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Caltex Vs COA Et Al

Caltex filed a motion for reconsideration with the Court of Appeals regarding taxes owed to the Oil Price Stabilization Fund (OPSF) that was denied. The Supreme Court affirmed the decision except to allow Caltex's claim for reimbursement from sales to NAPOCOR. It is settled that taxes cannot be offset by claims against the government, as the government and taxpayer are not creditors/debtors. Caltex has a duty as an agent of the government to remit taxes collected to the OPSF and cannot offset these against its own claims. Stabilizing oil prices is a valid exercise of state police power due to the public interest in the oil industry.

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83 views2 pages

Caltex Vs COA Et Al

Caltex filed a motion for reconsideration with the Court of Appeals regarding taxes owed to the Oil Price Stabilization Fund (OPSF) that was denied. The Supreme Court affirmed the decision except to allow Caltex's claim for reimbursement from sales to NAPOCOR. It is settled that taxes cannot be offset by claims against the government, as the government and taxpayer are not creditors/debtors. Caltex has a duty as an agent of the government to remit taxes collected to the OPSF and cannot offset these against its own claims. Stabilizing oil prices is a valid exercise of state police power due to the public interest in the oil industry.

Uploaded by

zahreenamolina
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Title Caltex Phils vs COA, Commisioner

Fernandez and Commisioner Cruz Caltex filed an Omnibus Motion for


GR 92585 Reconsideration of the said decision but was
Date May 8, 1992 denied. Hence, petition.

Issue: WoN the amount due from Caltex to OPSF


KEYWORDS
may be offsetted against Caltex´s outstanding
OPSF cannot be offsetted, Unremitted
claims from said fund.
collections, General Welfare,
SC: NO. COA´s decision is affirmed except that
portion disallowing Caltex´s claim for
DOCTRINE reimbursement of underrecovery arising from
Taxation is no longer envisioned as a measure to sales to NAPOCOR.
raise revenue to support the existence of the
gov´t; taxes may be levied with a regulatory It is settled that a taxpayer may not offset taxes
purpose to provide means for the rehabilitation due from the claims that he may have against the
and stabilization of the threatened industry government. Taxes cannot be the subject of
which is affected with public interest as to be compensation because the gov´t and the taxpayer
within the police power of the state. No doubt are not mutually creditors and debtors of each
that the oil industry is greatly imbued with other and a claim for taxes is not such a debt,
public interest as it vitally affects the general demand, contract or judgment as is allowed to set-
welfare off.

CASE: In respect to the taxes for the OPSF, the oil


companies merely acts as a gents for the gov´t in
OPSF was created under Sec 8 of PD no. 1956 as the latter´s collection since taxes are, passed unto
amended by EO No. 137 wherein it will create a the end-users – the consuming public.
Trust Acct for the purpose of minimizing frequent
price changes brought about by exchange rate Caltex has the primary obligation to account for
adjustments and world market prices. and remit taxes collected to the administrator of
the OPSF. This duty stems from the fiduciary
COA sent a letter to Caltex directing it to remit to relationship between the two. Caltex cannot be
the OPSF its collection, excluding that unremitted considered merely as a debtor. In respect to its
for the years 1986 & 1988 of the add´tl tax on collection for the OPSF vis-a-vis its claim for
petroleum authorized under sec 8 of PD No 1956 reimbursement, no compensation is likewise legally
which amounted to P335, 037,000+ and informed feasible. RA 6952 does not authorize oil companies
that all pending claim claims for reimbursement to offset their claims against their OPSF
from OPSF will be withheld. contributions. It prohibits the gov´t from paying
any amount from the Petroleum Price Standby
The grand total of its unremitted collection is Fund to oil companies which have outstanding
P1,287,000+. Caltex submitted to COA a proposal obligations with the gov´t, without said obligation
for the payment of the collections and the recovery being offset first subject to the rules on
of the claims. COA accepted the proposal but compensation in the CC.
prohibited Caltex from further offsetting
remittances and reimbursements for the current Any unregulated increase in oil prices could hurt
and ensuing years. the lives of the majority of the people and cause
economic crisis of untold proportions. It would
have a chain reaction, hence, the stabilization of oil
prices is of prime concern which the state via its
police power, may properly address.

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