SC: Private Contractors' Income Taxes Part of Govt's Malampaya Profit Share

The Supreme Court has ruled that the income taxes of the Malampaya Natural Gas Project's private contractors are included in the government's 60-percent share in profits.

- — Brix Lelis

In a 19-page decision, the SC ruled in favor of Shell Exploration B.V. (SPEX), PNOC Exploration Corp. and Chevron Malampaya LLC in their dispute with the Commission on Audit (COA) over alleged unpaid income taxes.

"The Court is on all fours with COA to zealously ensure that the government is never placed at a disadvantage and that it rightfully receives what is due it in all its transactions," the SC stated.

"Nevertheless, remaining bound by the Constitution and the laws of the land, the government cannot be allowed to renege on its obligation, especially when such has been distinctly outlined in the contract it freely entered into and agreed to," it said.