September 24, 2022
  • September 24, 2022

More Textile Industry Tax Credits Rejected

By on May 16, 2022 0
Reuters

Commission on Audit (CoA) rejected more tax credit certiIfcates (TCC) issued to textile companies with a combined value of 3.83 billion pesos, the Department of Finance (DoF) said in a statement on Monday.

According to a CoA report presented to the DoF, the textile companies that illegally obtained TCCs from the One-Stop Shop Inter-Agency Tax Credit and Duty Drawback Center (OSS) were Silvertex Weaving Corp., Knitech Manufacturing, Inc., Capital -Roll Knit Corp., Uni-Glory’s Knitting Corp., Primeknit Manufacturing Corp., Tai-Cheng Integrated Resource, Inc., Miskhu Industrial Corp. and Universal PacificIfc Knitting Mills, Inc.

As of the end of 2021, previous denial notices issued by the CoA’s Office of Special Audits to the textile industry amounted to 3.41 billion pesos.

These tax credit certificates were illegally granted between 2008 and 2014.

Tax credit certificates, authorized by Executive Order 226, are generally issued to exporters registered with the Board of Investments (BoI). Through these certificates, exporters can obtain refunds on taxes paid on raw materials by offallocation of tax credits to other taxes due.

The DoF, BoI, Bureau of Customs and OSS were found to have wrongly issued TCCs to phantom exporters or companies that were not eligible for the tax credits.

The OSS is managed by the DoF, the Bureau of Internal Revenue and the BoI. — Tobias Jared Tomas