FCT-IRS Excoriates FIRS over Remittances of FCT Taxes to States

Olawale Ajimotokan in Abuja

The Federal Capital Territory Internal Revenue Service (FCT-IRS) has objected to the alleged wrongful remittances of taxes meant for it into the coffers of the Federal Inland Revenue Service (FIRS) and the 36 states of the federation.

The Acting Executive Chairman FCT-IRS, Haruna Abdullahi condemned the, “recurring erroneous act” yesterday while speaking at a two-day workshop organised in collaboration with the Joint Tax Board and Office of the Accountant General of the Federation, to ensure proper use of IPPIS and GIFMIS platforms

He said it was unfair that personal income tax that was supposed to be paid to FCT-IRS was being remitted to other states of the federation through the Integrated Payroll and Personnel Information System (IPPIS) and the Government Integrated Financial Management Information System (GIFMIS).

According to him the resources wrongly allocated to other states could be better utilised to foster growth and development in the FCT and benefit the residents the nation’s capital.

“This engagement is vital to correct the misallocations of past tax remittances. I would like to stress that the Federal Capital Territory Internal Revenue Service (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. And as such, 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 averred.

He stressed that arising from the anomalies of inaccurate entries of data on the platforms, financial records were distorted and states were as a result deprived of their rightful due resources.

Abdulahi urged desk officers to be meticulous in their duties by double-checking every data entered, every form filled and every tax remittance made to ensure it goes to the right organisation.

In his remarks, the Chairman, FCT Chapter of the Chartered Institute of Taxation of Nigeria, Dr. Kennedy Iwundu, noted that the VAT component of tax was meant to be remitted to states, the FCT-IRS in the case of FCT, while the withholding tax component was payable to FIRS.

He charged desk officers to always demand two tax identification numbers (TINs) to be able to make payments for the two tax components.

Iwundu, also called on the tax organisations to comply with the principle of simplicity and certainty, to make payment easy, warning without it tax payers would be further discouraged in filing tax returns since.