Semirara wins P27M tax refund case

Semirara Mining and Power Corp. has secured a Supreme Court victory that will allow the company to recover P27.34 million in taxes, ending a 13-year dispute with the Bureau of Internal Revenue (BIR) over fuel import duties.

In a disclosure on Friday, the Consunji-led mining firm said the high court upheld earlier rulings that the taxes collected on a 2013 diesel import shipment were improperly imposed. 

The decision affirmed findings by the Court of Tax Appeals that Semirara was entitled to tax exemptions granted under existing energy laws.

The case stemmed from the company’s importation of diesel for its operations after receiving a tax exemption from the Department of Energy (DOE). 

While the BIR required the payment of value-added and excise taxes under an anti-smuggling regulation, Semirara challenged the assessment, arguing that it contradicted its exemption privileges. 

The ruling is seen as a significant win for companies with government-granted tax incentives and reinforces legal protections for registered energy projects.