Tag: FCT-IRS

The Federal Capital Territory Internal Revenue Service (FCT-IRS) on Friday sealed the premises of two businesses in Abuja over failure to file tax returns and settle outstanding liabilities, despite multiple notifications.

The enforcement operation, carried out under a court order, is part of the agency’s drive to ensure tax compliance and boost internally generated revenue for the FCT Administration.

Addressing reporters during the exercise, Barr. Festus Tsavsar, Acting Director, Legal Services, and Head of the Enforcement Team, stated that the affected businesses Phase 3 Telecom and Cilantro Village both in Maitama repeatedly ignored demand notices, invitations for dialogue, and reminders from the FCT-IRS in the last three years.

“These taxpayers have deliberately refused to meet their tax obligations despite several opportunities given to them. We obtained court orders to seal their premises, and this action will remain in place until they settle their outstanding liabilities,” Tsavsar said.

He further emphasized that business owners are legally prohibited from unsealing their premises without going through the proper legal channels.

Read Also: FCT-IRS gives Abuja residents ultimatum to file annual returns

“By law, no one is allowed to unseal their premises without clearance from the FCT-IRS. If they attempt to do so, they will be committing an offense. The only way forward is for them to pay their tax debts, after which we will approach the court to lift the enforcement order,” he warned.

One of the affected businesses, Phase 3 Telecom, reportedly owes millions of naira in unpaid taxes spanning over three years.

“We have written multiple demand notices to them for over three years, but they refused to respond. Even after attending meetings and making commitments to pay, they still failed to comply,” he stated.

Cilantro was penalized for failing to file its annual tax returns for more than three years, leading to the court-ordered enforcement action.

Tsavsar stressed that this is just the beginning, as the enforcement team will continue sealing more premises in the coming weeks.

“We want all tax defaulters in Abuja to know that we are coming after them, one by one. If you are a taxpayer in the FCT, it is in your best interest to comply with tax laws by filing your returns and paying your dues on time,” he warned.

While corporate tax filings were due by January 31, individual taxpayers have until March 31 to comply before similar enforcement actions are taken against them.

The agency urged businesses and residents to take advantage of the remaining days to fulfill their tax obligations, warning that failure to do so could result in closure of their businesses.

“Tax compliance is not optional; it is a civic duty. The revenue generated is essential for the development of the FCT, including infrastructure, healthcare, and other public services. We advise all taxpayers to do the right thing before enforcement measures reach them,” Tsavsar advised.

With the FCT-IRS ramping up enforcement actions, taxpayers are urged to settle their dues promptly to avoid disruptions to their business operations.

The Federal Capital Territory Internal Revenue Service (FCT-IRS) has urged all residents in the territory to file their annual income returns before the deadline of March 31st, 2025.

In a statement issued on Wednesday, Head, Corporate Communications, FCT-IRS, Mustapha Sumaila, FCT-IRS stated that filing of annual returns of income from all sources is mandatory for all taxpayers, including those in employment (private and public sector), public office holders (elected and appointed), those in self-employment including business owners and partnerships/enterprises resident in the FCT for the preceding year, 2024 and must be filed in the manner and within the time specified by law.

“In this regard, the Personal Income Tax Act, provides that for each year of assessment, a taxable person shall, without notice or demand therefore, file a return of income in the prescribed form and containing the prescribed information with the tax authority of the State in which the taxable person is deemed to be a resident.

Read Also: FCT-IRS rakes over N43.8 billion in January

“This is to be filed with a true and correct statement in writing containing the amount of income earned by the taxpayer from every source of the year preceding (2024) the year of assessment (2025) and other information that may be required by the law with respect to any such income, allowance, relief, deduction or otherwise as may be relevant for the purpose of the returns.  

“The law further provides that the return shall contain a declaration which shall be by or on behalf of the taxable person that the return contains a true and correct statement of the income computed in accordance with the provisions of the Personal Income Tax Act. There is a strict deadline for filing the annual income returns, which is within ninety days from the commencement of every year of assessment and this falls on 31st March, 2025”, Sumaila said.

