FCT-IRS Takes A Bold Step On Tax Remittance Errors

By Iateef Taiwo, Abuja

In a bid to put a stop to unending errors associated with tax remmittances by individuals in the territory to other states, the Federal Capital Territory Internal Revenue Service (FCT-IRS) has kick start plans to tackle such practices.

Executive chairman FCT-IRS, Haruna Abdullahi said the errors, if not well corrected will deny the rightful states of their genuine resources.

He made this known during a workshop for Payroll and Personnel Information System (IPPIS) and Government Integrated Financial Management Information System (GFMIS) platforms, in Abuja on Tuesday.

Abdullahi noted that there was the need for individuals, public servants and civil servants to be awake to their responsibility of paying taxes to appropriate authorities.

According to him, issue of tax clearance must be taken more serious by individuals, considering the significance attached to it.

He said: “FCT-IRS as a revenue generating agency in the nation’s capital, Abuja must enlighten the people on issues related to tax clearance, considering how important it is at the moment. Without tax clearance an individual will not enjoy certain services at national and sub-national level.

“It is good for individuals to file their taxes in the appropriate places, we have discovered that on the IPPIS most persons come with tax clearance not reflecting the Federal Capital Territory.

“Part of this anomaly lies in another common misconception. It appears that some desk officers believe that the FCT-IRS is not present on the GIFMIS platform. As a result, they automatically remit the taxes due to the FCT-IRS to the Federal Inland Revenue Service (FIRS). I would like to clarify this misconception today: the FCT-IRS is indeed on the GIFMIS platform, and our code is 100419.

“I encourage all desk officers to take note of this and ensure that subsequent tax remittances for the FCT are accurately made to the FCT-IRS, not the FIRS”

On his part, the chairman Chartered Institute of Taxation of Nigeria (CITN) FCT chapter, Dr Kennedy Iwundu said government must comply with the provisions of tax law to avoid lapses.

“The provision of the tax law made it that , business names are administered by state Internal Revenue Service, where we are in Abuja, FCT-IRS takes charge. But companies are administered by Federal Internal Revenue Service (FIRS), representing the Federal Government.

“When MDAs are giving out contract to companies they are obligated to remit the revenue to FIRS, but if the contract is in business name, the withholding tax is to go the FCT-IRS, where the business name is residence”

Iwundu stated that the mistake of wrong remittances cause challenges in the system and must not be allowed to continue.


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