•Revenue agency introduces e-tax clearance certificate to check forgery
By Udora Orizu
The House of Representatives Committee on Public Accounts has promised that the 9th National Assembly would support the Federal Capital Territory, Inland Revenue Services, (FCT- IRS) and other revenue generating agencies to enhance their operations.
The Chairman of the Committee, Hon. Wole Oke, gave the assurance when the Acting Executive Chairman of the Service, Mr. Haruna Abdullahi appeared before the lawmakers to answer questions on various issues raised against the agency which was referred to it by the House at plenary.
This was as the agency disclosed that it had introduced Electronic Tax Clearance Certificate (e-TCC) to improve service delivery and checkmate activities of fraudsters who could forge such document.
Addressing the lawmakers, Abdullahi explained that the tax clearance certificate was a document being issued by the tax authority to certify that an individual or a business was compliant with the appropriate requirements as stated by law within a stipulated period of time usually for the three preceding years.
He said the e-TCC had fortified the process thereby making it difficult for anyone to forge such document because of the of the introduction of QR CODE, adding that this effort would ensure that the agency does not lose revenue.
Abdullahi said, “This in line with Section 85 of the Personal Income Tax Act 2011 as amended, which states that whenever the relevant tax authority is of opinion that tax assessed on the income of a person for the three years immediately preceding the current year of assessment has been fully paid or that no tax is due on income or that the person is not liable to tax for any of those three years, it shall issue a tax clearance certificate to the person within two weeks of demand for the certificate by that person or give reasons for the denial.
“Application for TCC must be made and duly endorsed by the taxpayer and annual income declaration Form A and three years income declaration form must also duly completed and signed by the taxpayer.
“Taxpayers should always endeavour to declare their income accordingly with evidences that would be satisfactory to the mangers of the tax authority while due diligence would be carried out appropriately within the stipulated time.
“It is evident that the issuance of the TCC is at the discretion of the Service in its justification based on the items listed in section 31 of FCT-IRS Act, 2015 and PITA, 2011 (as amended) may issue or not issue a tax clearance certificate.”
Commenting, Oke urged the general public and taxpayers to report any violation of the law concerning issuance of TCC to the management of FCT-IRS.
He advised that the FCT-IRS should consider legislative arm as collaborator who would work to ensuring smooth operation of the service.
“We will support you in whatever way to generate more revenue in the FCT, try to have record of all the people resident in Abuja, the data is important, ask for bank statement to know the actual tax to collect. We will support FCT-IRS and help the Service to bring more people to the tax net”, he added.