The statement noted that failure to file the returns by 31st March, 2025, will result in FCT-IRS issuing a best of judgment assessment on all defaulters, which they would be required to pay in line with the provisions of Section 54(3) of the Personal Income Tax Act, along with other criminal and civil sanctions as prescribed by the law.

It will be recalled that the Acting Executive Chairman, Mr Michael Ango has been leading the campaign for voluntary tax compliance by all residents of the FCT. According to him, it is in the interest of taxpayers to comply voluntarily, as any default would be treated seriously. 

Ango noted that given the efforts of the FCT administration under the Minister of the FCT, Nyesom Wike, to improve infrastructure and social services in the FCT, it is incumbent on all taxpayers to contribute to the continued development of the territory by paying their taxes and filing returns as required by law.

The Federal Capital Territory Internal Revenue Service (FCT-IRS) on Sunday urged private companies, Ministries, Departments, and Agencies (MDAs) of government, and all other employers of labour in the FCT to file their employee annual tax returns for 2024 before the deadline of 31 January 2025.

This, according to FCT-IRS, complies with Section 81 of the Personal Income Tax Act (PITA) 2011 (as amended) and the PAYE Regulations, which mandate all employers of labour in the FCT to file annual returns of all emoluments paid to their employees and the total taxes, not later than the 31st of January of every year in respect of all employees in their employment in the preceding year.

The returns, the revenue body said, are to be filed using the prescribed forms provided by the FCT-IRS.

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The acting executive chairman, Michael Ango, at a stakeholder engagement for 2025, stated that the filing of employee annual returns by all employers is a mandatory provision of the law and that failure to do so will attract penalties and other sanctions, which the FCT-IRS will not hesitate to impose on any defaulters.

In a statement issued by the Head of Corporate Communications, FCT-IRS, Mustapha Sumaila, the FCT-IRS boss further stated that the best form of compliance is voluntary compliance, which the FCT-IRS expects from all taxpayers in the FCT.

Ango enjoined all private organizations, MDAs, government-owned enterprises, and even sole proprietorships that are employers of labour in the FCT to comply with their tax obligations to avoid sanctions; but more importantly, to contribute to the development of the FCT and support the efforts of the Minister of the FCT, Nyesom Wike CON, to transform the FCT into a truly modern city.

The Federal Capital Territory Internal Revenue Service (FCT-IRS) has recorded N252.8 billion in 2024; it was announced on Thursday.

The Acting Chairman of FCT-IRS, Michael Ango, disclosed this while briefing reporters on the agency’s achievements.

The agency announced a 19.8% increase in revenue collection for 2024, surpassing its target and setting the stage for ambitious plans in 2025.

Ango said: “This year, we recorded a total revenue collection of ₦252.8 billion, surpassing our target of ₦250.2 billion.

“This marks a significant leap from last year’s ₦211.1 billion, and it reflects the tireless efforts of our team, the support of the FCT Administration, and the collaboration with other stakeholders.”

Since his appointment in August 2024, Ango has introduced sweeping reforms to enhance efficiency and expand revenue streams.

Ango stated that the agency has created specialised departments such as Audit, Debt Management, and Enforcement, alongside a High Net Worth Individuals (HNI) Unit to boost compliance among affluent taxpayers.

He indicated that over 52 staff training programmes were conducted in 2024, with a commitment to equipping all employees with laptops by mid-2025.

The FCT-IRS boss also spoke about the deployment of additional payment gateways and plans to establish tax kiosks in strategic locations to ease compliance.

Acknowledging the critical role of partnerships, Ango hailed the support of the FCT Minister, Nyesom Wike, and the FCT Minister of State, Mariya Mahmoud, for driving the development agenda.

He also lauded the collaboration with the Federal Inland Revenue Service (FIRS), Joint Tax Board (JTB), and Nigerian Financial Intelligence Unit (NFIU).

With the infrastructural transformation in the FCT requiring robust funding, he stated that the FCT-IRS is set to implement aggressive enforcement measures against tax defaulters while prioritising taxpayer education in 2025.

“The agency plans to introduce property taxes, entertainment levies, and betting taxes to diversify revenue sources.

