Capitol failed to remit GSIS premiums, taxes

By: Jose Santino S. Bunachita July 31,2016 - 10:58 PM

The Cebu provincial government has failed to remit P17.3 million to the Bureau of Internal Revenue, representing the 20 percent share of the national government of the Development fund and Special Education Fund (SEF) which the province collects as additional tax on real property.

At the same time, the Commission on Audit (COA) also discovered that the province failed to remit P2.86 million in premiums from Capitol employees to the Government Service Insurance System (GSIS) as of January 2016.

In its Annual Audit Report of the province, COA said the 20 percent contribution from the Development Fund and the SEF should have been remitted by the province to the BIR on or before January 15, 2015.

But on December 31, 2015, the provincial government still had not remitted the amount to the BIR, state auditors said.

“Non-remittance of these balances deprives the government of additional income and the utilization thereof and subjecting the withheld amount to penalties/surcharges for delayed remittance,” state auditors said.

COA said the failure to remit violates Section 69 of Presidential Decree 1445 as well as BIR Revenue Regulations No. 2-98.

COA recommended that the Provincial Accounting Office be directed to immediately remit all the taxes in order to avoid penalties.

The accounting office is also directed to ensure that all taxes withheld be remitted not later than the 10th day of the following month in compliance with BIR regulations.

In its report, the COA quoted the provincial accountant as saying that he will check on the failure of remittance.

Employees’ premiums

Meanwhile, COA also asked the province to explain why there are unremitted GSIS premiums collected from the employees from previous years.

COA found P2.86 million of the withheld premiums were still not remitted to the GSIS as of end of last year and even until January 31 this year.

“(This) will result to the imposition of interest on delayed remittances to the provincial government and the suspension of all loan privileges and the disqualification to receive yearly dividends by the affected member-employees,” state auditors said.

Under Section 14.1 of Republic Act 8291, government agencies should remit to the GSIS the employees’ and the agency’s contributions within the first ten days of the following month.

COA also asked the province to identify the personnel whose GSIS contributions haven’t been remitted and that their contributions be remitted immediately.

COA also reminded the Capitol to strictly observe guidelines of the GSIS remittances in the future.

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TAGS: additional tax on real property, Annual Audit Report, BIR, Cebu Provincial Government, Commission on Audit, Government Service Insurance System, SEF, Special Education Fund

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