THE Court of Tax Appeals (CTA) denied the P32.28-million tax refund claim filed by Petron Corporation, ruling that the oil firm failed to substantiate its entitlement to a refund of excise taxes it claimed to be erroneously paid on imported lubricating oils and additives sold to tax-exempt entities.

The 14-page decision of the tribunal’s third division, promulgated on June 17, found that Petron “utterly failed” to sufficiently substantiate its claim, particularly regarding the timely payment of taxes, the tax-exempt status of all its buyers, and proof of excise tax payments.

“Time and again, the Supreme Court has held the taxpayer-claimant has the burden of proving the legal and factual bases of its claim for tax credit or refund,” Justice Henry S. Angeles wrote in the ruling. “The evidence proffered falls short of establishing that the excise taxes in question were erroneously or illegally collected.”

According to the ruling, Petron failed to prove the dates of its payment. Excise taxes on imported articles are typically paid upon importation and prior to release from customs.

The two-year prescriptive period for refunds is calculated from the date of actual tax payment. Petron’s evidence for the earliest payment date (Jan. 7, 2020) was denied admission by the court due to Petron’s failure to mark and compare it with the originals.

The court noted that various Single Administrative Documents (SADs) and Statements of Settlement of Duties and Taxes (SSDTs) presented by Petron to substantiate its importations and tax payments were denied admission for failure to present the originals for comparison.

The court added that without these “essential documents,” it could not ascertain whether Petron indeed paid the excise taxes it sought to recover.

The company also failed to establish tax-exempt status for all buyers. While Petron claimed its sales were to tax-exempt entities, the tribunal found that only the tax exemption certificates for Petron Freeport Corporation were admitted into evidence.

Exemption certificates for Lewisberg Warehousing and Logistics, Inc. and TDK Philippines Corporation were also denied admission due to the non-presentation or non-submission of their original copies for comparison.

As a result, the portion of the claim related to these two entities, amounting to over P277,000 for 27,706 liters, was disallowed.

Petron filed a Petition for Review with the CTA seeking a refund of P32.28 million in excise taxes paid on imported lubricating oils and additives. The company claimed these products were subsequently sold to tax-exempt entities during the period from Jan. 1, 2020, to Dec. 31, 2020. — Chloe Mari A. Hufana