…SET TO RECOVER DUE TAXES FROM DEFAULTERS’ ASSETS IN FINANCIAL INSTITUTIONS
The Federal Inland Revenue Service, FIRS, has asked all persons who have collected, deducted or withheld taxes to remit all unremitted taxes to the Service within 30 days from today.
The order was contained in a public notice issued today and signed by Muhammed Nami, Executive Chairman, Federal Inland Revenue Service.
Titled “PAYMENT OF OUTSTANDING TAXES BY DEFAULTING COMPANIES, CORPORATIONS AND OTHERS,” the agency gave notice “to all persons (including a company, corporation and any other relevant person) that:
Sections 78, 79, 80, 81 and 82 of the Companies Income Tax Act (CITA) Cap. C21, Laws of the Federation of Nigeria (LFN), 2004 (as amended) and Sections 14, 15 and 16 of the Value Added Tax (VAT) Act Cap. V1, LFN, 2004 (as amended) impose obligations on companies, corporations and other relevant persons, as agents of collection, to collect, deduct or withhold taxes (as the case may be) on supply of goods and services or payments and to remit same to the Federal Inland Revenue Service (the Service).”
Consequently, the Service said that it “shall, without further notice, apply the provisions of Section 31 of the Federal Inland Revenue Service (Establishment) Act, 2007 (as amended) to recover taxes due from the defaulters’ asset in the custody of any person (including but not limited to sums standing to its credit with a financial institution in Nigeria).”
Also, FIRS said it “shall take all necessary steps to prosecute defaulters for willful negligent, tax evasion, unlawful conversion of government property, etc. as the case may be” and that “penalty and interest on all outstanding taxes shall be recovered along with the principal tax liabilities.”