Headline Local News

Illegal income should be taxed-stakeholders

Stakeholders in the tax sector want tax payers to take the collection of tax Clearance Cerficate, (TCC )more seriously to avoid sanctions.

Issues surrounding the usage and importance of TCC was the focus at a Town Hall Meeting Organized by the Federal Capital Internal Revenue Service in Abuja, to educate residents on the dangers of tax evasion

Speaking at the forum, the FCT Minister Malam Muhammad Musa Bello warned that the issues of tax evasion and negligence of tax payers in the collection of their TCC would no longer be tolerated in the coming years.

The FCT Minister, represented by the Permanent Secretary FCTA, Mr Olusade Adesola was of the opinion that a mega city like Abuja requires the contribution of all tax payers for continuous maintainance of the city and sustainable development; particularly in the areas of portable water, environmental sanitation and good road network.

In his welcome address, the Acting Executive Chairman , FCT IRS, Mr Haruna Abdullahi advised all taxable residents to “choose voluntary compliance over compulsion”.

The FCT IRS Boss warned that the service would not hesitate to apply the relevant tax laws where necessary.

“Failure to demand and verify a Tax Clearance Certificate presented by an individual is liable to sanctions and possible conviction with a fine of N5m or three
years imprisonment” he said

In a paper presentation titled: Transactions requiring the Demand of a tax Clearance Certificate, Mr David Segun Ogoli said tax payers applying for vehicle licenses, CofOs, building approvals or CAC registrations among others, will henceforth show their TCC before they can access these services.

On his part, A Tax Consultant and Chairman of CITN, Dr Kennedy Iwundu commended the innovative reforms being initiated by FCT- IRS to encourage tax payment; and tasked FCT- IRS to beam it’s search light towards high profile individuals with illegal income for approximate tax assessment.

Reporting by Remi Johnson; Editing by Chinasa Ossai, Omotola Oguneye