In a report dated July 6, 2018, the Commission on Audit (COA) found that from 2008 to 2014, the One-Stop Shop Inter-Agency and Duty Drawback Center (OSS) erroneously issued around 3,231 Tax Credit Certificates (TCCs) contrary to the Omnibus Investments Code of 1987, to the detriment of the Government. In particular, 8.85 billion pesos tax credits were overstated and supported by spurious documents; while 2.34 billion pesos tax credits were granted to claimants whose fiscal incentives have already expired.
In response, I have ordered the creation of a Task Force composed of the respective Undersecretaries of the Revenue Operations Group, Legal Affairs Group, and the Policy Development and Management Services Group to recover the value of 11.18 billion pesos worth of undue tax credits granted to ineligible or non-existent textile companies by the OSS from 2008 to 2014.
The Task Force resolved to prioritize the following:
First: Cancellation of Tax Credit Certificates that are still in circulation; and coordination with the Bureau of Internal Revenue and the Bureau of Customs in the assessment of taxpayers who applied these erroneous Tax Credit Certificates against their tax liabilities.
Second: Investigation and administrative sanctions against erring OSS personnel.
Expect this Department to pursue the appropriate charges against all public officers and private persons who manipulated and unjustly benefited from the tax credit process with the OSS.
A copy of the COA report has been furnished to the Board of Investments for appropriate action against accredited enterprises.
-oOo-