DoF to go after firms, officials in TCC scam
The Department of Finance (DoF) has formed a task force to recover a total of P11.18 billion worth of tax credits “erroneously” granted to ineligible and non-existent textile firms from 2008 to 2014.
Citing a Commission on Audit (CoA) report, Finance Secretary Carlos Dominguez 3rd said the One-Stop Shop Inter-Agency and Duty Drawback Center or OSS incorrectly issued 3,231 tax credit certificates (TCCs) contrary to the Omnibus Investments Code of 1987.
“[To] the detriment of the government, in particular, P8.85 billion tax credits were overstated and supported by spurious documents, while P2.34 billion tax credits were granted to claimants whose fiscal incentives have already expired,” he told reporters on Friday.
Dominguez said he had directed the task force to recover the P11.18 billion.
TCCs still in circulation will be cancelled and the task force will coordinate with the tax and customs bureaus to assess taxpayers that applied the erroneous certificates against their tax liabilities.
OSS personnel will be investigated and sanctions imposed, Dominguez added.
“Expect this department to pursue the appropriate charges against the public officers and private persons who manipulated and unjustly benefited from the tax credit process with the OSS,” he stressed.
The task force is composed of Finance Undersecretaries Antonette Tionko of the Revenue Operations Group, Bayani Agabin of the Legal Affairs Group and Gil Beltran of the Policy Development and Management Services Group.
A copy of the COA report, Dominguez said, has been turned over to the Board of Investments “for appropriate action against the accredited enterprises.”
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