Tax evasion: FIRS to deduct directly from defaulters’ bank accounts, assets




Whatsapp News

Following rising cases of wilful and illegal withholding of taxes collected by , corporations, Ministries, Departments and Agencies (MDAs) and other agents of collection, the Federal Inland Revenue (FIRS) has served public notices to defaulters that the “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 ”.

The FIRS stated this in widely publicised notices in national newspapers and online news platforms. The notices were signed by the Executive Chairman, Mr. Muhammad Nami.

The notices to all , corporate entities and other agents of collection stated that they were required to pay all outstanding liabilities to the FIRS within 30 days from the date of publication of the notice. would be recalled that FIRS had previously issued a similar notice to MDAs demanding of all outstanding liabilities to the within 60 days from the date of publication of the notice. 

becomes clear, following these notices, that any MDA, company, corporation and other collecting agent that fails to comply with the directive stands the risk of having all outstanding taxes deducted directly from accounts or statutory allocations, or have 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 the Section 31 of the Federal Inland Revenue (Establishment) Act, 2007 (as amended). 

The FIRS, in the notices, stated thus:  “Sections 78, 79, 80, 81 and 82 of the Income Act (CITA) Cap. C21, Laws of the Federation of (LFN), 2004 (as amended) and Sections 14, 15 and 16 of the Value Added Tax (VAT) Act Cap. V1, LFN, 2004 (as amended) imposed obligations on companies, corporations and other relevant persons as agents of collection, to collect, deduct or withhold taxes (as the case be) on supply of goods and services or payments and to remit same to the Federal Inland Revenue Service (the Service) within stipulated time frame.”

The notices emphatically stated that “the Service shall, without 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 ).”

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