Four textile firms lose P377.3-m tax credits

The Commission on Audit issued notices of disallowance on tax credits worth a combined P377.29 million granted by the One-Stop Shop Inter-Agency Tax Credit and Duty Drawback Center (OSS) to four textile companies covering a four-year period from 2008 to 2012, the Department of Finance said over the weekend.

The COA Special Audits Office told Finance Secretary Carlos Dominguez III in a letter that it disallowed tax credit certificates granted by the OSS to Capital-Roll Knit Corp. amounting to P40.88 million; Uni-Glory’s Knitting Corp., which received P15.03 million-worth of tax credits; Primeknit Manufacturing Corp., PP15.76 million; and Tai-Cheng International Resource Inc., P20.01 million. 

For CRC, the notice was in addition to the COA decision on Feb. 21, 2020 disallowing 75 TCCs with a combined value of P285,578,315 issued between 2008 and 2012.

COA-SAO director Pearl Ramos said the disallowed tax credits of P40.88 million to CRC covered 10 TCCs issued between 2010 and 2011 while those disallowed for UKC covered five TCCs issued in 2010. 

Both CRC and UKC listed their addresses in Bulacan.