DOF to go after public officials in P11-B tax credit scam

MANILA, Philippines — The Department of Finance on Friday said it will pursue appropriate charges against public officials and private individuals who have unduly benefited from the issuance of over P11 billion worth of tax credit certificates (TCC) to “ineligible and non-existent” textile companies between 2008 and 2014. 

In a statement, Finance Secretary Carlos Dominguez III said he has directed a high-level task force within the DOF to recover the value of P11.18 billion worth of undue tax credits granted to these firms by the One-Stop Shop Inter-Agency and Duty Drawback Center (OSS) during the six-year period. 

This was after a new Commission on Audit report discovered the erroneous issuance of 3,231 TCCs by the OSS from 2008 to 2014, in which P8.85 billion in tax credits were overstated and supported by “spurious” documents, and another P2.34 billion in TCCs were granted to claimants whose fiscal incentives have already expired. 

“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,” Dominguez said.

A copy of the COA report, Dominguez said, has been turned over to the Board of Investments “for appropriate action against the accredited enterprises.” — Ian Nicolas Cigaral