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Tag: IRS

  • FCTA unveils Strategic Plan for FCT-IRS as sole revenue collector

    FCTA unveils Strategic Plan for FCT-IRS as sole revenue collector

    The Federal Capital Territory Administration (FCTA) has unveiled a Strategic Plan for the delegation of duties and responsibilities of revenue collection to the Federal Capital Territory-Internal Revenue Service (FCT-IRS).

    Mr. Adesola Olusade, Permanent Secretary in charge of FCTA, unveiled the plan during a stakeholders’ meeting in Abuja on Tuesday.

    He disclosed that a Project Management approach was adopted to ensure the successful execution of the delegation.

    According to him, the approach, known for its well-structured, organised, and systematic processes, will guide the FCT-IRS through the transition, adding that it would provide a clear roadmap for implementation.

    Olusade said that part of the implementation structure was a Project Steering Committee (PSC), previously known as the Implementation Committee.

    He explained that the committee would be chaired by the Permanent Secretary, FCTA.

    He added that the committee will consist of the Chairman of FCT-IRS and Chairmen of the Area Councils, among others as members.

    He noted that the policy decisions of the PSC would be implemented by the project implementation committee to be chaired by the Chairman, FCT-IRS.

    “Membership of the committee would be constituted and conveyed by the chairman.

    “The PSC, which comprises key stakeholders would provide strategic direction, make critical decisions and ensure that the project achieves its objectives.

    “Accordingly, the Project Steering Committee will provide strategic direction, decision making, monitoring and oversight, risk management and communications among other functions,” he said.

    Olusade explained that the decision to harmonise all revenues and centralise collection at the FCT-IRS was in the best interest of the territory and its people.

    He further said that decision was the outcome of an extensive deliberation by relevant stakeholders.

    This, he said, was part of a commitment to enhance the efficiency, transparency, and effectiveness of the territory’s revenue collection system.

    He commended stakeholders for embracing the idea, and described it as a “point of no return” in the shared journey to promote sanity in revenue collection in the FCT.

    In his remarks, FCT-IRS Acting Executive Chairman, Mr Haruna Abdullahi, said that the delegation of all revenue collection to a single entity was borne out of the resolutions of the “Akure Accord”.

    Abdullahi said that the development marked a significant step toward creating a more business-friendly environment that would attract investment, stimulate growth, and create job opportunities.

    He described the decision as “strategic” in ensuring efficient, transparent, and effective revenue collection system for a prosperous FCT.

    According to him, the centralisation of revenue collection under the FCT-IRS will eliminate duplication of functions, reduce administrative cost, and streamline revenue collection processes.

    “It will also ensure that all revenue collection activities are coordinated, thereby, reducing the potential for errors, saving cost, and preventing leakages.

    “Also, accountability is guaranteed when a single entity is responsible for revenue collection, serving as a one-stop shop for all revenue transactions and audits.

    “This will build taxpayers’ trust, encourage voluntary tax compliance, attract more businesses and investment needed to stimulate economic growth,”he said

    The FCT-IRS boss added that the centralisation of revenue collection would promote efficient data collection and analysis for decision-making.

    He said that data would provide valuable insights into revenue trends, taxpayer behaviour, and potential areas of improvement in the tax system and support accurate revenue forecasting.

    “This will help the FCT to plan and make its budget more effective,” he said.

    On his part, Mr. Danladi Chiya, Chairman of the FCT Association of Local Government of Nigeria, pledged the support of the association toward the success of the harmonisation project.

    Chiya promised that the six Area Councils’ Chairmen would work to ensure that FCT-IRS succeeds.

  • FCT-IRS clarifies taxing of residents of neighbouring states working in FCT

    FCT-IRS clarifies taxing of residents of neighbouring states working in FCT

    Mr Haruna Abdullahi, the  Acting Chairman, Federal Capital Territory Internal Revenue Service (FCT-IRS) says the law is clear on where residents working in other states pay taxes.

    Abdullahi gave the clarification when he appeared on the News Agency of Nigeria (NAN) Forum in Abuja, following concerns of multiplicity of taxes.

    NAN reports that there has been concern with regard to proper categorisation of people residing in neighbouring states like Nasarawa and Niger but working in the FCT.

    The FCT-IRS boss said the Personal Income Tax clearly stated that tax deductions should be done based on tax payers’ places of residence.

    He said “Section 22 of the Personal Income Tax stated that tax payment should be made where people reside.

    “For instance, we have employees in the FCT that are resident in places like Mararaba in Nasarawa State or Suleja in Niger State.

