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Texas Comptroller of Public Accounts details recent bunker tax refund decision

Spokesman points out to Manifold Times Texas Motor Fuels Tax Code leading to decision against US $2.4 million bunker tax refund of local oil player.
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7 years ago

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A final decision by the Administrative Law Judge (ALJ) of the State Office of Administrative Hearings (SOAH) to not grant a Texas-based oil and gas pipeline and storage company a US $2.4 million tax refund on bunkers delivered to international vessels at a Texas port was due to rules implemented by the Texas Motor Fuels Tax Code.

A Texas Comptroller of Public Accounts spokesperson Wednesday summarised and pointed out to Manifold Times fuel oil in the U.S. being categorised into various numbers:

  • Number 1 fuel oil – Very light oils (Jet Fuels, Kerosene, Gasoline)
  • Number 2 fuel oil – Diesel, #2 Fuel Oil, and Light Crudes
  • Number 3 fuel oil – Most crude oils
  • Number 4 fuel oil – Usually commercial heating oil
  • Number 5 fuel oil – (Bunker Fuel) has a higher BTU content and requires preheating to 170 – 220 °F (77 – 104 °C). It cannot be used in a motor vehicle and therefore does not meet the definition of a motor fuel
  • Number 6 fuel oil – (Bunker Fuel) requires preheating to 220 – 260 °F. Bunker fuel is also called Heavy Fuel Oil, Furnace Fuel Oil, Bunker C Fuel Oil, Residual Fuel Oil, and Number 6 Diesel Fuel. It is what remains of the crude oil after gasoline and the distillate fuel oils are extracted through distillation.

“Fuel Oil numbers 1-4 are subject to the Motor Fuels Tax Code but Numbers 5-6, if clearly identified as bunker fuel on the sales invoice, would be subject to sales tax licensing and rules in the Texas Sales & Use Tax Code,” he told Manifold Times.

The unidentified tax claimant was selling bunker fuel to ships from various countries and filed franchise tax refund claims for the reporting years of 2011 through 2013 in 2015, according to the hearing document seen by Manifold Times.

The requested tax refund for fuel oil sales from a Texas port to a foreign registered ship are as follows:
 

Report Year Requested Refund
2011 ($635,880)
2012 ($1,275,257)
2013 ($464,453)
Total ($2,375,590)

The Texas Comptroller of Public Accounts (Comptroller) denied the requests because they did not include the necessary documentation.

The claimant later requested a refund hearing contending that its Texas receipts were overstated because they include sales of fuel oil that was used by foreign flagged vessels.

“In the instant matter, Claimant contends its original franchise tax returns erroneously included receipts from the sale of bunker fuel oil to foreign-registered vessels.  It argues that the receipts at issue are not Texas receipts because the buyers’ business consisted of transporting goods and passengers across oceans but never between U.S. ports,” said ALJ Victor Simonds.

“It states that, though the product at issue was delivered to vessels that were in Texas, the buyers were not ‘in this state’ because they were not operating in Texas since the buyers could not use or sell the bunker fuel oil in Texas.

“Based on the plain meaning of the apportioning statutes, if tangible personal property is delivered or shipped to a buyer in this state, then the receipt is a Texas receipt. 

“It is also clear that the Legislature anticipated that, in some instances, the delivery point and FOB point might not be the same. When they are not, it is the point of delivery that is determinative for apportionment purposes, not the FOB point. The statute does not stand for the proposition that the point of delivery should be disregarded when the FOB and delivery points are the same. 

“Claimant delivered its product to purchasers that were in Texas ports and waters; i.e., the bunker fuel oil was purchased by and delivered to buyers that were in this state. Therefore, based on the plain meaning of the statute, Staff’s refund denials were proper because the receipts at issue were Texas receipts.”

The full Comptroller’s decision can be found here.

Related: Receipts from bunkers delivered in Texas ports are taxable

Published: 13 February, 2019
 

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Winding up

Singapore: Notice of intended dividend issued for Xihe Holdings

Creditors of the company will have to submit proof of debt to the liquidators of Xihe Holdings by 9 July at 5pm, according to Government Gazette notice.
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Published

4 hours ago

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June 15, 2026

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A notice to declare the intended dividend of Xihe Holdings Pte Ltd to its creditors has been posted on the Government Gazette on Thursday (11 June).

