By Stanley Onyekwere
In furtherance to improving tax administration system in the Federal Capital Territory (FCT) and Nigeria as a whole, the FCT Internal Revenue Service (FCT-IRS) has engaged tax desk officers on tackling the lingering wrongful tax remittances of individuals residing in the FCT to other states.
It was gathered that the wrongful tax remittances are primarily due to the Integrated Payroll and Personnel Information System (IPPIS) and the Government Integrated Financial Management Information System (GIFMIS).
Speaking yesterday, in Abuja, at a 2-Day Training workshop on the proper use of IPPIS and GIFMIS platforms, organised by FCT-IRS in collaboration with Joint Tax Board (JTB) and the Office of the Accountant General of Federation (OAGF), Executive Chairman, FCT-IRS, Haruna Y. Abdullahi, bemoaned the recurring instances of the menace.
Abdullahi noted that tax remittances are significant pillars of the tax system, which serve as a critical source of revenue that powers economic development, promotes wealth redistribution, and contributes to the overall welfare of the society
He said the workshop aims to provide detailed guidance to correct the observed inaccuracies and enhance the understanding and competence of our tax officers on both the IPPIS and GIFMIS platforms.
According to him, it appears that some desk officers believe that the FCT-IRS is not present on the GIFMIS platform, resulting to them automatically remiting the taxes due to the FCT-IRS to the Federal Inland Revenue Service (FIRS).
“ It has come to our attention that there have been recurring instances of errors in remitting taxes of individuals residing in the FCT to other states.
“This anomaly, likely due to inaccurate data entries on the IPPIS platform, not only distorts our financial records but also deprives the rightful states of their due resources.
“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. And through shared knowledge, we can ensure that these issues are addressed and that such mistakes are avoided in the future.
“Each step we take towards rectifying these inaccuracies is a step towards greater financial equity and justice. But, beyond correcting past mistakes, our shared goal should be to foster a tax system that is robust, efficient, and above all, transparent”, he stated.
He however, suggested some corrective measures for past erroneous entries to include reconciliation, engagement with FIRS, training and capacity building, implementation of a review and feedback system.
Also, speaking on the sideline of the workshop, 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.
Iwundu said: “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.
