BOC CLEARS UNIOIL

BOC CLEARS UNIOIL

October 2, 2008

One of the country's leading independent oil players commended the Bureau of Customs (BOC) for expediting the release of petroleum products the agency has earlier placed on hold pending verification of documents.

Unioil Petroleum Philippines Incorporated (UPPI) General Manager Chito Medina-Cue Jr. said that the release of the shipments were made possible after the BOC found there was nothing wrong with the importations.

"After a thorough verification made by the Bureau of Customs, Unioil's shipments were released because all our import papers are in order." He also added that the company had paid all the necessary taxes covering the importations.

"We thank the BOC under Commissioner Napoleon Morales for its immediate and prompt action," Medina-Cue said.

He also said that with the release of the shipments, Unioil could make good on its promise to "continuously sell its products to the public at significantly lower prices." "We are very grateful to Commissioner Morales for considering the welfare of the public,"

But in a related development, Medina-Cue said that the government's decision to re-impose a 1% tariff on oil imports might lead to an end to price rollbacks of oil companies, Unioil included.

"The one percent tariff re-imposition for our crude products and finished products will be definitely an additional cost that will translate to about 30-40 centavos per liter and this will be an additional burden to the consumers," Medina-Cue said.

He added though that Unioil will always base its pricing decision not only on the pricing mechanism in the global market but also on what is good for the consuming public.

by: Leah Flor

‘illegal’ raid

Oilink to file charges vs PASG over ‘illegal’ raid

10/13/2008 04:58 PM

MANILA, Philippines - Oilink International Corporation on Monday said they are preparing charges against the government's anti-smuggling operatives over its “illegal” raid at their terminal in Mariveles, Bataan earlier in the day.“The corporation is reserving the right to file appropriate criminal and civil actions if the circumstances so warrant,” Oilink legal counsel Raymond Zorilla told reporters at a press conference in Quezon City.Zorrilla said the raiding team did not identify themselves and refused to present a mission order or a search warrant.“When I asked for their names and purpose, they said that they don’t need one because they are members of a presidential task force,” Zorrilla said, quoting Oilink operations supervisor Mark De Leon.Zorrilla also accused the team, all members of the Presidential Anti-Smuggling Group (PASG), of destroying the gates of their compound and hitting De Leon in the chest when he insisted on seeing the mission order.PASG agents swooped down at the Oilink compound 11 a.m., accusing the firm of defrauding the government of hundreds of millions worth of taxes through technical smuggling.PASG head Antonio Villar Jr, who personally led the operation, said the raid was done against Unioil Petroleum Products Inc., which was suspected to be a dummy of the controversial Oilink Inc.Villar said the oil shipment of Unioil was illegal because it did not pass through the office of Bureau of Customs (BOC) Limay district collector Edward Baltazar.Unioil president Kenneth Pundanera, meanwhile, denied that the shipment was illegal.“How can there be illegal withdrawal when the shipments of Unioil have been cleared and ordered release by no less than the Commissioner of Customs?” he said.“Besides, what is the authority of Collector Baltazar to question us when it has been published last September that he was suspended by the Ombudsman as district collector for three months,” he added.Pundanera stressed that all the taxes and duties for the shipments of Unioil have been paid.Pundanera also questioned that action of the PASG, saying that they have been under constant surveillance by Customs personnel.On the other hand, Zorrilla said that PASG may have mistaken Oilink and Unioil as one entity.“Oilink owns the terminal in Bataan while Unioil, and some other oil companies, lease several shore tanks within the terminal pursuant to a valid agreement,” he said. “We have already shown the documents to prove these claims to the BOC. In fact it can be recalled that the Bureau initially held the products of Unioil, but after some verification as to its separate corporate entity, the Bureau subsequently released the shipments.” Zorrilla added. Villar, in a press statement, defended that what they did was legal and that investigations conducted by the group found out that both Unioil and Oilink are owned by a certain Paul Chi Thing Co.Zorrilla, meanwhile, said that they will file the appropriate criminal and civil actions, particularly the physical injuries sustained by De Leon, against the PASG personnel.As of posting, the PASG personnel are still in control of the 12-hectare facility located at Lucanin village.Zorrilla said the facility houses about 1 million barrels of oil or close to 160 million liters of oil. -

 with Mark Merueñas, GMANews.TV

PASG raid illegal

PASG RAID ILLEGAL
14 October 2008

When the Presidential Anti-Smuggling Group (PASG) on 13 October 2008 raided the Terminal of Oilink in Mariveles, Bataan, PASG did not have any search warrant or mission order. Led by PASG USEC Antonio Villar and suspended District Collector Edward Baltazar, the PASG said that the “raid was conducted to prevent illegal withdrawal of petroleum products because these did not pass through the District Collector of Limay.”

