Metro Manila (CNN Philippines, February 22) — President Ferdinand Marcos Jr. has ordered the abolition of the Department of Finance’s One-Stop-Shop Inter-Agency Tax Credit and Duty Drawback Center (OSS Center) amid the administration’s rightsizing efforts.
According to Administrative Order (AO) 4 signed by Executive Secretary Lucas Bersamin on Feb. 20 but made public on Wednesday, the OSS Center’s functions of processing and issuing tax clearance certificates and duty drawbacks will be transferred to the Bureau of Internal Revenue (BIR) and Bureau of Customs (BOC), respectively.
“All other assets and liabilities of the OSS Center shall be transferred to the Department of Finance (DOF) 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,” the order read.
The order also provides that personnel affected by the move will receive separation benefits unless they are appointed to other government positions.
In a statement, the Presidential Communications Office said Finance Secretary Benjamin Diokno recommended the OSS Center’s abolition to Marcos.
“First, 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,” Diokno was quoted as saying.
“Second, its abolition and transfer of functions under the BIR and the BOC are in line with the Marcos Jr. administration’s push to right size government. This will streamline revenue operations and reduce administrative expenses,” he added.
Diokno also pointed out that the OSS Center has not processed and issued any tax credit certificates since 2016, deeming it “not practical” for the government to provide for its yearly budget.
Within 90 working days upon the effectivity of the order, the Finance 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 OSS Center was created by AO 266 issued in 1992 under the administration of then President Cory Aquino for the “orderly and expeditious” processing of tax credits and duty drawbacks under various laws. The BIR and BOC were among the members of the center.
