MANILA — The Sandiganbayan has dismissed the graft charges in opposition to 4 former Petron Corp. executives accused of defrauding the authorities of P700.74 million in revenues in reference to a 1990s tax credit scam.
This was in view of the Supreme Court’s 2010 ruling that held the oil big in good religion when it purchased tax credit certificates from clothes companies that allegedly obtained the perk from the Department of Finance, utilizing fraudulent paperwork.
In two separate resolutions dated March 2, the court docket’s Special Fourth Division granted the motions to dismiss filed by former Petron president Monico Jacob, vice-president and common supervisor Celso Legarda, vice-president for refinery Apolinario Reyes, and senior advertising govt Rafael Diaz Jr.
A complete of 48 graft circumstances in opposition to Legarda have been dismissed; the different three officers have been his coaccused in 18 of those circumstances. Charges have been additionally dropped in opposition to a fifth Petron govt, Reynaldo Campos, due to his death.
Executives of Petron, in addition to one other oil big Pilipinas Shell Petroleum Corp., have been implicated in the scam as they purchased the TCCs to use in opposition to their very own tax liabilities.
But the anti-graft court docket dismissed the legal circumstances in opposition to the Petron executives on the floor of res judicata, the precept barring courts from relitigating a settled situation. It cited the Supreme Court’s rulings clearing the oil agency of tax liabilities arising from the cancellation of the spurious TCCs.
The court docket famous that the tax case and the legal charges additionally concerned the similar occasion: the authorities. Thus, it utilized the conclusiveness of the Supreme Court judgments on situation of unpaid taxes.
“Petron, represented by accused-movant, was found not to be a party to the fraudulent issuance and assignment of the TCCs, and was therefore considered as a transferee in good faith and for value,” the resolutions learn.
The 48 graft circumstances coated Petron’s use of 276 TCCs value a complete of P700,741,929.00. These have been bought from 18 clothes exporters: Filsyn Corp., Dragon Textile Mills, Inc., Southern Textile Mills, Inc., Fiber Technology Corp., Diamond Knitting Corp., Filstar Textile Industrial Corp., R.S. Textile Mills, Monti Textile Mfg. Corp., Master Colour System Corp. First Unity Textile Mills, Jantex Phils Inc., Unisol Industries & Mfg. Corp., Southern Dae Yeong Corp., Solid Development Corp., Asia Textile Mills, Inc., Phelps Dodge Phils., Inc., Alliance Thread Co., Inc., and Kewalram Phils., Inc.
Tax credit are granted to Bureau of Investment-registered entities representing tariff duties and inside income taxes paid on uncooked supplies and provides used for export merchandise. In lieu of a money refund, TCCs could also be used to offset inside income liabilities.
Entitled companies with no liabilities to use the tax credit in opposition to have been beforehand allowed to switch their TCCs to a different purchaser till the BIR prohibited the observe in 2011.
The Department of Finance first found in July 1998 the anomalies in the issuance of TCCs. To facilitate the illicit issuance of TCCs, fraudulent or spurious paperwork have been allegedly submitted to the One-Stop Shop Inter-Agency Tax Credit and Duty Drawback Center, established in 1992 to assist expedite tax credit claims. This ended up defrauding the authorities of as much as P2.5 billion in revenues. SFM/rga