Incorrect Income Tax Return and Non-recognition of Creditable Withholding Taxes
National Housing Authority · 2023
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What Happened?
Category: Financial ManagementIssue: Non-complianceNHA incorrectly reported its income as fully tax-exempt even though it earns from commercial activities, and did not record creditable withholding taxes. This could result in additional taxes, penalties, and surcharges from the BIR.
Why It Matters
Recommended Actions
- Review and update the COR of NHA, declaring all the sources of income to ascertain correct tax obligations;
Original Audit Finding Excerpt
"26 AGENCY ACTION PLAN and STATUS OF IMPLEMENTATION RESULTS OF COA VALIDATION Ref. Audit Observations Audit Recommendations Agency Action Plan Status of Implementati on Reason for Partial/Delay / Non- Implementation, if applicable Action Taken/Action to be Taken Date of Follow- up Status of Implemen- tation Actual Implementation Date Remarks Action Plan Person /Dept. Responsible Target Implementation Date From To From To The Department/Offices/ Unit to: a. Enhance the memorandum issued to RO/SO/DOs offices by including a detailed matrix or schedule of total outstanding dormant accounts, including all inter-agency fund transfers to LGUs per RO/SO/DO offices; b. Conduct thorough review, in coordination with the AD, analyze the details of Implemented Not Impleme"