BIR loses P740 M in SMC tax case

  • Page Views 1323
  • The Court of Tax Appeals has ordered the Bureau of Internal Revenue (BIR) to return to San Miguel Corporations (SMC) the erroneously collected P740 million excise tax through misclassifications of one of its popular products.

    In a 35-page decision, the court en banc upheld the earlier resolution of its Second Division that San Mig Light (SML) is a brand new product and not a variant of San Miguel Pale Pilsen (SMPP) that required payment of higher excise tax schedule.

    The BIR imposed the higher valuation in 2011 classifying SML as a variant of SMPP.

    The court explained that when SML was introduced in 1999 it was classified as a new fermented liquor of SMC, stressing that it was not one of those mentioned prior to the effectivity of Republic Act 8240 listing all existing liquor brands.

    The court said SML is not a variant of the existing brand because it has different logo, design and packaging and therefore should be taxed according to the current net retail price of P1 per liter, instead of P13 for variant varieties.

    It said SML is in tall slender and transparent bottle, whereas SMPP is in steiny container.

    It also noted that SML was originally classified as new brand when SMC registered it with the excise tax division of the BIR. (J. Ramirez, mb)

    Share

    New Posts Recently publish post More

    • 27 July 2017
      3 hours ago No comment

      Philippine government disputes Toronto Sun report on the Philippines

      The Philippine government has belied a report published July 16, 2017, in the Toronto Sun about the situation in the Philippines. A spokesperson of President Rodrigo Duterte reacted to the report written by Brad Hunter about dangerous cities in the world. “The streets of Manila look more like a ...

    • 26 July 2017
      1 day ago No comment

      SEA Games

      The burden on the Philippine’s Southeast Games campaign to extricate itself from the hole its predecessors dug in the past three editions of the biennial conclave looks to fall on the shoulders of 21 past individual winners who made it anew to the national contingent that will carry the ...

    • 26 July 2017
      1 day ago No comment

      Bella ready to work with Angel

      According to Bela Padilla, she sees nothing wrong if she and Angel Locsin will collaborate for one screen project in the coming days. “Definitely, I would love to work with her!” she states. “She’s not only alluring but is one good actress who’s exciting to watch on screen. It ...

    • 26 July 2017
      1 day ago No comment

      Kim Chiu gets response from Justin Bieber

      A lot of female celebrities are no stranger to fangirling. Some of them even fly outside the country just to meet some of the international personalities they idolize, and some of them regularly follow them on social media like what a normal fan would do. Take Kim Chiu for example. Back ...

    • 26 July 2017
      1 day ago No comment

      Mariel is a reluctant actress?

      But after being crowned Binibining Pilipinas-International, Mariel has proven that there’s more to her than being the daughter of Christopher de Leon and Sandy Andolong. Her resemblance to Liza Soberano is a plus factor as she begins her foray into show biz. What made Mariel change her mind? “I ...

    %d bloggers like this: