MANILA - A textile company based in Bulacan province is being investigated for alleged "irregular" tax credit certificates (TCC), prompting the Philippines' finance department to withhold its P57-million grant and P262-million tax credit refund, the agency said Monday.
The Commission on Audit (COA) is looking into the TCCs issued to Indo Phil Group of Companies by past administrations, according to the Department of Finance (DOF).
Pending the final decision from the investigation, the DOF and the Department of Labor and Employment requested to put the refund on hold.
“We highlight that Indo Phil Acrylic Manufacturing Corp. (IPAMC), Indo Phil Cotton Mills Inc. (IPCMI), and Indo Phil Textile Mills Inc. (IPTMI) are covered by the COA SAO (Special Audits Office) Report 2018-06, with findings of irregularities on the TCCs issued to each company for years 2008-2014,” Emee Macabeles, executive director of the One-Stop Inter-agency Tax Credit and Duty Drawback Center, said in a report to Labor Secretary Silvestre Bello III.
The group's president, Shanti Sipani, requested to have their refund processed, but the DOF was "taking precautions" due to the "enormity" of the amount involved, Macabeles said.
Indo-Phil is a Filipino-Indian joint venture based in Marilao, Bulacan. Its business includes textile firm Indo Phil Textile Mills Inc. (IPTMI), among others.