MANILA, Philippines --- The Commission on Audit (COA) said the Senate failed to withhold and remit income tax on certain benefits of officers and employees in violation of certain regulations of the Bureau of Internal Revenue (BIR)
COA said that as a result of this, it deprived income due to government.
The COA did not accept the explanation by the Office of the Senate President, which claimed that the benefits were not subject to withholding tax.
The Senate argued that PERA or the Personal Economic Relief Assistance in the amount of P2,000 per month and the Representation Transportation Allowance (RATA) are not subject to tax.
"There is no dispute that Personnel Economic Relief Assistance (PERA) and the Representation and Transportation Allowance (RATA) as fixed by the General Appropriations Act (GAA) are not taxable," the COA said, adding that the auditors did not state it in their list of benefits. Same with the 13th month pay, cash gift, and productivity incentive benefit while clothing allowance is within the limit as non-taxable.
Additional Representation Allowance and Transportation Expense (RETE) and additional Extraordinary and Miscellaneous Expense (EME) is on top of the RATA and EME provided under the GAA, the COA pointed out.
"Further, the statement of management affirmed our position that subject benefits are subject to withholding tax... (which) may be viewed as fringe benefits to fringe subject to benefit tax but Senate is not covered because fringe benefit tax is applicable to private corporations," the COA noted.
In its 2011 report, the COA said that while the Senate was able to remit a total of P107,054,036.09 for the year 2011, state auditors claimed that the remittances excluded "withholding taxes due on certain allowances."
The COA cited some benefits enjoyed "free of tax" by hundreds of Senate officers and personnel. They were outlined as anniversary bonus, rice allowance, special technical assistance, additional food subsidy, 8th salary range level allowance, longevity pay, food subsidy, cost of living allowance, mid-year economic assistance, financial relief assistance.
Other Senate benefits include: education assistance, additional RETE, additional extraordinary EME, grocery and transportation allowance, efficiency incentive benefit, performance benefit, and SP Yuletide assistance, and milestone award.
"The personnel benefits were granted pursuant to Section 2 of the Special Provisions Applicable to the Congress of the Philippines, which provide, among others, that the Senate President is authorized to fix and determine the salaries, allowances and other benefits of its respective members, employees and consultants," the COA report read.
article from
http://ph.news.yahoo.com/coa-asks-senate-taxes-134016944.html
At least COA NOW does its job.
ReplyDeleteKalakaran na kasi yan.
Sa isang office, kung anong sistema ang nadatnan mo, chances are, ipapasa lang yun sa mga papalit na termino, hangga't walang sisilip na mali pala ang sistema, tuluy-tuloy lang iyan. At least ngayon, alam na nila kung saan sila nagkamali.
Teka, kaninong sistema ba ito namana?
Sometimes ignorance of the law especially of the provisions of the National Internal Revenue Code (NIRC) makes most of the taxpayers guilty.
They do not intent to evade but they just simply do not know what to do.
Provisions of NIRC like those of any other Law are open to many different interpretations, however, in the end, only one is true and correct.
Kahit kami dito sa private sectors, madami ang nagkakamali sa interpretations.
That FRINGE BENEFIT/DE MINIMIS/INCOME TAXES PART of NIRC are so very tricky.
Each benefit has an annual threshold. Any excess is taxable.
Ignorance of the law excuses no one but those who implement them should exert extra effort to educate the taxpayers.
BIT I AM SURE THIS CASE DO NOT CONSTITUTE FRAUD. THE SENATE HAD NO MALICIOUS INTENT. JUST PLAIN IGNORANCE. REMEMBER NOT ALL SENATORS ARE CPAs and LAWYERS. So are they assistants and clerks. In such case, lower penalty and charges.