NHA failed to withhold VAT and Expanded Withholding Tax for CY 2017
National Housing Authority · 2022
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What Happened?
Category: Financial ManagementIssue: Non-complianceThe National Housing Authority did not properly withhold taxes on certain payments for socialized housing projects and suppliers in 2017, leading to a tax discrepancy. Although they paid most of the assessed amount, there is still a pending request to waive the interest portion.
Why It Matters
Recommended Actions
No recommendations are available for this finding yet.
Original Audit Finding Excerpt
"As at December 31, 2022, the NHA has no Preliminary or Final Assessment Notice, except for a Notice of Discrepancy for CY 2017 transactions. This notice pertains to the non-withholding of VAT and Expanded Withholding Tax for socialized housing projects without the Certificate of Tax Exemption (CTE) and deficiency in withholding various payments to suppliers. The total tax deficiency, including interest and penalty, initially amounted to P111.635 million. However, it has been reduced to P9.542 million. Out of the total final assessment of P9.542 million, P6.482 million was remitted on December 22, 2021, and the remaining P3.060 million, representing interest, has a pending NHA request for the abatement or cancellation of tax liabilities."