Under-remremittance of Withholding VAT and EWT
National Housing Authority · 2023
This summary was generated automatically from the source document and may contain errors. It is not an official interpretation and should not be relied upon as legal guidance. Review the original excerpt and source document to verify before citing or acting on it.
What Happened?
Category: Tax ComplianceIssue: Non-complianceThe wrong tax base was used to calculate withholding taxes for resettlement projects, causing a shortage in tax remittances to the government.
Why It Matters
Recommended Actions
- Seek the opinion of the BIR on the issue.
Original Audit Finding Excerpt
"incorrect tax base was used in the determination of withholding VAT and EWT for the payment of 26 resettlement projects resulting in under remittance of VAT and EWT totaling to P1.168 million, contrary to Section 114 (c ) of National Internal Revenue Code (NIRC), as amended by Tax Reform for Acceleration and Inclusion (TRAIN) and Section 2.57.2 of BIR Revenue Regulations as amended by Section 2 of RR No. 11-2018."