The Federal Capital Territory Internal Revenue Service (FCT-IRS) has taken steps to correct errors in tax remittances by individuals and businesses in the capital city, Abuja.
The acting Executive Chairman, FCT-IRS, Mr Haruna Abdullahi, stated this at a workshop in Abuja on Tuesday.
The News Agency of Nigeria (NAN) reports that the workshop was on Integrated Payroll and Personnel Information System (IPPIS) and Government Integrated Financial Management Information System (GFMIS) platforms.
Abdullahi frowned at wrongful remittances of taxes meant for FCT-IRS to the Federal Inland Revenue Service (FIRS), and payment of personal income tax to other states of the federation.
He blamed the anomalies on inaccurate data entries on the platforms, which distorts financial records and deprives the rightful states of their due resources.
“We have discovered that on the IPPIS, most persons come with tax clearance not reflecting the Federal Capital Territory.
“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.
“I would like to clarify that the FCT-IRS is indeed on the GIFMIS platform, and our code is 100419,” he said.
He called on individuals to file their taxes in the appropriate places and remit to the appropriate tax authority.
He also encouraged all desk officers to ensure that subsequent tax remittances for the FCT were accurately made to the FCT-IRS, not the FIRS.
According to him, the errors, if not corrected, will deny the rightful tax authority their genuine resources.
He, therefore, appealed to desk officers to be meticulous in their duties -double-check every data entered, every form filled, and every tax remittance made to ensure it goes to the right authority.
He said that the workshop was organised to correct the misallocations of past tax remittances.
“I would like to stress that the FCT-IRS exists to serve the people of the FCT, just as the FIRS exists to serve the entire nation.
“We are not competitors, but rather collaborators in the larger scheme of national development.
“To the FIRS, we say, let fairness and justice prevail. We believe in your institution’s dedication to just and fair practices.
“We request that you join us in this crucial endeavor to correct these past mistakes and ensure that the FCT-IRS receives what is rightfully due to it,”, he appealed.
Abdullahi also stressed the need for individuals and civil servants to pay their taxes to the appropriate authorities, adding that tax clearance must be taken more seriously by individuals.
He noted that FCT-IRS, as a revenue generating agency in the nation’s capital, Abuja, has a duty to enlighten the people on issues related to tax clearance, considering its importance.
In his remarks, Dr Kennedy Iwundu, Chairman, Chartered Institute of Taxation of Nigeria (CITN), FCT chapter, said that governments at all levels must comply with the provisions of tax laws to avoid lapses.
Iwundu explained that the tax law provides that business names should be administered by the state’s Internal Revenue Service, and in the case of Abuja, by the FCT-IRS.
He added that companies were to be administered by the Federal Internal Revenue Service (FIRS), representing the Federal Government.
“When MDAs are giving out contracts to companies, they are obligated to remit the revenue to FIRS.
“However, if the contract is in a business name, the withholding tax is to go to the FCT-IRS, where the business name is residence,” he said.
Iwundu stated that the mistake of wrong remittances caused challenges in the system and must not be allowed to continue. (NAN)
Source: News Agency of Nigeria