THE Court of Tax Appeals has denied Ginebra San Miguel, Inc.’s tax refund claim of P715.2 million.
Ginebra earlier said it had paid tax on the ethyl alcohol it bought in January to May 2013, which was used as raw material in the production of blended liquors.
The company argued that under the Tax Code, removing its finished products from the inventory of ethyl alcohol for which taxes had been paid are no longer taxable.
But the tax court said it could not determine the ratio of raw alcohol to finished goods, only how much raw alcohol was used and how many finished goods were produced during the period.
It said Ginebra must show how many units of raw alcohol were needed to produce one unit of finished goods.
“The court finds that the petitioner failed to prove the factual aspect of its claim for refund,” it said in a 34-page decision promulgated on July 28. — Vann Marlo M. Villegas
