The government has lost billions of pesos in tax breaks granted to the defunct shipyard of Hanjin Heavy Industries and Construction Philippines Inc. at the Subic Freeport.
The Fiscal Incentives Review Board said a statement Tuesday Hanjin received tax incentives amounting to P370 million in 2015 alone.
The data is based on the company’s audited financial statements on operations in 2015. It posted a net taxable income of P1.234 billion after deducting an income tax holiday equivalent to P370 million in foregone revenues for the government that year.
HHIC-Phil, a subsidiary of the South Korean shipbuilding giant Hanjin Heavy Industries & Construction Co. Ltd., registered with the Subic Bay Metropolitan Authority and the Board of Investments to avail of tax perks in 2006 and 2009, respectively.
The company received seven years of income tax holiday and a special corporate income tax rate of 5 percent on gross income earned upon the expiration of its income tax holiday. Apart from these perks, the company received tax and duty-free importations on raw materials and capital equipment.