THE Court of Tax Appeals (CTA) ruled in favor of Ginebra San Miguel, Inc. (GSMI), which claimed it was “erroneously and illegally” charged P66.38 million in excise tax.
GSMI sought P66.38 million in tax refund, paid for the period starting Jan. 23, 2020, to Feb. 9, 2020. This amount reflects the excess of the basic excise tax computed using the new rates, under Republic Act 11467. The said law increased the excise tax on distilled spirits to P42 per liter from P24.34.
The company argued the amendment did not take effect until Feb. 10, 2020, after the law’s publication in print.
The CTA Third Division, in a ruling publicized on March 21, said the law did not take effect on Jan. 1, 2020, the prescribed date in the law, as it was only published in print in the Official Gazette on Feb. 10, 2020.
“The publication requirement for Republic Act No. 11467 was complied with only on February 10, 2020, when the law was published in printed form in the Official Gazette,” the 24-page ruling, penned by Associate Justice Marian Ivy F. Reyes-Fajardo read.
It also noted a digital circulation does not meet the publication requirement of laws, citing a Supreme Court ruling.
The court ordered the Bureau of Internal Revenue (BIR) to refund P66.38 million in excise taxes paid under protest.
GSMI paid this amount under protest on Dec. 29, 2020, after the BIR issued a Notice of Discrepancy and an Amended Notice of Discrepancy assessing deficiency excise tax.
The alcohol company brought the case to the tax court after the BIR failed to resolve its claims for refund. — Chloe Mari A. Hufana
