The Minister of the Federal Capital Territory (FCT), Barr. Ezenwo Nyesom Wike, has approved the implementation of Section 85 of the Personal Income Tax Act (PITA) and Section 31 of the FCT Internal Revenue Service Act 2015.
Both sections provide for demand and verification of Tax Clearance Certificates (TCC), by Federal Government Ministries, Departments, Agencies, Commercial Banks, and FCT Secretariats, Departments and Agencies (SDAs).
Secretary, Economic Planning, Revenue Generation and Public- Private Partnership Secretariat, Chinedum Elechi, made the announcement at a Press Briefing at the FCDA Conference Room in Abuja, Monday.
His words: “I am here today to announce that the Minister of the FCT, Ezenwo Nyesom Wike, has approved the implementation of Section 85 of Personal Income Tax Act (PITA) and Section 31 of the FCT Internal Revenue Service Act, 2015.
Both Sections provide for Demand and Verification of Tax Clearance Certificate
(TCC) by Federal Government Ministries, Departments and Agencies (MDAs); Commercial banks; and FCT Secretariats, Departments and Agencies (SDAs)”, he said.
Elechi warned that, in line with Section 85 of the PITA, anyone who provides false information or obtains a TCC through forgery or falsification, is liable to a fine of N50,000 or a three year jail term or both upon conviction.
He added that a government entity or organization who failed to verify a TCC was liable to a fine of N5,000,000 or a three year jail term or both, upon conviction.
The EPRGPPP Secretary also explained that Section 31 of the FCT-IRS Act provided that all SDAs, corporate bodies, or any person empowered by law, shall demand a TCC from any person or enterprises for the last three years “preceding the current year of assessment as a precondition for transacting any business in the FCT”.
The said transactions include Certificate of Ocupancy, award of contracts, approval of building plans, application for FCTA loan for housing, business or any other purpose, registration of motor vehicles, among others.
Elechi appealed to residents to pay their taxes and obtain their TCCs; noting that “Taxes are essential to the foundation of any government, and it is important that everyone pays their fair share. Payment of tax is a civic duty and responsibility. Implementation of these laws is intended to ensure that all eligible taxpayers in the FCT comply with their tax obligations”.
