Taxation

FCT-IRS seeks Tax Tribunal’s intervention against defaulters

Published

2 years ago

July 18, 2022

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***Vows to wield the big stick

The Federal Capital Territory Internal Revenue Service (FCT-IRS) in its bid to ensure tax payers comply with payment and filing of tax returns has concluded plans to embark on serious enforcement against erring taxpayers.
The Acting Executive Chairman of the Service, Mr Haruna Abdullahi disclosed this when he paid a courtesy visit to the leadership of Tax Appeal Tribunal (TAT) in Abuja.
A statement issued by the head Corporate communications of the Agency, Mustapha Sumaila quoted
Abdullahi to have stated that it is no longer business as usual as the Service is ready and committed to ensure all the taxpayers in FCT are accountable and responsive to their civic duties, adding that the FCT-IRS is empowered by law to recover all outstanding tax liabilities as well as penalise tax defaulters.
He said considering the number of the taxpayers in the FCT, it is shameful to see that so many of them are not complying, stating that “We need to change that, we are engaging the Judiciary, Security Agencies, the media and other relevant stakeholders on this matter, I can assure you, before the year runs out, people will be held accountable.
“We are ready, we have built our capacity and it is our intention to make our mark and ensure that people do what they are supposed to do according to the law. We will be guided by the Personal Income Tax Act, Finance Act, FCT-IRS Act and of course, the constitution of the Federal Republic of Nigeria” he said.
Abdullahi, who assured the Tribunal of the internal capacity of the Service, charged members of the Tribunal to justify the confidence reposed in them by the law by working assiduously towards ensuring that recalcitrant taxpayers are brought to justice.
The acting executive chairman stated some of the derivable benefits the collaboration will bring to both parties and the country to include voluntary tax compliance, evident growth of the tax net, awareness creation on FCT-IRS processes and the responsibility of the Tax Appeal Tribunal.
He said others include stringent enforcement actions which will ultimately result to a significant boost in revenue generation.
He disclosed that through this step, more individuals and agencies will be held accountable for failing to pay taxes as and when due. This is in line with the engagement being carried out by the Service with the judiciary, security agencies and other stakeholders.
Abdullahi described the visit as a step in the right direction and expressed delight in the quick adjudication of cases by the Tribunal.
In her response, The Coordinating Secretary of the Tax Appeal Tribunal, Hajara Bolanle Oniyangi expressed happiness over the visit by the delegation from FCT-IRS.
Oniyangi stated that it is important for the Service to harness all areas of revenue generation as permissible by law.
She added that as a revenue generating agency there is bound to be dispute emanating from the Service, displeased taxpayers and Agencies, hence the reason the Tax Appeal Tribunal was established.
Speaking on the benefits of the initiative, she noted that the Tribunal’s processes are simple and clear with a reputation for prompt judgement delivery.
Lauding the Acting Executive Chairman’s efforts and recognising the intricate role of publicity in boosting compliance, Mrs. Oniyangi expressed her delight on the initiative taken by the Service to partner with the Tribunal.
She also highlighted the need for the Service to intensify its awareness and sensitisation efforts stating that taxpayers cannot be entirely be blamed for non-compliance if they are not duly informed about the process, pros and cons of paying their taxes and vice versa.
In his remarks, the Secretary of the tribunal, Mr Ahmed Aliyu also expressed joy on the step taken by the Service towards strengthening the enforcement with a view to boosting the revenue collection of FCT-IRS.
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“If, for instance, there are organisations that collect personal income tax and fail to remit, it is sometimes difficult to go in there and force them, but there is a Tribunal created by the government for that purpose, and, once judgement is delivered by the Tribunal, even if they want to appeal, they will have to pay the money first”

Aliyu also pledged to assist the Service in whatever way possible within the ambit of the law to ensure that cases from FCT IRS are given accelerated hearing within the ambit of the Procedure Rules of the Tribunal, in order to ensure that not a single tax payer evades or avoids his or her tax paying obligation, which he said, would ultimately enhance the revenue generation of the FCT.

Taxation

FG Debunks Speculation on VAT Increase, Assures Public of Fiscal Stability

Published

2 months ago

September 9, 2024

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Wale Edun

The Federal Government has dismissed rumors suggesting an impending increase in Nigeria’s Value-Added Tax (VAT) from 7.5% to 10%.
The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, clarified that no such proposal is being considered by the administration of President Bola Ahmed Tinubu.
Director of Information and Public Relations, Mohammed Manga in a statement quoted Edun to have reiterated that the government remains committed to fiscal stability and is focusing on economic policies aimed at reducing inflation without imposing additional burdens on Nigerians.
He highlighted recent government initiatives, such as suspending import duties on essential goods, as part of President Tinubu’s efforts to ease the country’s economic challenges.