    According to the law, yes they work today in Abuja but their home and place of residence is outside Abuja.

    “So, according to Section 22 of Personal Income Tax, such persons would pay their taxes in Nasarawa State or Niger State as the case may be,” he said.

    Abdullahi said that while there were still grey areas in following the law to the latter, the Joint Tax Board (JTB) was working to ensure proper tax remittance.

    “It is an issue the Joint Tax Board is also trying to clarify because it is affecting a lot of states like Lagos , Ogun and probably Kano, Bauchi and Gombe.

    “That is one of the reasons why we are here to enlighten people and educate them about their responsibilities before taking action.

    “So, these are things we are working on.

    “The law provides for it but because these things continue to happen, the system will continue to see how it can enlighten people on it,” he said.

    Abdullahi called on residents caught up in such circumstance to report any tax deductions that were not properly categorised.

    He sad “if for instance a worker’s pay slip indicates tax deductions from Nasarawa State while the person resides in the FCT, a complaint should be lodged for proper categorisation.”

  • Trump tax showdown: U.S. Democrats set April 23 deadline for IRS

    U.S. congressional Democrats on Saturday headed for a showdown with the Internal Revenue Service over President Donald Trump’s tax returns, setting a new hard deadline of April 23 for the federal tax agency to hand the documents over to lawmakers.

    In an April 13 letter that appeared to move Democrats closer to a federal court battle against the Trump administration, House Ways and Means Committee Chairman Richard Neal warned the IRS that failure to comply with his request for six years of Trump’s individual and business returns by April 23 would be interpreted as a denial.

    The Trump administration has already missed an initial April 10 deadline for providing the tax records, which Neal first set when he made his request on April 3. Democrats based their request on the panel’s jurisdiction over IRS enforcement of the tax laws regarding U.S. presidents.

    But Treasury Secretary Steven Mnuchin said on Saturday that Neal was “just picking arbitrary dates” in setting deadlines and said it was more important to get the decision “right” to ensure the IRS would not be “weaponized” in a political dispute.

    “I do intend to follow the law. But I think these raise very, very complicated legal issues. I don’t think these are simple issues. There are constitutional issues,” he told reporters on the sidelines of the International Monetary Fund and World Bank spring meetings in Washington.

    He could not say whether the Treasury, which oversees the IRS, would complete its review of Neal’s request by April 23.

    Mnuchin, who has consulted with the White House and Department of Justice about Trump’s tax returns, said earlier this week that Neal’s request raised concerns about the scope of the committee’s authority, privacy protections for U.S. taxpayers and the legislative purpose of lawmakers in seeking the documents. He said he has not spoken personally to Attorney General William Barr about the request.

    “Those concerns lack merit. Moreover, judicial precedent commands that none of the concerns raised can legitimately be used to deny the committee’s request,” Neal told IRS Commissioner Charles Rettig in his letter.

    “It is not the proper function of the IRS, Treasury or Justice to question or second guess the motivations of the committee or its reasonable determinations regarding its need for the requested tax returns and return information.

    “Please know that, if you fail to comply, your failure will be interpreted as a denial of my request,” Neal wrote.

    As Ways and Means chairman, Neal is the only lawmaker in the House of Representatives authorised to request individual tax information under a federal law that says that the Treasury secretary “shall furnish” the data.

    Despite the law’s clarity, Democrats have long acknowledged that the request, if denied, would mean a federal court battle that could ultimately be settled by the U.S. Supreme Court.

    Legal experts say lawmakers could vote to hold administration officials in contempt of Congress, which would provide a basis for the House to ask a federal judge to order the Treasury Department to comply.

    Congressional Republicans have condemned Neal’s request as a political fishing expedition by Democrats, while the White House has said the documents will “never” be turned over.

    But Congress would likely win a court fight, though it could take months or even years to unfold, experts say. Neal’s request for the returns of a sitting president is unprecedented, and legal experts say its success or failure may depend on a court ruling about the committee’s legislative purpose for seeking the documents.

    Neal said in his letter that the request is needed to further “legislative proposals and oversight related to our Federal tax laws, including but not limited to, the extent to which the IRS audits and enforces the Federal tax laws against a President.”

    Democrats want Trump’s tax returns as part of their investigations of possible conflicts of interest posed by his continued ownership of extensive business interests, even as he serves the public as president.

    Trump broke with a decades-old precedent by refusing to release his returns as a presidential candidate in 2016 and continues to do so as president, saying his tax returns are under IRS.