PCQC 2023 dominated by Mindanao coffee farmers Court of Tax Appeals denies PAL’s bid for P20M tax refund

The Court of Tax Appeals (CTA) denied Philippine Airlines’ bid for a P20 million tax refund involving its tobacco and alcohol imports due to lack of merit.

In a 28-page decision dated May 30 but released this week, the CTA said PAL failed to meet one of the three conditions for it to be exempt from excise taxes on its importation of tobacco and alcohol products for its catering and commissary supplies for international consumption: that these products are not locally available in reasonable quantities, quality, or price.

PAL had argued that they should be granted the P20 million tax refund as provided under Presidential Decree 1530 or An Act Granting a New Franchise to Philippine Airlines, Inc. To Establish, Operate, and Maintain Air-transport Services in the Philippines and Other Countries.

PAL presented the following as evidence to bolster its case: judicial affidavit of Cheryl Capinpin, PAL’s Manager for In-flight Materials Purchasing Division;

Farmers from Mindanao garnered all 12 winning entries in the Arabica category during Sunday’s awarding ceremonies of the Philippine Coffee Quality Competition 2023 held at the World Trade Center in Pasay City, according to announcements from the Department of Trade and Industry offices in the Northern Mindanao and Davao regions.

2014 and 2015 Price Lists of Absolute Sales Corporation

2013, 2014, 2015, 2016, 2017, and 2018 Price Lists of Future Trade International Travel Retail;

2014, 2015, 2016, 2017, and 2018

Price Lists of Minivan Enterprise

Garnering the top prize with a cupping score of 86 was Manolito Garces’ natural-processed coffee, with cupping notes of pineapple, mango, black currant, and honey. Garces is from New Eden, Pangantucan in Bukidnon.

Second was Jhon Lawrence dela Cerna, of the Balutakay Coffee Farmers’ Association (BACOFA) in Bansalan, Davao del Sur, with a score of 85.75; third was Dione F. Ellaga, also of Bansalan, 85.41.

Fourth place was Junmar Gunayan, of the MILALITTRA

Farmers Agricultural Cooperative (MILFACO), of Bukidnon, 85.03; fifth was Rogelio Gonzales, also of BACOFA in Bansalan, 85; and sixth was Arnold Pina, of the Bayanihan Millennium Multipurpose Cooperative (BMMPC) in Pangantucan, Bukidnon, 84.97. Completing the top 12 were Rogelio R. Balacuit, of Amai Manabilang in Lanao del Sur; Cecilia G. Cavalida, Davao del Sur; Rosebele Sulatan, MILFACO; Cherry Gil Cabanday, Davao del Sur; Roquita dela Cerna, Davao del Sur; and Lendilou F. Loon, FPCQC, P10

2016 and 2017

Price Lists of AB Heineken Phils., Inc.

Bureau of Internal Revenue’s Price List per Revenue Memorandum Circular (RMC)

No. 90-2012

The CTA, however, dismissed these by citing the cross-examination on Capinpin during which she testified that her observation that the imported products are not available locally in a reasonable quantity, quality, or price was based on the price lists from Absolute Sales Corporation and Future Trade International Travel Retail, Minivan Enterprise, and AB Heineken Phils., Inc.,

“This Court finds the foregoing evidence insufficient. Based on the foregoing disquisitions, petitioner (PAL) failed to make an effort to look for a supplier