the respondents of depriving the government of excise and value added taxes now totaling around P100 billion, including interests and surcharges.
Shell allegedly managed to evade payment of taxes by falsely declaring its unleaded gasoline imports as catalytic cracked gasoline (CCG), light catalytic cracked gasoline (LCCG) and later alkylate from 2004 to 2009.
Such chemicals are described as so-called blending components in the manufacture of gasoline which are not subject to or covered by internal revenue taxes collected by the Bureau of Customs for the Bureau of Internal Revenue.
The complainants alleged that from 2001 to 2004, Shell was paying taxes for its gasoline importations but stopped doing so from 2004 to 2009 when it changed its declarations of CGC and LCCG as unleaded gasoline to tetrapropylene and from “exclusive for sale” to “blending component.”
Headlines ( Article MRec ), pagematch: 1, sectionmatch: 1“Due to this modification in the declaration, all the shipments of Shell declared as CGC and LCCG from March 2004 to 2009 were released without payment of taxes,” they said.
When Tan, who is stationed at the Port of Batangas, demanded payment of taxes amounting to P7.348 billion, Shell again allegedly changed its declaration of the imports to alkylate under “waste oil” classification that is not subject to taxes.
An investigation was supposedly conducted on Shell’s allegedly fraudulent acts and the results of the same eventually reached Aquino and Purisima.
Aclan said he wrote Aquino a letter in July 2012 informing him of the refusal of Purisima and other BOC officials to demand payment of taxes from the fuel company, but that his letter was ignored.
“The government has lost over P100 billion including interest, surcharge and 800 percent penalty,” read the complaint.
“It is also losing at least P55 million a month or a whopping P1.3 billion as of July 2016, and counting, in addition to the still unpaid P1.99 billion taxes on Shell’s alkylate importations, aside from the unpaid P7.348 billion taxes on its CGC and LCCG importations. 
“Since 2011, the former president and DOF secretary did nothing but allow Shell to continuously use the P7.348 billion and P1.99 billion government revenue for its own use and benefits thereby giving it unwarranted benefits and causing grave and undue injury to the government.”           

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Graft, corruption, smuggling cases filed vs. Aquino, Purisima over Shell tax anomaly





Graft, corruption, smuggling cases filed vs. Aquino, Purisima over Shell tax anomaly

(Eagle News) A graft case and other criminal charges were filed against former President Benigno “Noynoy” Aquino III and former Finance Secretary Cesar Purisima before the Office of the Ombudsman on Wednesday (September 14) .
The charges were filed due to failure to collect P100 billion in taxes from Pilipinas Shell Petroleum Corp. (PSPC) from 2004 to 2009.
Aquino and Purisima were charged with violation of Section 3(e) and 4 of Republic Act 3019 or the Anti-Graft and Corrupt Practices Act, Section 10 of RA 9851 in relation to Executive Order No. 226 or the Institutionalization of the Doctrine of Command Responsibility in all government offices, and Sections 3601 and 3604 of the Tariff and Customs Code, which refers to smuggling.
Aside from the two, PSPC Chairman and President Edgar Chua, Vice President for Communications Robert Kanapi, Country Tax Manager Nigel Avila and other John Does were also charged.
The complainants, former Bureau of Customs (BOC) Commissioner Napoleon Morales, former BOC district collector Juan Tan, and Headlines News Today publisher Lourdes Aclan, accused Aquino and Purisima of snubbing PSPC’s supposed failure to pay the right taxes for their gasoline shipments which were wrongfully declared as non-taxable products.
The complainants also said that Aquino, Purisima and the other accused “were silenced into submission” by PSPC.
“Since 2011, the former President and DOF Secretary did nothing but allowed PSPC to continuously use the P7.348 billion and P1.99 billion government revenue for its own use and benefits, thereby giving it unwarranted benefits, and causing undue grave injury to the government,”  they stressed.
This is the fifth case filed against Aquino since he stepped down from his office. He is facing a complaint over the Disbursement Acceleration Program (DAP) and three others related to the Mamasapano encounter.


