REPUBLIC OF THE PHILIPPINES PANANAW^

DEPARTMENT OF FINANCE
BUREAU OF IN"ERNAL REVENUE
Revenue I legion No. 6
Manila

Demand No.: 32-17-46176-2O2O-O43

Date Issued: lune 26,2020
Due Date: luly 26,2020

The President
POLYTECHNIC UNIVERSITV O
Mabini CamfU: . Anonas St.,
Zone 63 Brgy. 630,
Sta. Mesa, Manila
TIN: 000-450-150

Sir/Madam:

In connection with the investigation of your internal revenue tax liabili^ies for the taxable
year 2O17, pursu^nt to Letter of Authority SN^el.A201600G46176(LOA-032-2019-OQ00O076) dated
March 21,201;^ conducted by Revenue Officer Genesis Mae D. Sollano, please be informed that there
has been found due from you deficiency on Withholding of Value Added Tax and Expanded
Withholding Tax- to wit:

I. WITHHOLDING OF VALUE ADDED TAX

Basic Tax Due (Schedule 1) 6,576,104.23
Add: 12% In^erest (01/11/2018 to 07/26/2020) 2,006,342.38

TOTALAMOUNT DUE p 8,582,446.61

II. EXPANDED WITHHOLDING TAX

Basic Tax Due (Schedule 2) p 8,799,453.34

Add: 12% Interest (01/16/2018 to 07/26/2020) X670.212.20

TOTAL.-,^OUNT DUE p 11,469,665.54

GRAND TOTAL p 20,052,11X15

Please note that the interest and the total amount due will have to be adjusted if paid after
the date specified herein.

The complete details covering the aforementioned discrepancies established during the
investigation of this case are shown in the accompanying ANNEX-A of this letter.

The twelve percent (12%) has been imposed, starting the beginning of the year 2018 pursuant
to Revenue Regulation No. 21-2018 dated September 14,2018.

Polyteehn r. IJO:^"^v Of ^L
!<-• Finance
Office of.

Receive.,:
1 1
Date: —
 In view thereof, you are requested to pry on or before July 26, 2020 the aforementioned
deficiency tax liabilities in a duly authorized agent bank in which you are enrolled using the
electronic BIR Payment Form (eBIR Form 0605) within the time as shown in the enclosed assessment
notice. Afterwards, submit proof of payment thereof to the Office of The Regional Director, this
Region, located at 8th Fir., BIR Bldg. I, Solana St., Intramuros, Manila for updating of your records
and cancellation of the herein FLD, if warranted.

•<%
We hope that you will give this matter your preferential attention.

Very truly yours.

RR6-IASC/EAO/RVB/KSC
SN: eLA20160O046176/LOA-032-2Ol9-0OO00076 dated March 21,2O19
 "Annex-A"

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE
PANANAW
BUREAU OF INTERNAL REVENUE
Revenue Region No. 6 0
Manila

June 26,2O20

DETAILS QF DISCREPANCIES
'(Demand No. 32-17-46176-2020-043)

The President
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
Mabini Campus Anonas St.,
Brgy. 630 Zone 63,
Sta. Mesa, Manila
TIN: 000-490-150

Sir/Madam:

I. WITHHOLDING OF VAT
^" Basic Tax Due, 6576.104.23 - Investigation disclosed that you failed to withhold and remit the

corresponding creditable withholding of Value Added Tax (VAT) arising from Government Money Payments
(GMP) amounting to P326/479.767.60, pursuant to Section 114(C), NIRC of 1997 and Section 4.114-2 of
Revenue Regulation (RR) No. 16-2005, as amended, to wit:

Schedule 1:

Total Government Money Payments (Schedule 2) P 334,919,206.81

Less: GMP subject to 3% Percentage Tax (Schedule 1.1) 8.439.43921
Total GMP subject to WVAT P 326,479,767.60
Multiply By: WVAT Rate
Withholding of VAT due P 16,323,98838
Less: Payments per BIR Form 1600 (Schedule 1.1) 9.747,884.15
Basic Tax Due P 6.576,104.23

Schedule 1.1- GMP per Return (BIR Form 1600)

Percentage Tax (3%) VAT (5%)

Month
Tax Base Tax Due Tax Base Tax Due
January P 790,124.68 P 23,703.74 P 3,863,067.60 P 193,153.38
February 885.344.00 26,560.32 12360,901.43 618,045.07
March 30220930 9,06629 9.934,80233 496,740.12
April 387,49730 11,624.93 11,150,45935 55732298
May 1,550,597.80 46,517.93 16,621,027.94 831,051.40
June 261,138.15 7,834.14 9.014,371.33 450,71837
July 435,491.87 13,064.76 8353,75225 442687.61
August 532291.05 15,968.73 21,486,229.73 1,074,311.49
September 712,06430 21,361.94 37,406,963.92 1,870,34820
October 342,044.40 10,261.33 34394,638.12 1,729,731.91
November 984,42535 29332.77 10378,610.81 528,93054
December 1,256,210.21 37,686.31 19,092857.96 954,642.90
Total P 8339,43921 P 253,183.18 P 194,957,68297 P 9,747384.15
II. EXPANDED WITHHOLDING TAX
> Basic Tax Due, P8.799.453.34 - (Schedule 2) Verification disclosed that you failed to subject portion of your
Government Money Payments (GMP) in the amount of P334,919,2O6.81 to Expanded Withholding Tax
(EWT), pursuant to Section 57 (B) of the 1997 NIRC in relation to RR2-98, as amended, hence assesed.

