Hammed Shittu in Ilorin
As part of move to improve the revenue generation in Kwara state, the state internal revenue agency has called on the direct employers of labour to guide against non-deduction, under-deduction, non-remittance and under-remittance of taxes due on emoluments of their employees.
The executive chairman of the internal revenue agency (KWIRS), Mrs. Shade Omoniyi made the call in Ilorin during the annual Pay-As-You-Earn (PAYE) workshop of the KW-IRS, tagged, ‘Enhanced Tax Compliance through efficient PAYE Operation and Stakeholders’ Engagement.
Omoniyi, warned that non-remittance is punishable under the relevant laws.
The KW-IRS boss, who enjoined the direct employers of labour to ensure full compliance with the extant law on PAYE operation on total emoluments of employees in both private and public organizations in the state, said that doing so would ensure strategic development of the state.
Omoniyi appreciated all direct employers of labour in the state for cordial and symbiotic relationship enjoyed among them over the years, saying that collaboration as partners had assisted the agency in achieving its set goals, “with confidence that even more of such cooperation would be enjoyed in the state’s revenue drive.
“The annual event is one of the major platforms where the state brings together direct employers of labour to provide them with critical guidance on issues that bother on efficient operations of Pay-As-You-Earn Scheme in the state.
“This year’s workshop will not only afford participants to be exposed to rudiments of PAYE operation, but allows for ideas to be shared on grey areas in taxation, and serve as an opportunity to interact and cross fertilize ideas towards an improved service delivery and IGR for the state.”
The workshop had five paper presentations from staff of KW-IRS, on topics around tax compliance.
Mohammed Audu in his presentation highlighted the component of tax compliance and its benefits to the citizenry, stating that “when submission of required information to tax authorities as and when due and in required formats, declaration of income, filing of annual returns, and paying of tax due, in a timely manner, are observed as required, the state develops and everyone is better for it”.
On efficient PAYE operation, Abdullahi Gegele stated that PAYE is statutory and mandatory and non-remittance is punishable under the relevant laws. He also explained responsibility of Employers of Labour in line with section (80) of Personal Income Tax Act 2011 as amended, and the Residence Rule.
In his presentations, Mohammed Kabiru-Rufai, spoke on Annual Returns and Back duty, noting that tax audit is a tool to confirm the level of compliance of every Directed Employer of labour to the directive of the tax law with regards to PAYE and other deductibles, such as water rate, development levy, withholding tax on contracts, bank interest, and so on. He emphasized the need for submission of Nominal Roll and Annual Tax Return by Directed employers of labour for accurate reconciliation of remittances of every organization.
The paper presentation at the event also created awareness on seamlessness of tax payment through the use of the Self-Service Portal provided by KW-IRS as one of the State’s automation goal, aimed at refining the current tax processes towards improving tax compliance, conform with standard tax practices, strengthen the tax administration system and respond effectively to the dynamics of the revenue challenges in the state.