MANILA. Philippines—The Bureau of Customs filed on Thursday a criminal complaint against two of its senior officials for approving the refund of duties and value added taxes, and issuing Tax Credit Certificates in favor of an oil importing company that defrauded the government of some P99 million.
Customs Commissioner Angelito Alvarez identified the two lawyers as Reynaldo Nocolas, former deputy commissioner for assessment and operations, and Elvira Cruz, former officer-in-charge, and now collector of the Sub-Port of Mariveles.
The BoC accused the two of usurpation of authority for favourably acting on false claims that enabled petroleum products importer Cross Country to secure a P99.4 million refund of duties and taxes paid on its oil shipments.
Records showed that from September 2009 to September 2010, Cross Country imported a total of 33.4 million metric tons of petroleum products from China, with a total value of P8.4 billion.
Cross Country’s core business is Gasoil, also known as crude oil. Duties and taxes paid by Cross Country for its oil deliveries during the 13 month period amounted to P1.4 billion.
But Cross Country was able to get back some P99.4million after Cruz recommended to Nicolas Cross Country’s application for refund.
The BoC said only the BIR is authorized under the law to approve claims for VAT refund.
They added that Cross Country is not entitled to a refund because it managed to export the shipments to Vietnam at a price that already covered the duties and VAT it had paid to BoC.