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Federal Capital Territory Administration (FCTA) has initiated strategies to plug leakages and boost revenue.
Its main revenue generating agency, the FCT Internal Revenue Service (FCT-IRS), yesterday, began the fixing of errors in tax remittance to other states by individuals in the territory.
Executive Chairman, FCT-IRS, Haruna Abdullahi, at a workshop on Payroll and Personnel Information System (IPPIS) and Government Integrated Financial Management Information System (GFMIS) platforms, in Abuja, yesterday, said the errors, if not corrected, could deny states their rightful resources.
Abdullahi noted the need for individuals, civil servants and other workers to be awake to their responsibility of paying taxes to appropriate authorities.
According to him, issues of tax clearance must be taken more seriously by individuals, considering the significance attached to it.
He said: “FCT-IRS, as a revenue generating agency in the country’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 levels.
“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 FCT. 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 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.”
He encouraged all desk officers to take note and ensure that subsequent tax remittances for the FCT were accurately made to the FCT-IRS, not the FIRS.
Chairman, Chartered Institute of Taxation of Nigeria (CITN), FCT chapter, Dr. Kennedy Iwundu, said the government must comply with the provisions of tax law to avoid lapses.
”The tax law provided that business names are administered by the state IRS, where we are, in Abuja, FCT-IRS takes charge. But companies are administered by FIRS, representing the Federal Government.
“When MDAs are giving out contracts 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 to FCT-IRS, where the business name is resident.”
Iwundu stated that wrong remittances, which breed challenges in the system, must not be allowed to continue.
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