Requesting Entity: Department of National Defense

Issues Concern: Tax Clearance Certificate

Details

Whether the DND-SBAC can allow the submission by the bidder of a substitute document in lieu of a Tax Clearance Certificate of its subcontractor.

A bidder’s subcontractor who presented a Sworn Affidavit, in lieu of a tax clearance during the submission of bids, shall be ineligible under ITB Clause 8.2, and the subcontracting by the principal bidder of such portion shall be disallowed. Consequently, the principal bidder may still be declared eligible, but the portion it intends to subcontract shall be disallowed for failure to comply with the submission of the required Tax Clearance. As a result, the principal bidder would have to bid for that component proposed to be subcontracted.