FACTS
In 1989, COA sent a letter to CALTEX;
directing it to remit its collection to the Oil
Price Stabilization Fund, [except the
unremitted for the years 1986 and 1988] of
the additional tax on petroleum products
authorized under the aforesaid Sec. 8 of
PD 1956---
which all amounted to P335k
And informing that, pending such
remittanceall its claims for reimbursement from the OPSF will be
held
in abeyance.
Pursuant to PD 1956, as amended by EO 137, The Oil
Price Stabilization Fund (OPSF) may be sourced from
any of the following:
(1) Increase in tax collection or customs duty imposed on
petroleum products
(2) Increase in tax collection as a result of the lifting of
tax
exemptions of government corporations
(3) Resulting peso-cost differentials in case the actual
peso
costs paid by oil companies
Fundshall be used for the following
(1) Reimburse oil companies for cost increases in crude
oil and imported petroleum products resulting from
exchange rate adjustment.
(2) Reimburse oil companies for possible cost-under
recovery incurred as a result of the reduction of domestic
prices of petroleum products
Which, the OPSF shall be administered by the Ministry
of Energy.
CALTEX requested COA,
notwithstanding an early release of its reimbursement
certificates from the OPSF,
which the COA denied.
CALTEX submitted a proposal to
COA for the payment (remittance)
and the recovery of claims
(reimbursement).
The said proposal primarily states
that CALTEX will deliver to Office of
the Energy Affairs P1.287 billion as
payment to OPSF; while similarly,
OEA will deliver to CALTEX the
same amount in cash reimbursement
from OPSF.
OPSF= Oil Price
Stabilization Fund
To settle the previous
arrears; COA accepted the
proposalbut prohibited petitioner from further
offsetting remittances and
reimbursements for the
current and ensuing years
Whether the amounts due
from CALTEX to the Oil
Price Stabilization Fund
may be offsetted against
CALTEXs outstanding claims from the said funds.
ISSUES AND
COURT
RULING
Taxation is no longer envisioned as a measure
merely to raise revenue to support the existence
of the government
Taxes may be levied with a regulatory purpose
to provide means for the rehabilitation and
stabilization of a threatened industry which is
affected with public interest as to be within the
police power of the state.
PD 1956 as amended explicitly provides that the source of
Oil
Price Stabilization Fund is taxation.
A taxpayer may NOT offset taxes due from the claims that he
may
have against the government.
Taxes cannot be subject of compensation because the
government and the taxpayer are not mutually creditors and
debtors of each other.
And a claim for taxes is not such a debt, demand, contract
or
judgmentas is allowed to be set off.
The money due the government,
either in the form of taxes or other
dues; is the lifeblood of the
government and should be
collected without hindrance (CIR v.
Algue, Inc.)
CALTEX v. COA.vsdPage-1Page-2Page-3