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Aquino, Purisima in P100-B graft, smuggling case filed with Ombudsman



Aquino, Purisima in P100-B graft, smuggling case filed with Ombudsman


by Jun Ramirez
September 14, 2016

Former President Benigno S. Aquino III and Finance Secretary Cesar Purisima are facing P100-billion graft and smuggling charges before the Office of the Ombudsman (OMB) for allegedly allowing for years Pilipinas Shell Petroleum Corporation (PSPC) to bring in unleaded gasoline without payment of excise and value-added taxes.
The complainants said Shell falsely declared its gasoline importations as catalytic cracked gasoline (CCG), light catalytic cracked gasoline (LCCG), and  later as “alkylate,” a chemical blending component in the manufacture of gasoline which is not subject to internal revenue taxes.
The taxes are collected by the Bureau of Customs for the Bureau of Internal Revenue.
The 15-page complaint was filed jointly by former Customs Commissioner Napoleon Morales, former Batangas Customs Collector Juan Tan, and Lourdes Aclan, publisher of Headlines News Today and national executive secretary of the Publishers Association of the Philippines.
They said Shell reclassified CCG and LCCG as “alkylate” when then Batangas customs collector Tan demanded payment of P7.3 billion in excise taxes for imports of CCG and LCCG for the years 2004 to 2009, which demand was approved by Morales.
Also included in the complaint are Shell Chairman Edgar Chua and several other unidentified executives of the oil company.
Aclan said that as investigative reporter she brought the case separately to then President Aquino and Purisima, but both did nothing to compel Shell to settle the back accounts which now total more than P100 billion, including interests and surcharges.
As the proper government officials, Morales said Aquino and Purisima should have demanded from Shell the payment of the taxes, or caused seizure of the oil products if the demand is ignored.
Morales noted that the smuggling case filed in 2011 against PSPC under the customs bureau Run-After-the-Smugglers (RATS) campaign before the Department of Justice for misdeclaration of unleaded gasoline has not yet been resolved.
According to Morales, when Shell elevated the case to the Court of Tax Appeals en banc, the latter decided in favor of the government.

Read more at http://www.mb.com.ph/aquino-purisima-in-p100-b-graft-smuggling-case-filed-with-ombudsman/#7jZrYTDoS7YuMF1g.99

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Tuesday, November 3, 2015

Shell loses P3-B tax case


Shell loses P3-B tax case

In a 42-page decision penned by Associate Justice Caesar Casanova, the full CTA ruled to modify an earlier resolution of its third division that stopped the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) from collecting billions worth of excise tax from Pilipinas Shell Petroleum Corp. STAR/File photo
MANILA, Philippines - The Court of Tax Appeals has ordered Pilipinas Shell Petroleum Corp. (PSPC) to pay more than P3.5 billion in excise tax for the importation of raw gasoline materials for the years 2006 to 2009.
In a 42-page decision penned by Associate Justice Caesar Casanova, the full CTA ruled to modify an earlier resolution of its third division that stopped the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) from collecting billions worth of excise tax from PSPC.
The case stemmed from a petition filed by the PSPC in 2009 asking for the nullification of a demand letter of then BIR commissioner Joel Tan-Torres.
Torres demanded payment of over P7.3 billion in excise and value added tax (VAT) from PSPC over its importation of Catalytic Cracked Gasoline (CCG) and Light Catalytic Cracked Gasoline (LCCG) for the years 2004 to 2009.
CCG and LCCG are used as intermediate or raw gasoline products used as blending components to produce gasoline in compliance with the Clean Air Act.
PSPC argued that the materials are not subject to excise tax as these are not finished products and are not intended for domestic sale.The CTA third division, in a 2012 ruling, initially sided with PSPC and stopped the BIR and the BOC from collecting the taxes.
However, in its recent ruling on the appeal filed by the government, the CTA modified the initial ruling and ordered the PSPC to pay the taxes for importations made from 2006 to 2009.
The CTA decision agreed with government lawyers when it argued that the act of importation is enough to qualify the materials for taxation under pertinent laws.
“Excise tax is an indirect tax applicable to certain specified goods or articles manufactured or produced in the Philippines for domestic sales or consumption, and to things imported,” stressed the tax court.
It noted that the materials – although raw and used as blending components – were still consumed to produce the final product.
“Even supposing that the imported CCG and LCCG were not consumed or used or sold domestically, the importation would naturally fall under the phrase for any other disposition, and therefore, still excisable,” added the ruling.
But instead of paying the entire P7.3 billion demand of the government, the CTA only ordered PSPC to pay the undue excise taxes and VAT for the years 2006 to 2009.
The full court sustained the ruling of the third division saying it has complied with the required documentary requirements that exempted it from paying the assessed excise taxes for years 2004 and 2005.
The exemption was based on Republic Act 9480, which granted amnesty on all unpaid internal revenue taxes for 2005 and prior years.
Records showed that the BIR is demanding total payment of P3.5 billion in excise taxes and VAT from PSPC for the years 2006 to 2008.



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