CTA junks DOE petition to cancel P594M tax for lack of jurisdiction
The Court of Tax Appeals (CTA) has dismissed the Department of Energy’s (DOE) petition seeking the cancellation of its P593.73-million excise tax assessment, citing the lack of jurisdiction.
In a recent 18-page decision, the CTA 3rd Division said the dispute should have been brought first to the Department of Justice (DOJ), because both the DOE and the Bureau of Internal Revenue (BIR) are government entities.
“If the court has no jurisdiction over the nature of an action, its only jurisdiction is to dismiss the case. The court could not decide the case on the merits,” read the decision penned by Associate Justice Erlinda Uy.
The CTA cited the Supreme Court’s (SC) controversial August 8, 2017 decision, which ruled that under Presidential Decree Number 242, the Secretary of Justice has jurisdiction over all disputes between government entities.
The case concerned DOE’s tax liabilities for the periods of June to December 2011, and the whole year of 2012.
The BIR said the DOE was liable to pay excise taxes on exported crude oil from the Galoc field off Palawan.
The DOE, however, argued that the service contractor Galoc Production Company should be the one held liable for the excise taxes.