… As Personal Income Tax evaders risk three years jail term
By Joyce Remi-Babayeju
The Minister of the Federal Capital Territory (FCT), Barr. Ezenwo Nyesom Wike, has approved strict implementation of the Personal Income Tax and the FCT Internal Revenue Service Acts 2015, in a bid to improve the revenue base of the territory.
The Mandate Secretary of the Economic Planning, Revenue Generation, and Public Private Secretariat, Hon. Chinedum Elechi, at a press conference in Abuja on Monday disclosed that Wike “has approved the implementation of Section 85 of Personal Income Tax Act (PITA) and Section 31 of the FCT Internal Revenue Service Act, 2015.”
Elechi warned that per Section 85 of the PITA, anyone who provided false information or obtained a TCC through forgery or falsification, was liable to a fine of N50,000 (Fifty Thousand Naira) or a three-year jail term or both upon conviction.
Also he added that a government entity or organization who fails to verify a Tax Clearance Certificate , TCC, was liable to a fine of N5,000,000 ( five million naira), or a three year, jail term or both, upon conviction.
Subsequently, Ministries, Departments, and Agencies (MDAs) Commercial banks; FCT Secretariats, Departments, and Agencies (SDAs) have been instructed to ensure strict compliance with the laws, particularly section 85 of the Personal Income Tax Act (PITA) and Section 31 of the FCT Internal Revenue Service Act 2015.
Both sections provide for demand and verification of Tax Clearance Certificates (TCC), by Federal Government Ministries, Departments, and Agencies, Commercial Banks, and FCT Secretariats, Departments and Agencies before any transactions are allowed.
Elechi warned that per Section 85 of the PITA, anyone who provided false information or obtained a TCC through forgery or falsification, was liable to a fine of N50,000 (Fifty Thousand Naira) or a three-year jail term or both upon conviction.
He added that a government entity or organization who failed to verify a TCC was liable to a fine of N5,000,000 ( 5 million) or a three year, jail term or both, upon conviction.
The EPRGPPP Secretary also explained that Section 31 of the FCT-IRS Act provided that all SDAs, corporate bodies, or any person empowered by law, shall demand a TCC from any person or enterprises for the last three years “preceding the current year of assessment as a precondition for transacting any business in the FCT”.
He explained that such transactions include Certificate of Occupancy, award of contracts, approval of building plans, application for FCTA loan for housing, business or any other purpose, registration of motor vehicles, among others.
Elechi appealed to residents to pay their taxes and obtain their TCCs, noting that “Taxes are essential to the foundation of any government, and it is important that everyone pay their fair share. Payment of tax is a civic duty and responsibility.
He stated that the implementation of these laws is to ensure that all eligible taxpayers in the FCT comply with their tax obligations”.
Recall that Wike, at a meeting with revenue generating agencies a month ago, had hinted that his target is to raise the Internally Generated Revenue (IGR) of the FCT above N250 billion a month.
The minister said all revenue generating agencies in the FCT are being mobilized for serious improvement.
Furthermore, Elechi had at a meeting with revenue generating agencies said that FCTA likely has the capacity to do N250 billion a month.
“We can even do N300 billion a month in some good periods. So that is what we want to work out.”
“However, in trying to grow revenue, it will also have a human” face because we will be dealing with issues of multiple taxation, so things will be streamlined.”
“We will make sure that taxation has a human face,” he said.
Mr Elechi stressed the need for the citizens to perform their civic duty by paying their taxes as at when due.
He explained that the meeting was to find ways to improve IGR in the FCT, which is pivotal to the aspiration of making Abuja one of the developed capital cities of the world.
