Energy Dept. stand on raps vs Pilipinas Shell

The Energy Department said Monday it will help the Customs Bureau in discussions on alleged tax violations by oil giant Pilipinas Shell Petroleum Corp. only when it is called upon to do so. “We will get involved if they call on us or want us to participate in the discussions," Energy Secretary Jose Rene Almendras said when asked to comment on government's claim against Pilipinas Shell. Apart from the P7.3-billion tax case against Pilipinas Shell before the Court of Tax Appeals, the oil firm is also facing a smuggling complaint filed by the Customs Bureau on Oct. 14. Almendras clarified that the Energy Department has taken a “hands off" policy regarding the case unless the Customs Bureau asks for its help. “It is a tax claim from the bureau. It is not within the Energy Department’s jurisdiction," he said. Almendras preferred not to delve on the “specifics" of the case. “There is a case filed already so its subjudice to make any statement." In a statement over the weekend, Pilipinas Shell denied it has “shortchanged" government in terms of tax payments. The oil company said it did not defraud government by not paying excise and value-added taxes for shipments of catalytic cracked gasoline (CCG) and light catalytic cracked gasoline (LCCG). Those shipments were “misclassified" as tetra-propylene for the 2005-2009 period, according to the Customs Bureau. CCG and LCCG are blending components in producing Clean Air Act-compliant unleaded gasoline. Pilipinas Shell said it has paid all the right taxes, denying that it has engaged in fraudulent import activities. The company said in the statement it has consistently been on government’s Top 10 Taxpayers list. In the last five years, its annual tax payments were P26 billion on average, the oil firm added. — JE/VS, GMANews.TV