OILINK HAS NO TAX LIABILITIES
October 27, 2008
A top official of Oilink International Corporation belied the claims of the Presidential Anti-Smuggling Group that it has unpaid tax obligations to the Government. Oilink Legal Counsel, Raymond Zorrilla said in a statement, “Oilink has no tax obligations to the Government allegedly emanating from smuggling or illegal activities. Records at the Bureau of Customs will prove this fact.” How can we owe the government when in 2007 alone Oilink has paid 1.7 billion in taxes? Zorrilla questioned.
This tax payment is considered to be the biggest contributions to the government among independent players.
In addition, Zorrilla was reacting to the statement of PASG Head, USEC. Antonio “Bebot” Villar that Oilink has “unpaid customs duties and taxes amounting to P2.7 Billion.”
“Is an administrative fine similar to unpaid duties and taxes? The fine is actually the result of a unilateral audit of the Post Entry Audit Group?” Zorrilla asked. The Post Entry Audit Group has imposed the fine allegedly due to the delay in the submission of the few documents but without the benefit of an exit conference contrary to established rules.
“Besides that administrative fine is being questioned for having been imposed in violation of the agreed terms and conditions with the Bureau of Customs and as approved by the Finance Department.” he added.
Any action on this administrative fine, we submit, should be coursed by the PASG to the Bureau of Customs. Under the Tariff and Customs Code of the Philippines (TCCP), the BOC is the proper agency with appropriate jurisdiction to act on this matter and not the PASG. Executive Order 624 which created the PASG did not confer the PASG with such powers nor did EO 624 amend the provisions of the TCCP. PASG acts in excess of its jurisdiction. They should observe the law and refer the matter to the BOC pursuant to the provisions of the TCCP.
On the matter of the request of the PASG for the Commission on Audit (COA) and the Bureau of Internal Revenue (BIR) to conduct an audit of Oilink, Zorrilla said “We have nothing to hide. We have been saying all along that Oilink has no unpaid tax obligations. They can examine our records. We are being audited by the top audit firm Sycip Gorres and Velayo.”
However Zorrilla cautioned that it is outside of the mandate of the COA under the 1987 Constitution to audit private corporations. “With all due respect, I was informed that the Chairman of the COA is the brother of the PASG Head. Assuming that COA is legally allowed to do the audit, we can only hope that it will be fair and reasonable given the parties involved are heads of the agencies.” Zorrilla ended.
Oilink is the biggest independent player and belongs to the Top 100 Corporation and despite its new presence in the industry has paid around P1.7 Billion in taxes for 2007 alone. It is likewise featured in the internationally acclaimed edition of Businessweek this October where it encourages foreign investors to follow the path of Oilink and invest in the