• SC affirms tax reprieve for Puregold owner

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    THE Supreme Court (SC) saved business tycoon Lucio Co from coughing up P6.6 billion when it ruled that the businessman is exempted from paying excise and value added tax for importing tobacco and alcohol.

    The SC’s third division, through a 3-2 vote, ruled that Co can avail of the tax amnesty provided by RA 9399 or the law that grants a one-time tax amnesty to businesses within economic zones or free ports since his Puregold Duty Free business is within the Clark Economic Zone.

    The ruling penned by Associate Justice Presbitero Velasco Jr. said Puregold did not commit smuggling when Co did not pay the P2,7 billion VAT and excise taxes demanded by the Bureau of Internal Revenue (BIR). The P2.7 billion grew to P6.6 billion because of the surcharges and interest. Justices Diosdado Peralta and Bienvenido Reyes concurred with Velasco’s ruling but Associate Justices Martin Villarama Jr. and Jose Catral Mendoza did not.

    The case stemmed from the notice of preliminary assessment issued by then Deputy Commissioner Kim Jacinto-Henares regarding Co’s unpaid VAT and excise taxes for wines, liquors and tobacco products imported by Puregold from January 1998 to May 2004.

    On July 27, 2007, Puregold availed itself of the tax amnesty under RA 9399 but on October 26, 2007, the company received a formal letter of demand from the BIR for the payment of P2.7 billion.

    The SC affirmed the decision of the Court of Tax Appeals freeing Co from any tax liabilities.

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    4 Comments

    1. obviously that two associates Justice MartinVillarama jr & Jose catral Mendoza they were favoring towards Puregold Interest than to BIR Claims.. even the Grade one pupil can predict it has something arranging between two associates Justice and Puregold Or Lucio Co.. company to avail the so called TAX amnesty and to refuse to pay the 6.6 Billion pesos business Tax for doing import and sales through Local market but they can used a duty free port as scape goat to pay of their duty obligation.. typically those business engaging in Import and Export process they cannot 100% complying the duty obligations.. and this is the rampant syndicate activities perhaps.. but nothing can ashamed and to touched this bulky legal smuggling from our defender and Local authorities.. a Billion pesos corrupted from TAX collection just not to pay the Legal duty obligations how many Class rooms they made off? how many poor families Being binifited? how much possible salary increased for those Government workers?

    2. That’s the problem of our justice system. Only the rich can provide the costly judicial proceedings. Pity to the poor and needy who cannot defend themselves from the dictatorial-ruthless style of tax implementation of BIR under Henares administration, with the guidance of course by Malacanang…

    3. he is exempted but only if he sells such goods within the confines of the economic zone. But once such goods are transported out and transferred to branches of puregold outside the economic zones then taxes must be paid.

    4. Yung mga maliliit na kumpanya hindi nakakalusot. pinapasara ng BIR hindi sila makalaban dahil wala silang pambayad ng abogado para ipaglaban sila.