Schedule 2 Sufhmarv of Detailed GMP per FS subject to EWT

GMP per FS GMP per Tax

GMP subject to EWT Discrepancy Tax Due
(Schedule 2.1) Audit(Schedule 22) Rate

Purchase of goods P 66,366500.11P 50,791503.13P 15574,996.981%P 155,749.97

Purchase of services 191,309,414.07108,829,627.0382479,787.042%1,649,595.74

Rentals 3,303,926364,792714.17-5%

Professional fee: 73,939,366273,998290.0069,941,0762710%6,994,107.63

TOTAL P334.919206.81 P 168,412134.33 P 8,799,453.34

Schedule 21: Detailed GMP per FS subject to EWT

GMP subject to EWT Subject to 1% Subject to 2% Subject to 5% Subject to 10%

Purchase of Goods (acquisitions):

Office Supplies InventoryP 7,011,15433
Medical, Dental & Laboratory
257,989.40
Supplies Inventory
Textbooks & Instructional Material
12233246.09
Inventory
Chemical & Filtering Supplies
112368.00
Inventory
Other Supplies inventory 24,427,81128
Merchandise Inventory 7384,607.28
Building & Other Structures 2041.192.73
Machinery & Equipment 12373,631.00
Furniture & Fixtures 524,500.00

Purchase of Services:
Training Expenses P 9,562,105.74
Water Expenses 42906,062.03
Electricity Expenses 47,686,431.45
Security Services 24,950,46243
Other General Services 4,164,685.37
Repairs and maintenance 22676,630.94
Other Maintenance & Operating Expense 6,984,49657
janitorial Services 32378539.54
Rent Expense P 3,303,92636
Salaries & Wages - Casual/Contractual P 68,807,862.58
Legal Services 828.00O.0O
Auditing Services 12338.69
Consultancy Services 1,013,500.00
Labor & Wages . 3377,665.00
Total-( P 66.366.500.11 P 191309,414.07 P 3303.92636 P 73.93936637
 Schedule 22: GMP per Audit subject to EWT

Income Payments Payments

Disbursements GMP per Audit
subjected to WE
Purchase of Goads (acquisitions):
Office Supplies Inventory P 1,927,160.63 P 4539,280.09 P 6,466,440.72
Medical, Dental & Laboratory
Supplies inventory - 173O75O223,994.35 241^01.85
Textbooks & Instructional Material
Inventory
Chemical & Filtering Supplies
100328.57 100328.57
Inventory
Other Supplies Inventory 21,239334.11 2985,759.60 24225,093.71
Merchandise Inventory 782477.92 6,60212936 7,384,60728
Building & Other Structures
Machinery & Equipment 12373,631.00 12373,631.00
Furniture & Fixtures
Total 50,791503.13
Purchase of Services:
Training Expenses 1,42290057 P 1,422,90057
Water Expenses
Electricity Expenses 43,789,765.00 43,789,765.00
Security Services 2243,746.00 2243,746.00
Other Genera! Services 655,76057 3508.924.80 4,164,68537
Repairs and maintenance -1,159,65052 •20,154372.70 21,314,623.22
Other Maintenance & Operating Expense 6,406,820.68 577,675.89 6,984,496.57
janitorial Services 28,909,41030 28,909.41030
Total 108.829,627.03

Rent Expense 2359,451.70 243326247 4.792714.17

Professional fees:
Salaries & Wages - Casual/Contractual
Legal Services
Auditing Services
Consultancy Services 720,625.00 P 720,625.00
Labor & Wages 3277,665.00 3277.665.00
Total 3,998290.00

SUMMARY OF DEFICIENCY TAXES

I.WITHHOLDING OF VAT 8,582,446.61

II.EXPANDED WITHHOLDING TAX 11.469,665.54

GRAND TOTAL 20,052,112.15
FILING OF VALiP ^ROTEST
In case yen disagree to our assessment, you or your authorized representative may file administrative
protest through a written request for reinvestigation or reconsideration within thirty (30) days from the receipt
thereof, and submit the same to the Office of The Regional Director, this Region, located at 8th Fir., BIR Bldg. I,
Solana St., Intramuros, Manila, stating the applicable law, rules and regulations, or jurisprudence on which
your protest is based pursuant to Revenue Regulations (RR) No. 12-99, as amended by RR No. 18-2013 in
relation to Revenue Memorandum Circular (RMC) No. 3^-2O13; otherwise, it shall be considered void and
without force and effect. However, if you are amenable, whether in whole or in part, it is requested that you
settle first the taxes attributable to the undisputed issue and furnish this Office a photocopy of the official
receipts and duly received electronic BIR Payment Form (eBIR Form 0605) by an authorized agent bank
before an action can be taken in your protest.

