The Court of Tax Appeals’ (CTA) Second Division has ordered the Bureau of Internal Revenue (BIR) to return P761,063,826.70 in excise tax overpaid by beer maker San Miguel Brewery Inc. (SMB) in 2012.
In a 33-page decision promulgated June 9, the tax court granted the petition for review filed by the brewery on December 19, 2013 seeking a tax credit certificate, if not a refund.
“In sum, petitioner has sufficiently proven that it had overpaid the excise taxes due on its removals of ‘San Mig Light’ for the period of January 1, 2012 to December 31, 2012 in the amount of P761,063,826.70,” the CTA noted.
The CTA en banc has held in several rulings that “San Mig Light” was a new brand and not a variant, thus, subject to a P15.49 per liter excise tax rate instead of P20.57 per liter.
“Consequently, there was an erroneous, excessive and/or illegal assessment and collection in the amount of P5.08 per liter removal of petitioner’s ‘San Mig Light,’” the decision said.
The court noted an independent certified public accountant was able to reconcile and compute the excise taxes on San Mig Light based on excise tax returns and what was in the company’s supporting documents.
“Wherefore, premises considered, accordingly, respondent is hereby ordered to refund or to issue a tax credit certificate in favor of petitioner the amount of P761,063,826.70, representing overpayment of excise taxes on ‘San Mig Light’ removals for the period January 1, 2012 to December 31, 2012,” the court held.