Lapeña takes charge of handing TCCs to claimants to cut delays, corruption

Customs Commissioner Isidro Lapeña recently vowed to release more tax credit certificates (TCCs) and make public their distribution to rightful claimants in order to avoid occasions of corruption and controversy.

TCCs are documents issued by BOC or issued jointly by the BOC and the Department of Finance (DOF) to refund taxes paid by big companies in cases of excess duties, canceled importation, or due to VAT input, or output tax.

Lapeña had been tipped off that a certain percentage of the TCCs have been dubbed as “pasalubong” or welcome gifts in the Bureau of Customs (BOC) for new commissioners.

A BOC insider also informed him that TCCs are sometimes used as bait to delay clearance of shipments and, thus, compel big companies to resort to bribes.

“This time, I decided that I will be the one to hand it (TCCs) over personally to inform the recipients that it belongs to them,” Lapeña said at a recent press briefing.

He revealed that upon his assumption as the new commissioner, there have been a big volume of tax credit certificates being processed.

“After one week, there’s another box. ’Yung una na lumabas na certificates involves P187 million and then the next batch involves around R358 million,” he said.

Lapeña explained that TCCs are usually piled up and are only processed once a new commissioner assumes post.

“For the sake of transparency, I will personally award the TCCs publicly, to inform everyone that there is no monetary consideration behind and it is being released to its rightful claimants,” he said.

Just last October 23, Lapeña awarded to SL Aboitiz Power and AP Renewables Inc. the tax credits amounting to R35,595 and R5,296,093 respectively covering January to June 2015 input tax refund.

“There will be no more withholding of tax certificates to prevent an avenue for corruption and to give back what is due to the transacting stakeholders. There’s no need for undue delays,” he said.