By Ruth Abbey Gita-Carlos | Philippine News Agency
MANILA – President Ferdinand R. Marcos Jr. has ordered the abolition of the Department of Finance’s (DOF) One-Stop-Shop Inter-Agency Tax Credit and Duty Drawback Center (OSS Center), as part of his administration’s policy to rightsize the bureaucracy.
Under Administrative Order (AO) 4 inked by Marcos on Feb. 20, the OSS Center’s functions of processing and issuing tax clearance certificates (TCCs) and duty drawbacks will be transferred to the Bureau of Internal Revenue (BIR) and Bureau of Customs (BOC), respectively.
The mandate of the OSS Center, created by virtue of AO 266 signed in 1992, is to ensure the orderly and expeditious processing of tax credits and duty drawbacks under various laws.
“There is a continuing need for institutional strengthening and promotion of the economy, efficiency and effectiveness in the delivery of public service across all the executive departments and offices, consistent with the rightsizing of the Administration, including the rationalization of functions and activities carried out by the public sector,” the AO read.
“It is the policy of the National Government to rationalize the functional structures of agencies with complementary mandates and promote coordination efficiency and organization coherence in the bureaucracy,” it added.
Within 90 days from the effectivity of the AO 4, the DOF Secretary is directed to oversee the full implementation of the abolition, including the disposition and transfer of the OSS Center’s functions, personnel, and assets, as may be necessary.
“Subject to the approval of the DOF, the BIR and the BOC shall prescribe procedures to ensure that necessary control measures are established to safeguard against fraudulent claims in the processing and issuance of tax credits and duty drawbacks,” the order read.
All relevant files, documents and records under the custody of the OSS Center will be transferred to the BIR and BOC, according to AO 4.
All other assets and liabilities of the OSS Center will be transferred to the DOF, in accordance with pertinent auditing laws, rules and regulations, except all cash separately held in trust or otherwise by the OSS Center, which will be directly remitted to the National Treasury.
“The OSS Center personnel shall be separated from service and shall be allowed to receive separation benefits under applicable laws, rules and regulations, unless they are appointed to other positions in the government, in accordance with existing civil service rules. All vacant positions in the OSS Center shall be abolished,” AO 4 said.
Based on AO 4, the separation pay will be charged against the available funds of the DOF, and other funding sources that the Department of Budget and Management may identify, subject to existing budgeting, accounting and auditing laws, rules and regulations.
It was DOF Secretary Benjamin Diokno who recommended to Marcos the abolition of the OSS Center, saying its officials and employees have been found to have committed a “series of several tax credit scams involving billions of pesos over the years.”
Diokno also noted that the OSS Center has not processed and issued any tax credit certificates since 2016.
“It is not practical for the government to provide for its budget every year since it does not perform its functions anymore,” he said. “Second, its abolition and transfer of functions under the BIR and the BOC are in line with the Marcos Jr. administration’s push to right size government. This will streamline revenue operations and reduce administrative expenses.”
AO 4, which was made public on Wednesday, takes effect immediately upon publication in the Official Gazette or in a newspaper of general circulation. (PNA)
