60% gov't share in Malampaya project includes contractors' income taxes, SC rules

The Supreme Court (SC) has reversed the ruling of the Commission on Audit (COA) as it declared that the 60-percent share of the government in the profits from the Malampaya Natural Gas Project includes the income taxes of its private contractors.

- By REY G. PANALIGAN

With its decision, the SC said the COA committed grave abuse of discretion when it declared that the contractors of the Malampaya project should be held liable for their failure to remit ₱53.14 billion in income taxes to the government from 2002 to 2009.

Reversed in the full court decision written by Associate Justice Japar B. Dimaampao were the April 6, 2015 decision and the Jan. 24, 2018 resolution of COA which declared that the income taxes of contractors should not have been part of the 60-percent government share.

Absolved of of liability were Malampaya contractors Shell Exploration B.V., PNOC Exploration Corporation, and Chevron Malampaya LLC.