Read Also: FCT-IRS creates dedicated unit for taxation of high networth individuals 

“Our vision is anchored on four pillars: People, Processes, Platforms, and Partnerships.

“These will drive our reforms, ensuring transparency, accountability, and world-class service delivery,” Ango added.

As the FCT-IRS prepares for a pivotal year, Ango urged the media and other stakeholders to sustain their support.

He said: “We count on your partnership in 2025, a crucial year for the FCT and the nation.

“We wish all a Merry Christmas and a fruitful New Year.

“The FCT-IRS is poised to not only exceed expectations but also redefine revenue administration in Nigeria’s capital city.

“With bold strategies and unwavering commitment, the agency is on track to become a model for fiscal efficiency in the nation.

The Federal Capital Territory Internal Revenue Service (FCT-IRS) has created a dedicated unit for taxation of High Networth Individuals (HNIs) in the nation’s capital.

In a circular signed by the acting executive chairman of the Service, Michael Ango, it was indicated that the Unit will focus on assessment and collection of income and other taxes as well as oversee compliance and enforcement of tax obligations by HNIs in the FCT.

The unit will also be responsible for interface with agencies of government and other organizations, within and outside the FCT regarding the taxation of HNIs in the FCT.

Further to the creation of the Unit, Ango stated that the FCT-IRS is now focused on the proper identification, profiling and management of high-net-worth individuals within the FCT for tax compliance purposes. 

At a meeting to unveil the Unit, the acting executive chairman stated that HNIs are: “any individual whether in paid employment, self-employed, carrying on business or having passive annual income of N25,000,000.00 (Twenty-Five Million Naira) and above in any financial year”.  

He therefore urged all taxpayers that fall within this category to comply with their tax obligations and pay up all outstanding liabilities within two weeks.

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Ango said: “For our HNI taxpayers, we believe it is in our mutual interest that they comply voluntarily and we have identified over 10,000 of such individuals, with income in trillions of Naira, to whom we have started to send notices. We expect that they will respond and comply voluntarily, otherwise, we will apply the relevant provisions of the law and exercise our powers to recover all the outstanding liabilities”.

It will be recalled that since assuming office, Ango has consistently emphasized the need to enhance revenue generation in the FCT, in order to support the aggressive infrastructural transformation being undertaken by the Federal Capital Territory Administration under the Minister of the FCT, Nyesom Wike.

According to the Head, Corporate Communications, FCT-IRS, Mustapha Sumaila, the Acting Chairman stated that he would continue to take steps to ensure compliance by all taxpayers, irrespective of status and enjoined all residents of the FCT to continue to support the efforts of this administration to improve the infrastructure and public services in the FCT and satellite towns by paying their taxes.

The Federal Capital Internal Revenue Service (FCT-IRS), has collected and remitted N126.54 billion from January to June 2024, it was learnt on Monday, July 29. 

Acting Executive Chairman, Haruna Abdullahi, disclosed this during the FCT-IRS mid-year briefing in Abuja.

The executive chairman was represented at the event the Director Tax Operations, Mrs Chioma Anohu-Ndu.

He said the figure was 53.5 per cent higher that the N82.46 billion collected in the first half of 2023.

He added that the N126.54 billion was 119.7 per cent higher than the N57.59 billion collected in the half year of 2022.

This, according to him, is an indication of a year-on-year growth.

“This stellar growth highlights our commitment and determination to overcome obstacles while striving to boost revenue generation.”

Abdullahi pointed out that the FCT-IRS achieved these impressive results within six months in spite of economic challenges.

He attributed the successes to the service’s resolve to leverage technology and build one of the most functional e-service portals in the revenue sector.

“We also owe this accomplishment to the high compliance rate of taxpayers in the FCT.

“We, therefore, urged everyone to continue choosing voluntary compliance over compulsion,” he said.

On enforcement, the executive chairman said that the revenue service has commenced an enforcement drive to tackle tax evasion and ensure the collection and accounting of all revenue accruable to the FCT.

