CALTEX PHILIPPINES VS CA

G.R. 925585 MAY 8, 1992

Davide, J.:
FACTS:
In 1989, COA sent a letter to Caltex directing it to remit to OPSF its collection of the additional tax on
petroleum authorized under PD 1956 and pending such remittance, all of its claims from the OPSF
shall be held in abeyance. Petitioner requested COA for the early release of its reimbursement
certificates from the OPSF covering claims with the Office of Energy Affairs. COA denied the same.
ISSUE:
Whether of not petitioner can avail of the right to offset any amount that it may be required under the
law to remit to the OPSF against any amount that it may receive by way of reimbursement.
RULING:
It is a settled rule that a taxpayer may not offset taxes due from the claims that he may have against
the government. Taxes cannot be the subject of compensation because the government and taxpayer
are not mutually debtors and creditors of each other and a claim for taxes is not such a debt, demand,
contract or judgment as is allowed to be set-off.
The oil companies merely acted as agents for the government in the latters collection since taxes are
passed unto the end-users, the consuming public.