GPB, ensuring that the proposed PPAs are properly charged to the GAD
Fund.
Delayed Remittance of Withheld Taxes
19. Taxes withheld from payments for purchases and compensation were not fully
remitted within the prescribed period specified in Item B.4 of the Bureau of
Internal Revenue (BIR) Revenue Memorandum Circular (RMC) No. 23-2012
dated February 14, 2012, which may hamper the government’s immediate use of
these funds for various programs and projects and may subject the withheld
amounts to penalties and surcharges for delayed remittances.
19.1 Paragraph B of BIR Revenue Memorandum Circular No. 23-2012 dated
February 14, 2012, provides, in substance, the responsibilities of government
officials and employees as withholding agents. Among these responsibilities are
the proper withholding of the correct amount of tax and the timely remittance
of the withheld taxes within the prescribed periods.
19.2 Paragraph C of the RMC outlines the applicable penalties for specific violations.
Failure to fulfil their responsibilities expose government officials or personnel
to the risk of incurring applicable interest and surcharges.
19.3 An examination of the General Ledger (GL) for the “Due to BIR” account
revealed the following balances, totaling ₱33,161,213.94 as of December 31,
2024, for the General Fund, Special Education Fund, and Trust Fund:
Month Withheld Remittance Balance
January ₱ 41,438,777.46 ₱ 22,005,147.11 ₱ 19,433,630.35
February 10,937,298.13 13,260,035.84 (2,322,737.71)
March 14,536,887.41 8,809,113.59 5,727,773.82
April 13,265,876.19 9,346,290.46 3,919,585.73
May 20,463,194.86 13,081,950.75 7,381,244.11
June 17,408,297.31 14,210,339.87 3,197,957.44
July 23,073,077.36 32,558,524.08 (9,485,446.72)
August 13,125,811.65 22,056,783.38 (8,930,971.73)
September 13,906,460.44 15,404,473.73 (1,498,013.29)
October 25,646,894.43 23,269,076.67 2,377,817.76
November 17,074,862.80 14,635,055.87 2,439,806.93
December 30,717,840.83 19,797,273.58 10,920,567.25
Total ₱ 241,595,278.87 ₱ 208,434,064.93 ₱ 33,161,213.94
19.4 As shown in the table above, the taxes withheld in a particular month were not
remitted in full during the immediately succeeding month. Instead, the
remittances made were either lower than the amount withheld in the previous
month or higher in the following months, compensating for months with lower
remittances. A full or complete remittance would have reflected an amount
equal to the taxes withheld in the preceding month.
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