Skip to content

Philippines Today

home of the Global Filipino

Menu
  • News Stories
  • Regional News
  • Business & Economy
  • Science & Technology
  • International
Menu

SC affirms tax refund for Lucio

Posted on October 18, 2008

PHILIPPINE NEWS SERVICE — IT’S final.

The Supreme Court has ordered the government to refund the Fortune Tobacco Corporation of business tycoon Lucio Tan more than P1 billion in overpaid excise taxes covering the years 2001 and 2002.

The SC’s Second Division denied the motion for reconsideration filed by the Office of the Solicitor General (OSG) seeking the reversal of its July 21, 2008 decision written by Associate Justice Dante Tinga.

“Acting on the Office of the Solicitor General’s motion for reconsideration of the decision dated July 21, 2008, the court resolves to deny the motion with finality, the basic issues raised therein having been duly considered and passed upon by the court in aforesaid decision and no substantial argument having been adduced to warrant the reconsideration sought,” the SC resolution stated.

The appealed SC ruling affirmed the judgments of the Court of Tax Appeals (CTA) and the Court of Appeals (CA), which directed the Bureau of Internal Revenue to reimburse FTC some P1.03 billion.

The SC ruled that Revenue Regulation No. 17-99 issued by the Department of Finance (DOF) upon the recommendation of the BIR “is indefensibly flawed” as it went beyond the provisions of the Tax Code.

RR No. 17-99 was issued to implement the provisions of the 12 percent increase of excise tax on cigars and cigarettes packed by machines by January 1, 2000.

The regulation also provides that “the new specific tax rate for any existing brand of cigars, cigarettes packed by machine, distilled spirits, wines and fermented liquor shall not be lower than the excise tax that is actually being paid prior to January 1. 2000.

According to the SC, the DOF regulation violated Section 15 of the Tax Code which states that within the next three years from the effectivity of the Tax Code, the excise tax for any brand of cigarettes shall not be lower than the tax due from each brand on October 1, 1996.

It said such qualification is absent as regards the 12 percent increase which is to be applied on cigars and cigarettes packed by machine, among others, effective on January 1, 2000.

It noted that Section 145 mandates a new rate of excise tax for cigarettes packed by machine due to the 12 percent increase effective on January 1, 2000 without regard to whether the revenue collection starting from this period may turn out to be lower than that collected prior to this date.

Share this:

  • Facebook
  • Twitter
  • LinkedIn
  • Pinterest
  • More
  • Tumblr
  • Reddit

Related

News Categories

  • Announcement (34)
  • Business & Economy (1,567)
  • Comment and Opinion (74)
    • Random Thoughts (18)
  • Current Issues (425)
    • Charter Change (1)
    • Election (228)
    • Population (6)
  • International (389)
  • Life In Japan (66)
    • Everything Japan (41)
  • Literary (34)
  • Miscellaneous (610)
  • News Stories (5,312)
  • OFW Corner (297)
  • Others (75)
  • People (408)
  • Press Releases (163)
  • Regional News (3,362)
  • Science and Technology (502)
  • Sports & Entertainment (287)

Latest News

  • BSP keeps policy rates anew December 17, 2015
  • NEDA cuts PHL additional rice import for 2016 by 25% December 17, 2015
  • DA cites serious implications of banning genetically modified products December 17, 2015
  • BBL is not yet dead – Drilon December 17, 2015
  • Comelec recognizes Duterte’s CoC for president December 17, 2015
  • NEDA chief sees 2015 growth at 6% despite typhoons December 17, 2015
  • House of Representatives ratifies bicam report on P3.002-T national budget for 2016 December 17, 2015
  • Cebu-based developer invests PHP430M to build 709 townhouse units in north Cebu town December 17, 2015
  • City gov’t eyes P75-M income from economic enterprise December 17, 2015
  • Baguio City LGU presents traffic plan for holiday season December 17, 2015

Archives

Meta

  • Log in
  • Entries feed
  • Comments feed
  • WordPress.org

Science and Technology

  • DOST-ICTO targets 500,000 web-based workers from countryside by 2016
  • (Feature) STARBOOKS: A ‘makeover’ for librarians
  • Science, research reduce ‘cocolisap’ hotspot areas in PHL
  • Montejo to further improve PAGASA and empower scientists
  • 1st PPP in biomedical research produces knee replacement system fit for Asians

Press Releases

  • Microsoft to buy Nokia’s mobile devices business for 5.44-B euros
  • New World Bank climate change report should spur SEA and world leaders into action: Greenpeace
  • Save the Philippine Seas before it’s too late — Greenpeace
  • Palanca Awards’ last call for entries
  • Philippines joins the global call for Arctic protection

Comment and Opinion

  • Remembering the dead is a celebration of life
  • Killer earthquake unlikely to hit Panay Island in near future – analyst
  • It’s not just more fun to invest in the Philippines, it is also profitable, says President Aquino
  • How does one differentiate a tamaraw from a carabao?
  • Fun is not just about the place, it is also about the people, says DOT chief

OFW Corner

  • Ebola infection risk low in Croatia
  • Death toll rises to 41, over 100 still missing in landslide in India
  • Asbestos use in construction a labor hazard
  • 500,000 OFWs to benefit POEA on-line transactions — Baldoz
  • 25 distressed OFWs return home from Riyadh
©2025 Philippines Today | Design: Newspaperly WordPress Theme