NFRDI Compliance With Tax Laws 2. The book balance of the account Due to BIR amounting to P625,511.

07 as of December 31, 2012 includes taxes withheld of P3,860.66 for over one year which were still unremitted. 2.1 Bureau of Internal Revenue rules and regulations prescribe that remittance of taxes withheld shall be on or before the tenth (10th) day of the month following the month the withholding was made as provided by Section 2.58 of Revenue Regulation 2.58 dated April 17, 1998, Returns and Payment of Taxes Withheld at Source. (A) Monthly return and payment of taxes withheld at source (2) (a) The withholding tax return, whether creditable or final, shall be filed and payments should be made within ten (10) days after the end of each month except for taxes withheld for December which shall be filed on or before January 25 of the following year. The penalty for the non-remittance is provided in Paragraph 3 Section 272 of the NIRC which states that :Every officer or employee of the Government of the Republic of the Philippines or any of its agencies and instrumentalities, its political subdivisions, as well as government-owned or controlled corporations, including the Bangko Sentral ng Pilipinas (BSP), who, under the provisions of this Code or rules and regulations promulgated thereunder, is charged with the duty to deduct and withhold any internal revenue tax and to remit the same in accordance with the provisions of this Code and other laws is guilty of any offense herein below specified shall, upon conviction for each act or omission be punished by a fine of not less than Five thousand pesos (P5,000) but not more than Fifty thousand pesos (P50,000) or suffer imprisonment of not less than six (6) months and one (1) day but not more than two (2) years, or both. As shown in the table on the next page, the amount remitted by the agency differs with the amount that was actually withheld and the amount of P3,860.66 representing taxes withheld from prior years to December 31, 2012 remained unremitted.
Tax Withheld Balance, 1/1/12 January February March April May June July August September October P 330,970.91 324,416.38 312,524.22 400,212.74 283,837.95 324,065.41 373,133.86 175,698.57 583,428.01 658,442.24 Tax Remitted P 595,764.55 305,817.86 324,299.84 312,640.76 400,212.74 339,767.59 324,050.95 397,878.86 175,698.57 583,423.77 Balance P 684,611.81 419,818.17 438,416.69 426,641.07 514,213.05 397,838.26 382,136.08 431,218.99 209,038.70 616,768.14 691,786.61

2.2

2.3

November 350,344.56 658,285.68 December 592,248.63 350,583.05 Total P 4,378,352.57 P 4,172,659.67 Less: Tax Remitted on January, 2013 pertaining to CY 2012 transactions Amount already due for remittance in CY 2012

383,845.49 625,511.07

621,650.41 P 3,860.66

2.4

Pursuant to the above-mentioned BIR rules and regulations, taxes withheld should be remitted on the 10th day of the month following the month of withholding. Failure to do so deprived the government of the necessary funds to implement other priority projects. It was also noted that per subsidiary ledger schedule, the subsidiary ledgers of the following accounts have negative balances totalling to P230.75, details shown below. Balance as of December 31, 2012 P (81.58) (148.97) (0.20) P (230.75)

2.5

SL Code 001-0002-0001-0060 001-0002-0001-0112 12-001-0001-0202 Total

Name Badilla, Sandra A. Aguila, Roselyn Nepons Gen. Mdse

2.6

The presence of negative balances was due to error in posting the withholding and remittances of taxes in the appropriate Subsidiary Ledger. We recommend that Management (a) instruct the OIC, Chief Accountant to remit immediately to the BIR the amount of P 3,860.66 and (b) investigate the negative balances appearing in the subsidiary ledgers and prepare necessary adjusting entries.

2.7

REGION 1 Compliance with Tax Laws and Regulations 1. Aware of the governments drive towards strong revenue generation, the agency has been consistently withholding tax, contractors tax and expanded withholding tax. These were remitted to the Bureau of Internal Revenue on a regular basis.
Amount of tax REMITTANCE Withheld TRA 5,116,943.81 4,801,509.93

Balance 315,433.88

2. Management informed the audit team that the balance was remitted in January and February 2013.

REGION 9
C. Compliance with Tax Laws 1. For the Calendar Year 2012, the Bureau of Fisheries and Aquatic Resources (BFAR), Regional Fisheries Office No. IX withheld taxes from compensation in the amount of P941,914.79 and from suppliers in the amount of P1,301,403.55, and the same was remitted to the Bureau of Internal Revenue (BIR), Zamboanga City during the same year.

RFTC 7

Compliance with Tax Laws Tax laws were faithfully adhered to by the agency. RFTC 9 . Compliance with Tax Laws 12. For the calendar year 2012, the RFTC Region IX withheld taxes for compensation and suppliers in the amount of P 437,188.76 of which P 432,569.74 was remitted to the Bureau of Internal Revenue ( BIR), Zamboanga City during the same year. BFAR CO Compliance with tax laws 1. Out of the total balance of the Due to BIR account of P14,473,999.50; P9,791,555.04 pertains to unremitted taxes from November 2012 to prior years contrary to BIR Revenue Regulation 2-98 dated May 17, 1998 and DOF-DBM-COA Joint Circular No. 1-2000 dated January 3, 2000. BIR RR 2-98 provides the regulations relative to the withholding of taxes and it specifically provides:
(2) WHEN TO FILE a) The withholding tax return, whether creditable or final, shall be filed and payments should be made within ten (10) days after the end of each month except

2.

for taxes withheld for December which shall be filed on or before January 25 of the following year. b) For large taxpayers, the filing of the return and the payment of tax shall be made within twenty five (25) days after the end of each month. c) The return for final withholding taxes on interest from any currency bank deposit and yield or any other monetary benefit from deposit substitutes and from trust funds and similar arrangements shall be filed and the payment made within twenty five (25) days from the close of each calendar quarter.

