The Department of Finance (DOF) withheld the grant of P319 million worth of tax perks to a textile firm flagged by the Commission on Audit (COA) due to alleged tax credit certificate (TCC) “irregularities.”
The DOF said in a statement yesterday it withheld the grant of a P57 million in refund and another P262 million in tax credits claimed by the Bulacan-based textile firm covered by a special investigation of the COA on “irregular” TCCs issued during the past administrations.
Through its One-Stop Inter-agency Tax Credit and Duty Drawback Center (OSS), the DOF informed the Department of Labor and Employment of its decision to put on hold the request of the textile company pending the final results of the COA special audit on TCCs issued from 2008 to 2014.
The company and its affiliates are covered by the COA Special Audits Office Report 2018-06, with findings of irregularities on the TCCs issued to each company for years 2008-2014, according to letter to Labor Secretary Silvestre Bello from the OSS in response to an
earlier referral of the request of the company’s president to have the firm’s P57 million tax refund and TCCs amounting to P262 million processed by the OSS.
The OSS pointed out COA has begun issuing notices of disallowance to the companies for TCCs that were found to be “tainted with irregularities” and against the involved OSS officials and personnel for their participation in their issuance.
“Due to these developments and the enormity of the amount involved, the DOF and OSS center (are) taking precaution(s) before any request for TCCs, tax debit memos or duty drawbacks are acted upon,” the OSS letter to Bello said.