He added that non-compliant businesses have been sealed, and appropriate legal actions taken to recover all tax liabilities and ensure timely payment of subsequent taxes.

Abdullahi said that FCT-IRS was investing in technological advancements for seamless revenue collection in the FCT.

“We are currently optimising and upgrading our technology to improve tax compliance, reduce costs, and enhance efficiency.

“This will enable us to build a more resilient tax system that will enhance revenue generation while making the tax paying process seamless for our taxpayers,” he said.

He said that FCT-IRS plays a critical role in stabilising the economy during economic challenges by generating revenue for the government to fund essential public services.

“Key expectations include maximising tax collection to increase government revenue and ensuring efficient tax administration by streamlining tax processes, reducing bureaucracy, and combating tax evasion and fraud while educating and enlightening taxpayers.

“The service is also committed to aligning with Federal Government tax policy reforms aimed at stimulating economic growth.

“The service is also dedicated to engaging with taxpayers, businesses, and other stakeholders to understand their challenges to continuously develop solutions that will enhance tax compliance and eliminate tax evasion,” he added.

Read Also: Tax evasion: FCT-IRS seals hotel, international company in Abuja

He commended the Minister of the FCT, Mr Nyesom Wike for his exemplary leadership, support, and commitment to boosting revenue generation in the FCT.

The FCT-IRS boss said that the service was working tirelessly to surpass the N500 billion 2024 revenue target, by remaining focused and sustaining the momentum.

“We encourage all taxpayers in the FCT to prioritise tax compliance, describing it as a crucial aspect of development and nation-building.

“By fulfilling your tax obligations, you contribute directly to the growth and prosperity of the FCT and the nation at large,” he said.

The Federal Capital Territory Internal Revenue Service (FCT-IRS) on Thursday, May 9, sealed Regency Hotels, a school, and three business premises in Abuja over evasion of tax

The FCT-IRS Acting Director, Legal Services, Festus Tsavsar, who led the enforcement team, explained that the closure of the premises was in line with a court order obtained by the IRS.

The school and business premises are Gratias International School, Rural and Urban Homes Ltd, Trevari International Company, and Phenomenon International Company.

Tsavsar explained that the hotel and business premises contravened FCT tax laws by refusing to file their annual returns, despite issuing several notices, including a court summons.   

He said: “Today we went out to execute the Court Orders, which ordered the FCT-IRS to seal off the premises of defaulting taxpayers that were brought before it.

“We have been able to effectively comply with the court order by sealing off the premises as directed. We went to Gratias International School located in Games Village, Kaura, and sealed it off.

“The offence they committed was a refusal to file their annual returns despite many notices, including a Court Summon but the school management refused to comply.

“We are at their premises and the management refused to attend to us; and refused to open their doors, despite many calls for them to do so to enable us to enforce the court order.”

The FCT-IRS boss expressed concern over the continued refusal by the school’s management to comply with the tax law, adding that the action was simply tax evasion, which he described as a criminal offence.

He added that to worsen the case, the management had changed their name to DGIS College to evade tax payments.

“This is also a criminal offence. The school has not been paying their taxes at all, and also refused to file their annual returns since establishment,” he said. 

From the school, the team proceeded to Residency Hotels, No. 4, Port Harcourt Crescent, Area II, Garki, where it was also sealed for not filing annual returns.

“From there we went to seal off Rural Urban Homes Ltd in Utako and two business premises residing in Transcorp Hilton, Abuja, namely Trevari International Company and Phenomenon International Company,” he said.

Read Also: Revenue generation: FCT-IRS vows to support relevant agencies

He warned the affected business owners against any attempt to unseal the premises and advised them to go to court to obtain a court order before they could do so.

“If they go against the Court Order and unseal the premises by themselves, they have committed a criminal offence, and the court will order their arrest.

“They will be prosecuted in line with the tax law, particularly Section 81 of Personal Income Tax Law, and upon conviction they will be jailed for six months in addition to a fine,” he added. 

Tsavsar equally warned that FCT-IRS would go after all tax-defaulting companies and individuals, and advised taxpayers to comply with existing tax laws, pay their taxes, and file their annual returns.