Latest news with #P53-billion
Filipino Times
04-08-2025
- Business
- Filipino Times
DOE optimistic on investments after SC ruling on Malampaya tax case
Energy Secretary Sharon Garin on Monday welcomed the Supreme Court's (SC) decision clearing Malampaya contractors of a P53-billion income tax liability, saying the ruling will boost investor confidence in the country's petroleum and gas exploration sector. Garin said the SC's ruling provides clarity and stability for current and prospective investors in the energy industry. 'We're happy that the issue has been resolved because it gives stability and security to the exploration of our investors. So it will encourage more,' she told reporters on the sidelines of an event in Sorsogon City over the weekend. The SC recently ruled in favor of Shell Exploration B.V., PNOC Exploration Corp., and Chevron Malampaya LLC, stating that the government's share in the Malampaya project already includes the contractors' income tax payments from 2002 to 2009. The decision stemmed from a Commission on Audit (COA) claim that P53 billion was improperly deducted from the state's share of project revenues. COA argued that no law explicitly authorized the deduction of contractors' income taxes from the government's share. In its ruling, the SC said that while contractors are not exempt from paying income tax, the government assumes the liability as part of its contractual obligations under the service agreement. It added that 'tax assumption is not tax exemption.' The Court also emphasized that while COA has a mandate to protect public funds, the government must also honor the terms of agreements it voluntarily entered into. Malampaya supplies around 20 percent of Luzon's power requirements and is located about 50 kilometers off Northwest Palawan within the Philippines' exclusive economic zone.
GMA Network
03-08-2025
- Business
- GMA Network
DOE's Garin welcomes SC ruling on Malampaya profit share
Energy Secretary Sharon Garin welcomed the Supreme Court ruling that effectively lifted charges against private contractors of the Malampaya Natural Gas Project, as she said this would attract more investors into the country. According to Garin, she is happy that the issue has been resolved, after the High Court ruled that the Philippine government's share in profits from the project already includes the income taxes of the contractors. 'It gives stability and security to the exploration investors natin, so it will encourage more,' she said in an interview with reporters. 'Ako, happy ako na alam na nila because before kasi, hindi nila alam. Ngayon alam na nila, and I think that will bring more investors to the Philippines for exploration,' she added. (I am happy that they already know, because before, they didn't. Now they do, and I think it will bring more investors to the Philippines for exploration.) In a 19-page decision, the SC En Banc reversed and set aside a decision of the Commission on Audit (COA), and lifted the charges imposed against Shell Exploration B.V., PNOC Exploration Corporation, and Chevron Malampaya LLC. The decision, penned by Associated Justice Japar Dimaampao, was promulgated in February and made public in July. The petition stemmed from COA's finding that P53-billion worth of income taxes were deduced from the government's share in the project, and the contractors were liable for the taxes. According to the SC, the government signed a service contract for the project pursuant to Presidential Decree 87 or the Oil Exploration and Development Act, where contractors must remit 60% of the project's net proceeds to the government. The High Court said that under the Presidential Decree, the contractor is liable to pay income tax, but the contractor's income tax forms part of or is counted in the government's 60% share, and that tax assumption is not tax exemption. — RF, GMA Integrated News
