FCTA Threatens to Commit Defaulters of PIT to Three-year Jail Term

Olawale Ajimotokan in Abuja 

The Federal Capital Territory Administration (FCTA) has threatened to commit persons who forge or falsify personal income tax three year jail term a fine of N50,000 or both upon conviction.

The Mandate Secretary of the Economic Planning, Revenue Generation and Public Private Secretariat, Chinedum Elechi disclosed this yesterday.

He said FCT Minister Nyesom Wike had ordered strict implementation of the Personal Income Tax and the FCT Internal Revenue Service Acts 2015 with a view to improving the revenue base of the territory. 

He also said the minister had approved the implementation of Section 85 of Personal Income Tax Act (PITA) and Section 31 of the FCT Internal Revenue Service Act, 2015.

The two sections explicitly provided for demand and verification of Tax Clearance Certificates (TCC) by Ministries, Departments, and Agencies (MDAs) commercial banks, and FCTA Secretariats, Departments and Agencies (SDAs) before any transactions can be allowed. 

The MDAs, commercial banks and SDAs are enjoined to ensure strict compliance with the aforesaid laws of the FCT IRSs.

Elechi also warned that any government entity or organisation that fails to verify a TCC is liable to a fine of N5million or a three year, jail term or both, upon conviction.

He said 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.