3.

DOF-DBM-COA Joint Circular No. 1-2000 provides the guidelines in the remittance of all taxes withheld by the use of Tax Remittance Advice (TRA) by National Government Agencies (NGAs) to the Bureau of Internal Revenue (BIR) and Section 3.4 states that:
3.4 All NGAs shall submit their letters of request duly supported by the STW on or before the 25th days of each month at the concerned DBM Office. The amount of request should be equal to the unremitted current and prior years taxes withheld as reflected under the credit balance of account 8-84-120; 3.4.1 Upon submission of its request, the NGA shall, likewise, file with the concerned Revenue District Office (RDO) a copy of the request and STW duly received by the DBM together with the required tax returns for all taxes withheld for compensation, expanded, final and government money payments (BIR Form 1601-C, 1601-E, 1601-F and 1600 respectively);

4.

It can be gleaned from the abovementioned regulations that taxes withheld shall be remitted to the BIR on the immediately succeeding month. Audit of the said account revealed that out of the total amount of P14,473,999.50, only P4,682,444.46 pertains to taxes withheld for the month of December 2012, as shown below:
2012 Beginning Balance January February March April May June July August September October November December Total Withheld Taxes P 20,997,586.98 1,787,472.33 1,150,258.24 2,032,736.13 1,426,036.35 3,236,439.26 1,722,848.16 2,246,060.60 874,491.69 1,905,593.14 2,618,995.95 3,125,214.54 4,683,840.96 P 47,807,574.33 Remittance 4,682,224.49 913,144.62 1,367,649.49 2,694,810.42 1,528,700.62 3,206,582.07 1,567,623.32 1,171,956.73 1,877,470.30 10,754,410.03 622.77 3,568,379.97 P 33,333,574.83 P Balance P 16,315,362.49 17,189,690.20 16,972,298.95 16,310,224.66 16,207,560.39 16,237,417.58 16,392,642.42 17,466,746.29 16,463,767.68 7,614,950.79 10,233,323.97 9,790,158.54 14,473,999.50 P 14,473,999.50

5.

We recommend that management determine the cause why the withheld taxes of P9,791,555.04 was not remitted; and prepare the adjustment and/or remit the same.

6.

Management commented that reconciliation of the records pertaining to unremitted taxes is on-going and shall be remitted. Necessary adjustments will be taken up as recommended.

REGION 7 Compliance with Tax Laws Tax laws were faithfully adhered to by the agency.

Statement of Audit Suspensions, Disallowances and Charges (SASDC) The Statement of Audit Suspensions, Disallowances and Charges (SASDC) as of December 31, 2012, shows the following ending balances: Notice of Suspension Notice of Disallowance Notice of Charge Totals 320,707.50 22,737,372.39 _____________ P 23,058,079.89 P

REGION 10 D. Compliance With Tax Laws 1. Management faithfully complied with the provisions of the 1997 National Internal Revenue Code and has remitted to the Bureau of Internal Revenue overdue taxes withheld from salaries and wages of officials and employees and purchases from suppliers in the total amount of P 5,945,860.02 Section 58 of the 1997 National Internal Revenue Code states, in part, that - Taxes deducted and withheld xxx by withholding agents shall be covered by a return and paid to xxx an authorized Treasurer of the city or municipality xxx where the principal office is located. The return for final withholding tax shall be filed and the payment made within twenty-five (25) days from the close of each calendar quarter, while the return for creditable withholding taxes shall be filed and the payment made not later than the last day of the month following the close of the quarter during which withholding was made. Audit of the account Due to BIR disclosed that as of year-end, management has religiously remitted their taxes withheld from salaries and wages of officials and employees and purchases from suppliers. Total Taxes withheld for the year amounted to P 5,947,397.46 and remitted a total of P 5,945,860.02 leaving a balance of P 1,537.44. The composition of withheld and remitted taxes is presented in Annex G.

13.1

13.2

We commend BFAR-RO No. X managements religious compliance with BIR tax laws.

REGION 13 B. Compliance With Tax Laws 1. BFAR Regional Field Office No. XIII complied and withheld taxes from compensation of its officials and employees amounting to P907,382.88 and withheld a total tax of P4,209,474.49 from procurement of goods and services from its suppliers and contractors and remitted a total of P5,116,857.37 to the Bureau of Internal Revenue.

CAR

Total taxes withheld for CY 2012 on compensation and from suppliers amounted to P3,185,408.79. Of said amount, only P33,260.24 was not yet remitted while P3,218,669.03 was remitted to the Bureau of Internal Revenue (BIR) thru various Tax Remittance Advices (TRAs) and checks.

REGION 4A

Compliance with Tax Laws 1. The remittances to the Bureau of Internal Revenue (BIR) have been closely monitored by the Accounting personnel to ensure that all taxes withheld are remitted to the BIR on or before the prescribed period. REGION 4B Compliance with Tax Laws 1. The remittances to the Bureau of Internal Revenue (BIR) have been closely monitored by the Accounting personnel to ensure that all taxes withheld are remitted to the BIR on or before the prescribed period. REGION 3 Compliance to Tax Laws The agency complied with the provisions of tax laws particularly on the withholding and remittance of taxes to the Bureau of Internal Revenue pursuant to Executive Order No.

651 as implemented by BIR Revenue Regulations No. 1-87 dated February 16, 1991 and April 2, 1987, respectively. The balance of Due to BIR account in the amount of P1,377,571.43 were remitted on January 8, 2013.