MANILA -- The Court of Tax Appeals has denied Philippine Airlines' petition for a tax refund or tax credit certificate over nearly P9 million in duties it paid for imported alcohol and tobacco products in 2012, according to a copy of its decision.
The flag carrier's petition lacked merit and it should have filed an administrative claim before the Bureau of Internal Revenue before seeking redress from the court, the tribunal said in its ruling dated Aug. 8. "Failure to seek relief initially at the administrative level would result in dismissal of the judicial claim for refund once it is elevated to the Court of Tax Appeals," the court said.
The airline also failed to present sufficient evidence to prove that the tobacco and alcohol products, used for their inbound international flights arriving in Manila, were not locally available, the court said.Documents PAL presented proved that the articles would be used for intentional flight consumption, which proved the reason for their payment of excise tax, it said.
Associate Justice Cielito Mindaro-Grulla penned the ruling while Division Chairperson Juanito Castañeda, Jr. and Associate Justice Jean Marie Bacorro-Villena concurred.
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