FIRS to settle tax liabilities with Deduction From defaulters’ Banks, Assets, MDA Allocations

06 May FIRS to settle tax liabilities with Deduction From defaulters’ Banks, Assets, MDA Allocations

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

The FIRS, in a statement on Wednesday by its Director of Communication, Abdullahi Ahmadin, said 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.”

Ahmad, said the FIRS has served a notice to companies, corporations, MDAs and other agents of collection that it “plans 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”.

“All companies, corporate entities and other agents of collection stated are “required to pay all outstanding tax liabilities to the FIRS within 30 days from the date of publication of the notice,” FIRS stated.

The FIRS had previously issued a similar notice to MDAs demanding payment of outstanding tax liabilities to the Service within 60 days.

“MDAs, companies, corporations and other collecting agents that fail to comply with the directive now 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,” FIRS stated.

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

The FIRS further stated that it “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).”

The Service added it will “take all necessary steps to prosecute defaulters for willful negligent, tax evasion, unlawful conversion of government property, etc. as the case may be”.