However, Oilink Chief Counsel, Atty. Raymond Zorrilla said in a presscon that “All taxes and duties on the shipments have been paid and the appropriate clearances and release orders were issued by no less than the Commissioner of the Bureau of Customs. How can there be an illegal withdrawal.”

Now it seems that PASG is singing a different tune. Baltazar now said that the raid was based on unpaid taxes of Oilink. “Unioil and Oilink are owned by one person and we have pierced their veil of corporate entity.” “Oilink owes the government P2.7 Billion in taxes and by piercing the veil of corporate entity, Unioil should also be held liable for that amount and their products seized to satisfy the unpaid taxes.”


“Oilink has no tax evasion case nor is it a party to a smuggling case worth 2.7 Billion. Complaints filed against it by the BOC, PASG, and RATS have been dismissed by the DOJ and the Court of Tax Appeals” declared Zorrilla. “The PASG is mistaken. The 2.7 Billion is not a matter of unpaid taxes. It is an administrative fine imposed by PEAG and the Legal Service of the BOC for the mere delay to provide them a number of documents. We have questioned such fine for being contrary to law and the terms and conditions approved by the Finance Department.” Zorrilla added.

The matter of the P2.7 Billion is still pending with the BOC and a ruling has to be finally made whether to impose the said administrative fine. It cannot yet be enforced and thus the PASG has no legal right to raid the facility based on that.

It appears that Collector Baltazar has appropriated for himself the role of the judiciary when he solely declared that Oilink and Unioil are one and the same in order to justify the illegal raid. “By making a unilateral decision that Unioil and Oilink are one and the same, without the basis of a court ruling, the raiding team illegally seized the products of Unioil allegedly to satisfy the obligation of Oilink.” Zorrilla ended.

Based on records, Collector Baltazar was suspended by the Ombudsman in connection with an extortion case filed against him during his stint as District Collector of San Fernando, La Union. The Finance Department and the BOC has already implemented the suspension.

Oilink is a Top 100 Corporation and despite its new presence in the industry has paid around P1.7 Billion in taxes for 2007 alone. It is likewise featured in the internationally acclaimed edition of Businessweek this October where it encourages foreign investors to follow the path of Oilink and invest in the Philippines.

written by: Leah FLor

http://www.oilink.com

NO TAX DEBT

OILINK has no tax liabilities
27 October 2008


A top official of Oilink International Corporation belied the claims of the Presidential Anti-Smuggling Group that it has unpaid tax obligations to the Government. Oilink Legal Counsel, Raymond Zorrilla said in a statement, “Oilink has no tax obligations to the Government allegedly emanating from smuggling or illegal activities. Records at the Bureau of Customs will prove this fact.” How can we owe the government when in 2007 alone Oilink has paid 1.7 billion in taxes? Zorrilla questioned.
This tax payment is considered to be the biggest contributions to the government among independent players.

In addition, Zorrilla was reacting to the statement of PASG Head, USEC. Antonio “Bebot” Villar that Oilink has “unpaid customs duties and taxes amounting to P2.7 Billion.”

“Is an administrative fine similar to unpaid duties and taxes? The fine is actually the result of a unilateral audit of the Post Entry Audit Group?” Zorrilla asked. The Post Entry Audit Group has imposed the fine allegedly due to the delay in the submission of the few documents but without the benefit of an exit conference contrary to established rules.

“Besides that administrative fine is being questioned for having been imposed in violation of the agreed terms and conditions with the Bureau of Customs and as approved by the Finance Department.” he added.

Any action on this administrative fine, we submit, should be coursed by the PASG to the Bureau of Customs. Under the Tariff and Customs Code of the Philippines (TCCP), the BOC is the proper agency with appropriate jurisdiction to act on this matter and not the PASG. Executive Order 624 which created the PASG did not confer the PASG with such powers nor did EO 624 amend the provisions of the TCCP. PASG acts in excess of its jurisdiction. They should observe the law and refer the matter to the BOC pursuant to the provisions of the TCCP.

On the matter of the request of the PASG for the Commission on Audit (COA) and the Bureau of Internal Revenue (BIR) to conduct an audit of Oilink, Zorrilla said “We have nothing to hide. We have been saying all along that Oilink has no unpaid tax obligations. They can examine our records. We are being audited by the top audit firm Sycip Gorres and Velayo.”

However Zorrilla cautioned that it is outside of the mandate of the COA under the 1987 Constitution to audit private corporations. “With all due respect, I was informed that the Chairman of the COA is the brother of the PASG Head. Assuming that COA is legally allowed to do the audit, we can only hope that it will be fair and reasonable given the parties involved are heads of the agencies.” Zorrilla ended.


Oilink is the biggest independent player and belongs to the Top 100 Corporation and despite its new presence in the industry has paid around P1.7 Billion in taxes for 2007 alone. It is likewise featured in the internationally acclaimed edition of Businessweek this October where it encourages foreign investors to follow the path of Oilink and invest in the Philippines.



WRITTEN by: Leah Flor

www.oilink.com