Oilink welcomes audit by BIR but points to link between PASG, COA chiefs
October 28, 2008
THE chief legal counsel of Oilink International Corp. on Monday belied the claims of the Presidential Anti-Smuggling Group (PASG) that it has P2.7 billion in unpaid tax obligations and said they would welcome an audit of their firm by the Bureau of Internal Revenue and the Commission on Audit as requested by PASG head Antonio Villar Jr.
"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," Oilink lawyer Raymond Zorilla said.
Zorilla, however, pointed out 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 COA chairman (Reynaldo Villar) 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 also denied PASG accusations that Oilink has been engaged in smuggling and other illegal activities. "Records at the Bureau of Customs will prove this fact," he said. "How can we owe the government when last year alone, we paid P1.7 billion in taxes?"
Villar earlier said Oilink is using Unioil Petroleum Philippines Inc. as a dummy and owes government P2.7 billion in unpaid taxes. In calling for an audit, Villar said he wants to know if the sister-firms have sufficient buffer stocks to cover the unpaid customs duties and taxes worth P2.7 billion. "I just want to make sure these firms would not be able to short-change the government," he said.
PASG and Customs men raided the Oilink depot in Mariveles,
Zorrilla insisted that the amount cited by PASG is not unpaid tax but an administrative fine. "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 said.
The audit group imposed the fine allegedly due to Oilink’s tardiness in submitting documents on its oil shipment.
"Besides," Zorilla added, "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." Any action on this administrative fine, Zorrilla claimed, should be coursed by the PASG through Customs.
"Under the Tariff and Customs Code of the
Zorilla earlier said Oilink is preparing to sue Villar and Customs district collector Eduardo Baltazar for the Oct. 13 raid on its premises. Baltazar was confirmed by Customs Commissioner Napoleon Morales to be serving a suspension for gross misconduct when the raid was made. –Ashzel Hachero,