RateCaptain
  • Home
    • About Us
    • Contact Us
  • FX Rates
  • Money Market
  • Cryptocurrency
  • Commodities
  • Corporates
No Result
View All Result
Subscribe
  • Home
    • About Us
    • Contact Us
  • FX Rates
  • Money Market
  • Cryptocurrency
  • Commodities
  • Corporates
No Result
View All Result
RateCaptain
No Result
View All Result
Home Business

FIRS to publicly name and shame tax defaulting states, local governments

Rate Captain by Rate Captain
June 1, 2022
in Business, Corporates, Economics, Markets
Reading Time: 3 mins read
A A
0
FIRS to publicly name and shame tax defaulting states, local governments
Share on FacebookShare on TwitterShare on WhatsappShare on Telegram

The Federal Inland Revenue Service (FIRS) has stated that it will commence the process of enforcement and recovery of unremitted tax deductions owed by some States and Local Governments in Nigeria.

The Service stated that it would also publicly name and shame the defaulting states and local governments.

AlsoRead

CBN Directs International Money Transfer Operators to Open Naira Settlement Accounts with Local Banks

Central Banks Ramp Up Gold Purchases as Geopolitical Risks Fuel De-Dollarisation Drive

Showmax’s Costly Gamble: Platform loses $2.50 for Every $1 Earned in Revenue

The decision with the agency is contained in a public notice, signed by its Executive Chairman, Muhammad Nami, on Wednesday, June 1, 2022, and can be seen on the federal government’s official Twitter account.

FIRS states the responsibilities of MDAs, Parastatals, others in tax collection

Nami in the statement said that the tax authority noted that most States and Local Governments have failed to remit to the Service Withholding Tax (WHT) and Value Added Tax (VAT) deductions from payments made to contractors and service providers by them as required by law.

  • The notice, highlighting relevant portions of the Companies Income Tax Act (CITA) and the Value Added Tax Act (VATA), stated that Ministries, Departments and Agencies of Government, as well as Parastatals and other establishments, were mandated by law to deduct certain taxes while making payments to third parties and remit those deductions to the FIRS.
  • The notice partly reads, “The provisions of Sections 78(3), 79(3), 81 of the Companies Income Tax Act (CITA), and Sections 9(I), 13(1) of the Value Added Tax Act (VATA), mandate Ministries, Departments and Agencies of Government (MDAs), Parastatals and other establishments to deduct WHT and VAT while making payments to third parties and remit same to the Service.
  • “By the provisions of the relevant laws, States and Local Governments are statutorily mandated, as agents of collection, to deduct at source and remit to the Service, all taxes deducted, within twenty-one days.’’
  • It further stated that most States and Local Governments have failed to comply with these provisions of the law, despite appeals from the FIRS.
  • It states, “However, it is regrettable to note that most of the States and Local Governments have failed in their responsibilities of remitting WHT and VAT deducted from payments made to contractors and service providers as required by law.
  • “The implication is the huge tax debts owed by the States and Local Governments.
  • “All entreaties by the Service to ensure the remittance of the established unremitted tax deductions by the defaulting States and Local Governments have been unsuccessful as a result of lack of cooperation in adopting the e-payment platforms provided by the FIRS for a seamless deduction and remittance of these taxes.”

FIRS reveals action to be taken against defaulting States, LGAs, others

  • Following the failure to remit by defaulting States and Local Governments, the FIRS has stated that it will consequently advise the Federal Government and the Minister of Finance, to henceforth decline approval of any request for the issuance of state bonds or other securities in the capital market; as well as requests for external borrowing and approval for domestic loans from commercial banks or other financial institutions by any of the State and Local Governments with outstanding unremitted tax deductions.
  • The tax authority stated that it would also publicly name and shame the defaulting States and Local Governments while publishing the amounts owed in unremitted tax deductions.
  • It further stated that it would also invoke the provisions of Section 24 of its Establishment Act which empowers the Accountant General of the Federation to deduct at source, from the monthly FAAC allocations, un-remitted taxes due from any government agency and to thereafter transfer such deductions to the Federation Account and notify the Service.
  • The FIRS called on all defaulting States and Local Governments to promptly remit all unremitted tax deductions within 30 days of the publication of the Notice to avoid it taking these enforcement actions.
Previous Post

