BAYOMBONG, Nueva Vizcaya, April 22(PIA) – The Bureau of Internal Revenue(BIR) expects to collect some P90 million from the town of Alfonso Castaneda for its accumulated withholding tax from 2008 to 2011 which remain unremitted up to this time.

“We are closely monitoring and assisting them because we see some problems, particularly on their tax remittances. But setting the record straight, this problem has nothing to do with the non-release of their fund share from the provincial government,” said lawyer Ma. Isabel Utit, BIR district officer here.

As host to the multi-million Casecnan Multi-Purpose Irrigation and Power Project(CMIPP), Alfonso Castaneda town gets a share from the Real Property Tax(RPT) payments of the contractor CE Casecnan Water and Energy Company(CECWEC) to the provincial government, earning its tag as the richest local government unit in the province.

Utit said the funds which had been released and disbursed by the LGU for various projects in Alfonso Castaneda but there was no withholding tax remittances paid yet for the BIR during the period.

Withholding Tax on Government Money Payments (GMP) – Percentage Taxes – is the tax withheld by National Government Agencies (NGAs) and instrumentalities, including government-owned and controlled corporations (GOCCs) and local government units (LGUs), before making any payments to non-VAT registered taxpayers/suppliers/payees

Lately in 2012, the provincial government withheld the release of its RPT share due to the alleged misuse of funds based on the findings of the Commission on Audit(COA).

With this, governor Luisa Cuaresma also wrote Alfonso Castaneda mayor Jerry Pasigian to settle first the COA findings and its recommendations before they will allow the release of their annual RPT share.