The Minister assured the public that any future tax reforms would be communicated transparently through official channels, stressing the importance of avoiding misinformation. The statement was released to address growing concerns over a potential VAT hike amid Nigeria’s current economic pressures.

The Federal Ministry of Finance reaffirmed its commitment to keeping citizens informed on all tax and economic policies, ensuring clear and accurate communication.

Taxation

FIRS deploys technology to capture market traders to expand VAT collection

Published

11 months ago

December 21, 2023

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The Federal Inland Revenue Service (FIRS) has rolled out the implementation of the Integrated Market Revenue Management System (IMRMS), a purpose-built digital platform, to capture the informal sector, especially market traders in the federal government’s tax net.

The FIRS is to collaboration with Market Traders Association of Nigeria (MATAN), the umbrella body for all trading associations in Nigeria, to collect and remit Value Added Tax (VAT) from traders in marketplace, using the IMRMS platform.

The collaboration code named as the VAT Direct Initiative (VDI), is part of a deliberate move to expand the government’s tax base.

MATAN which is the largest player in Nigeria’s market space has a membership of over 40 million traders across the country.

Under the arrangement, MATAN is expected to digitally enumerate its members, give them a digital identity and track their turnover so that VAT accrued is collected and remitted to the FIRS.

Through this initiative, the FIRS will help tackle multiple taxation in the marketplace through partnership with security agencies to curb the activities of touts, miscreants and self-imposed tax collectors involved in illegal tax collection in Nigeria’s market spaces.

Speaking at an the official launch of traders enumeration exercise in Abuja, Mr Adebayo Adefeogbe, a director in the FIRS, said the initiative would grant the government coordinated access to almost 70 per cent untaxed revenue in the informal sector.

He said collecting VAT from over 40 million traders would enable the government to provide basic amenities in marketplaces across the country.

Moses Ige, MATAN National Coordinator of Incentives, urged market leaders who were present at the event, to sensitise members of various market associations to ensure that they are captured for the VAT Direct Initiative (VDI).

He listed the benefits of VAT Direct Initiative for registered traders to include health insurance, micro pension, general insurance cover, low-interest and non-collaterised business loans and grants, provision of provision of social amenities in marketplaces and free legal services.

Ige said, “All the services, including health insurance scheme, enjoyed by those in the public sector will also be extended to those in the informal sector. Registered MATAN members will have access to free medical care.

“Registered traders will also enjoy insurance cover in case of any loss as a result of disasters, have access to loans, and enjoy micro-pension scheme. We are working with the National Pension Commission (PENCOM) to get our members registered for the contributory pension scheme.

“With the VAT Direct Initiative, the government will get more revenue to execute capital projects in markets across the country.

“We are also partnering with Bank of Industry (BOI) to ensure that every small business owners have access to loans.”

Taxation

JIRS chair accuses revenue collection agencies of sabotaging tax collection in JIgawa

Published

1 year ago

November 9, 2023

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By Ahmed Rufa’i, Dutse

The Jigawa state Internal Revenue Service (JIRS) has accused some revenue generatiing agencies of sabotage in local revenue collection in the state.

The executive chairman of services, Malam Nasir Sabo Idris gave the indication at the launch of Jigawa Enlightenment and Engagement Team (JEET) with the aim of improving revenue generation in the state.

The executive chairman lamented over the lackadaisical attitude of most of the revenue generating agencies in the state towards their mandate of revenue and tax collection.
He also alleged that the little they collected some times are not remitted to the government account.

Malam Nasir Sabo Idris who also observed that the agencies were also not represented at the launching of Jigawa Enlightenment and Engagement Team (JEET), despite timely invitation extended to them

He attributed the continued decline of internally generated revenue in the state to inadequate tax payers enlightenment and engagement in addition to poor commitment by tax and revenue collectors.

According to him with the new strategies applied in modernizing and digitizing tax collection system, the board is targeting to increase the revenue generation by twenty percent in the first quarter of 2024.

The Chairman expressed the optimism that they will increase the state ‘s Internally Generated Revenue (IGR) by sixty percent at the end of next year adding that it will be doubled in the next two years.

According him, the JEET team is aimed at creating more awareness, understanding and cordial relationship between the tax payers and tax collectors in the state with the hope it will block all leakages and tax fraudulent collection.

Malam Idris maintained that the JEET would digitize taxpayers registration as well as enlighten the tax payers about electronic payment to avoid any fraudulent practice.

“Though I’m newly appointed as chairman of the board but we estimated that in 2024 the board would be able to generate N42 billion, and if the leakages are blocked we will double the tax collection by the end of this administration” ,he said.

The chairman identified some duties of the JEET to include tax payers education and enlightenment, registration of tax payers, engagement with stakeholders and Data collection, effective handling of media information among others.

He called on workers union, MDAs and all other stakeholders to cooperate with the team to achieve the desired objectives of moving Jigawa state forward.