PAYE: NSITF, Plateau State Move to Settle Rift over Tax Default

Onyebuchi Ezigbo in Abuja

The Nigeria Social Insurance Trust Fund (NSITF) and the Plateau State Government have agreed to withdraw their tax dispute from the Tax Appeal Tribunal and subsequently set up a four-man technical committee to resolve the matter.

A statement from the General Manager, Corporate Affairs, of the NSITF, Nwachukwu Godson,  said members of the committee included Paul Yakubu and Markus Chollom from the Plateau State Internal Revenue Service (PSIRS) and Kwatmen Mattias as well as Oche Samson of the NSITF.
He said the committee was given a week to deliver on the assignment.  

Godson, said the NSITF had paid the backlog of Pay As You Earn Tax (PAYE) of its regional and branch staff members to the tune of N62 million to the PSIRS.
Speaking while receiving the management of the Jos regional and branch offices of the NSITF in his office in Jos, the Executive Chairman of PSIRS, Mr. Jim Pam Waya, commended the new management of the Fund for its renewed commitment to clearing the decade-long arrears of PAYE remittances to the state and accepted a request by the fund for an out of court settlement of the dispute which has been lingering at the Tax Appeal Tribunal.

He further assured that PSIRS would support the NSITF towards the implementation of the Employee Compensation Scheme(ECS) to the benefit of workers in the state.
He expressed dissatisfaction that PSIRS reneged on its one per cent contributions to employee compensation since registering for the scheme in 2012 and assured the NSITF of redress.

 “This social security scheme is for the benefit of workers and their dependents in case of accident or death in the course of work. As the new Executive Chairman of PSIRS, my vision is to reposition it by aligning with programmes that promote our primary service to the state in terms of revenue generation as well as key into schemes such as the ECS which will uplift the welfare of our staff,” he added.

He stated that the PSIRS would revisit its status on ECS and start payment soon.
Earlier in his address, the Jos Regional Manager of the NSITF, Mr. Martins Kuku, called for a working partnership between the two organisations, noting that the NSITF as a responsible social security agency would continue to discharge its responsibilities to the government and workers in Plateau State. He stressed the need for timely resolution of the argued it was high time the tax dispute between the Plateau State Internal Revenue Service and the NSITF was resolved.

Kuku added, “It is at this instance that I seek the support of your organisation for the resolution of the lingering PAYE dispute between the NSITF and the Plateau State Internal Revenue Service in the interest of harmonious and inter agency cooperation.  

“The time is here and the right decision is for us to withdraw the dispute from the Tax Appeal Tribunal for an out of the Court settlement in line with the ILO Convention on social dialogue and especially in the background of the exceptional  commitment to obligations  by our new Managing Director, Barr. Maureen Allagoa.

“In a demonstrable steadfastness to our paradigm shift, the new leadership of the Fund  has  cleared the backlog of PAYE remittances amounting to over N62,000,000.00 to the Plateau State Internal Revenue Service, giving us a clean bill up to August 2023.

“A cordial relationship between our two organisations is mutually beneficial as it enhances seamless delivery of our mandates and obligations to the citizens of Nigeria.  We are full of hope that the PSIRS which you chair toady, will reciprocate the patriotism of the new NSITF leadership and commence contribution to the employee compensation scheme which was abandoned after registration in 2012.”