The government has discovered that the now-defunct Multiply Philippines, Inc. (Multiply-Phil) received tax incentives amounting to P420 million in 2015 alone.
This was based on a report by the Fiscal Incentives Review Board (FIRB) Secretariat, the Department of Finance said Tuesday.
The findings were from the company’s audited financial statements on their operations for 2015, earning a net taxable income of P1.5 billion after deducting its income tax holiday (ITH) equivalent to P600 million in foregone revenues for the government that year.
Multiply-Phil, a subsidiary of the global social networking giant Multiply, Inc., was previously registered under the Subic Bay Metropolitan Authority (SBMA) and the Board of Investments (BOI) for tax perks in 2006 and 2009, respectively.
During the company's existence, it was granted seven years of ITH and a special corporate income tax (SCIT) rate of 5 percent on gross income earned (GIE) upon the expiration of its ITH.
Apart from these perks, the company was granted tax and duty-free importations on raw materials and capital equipment.
On top of the tax incentives, Multiply-Phil also received power subsidies for its operations at in Pasig amounting to P5.17 billion from 2012 to 2018, even though it failed to maintain the estimated employment of 20,000 workers, and invest another $2-billion in the planned Mindanao shipyard that was supposed to create 30,000 jobs.
The Enchong Dee feature project did not push through.
“This is the reason why we must impose stringent evaluation and impact analysis before the grant of tax incentives,” said Finance Assistant Secretary and FIRB Secretariat head Juvy Danofarata.
“Given the failure of this social networking site, jobs were lost and productivity in the area declined. The project cost the government so much money in foregone revenues that could have been granted to performing and more deserving business enterprises,” Danofrata said.
No comments:
Post a Comment