FIRS To Deduct Tax From Defaulters’ Bank Accounts

The Federal Inland Revenue Service (FIRS) has threatened to
deduct tax liabilities from defaulters’ bank accounts.

It said in a statement in Abuja, Wednesday, that the move was
being considered, “following rising cases of willful and illegal
withholding of taxes collected by companies, corporations,
Ministries, Departments, and Agencies (MDAs) and other agents of
collection.”

The statement by the Director of Communication, Mr Abdullahi
Ahmad, indicated that the agency would take steps “to recover taxes
due from the defaulters’ asset in the custody of any person,
including but not limited to sums standing to its credit with a
financial institution in Nigeria”.

According to the FIRS, notices to that effect have been served
to all companies, corporate entities, and other agents of
collection.

It stated that they were required to pay all outstanding tax
liabilities to the FIRS within 30 days from the date of publication
of the notice.

It would be recalled that FIRS had previously issued a similar
notice to MDAs demanding payment of all outstanding tax liabilities
to the Service within 60 days from the date of publication of the
notice.

The organization said, “It becomes clear, following these
notices, that any MDA, company, corporation and other collecting
agents that fails to comply with the directive stands the risk of
having all outstanding taxes deducted directly from their bank
accounts or statutory allocations, or have their other assets
seized by the FIRS and turned over to the Government of the
Federation in lieu of the withheld taxes.

According to the FIRS, this move is in line with Section 31 of
the Federal Inland Revenue Service (Establishment) Act, 2007 (as
amended).

“The Service shall, without further notice, apply the provisions
of Section 31 of the Federal Inland Revenue Service (Establishment)
Act, 2007 (as amended) to recover taxes due from the defaulters’
asset in the custody of any person (including but not limited to
sums standing to its credit with a financial institution in
Nigeria).

“In addition, the Service shall take all necessary steps to
prosecute defaulters for wilful negligent, tax evasion, unlawful
conversion of government property, etc. as the case may be.”

The Federal Inland Revenue Service (FIRS) has threatened to
deduct tax liabilities from defaulters’ bank accounts.

It said in a statement in Abuja, Wednesday, that the move was
being considered, “following rising cases of willful and illegal
withholding of taxes collected by companies, corporations,
Ministries, Departments, and Agencies (MDAs) and other agents of
collection.”

The statement by the Director of Communication, Mr Abdullahi
Ahmad, indicated that the agency would take steps “to recover taxes
due from the defaulters’ asset in the custody of any person,
including but not limited to sums standing to its credit with a
financial institution in Nigeria”.

According to the FIRS, notices to that effect have been served
to all companies, corporate entities, and other agents of
collection.

It stated that they were required to pay all outstanding tax
liabilities to the FIRS within 30 days from the date of publication
of the notice.

It would be recalled that FIRS had previously issued a similar
notice to MDAs demanding payment of all outstanding tax liabilities
to the Service within 60 days from the date of publication of the
notice.

The organization said, “It becomes clear, following these
notices, that any MDA, company, corporation and other collecting
agents that fails to comply with the directive stands the risk of
having all outstanding taxes deducted directly from their bank
accounts or statutory allocations, or have their other assets
seized by the FIRS and turned over to the Government of the
Federation in lieu of the withheld taxes.

According to the FIRS, this move is in line with Section 31 of
the Federal Inland Revenue Service (Establishment) Act, 2007 (as
amended).

“The Service shall, without further notice, apply the provisions
of Section 31 of the Federal Inland Revenue Service (Establishment)
Act, 2007 (as amended) to recover taxes due from the defaulters’
asset in the custody of any person (including but not limited to
sums standing to its credit with a financial institution in
Nigeria).

“In addition, the Service shall take all necessary steps to
prosecute defaulters for wilful negligent, tax evasion, unlawful
conversion of government property, etc. as the case may be.”