Your failure to file a valid protest or pay the taxes within the time prescribed in notice of assessment, the
assessment shall become final and therefore subject to twenty-five percent (25%) surcharge and interest on
the unpaid amount until fully paid pursuant to RR No. 12-99, as amended by RR No. 18-2O13 in relation to
Section 228, Section 248 (A) (3) and Section 249 (C) (3) of the NIRC of 1997, as amended.

Very truly yours.

RR6-1ASOEAO/RVB/KSC
SN: eLA201600044592/LOA-033-2018-00000767 dated Januaiy 4,2019
 OCN
0401
BIR ',

FORM NO.' S
REVISED: June 1996 IALAPI
TERNAS eLA201600046176(LOA-032-2019-00000076)
Date Issued: March 21, 2019

RETURN PERIOD AUDIT RESULT / ASSESSMENT NOTICE ASSESSMENT NUMBER

32-17-46176-2020-043(WE)
2017 FINAL ASSESSMENT NOTICE DATE ISSUED:
June 26, 2020

TIN 000-490-150

NAME POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Mabini Campus, Anonas St., Zone 63
ADDRESS Brgy. 30, Sta. Mesa, Manila
PLEASE BE INFORMED THAT YOUR INTERNAL TAX LIABILITY (for deflc!erLC/)/CREDIT/REFUND (for refundable) HAS BEEN COMPUTED AS FOLLOWS:

TAX TYPE: PARTICULARS AMOUNT

8,799,453.34
Basic
EXPANDED WITHHOLDING
Surcharge
TAX
2,670,212.20
Interest

DUE DATE: Compromise

July 26, 2020 11,469,665.54

TOTAL
R. DULAy/
IMPORTANT
IF YOU DISAGREE^WITH THIS ASSESSMENHdetaiis-of ttis.attachedJettep-qf demand) - - Tntemal F~ —"~"
"FILE YOUR PROTEST IN WRITING STATING THE FACTS, APPLICABLE LAW, RULES & REGULATIONS
OR JURISPRUDENCE IN SUPPORT OF YOU PROTEST WITH THE COMMISSIONER OF INTERNAL
REVENUE, B.I.R. DIUMAN, QUEZON CITY OR THE REGIONAL DIRECTOR WITHIN 30 DAYS FOR
RECEIPT HEREOF, PURSUANT TO THE PROVISIONS OF SEC. 228 OF THE NIRC AS AMENDED ALL
RELEVANT SUPPORTING DOCUMENTS SHOULD BE SUBMITTED WITHIN 60 DAYS FROM RECEIPT ^vvr-^-si
HEREOF. OTHERWISE THE ASSESSMENT BECOME FINAL, EXECUTORY AND DEMANDABLE. CTTY.. JETHRCm. SABARIAGA
FAILURE TO PAY THIS ASSESSMENT ON TIME WILL FURHTER SUBJECT TO THE TOTAL sgional Director
AMOUNT DUE TO THE ADDITIONAL INCREMENTS INCIDENT TO DEUNQUENCY. I IHE OVE S> NAME OF AUTHORIZED REVENUE OFFICIAL

OCN
BIR
FORM NO.
REVISED: June 1996
0401 AS
iALAPI
NTERNAS eLA201600046176(LOA-032-2019-00000076)
Date Issued: March 21, 2019

RETURN PERIOD ASSESSMENT NUMBER

32-17-46176-2020-043(WG)

2017 FINAL ASSESSMENT NOTICE DATE ISSUED:

June 26, 2020

TIN _ .„ 000-490-150

NAME POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Mabini Campus, Anonas St., Zone 63
ADDRESS Brgy.^, Sta. Mesa, Manila
PLEASE BE INFORMED THAT YOUR INTERNAL TAX LIABILITY (for deficiency)/CREDTT/REFUND (for refundable) HAS BEEN COMPUTED AS FOLLOWS:
PARTICULARS ' AMOUNT
TAX TYPE:
6,576,104.23
BasicP
WITHHOLDING OF VALUE
Surcharge.
ADDED TAX
2,006,342.38
Interest

DUE DATE: Compromise

July 26, 2020 82,446.61

TOTAL

IMPORTANT
IF YOU DISAGREE WITH THIS ASSESSMENT (details of the attadied letter of demand)
FILE YOUR PROTEST IN WRITING STATING THE FACTS, APPLICABLE LAW, RULES & REGULATIONS
OR JURISPRUDENCE IN SUPPORT OF YOU PROTEST WITH THE COMMISSIONER OF INTERNAL
REVENUE, B.I.R. DIUMAN, QUEZON CITY OR THE REGIONAL DIRECTOR WITHIN 30 DAYS FOR
RECEIPT HEREOF, PURSUANT TO THE PROVISIONS OF SEC 228 OF THE NIRC AS AMENDED ALL
RELEVANT SUPPORTING DOCUMENTS SHOULD BE SUBMITTED WITHIN 60 DAYS FROM RECEIPT
HEREOF. OTHERWISE THE ASSESSMENT BECOME FINAL EXECUTORY AND DEMANDABLE. A