The National Housing Authority (NHA) failed to withhold certain taxes (VAT and Expanded Withholding Tax) on payments related to socialized housing projects and supplier payments for the year 2017. The tax agency initially assessed a deficiency of over P111 million, but after review it was reduced to about P9.5 million. NHA paid about P6.5 million of that, but the remaining P3.06 million in interest is still unresolved, with a request for cancellation pending.

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Original Audit Finding Excerpt

"In compliance with the requirements set forth by BIR Revenue Regulation (RR) Nos. 15-2010 and 19-2011, the following are the details of taxes and withholding taxes paid and accrued by NHA: The NHA, being the primary government agency in charge of providing housing for the underprivileged and homeless, is exempt from the payment of all fees and charges of any kind, whether local or national, such as income and real property taxes. Additionally, all documents or contracts executed by and in favor of the NHA shall also be exempted from payment of documentary stamp tax and registration fees including fees required for the issuance of transfer certificates of titles per Section 19 of RA No. 7279, otherwise known as the UDHA of 1992, providing tax incentives to GOCCs and LGUs as well as Private Mortgage Program, amending for the purpose pertinent provisions of Sections 2.4 and 5 of RR No. 9-93. As at December 31, 2024, the NHA has no Preliminary or Final Assessment Notice, except for a No"

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