FCT-IRS to fine MDAs N500, 000 for tax default

The Federal Capital Territory Internal Revenue Service (FCT-IRS) has revealed that failure of organisations, employers of labour or Ministries Departments and Agencies (MDAs) to file their annual tax returns on or before January 31, 2022 will attract penalty of five hundred thousand naira (N500, 000).

The Director of Tax Operations, Mr Malik Tukur, revealed this when he led top management team and staffs of the service for the second day of sensitisation road walk show from Connoil Filling Station Jabi-Utako, Abuja.

The Director further hinted that individuals who fail to file their tax returns on or before March 31, 2022 will attract fines of fifty thousand Naira (50000).

He warned that FCT-IRS may be left with no choice, but to begin the enforcement of the tax laws on defaulters.

Mr Malik who emphasized that taxation was essential for the running of government, said filing of annual returns enhances transparency and accountability.

“The Employers has the mandate by law to deduct employees’ tax from sources and remit same to government. They are trying. This area of remittances is where accountability is lacking. For instance, when all employees file their personal income tax return, it will bring accountability and transparency. Come and file annual returns do not mean come and pay tax. Just file your annual returns , you pay tax only when you make profit or earning income,” Tukur said.

According to Mr Tukur, it costs government huge resources to put infrastructure in place as well as the maintenance.

He therefore encouraged all tax payers, particularly FCT residents to embrace the culture of paying taxes, especially now that the revenue from the nation’s crude oil could no longer cater for the myriad yearnings of the citizenry.

Other areas covered on day 2 tax drive awareness creation include: Jabi Lake Area, through to the popular Berger roundabout, Offices and shops around Wuse Market, zone 3, zone 4 to Bannex Plaza and terminated at the City Park, Wuse 2.

Meanwhile, a renowned economist, Aliyu Yusha’u has called on the newly created Economic Planning, Revenue Generation and Public Private Partnership Secretariat in the FCT Administration to evolve new ways towards revamping internal generated revenue, and reducing costs of governance.

According to Yusha’u, “in my own opinion, unless we coordinate economic activities, there is no way we can proffer solutions to our budgetary deficiencies, so therefore the creation of that Secretariat is a welcome development.

“First of all, there is need to identify areas of public capacity and interests, these two things must be put into cognizance. Then create an awareness and go ahead to institutionalize the body that can coordinate investors within the city, Nigeria and outside the country. You also have to look at the challenges of the city, identify the basic challenges of the city.

“One of the basic challenges in FCT, is deficient transportation system, the residents, especially those at the suburb depends on transportation system. The new secretariat has to find a way to make the transport system standard and look for investors both within and outside Nigeria,” he said.

(Nigerian Tribune)