DOF to go after individuals allegedly involved in anomalous use of P11B tax credit certificates

July 20, 2018

The Department of Finance (DOF) vowed Friday to recover over P11-billion worth of tax credit certificates and file appropriate charges to those who were allegedly involved in the anomaly.

In a press conference in Manila, Finance Secretary Carlos Dominguez III said he has created a task force to recover the value of P11.18-billion worth of undue tax credits granted to 33 textile companies by the One-Stop Shop Inter-Agency and Duty Drawback Center (OSS) between 2008 and 2014.

He said the DOF would also ask the help of the National Bureau of Investigation to investigate.

"We want to assure all taxpayers that we will recover as much as we can and we will bring the criminals to justice," Dominguez said, adding that appropriate charges would be filed against the public officers and private individuals allegedly involved in the anomaly.

The issue stemmed from the findings of the Commission on Audit, showing OSS failed to safeguard the current tax credit system from undue claims for it granted 3,231 tax credit certificates in the total amount of P11.18 billion to 33 textile companies.

COA reported that of the P11.18 billion, P8.85 billion in tax credits were overstated and supported by spurious documents, and another P2.34 billion in tax credit certificates were granted to claimants whose fiscal incentives have expired.

Dominguez refused to name any personality who could be involved in the alleged irregularity, saying that investigation would be undertaken.

He also assured that due process would be followed. Celerina Monte/DMS