Laide Akinboade, Abuja

The Acting Executive Chairman of the Federal Capital Territory Internal Revenue Service (FCT-IRS), Haruna Abdullahi, has sounded an alarm over the incorrect remittance of taxes intended for his organization to the Federal Inland Revenue Service (FIRS).

The Chairman also criticized the practice of paying personal income taxes, which are meant for FCT-IRS, to other states within the federation.

Abdullahi raised these concerns while speaking at a two-day workshop held on Tuesday in collaboration with the Joint Tax Board and the Office of the Accountant General of the Federation. The workshop aimed to ensure the proper utilization of the IPPIS and GIFMIS platforms.

It should be noted that the Integrated Payroll and Personnel Information System (IPPIS) and the Government Integrated Financial Management Information System (GIFMIS) are platforms utilized for financial transactions and taxation in the public sector.

The Chairman emphasized that tax remittances were significant pillars of the financial system. They serve as a critical revenue source required for economic development, the promotion of wealth redistribution, and contributing to the overall welfare of society.

He stated, “This engagement is vital to rectify the misallocations of past tax remittances.

“I would like to emphasize that the Federal Capital Territory Internal Revenue Service (FCT-IRS) exists to serve the people of the FCT, just as the FIRS exists to serve the entire nation. We are not competitors but collaborators in the larger scheme of national development.

“To the FIRS, we say, let fairness and justice prevail. We believe in your institution’s dedication to just and fair practices.

“Therefore, we request that you join us in this crucial endeavor to correct these past mistakes and ensure that the FCT-IRS receives what is rightfully due to it,” he appealed.

Highlighting that the anomalies resulted from inaccurate data entries on the platforms, distorting financial records and depriving rightful states of their due resources, Abdullahi lamented, “The resources wrongly allocated in the past could have been better utilized to foster growth and development in the FCT, thereby benefiting the residents of our great capital.”

He thus urged desk officers to be meticulous in their duties, double-checking every data entry, form completion, and tax remittance to ensure they are directed to the correct organization.

The Chairman of the FCT Chapter of the Chartered Institute of Taxation of Nigeria, Dr. Kennedy Iwundu, explained in his remarks that the Value Added Tax (VAT) component of tax should be remitted to states, specifically FCT-IRS for the FCT, while the withholding tax component is payable to FIRS.

Iwundu advised desk officers to always request two tax identification numbers (TINs) in order to make payments for the two tax components.

He called on the tax organizations to adhere to the principles of simplicity and certainty in order to facilitate easy payments. He cautioned that without such adherence, taxpayers would be further discouraged from filing tax returns.

Workshop participants included account officers from Ministries, Departments, and Agencies of the government who posed questions on various issues affecting the two payment platforms, such as overpayments, underpayments, and incorrect data entry into the systems, among others.