THE COURT of Tax Appeals (CTA) has denied FCF Minerals Corporation’s claim for a refund of P7.01 million, the amount it claimed to have mistakenly paid for a documentary stamp tax (DST) in 2017.
In a 20-page decision made public on Aug. 15, the tribunal said that while mining firms are exempt from DST, the firm gave up this right when it agreed to an amendment to its existing financial assistance deal with the government.
“The parties to the Amendment Deed explicitly agreed that the ‘Borrower’ shall pay the DST on the transaction,” stated the ruling made by Associate Justice Maria Rowena Modesto-San Pedro. “Evidently, petitioner (FCF Minerals) waived the exception it enjoyed by virtue of this provision.”
In 2009, the firm entered into a financial or technical assistance agreement with the government, agreeing to assist the latter in the large-scale exploration and development of minerals.
Seven years later, FCF Minerals together with Metals Exploration PLC and Metals Exploration Pte, Ltd. agreed to an amendment deed to the contract, covering a loan commitment of $28,160,000.
Under the amendment, the borrowing party, in this case FCF Minerals, must pay any DST in relation to the loan. — John Victor D. Ordoñez
