By Jun Ramirez
The Court of Tax Appeals (CTA) has ordered the Bureau of Internal Revenue (BIR) to refund or issue tax credit certificate to San Miguel Corporation (SMC) worth P28 million for the erroneous collection of excise tax from the sale of bottled and canned San Mig Light (SML) beer for the year 2012.
The giant food and drinks manufacturer brought the case to the court after the BIR came out with a regulation increasing the tax of SML from P22.25 to P23.14 per liter.
SMC said the rate was higher than what was prescribed by the Tax Code.
Nevertheless, it paid the tax under protest to allow the withdrawal of products from warehouses and distribute them.
The court’s Second Division agreed with the petitioner’s position.
“If there is discrepancy between the regulations issued to implement the law, the law prevails because the rule cannot go beyond the provisions of the law,” the 32-page resolution stated.