KAWIT, Cavite—The Commission on Audit (COA) has flagged the municipal government of Kawit, under the administration of Mayor Angelo Aguinaldo, for under-collections amounting to ₱250,488.13 in real property taxes (RPT) from January to March 2018.

The discrepancies stem from errors in the computation of penalties, discounts, and tax dues, as well as lapses in applying relevant provisions under Republic Act (RA) 7160, or the Local Government Code, and the municipality’s Revised Revenue Code.

According to the COA report, Kawit failed to impose penalties on at least four taxpayers who experienced significant delays in paying their dues.

The municipality also granted excessive discounts, including a 20% reduction when only 10% was applicable, resulting in a shortfall of ₱886.69.

Additionally, there were errors in computing tax dues and penalties, contributing to the financial loss.

The report revealed that Kawit’s collection officers inconsistently applied the rules on discounts for advance payments and penalties for late payments.

Under RA 7160, taxpayers are subject to a 2% monthly interest on unpaid RPT, capped at 36 months.

Meanwhile, advance payments may qualify for discounts of up to 20%.

An audit of official receipts from 2000 to 2017 revealed errors that led to a total under-collection of ₱234,529.57 due to miscalculated penalties.

From 2015 to 2017, penalties amounting to ₱14,510.09 were not imposed, while computations for 2018 receipts showed additional shortfalls of ₱561.79.

COA recommended that the municipality strictly adhere to the provisions of RA 7160 and its own Revenue Code to avoid revenue losses and ensure fair tax administration.

Auditors also urged local officials to conduct regular training for collection officers to address the inconsistencies.

The Kawit municipal government has yet to issue a statement on the matter.