THE Court of Tax Appeals has denied gold mining company the petition of Oceanagold Philippines Inc. for a refund or tax credit amounting to P142.2 million representing excise taxes allegedly collected wrongfully by the Bureau of Internal Revenue for the period July to December 2017.
The CTA noted that during the so-called “recovery-period” or the five contract years beginning from the date of commencement of commercial production, the government cannot collect excise tax from the petitioner. But, the tax court explained that despite its excise-tax exemption, Oceanagold failed to prove that it is entitled to the refund claimed.
“Petitioner, however, failed to prove that the payments of the subject excise taxes, during the said 5-year period, were detrimental to its recovery of the said pre-operating and property expenses. There is no specific evidence which shows such fact,” the CTA said in a decision penned by Associate Justice Catherine T. Manahan. “In sum, we see no valid ground to grant the present claim,” the CTA said.