Name of Company : Xihe Holdings (Pte) Ltd (In Liquidation)
Unique Entity No. / Registration No.: 199002021M
Address of Registered Office : c/o Grant Thornton Singapore Private Limited, 8 Marina View, #40-04/05 Asia Square Tower 1, Singapore 018960
Court : High Court of Singapore
Number of Matter : HC/CWU 40/2022
Last Day for Receiving Proofs : 9 July 2026 at 5:00 pm by email to [email protected]
Name of Liquidators : Paresh Tribhovan Jotangia and Ho May Kee
Address : c/o Grant Thornton Singapore Private Limited, 8 Marina View, #40-04/05 Asia Square Tower 1, Singapore 018960

 

Photo credit: steve pb from Pixabay
Published: 15 June, 2026

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Winding up

Singapore: Notice of dividend issued for Hin-Leong linked Ocean Tankers

Second interim dividend for Hin Leong Trading’s shipping arm, Ocean Tankers Pte Ltd, is scheduled to be released from 31 July, according to Government Gazette notice.

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Published

3 days ago

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June 12, 2026

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RESIZED ocean tankers

A notice of dividend for Ocean Tankers Pte Ltd, the shipping arm of collapsed oil trader Hin Leong Trading that is currently in liquidation, was published in the Government Gazette on June 11.

Ocean Tankers is part of a group of companies which include troubled Hin Leong, Universal Terminal, Tuas Terminal, and Ocean Bunkering Services (OBS).

It was reportedly owned by Lim Oon Kuin, the founder of Hin Leong Trading, and his daughter Lim Huey Ching. 

The following are details of the notice of dividend:

Name of Company : Ocean Tankers (Pte.) Ltd (In Liquidation)
Unique Entity No. / Registration No. : 197800020G
Address of Registered Office : One Raffles Quay, North Tower, Level 18, Singapore 048583
Court : General Division of the High Court of the Republic of Singapore
Number of Matter : HC/CWU 117/2021
Amount per centum : Second interim dividend of 2.00% of all admitted claims of unsecured creditors
When payable : 31 July 2026
Where payable : c/o Ernst & Young LLP, One Raffles Quay, North Tower, Level 18, Singapore 048583 

Related: Singapore: Notice of intended dividend issued for Ocean Tankers Pte Ltd
Related: Hin Leong in debt restructuring exercise; Ocean Tankers a separate entity, says CEO
Related: Ocean Tankers legal team publishes application to be placed under judicial management
Related: Judicial management applications for Hin Leong Trading and Ocean Tankers delayed
Related: Judicial managers of Ocean Tankers discover discrepancies and fraud in exposure claims
Related: Judicial managers of Ocean Tankers to present restructuring proposals to owners

 

Photo credit: Manifold Times
Published: 12 June, 2026

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Winding up

Singapore: Xin Hui Shipping to be wound up voluntarily, creditors to submit claims

Creditors are required on or before 11 July 2026 to send in their names and addresses and particulars of their debts or claims to appointed liquidators, says notice.
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Published

3 days ago

on

June 12, 2026

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Several resolutions for Xin Hui Shipping Pte Ltd, a subsidiary of the Lim family owned Xihe Holdings Pte Ltd, were made during an extraordinary general meeting held on 3 June, according to a notice in the Government Gazette on Friday (4 July).

The meeting was held at 8 Marina View, #40-04/05, Asia Square Tower 1, Singapore 018960 and by electronic means at 10am. 

The following resolutions were duly passed during the meeting:

SPECIAL RESOLUTION – WINDING-UP

That the Company be wound up voluntarily pursuant to Section 160(1)(b) of the Insolvency, Restructuring and Dissolution Act 2018.

ORDINARY RESOLUTION – APPOINTMENT OF LIQUIDATORS

That Mr. Lau Chin Huat and Mr. Yeo Boon Keong of Technic Inter-Asia Pte Ltd, 50 Havelock Road, #02-767, Singapore 160050 be and are hereby appointed as joint and several liquidators to conduct the said winding-up and that their remuneration be fixed on the usual scale of their professional charges for the work involved.

SPECIAL RESOLUTION – DISTRIBUTION OF ASSETS IN SPECIE

That the liquidators of the Company be authorised to exercise any of their powers given by Section 177, 144 (1) and (2) of the Insolvency, Restructuring and Dissolution Act 2018 and to distribute to members, in specie, any part of the assets of the Company.

In another notice, the liquidators said creditors for the company are required on or before the 11 July 2026 to send in their names and addresses and particulars of their debts or claims, and the names and addresses of their solicitors (if any) to the liquidators. 

Liquidators may also require creditors to, “come in and prove their debts or claims at such time and place as shall be specified in such notice, or in default thereof they will be excluded from the benefit of any distribution made before such debts are proved.”

The liquidator can be contacted at the following address:

Lau Chin Huat
Yeo Boon Keong
Joint and Several Liquidators
c/o Technic Inter-Asia Pte Ltd
50 Havelock Road #02-767 Singapore 160050
Tel: 6561 0398 Fax: 6222 1855
Email: [email protected]

 

Photo credit: steve pb from Pixabay
Published: 12 June, 2026

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