Cardano is now 6th most valuable crypto following Vasil hard fork

Next Post

Solana drops 12% in value amid network outage

Related News

NEC Affirms CBN $3 Billion Loan for Naira Stability

CBN Directs International Money Transfer Operators to Open Naira Settlement Accounts with Local Banks

by Stephen Akudike
March 25, 2026
0

The Central Bank of Nigeria (CBN) has issued a new directive requiring all International Money Transfer Operators (IMTOs) operating in...

Central Banks Ramp Up Gold Purchases as Geopolitical Risks Fuel De-Dollarisation Drive

by Stephen Akudike
March 25, 2026
0

Central banks worldwide are stepping up their gold-buying activities at a notable pace, with emerging market giants China and India...

Showmax’s Costly Gamble: Platform loses $2.50 for Every $1 Earned in Revenue

Showmax’s Costly Gamble: Platform loses $2.50 for Every $1 Earned in Revenue

by Stephen Akudike
March 10, 2026
0

Showmax, once positioned as Africa's homegrown challenger to global streaming giants like Netflix, has become a stark case study in...

FCMB Group Plc Reports Remarkable 108% Year-on-Year Profit Growth in 9M 2023

FCMB Group Completes N500bn Recapitalisation, Secures International Banking Licence

by Stephen Akudike
March 10, 2026
0

FCMB Group Plc has successfully met the Central Bank of Nigeria's (CBN) revised minimum capital requirement of N500 billion for...

Next Post
Solana drops 12% in value amid network outage

Solana drops 12% in value amid network outage

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

NEC Affirms CBN $3 Billion Loan for Naira Stability

CBN Blacklists Chronic Loan Defaulters, Bars Them from Banking Services

March 27, 2026
Oil Marketers Dismiss Claims of Dangote Refinery Selling Fuel in Dollars

Dangote Refinery Cuts Petrol Gantry Price to N1,200 per Litre Amid Global Oil Uncertainty

March 27, 2026

Popular Story

  • NEC Affirms CBN $3 Billion Loan for Naira Stability

    CBN Blacklists Chronic Loan Defaulters, Bars Them from Banking Services

    0 shares
    Share 0 Tweet 0
  • Naira Strengthens 4.31% in February Despite Late-Month CBN Intervention

    0 shares
    Share 0 Tweet 0
  • Dangote Refinery Imported $3.74 Billion Worth of Crude in 2025 – CBN Data Reveals

    0 shares
    Share 0 Tweet 0
  • NGX Records 8.76 Billion Shares Traded in Three-Day Week as ICT Sector Dominates Activity

    0 shares
    Share 0 Tweet 0
  • Naira Strengthens to N1,355/$ on Monday, Marking Strongest Level in Four Weeks

    0 shares
    Share 0 Tweet 0

RateCaptain

We bring you the most accurate in new and market data. Check our landing page for details.

  • Home
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Disclaimer
  • Cookie Policy
  • Contact Us

Copyright © 2022 RateCaptain - All rights reserved by RateCaptain.

No Result
View All Result
  • Home
    • About Us
    • Contact Us
  • FX Rates
  • Money Market
  • Cryptocurrency
  • Commodities
  • Corporates

Copyright © 2022 RateCaptain - All rights reserved by RateCaptain.

RateCaptain
Manage Cookie Consent
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
  • Manage options
  • Manage services
  • Manage {vendor_count} vendors
  • Read more about these purposes
View preferences
  • {title}
  • {title}
  • {title}
?>