PRESIDENT Ferdinand “Bongbong” 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) amid his administration’s rightsizing policy, the Malacañang said.
Executive Secretary Lucas Bersamin signed Administrative Order 4 on February 20, transferring the function of the OSS Center to the Bureau of Internal Revenue and Bureau of Customs.
The OSS Center was created under Administrative Order 266 for the orderly and expeditious processing of tax credits and duty drawbacks under various laws.
“All other assets and liabilities of the OSS Center shall be transferred to the Department of Finance in accordance with pertinent auditing laws, rules and regulations except all cash separately held in trust or otherwise by the OSS Center, which shall be directly remitted to the National Treasury,” read the order.
The move was made following the recommendation of Finance Secretary Benjamin Diokno over two reasons: some OSS Center officials and employees have been found to have committed a series of several tax credit scams involving billions of pesos over the years; and to streamline revenue operations and reduce administrative expenses.
Diokno said that since 2016, the OSS Center has not processed and issued any tax credit certificates.
“It is not practical for the government to provide for its budget every year since it does not perform its functions anymore,” he said.
Employees who will be affected by the order will receive separation benefits unless they are appointed to other positions in the government.
“Within 90 working days upon the effectivity of the AO, the DOF secretary shall fully implement the abolition, including the disposition and transfer of the OSS Center’s functions, personnel and assets as may be necessary,” the Malacañang said. (SunStar Philippines)