Government auditors have flagged the Municipality of Kawit, Cavite for failing to remit P167,875.98 in Special Education Fund (SEF) taxes to the Bureau of Internal Revenue (BIR), potentially exposing the local government to penalties and surcharges.
In a Commission on Audit (COA) report, auditors found that the municipality failed to comply with BIR Regulation No. 2-98, which requires taxes withheld to be remitted within 10 days following the month of withholding.
The subsidiary ledgers reviewed by state auditors showed that while the municipality withheld P449,221.61 in taxes, only P365,618.73 was properly remitted to the BIR.
The unremitted balance of P167,875.98 included taxes withheld from previous years that remained unpaid.
Monthly discrepancies were particularly notable, with January showing P57,761.40 in remittances against P44,999.79 in withholdings.
Several months, including April, June, August, and September, showed no new remittances despite ongoing tax obligations.
In response to the findings, auditors recommended that the Municipal Mayor Angelo Aguinaldo direct both the Municipal Treasurer and Accountant to immediately remit all outstanding taxes.
COA reminded the Mayor of the importance of adhering to the 10th-day deadline to avoid additional financial penalties.
The Municipal Accountant has been instructed by the Local Chief Executive to analyze the composition of previously withheld taxes and expedite their remittance to the BIR.
The delayed remittances raise concerns about the municipality’s financial management practices and could result in additional costs to local taxpayers through penalties and surcharges.
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