Acting executive chairman, Federal Inland Revenue Service (FIRS), Alhaji Kabir Mashi

By James Emejo 

The acting executive chairman, Federal Inland Revenue Service (FIRS), Alhaji Kabir Mashi, has said that the agency remained open to Ministries, Departments and Agencies (MDAs) which may need clarification on any grey areas in the Personal Income Tax amendment Act (PITA).

The new Act, signed into law by President Goodluck Jonathan last year aims, among other things, to enhance the level of voluntary tax compliance.

Speaking in Abuja at a sensitisation exercise to address grey areas in the Act, Mashi said one of the key elements in the transformation of the Service was improved service delivery through setting up of the integrated tax payer’s office-a one-stop-shop to ensure effective and efficient tax response to taxpayers.

He said the workshop would provide a unique opportunity for officials from MDAs to ask questions on the grey areas of the amended law and be better informed to discharge their responsibilities under the law.

Mashi said the integration had led to the segmentation of taxpayers into Large Taxpayers (LTO), with turnover thresholds of N1 billion and above; Medium Taxpayers (MTO), with turnover of N200 million and above and Micro and Small Tax payers with below N200 million turnover.

He explained that the Individual and Enterprises Income Tax Department (IEITD) had also been created to administer the PITA in the FCT for the benefit of the Federal Capital Territory Administration (FCTA).

Meanwhile, Director, Field Operations Group, FIRS, Mr. Samuel Ogungbesan, has said that the sensitisation exercise became necessary in order to make everyone familiar with some of the changes in the new law.

He said one of the fundamental changes in the Act includes a penalty of N5 million or three years imprisonment for failure to confirm Tax Clearance Certificate from the tax authority and the introduction of N200, 000 in addition of 20 per cent of gross salary as Consolidated Relief Allowance.