To address transparency in the release of tax credit certificates, Bureau of Customs Commissioner Isidro Lapeña said on Monday, October 23, certificates of tax refund will be publicly awarded during the regular flag raising ceremony.
“For the sake of transparency, I will personally award the TCCs publicly, to inform everyone that there is no monetary consideration behind and it is being released to its rightful claimants,” Commissioner Lapeña said.
Pursuant to Section 112 of the National Internal Revenue Code of 1997, Lapeña personally awarded to SL Aboitiz Power and AP Renewables Inc. the tax credits amounting to P35,595 and P5,296,093 respectively covering January to June 2015 input tax refund.
TCCs are documents issued by BOC or issued jointly by BOC and Department of Finance to refund taxes paid by big companies for cases of excess duties, canceled importation, or due to VAT input, or output tax.
It can be recalled that the issue of tax credit certificates came out during the Senate hearing last October 4 concerning TCC normally negotiated to fund “pasalubong” or welcome gifts to new commissioners.
Commissioner Lapeña said he received a tip from a concerned employee that a certain percentage of the TCCs goes to the pasalubong, “while some are being used as a bait to delay clearance of shipments and to compel big companies to give bribes.”
Lapeña explained that TCCs are usually piled up and are only processed once a new commissioner assumes post.
“There will be no more withholding of tax certificates to prevent avenue for corruption and to give back what is due to the transacting stakeholders: there’s no need for undue delays,” he said.
He also said that delays in processing are the root of graft and corruption.
Among the top priority of the Commissioner is trade facilitation, “there’s no need to give bribes or grease money to facilitate your shipments because that is our job.”
Commissioner Lapeña bared that he will talk to stakeholders whose TCC were put on hold.
Meanwhile, the Bureau of Customs Sub-port of Iligan has won a case against the surety company, First Nationwide Assurance Company, and now defunct National Steel Corporation for failure to pay import duties and taxes.
National Steel Corporation has shut down operation since 2000 still with liabilities and obligations to the government.
“We ran after the surety company, First Nationwide Assurance Company, for the payment of duties and taxes. With the sheer dedication and hard work of the bureau employees, the case was settled in favor of the government,” Lapeña said.
The settlement brought an additional revenue to the government amounting to P110 million.
“This amount is significant but not as significant that has been set by the employee of the bureau that can be an example to all,” Lapeña said as he commends Collector John Simon of Port of Iligan, and former CDO District Collector lawyer Ruby Alameda, and the Office of the Solicitor-General. (BOC-PR)
