Taxation: FCT-IRS gives 2-week deadline to 10,000 high earners
The Federal Capital Territory Internal Revenue Service FCT-IRS has announced a special unit for taxation of High Networth Individuals (HNIs) in the FCT, saying it has identified over 10,000 of such persons with income in trillions of Naira.
Accordingly, they have been given a 2-week ultimatum within which to meet up with their tax obligations or risk appropriate sanctions.
Head, Corporate Communications, FCT-IRS, Mustapha Sumaila in a statement on Sunday in Abuja said the Acting Executive Chairman of the Service, Michael Ango, had indicated in a circular that the Unit will focus on assessment and collection of income and other taxes as well as oversee compliance and enforcement of tax obligations by HNIs in the FCT.
“The unit, will also be responsible for interface with agencies of government and other organisations, within and outside the FCT regarding the taxation of HNIs in the FCT”, the statement noted.
He said further to the creation of the Unit, the the FCT-IRS is now focused on the proper identification, profiling and management of high-net-worth individuals within the FCT for tax compliance purposes.
At a meeting to unveil the Unit, the Acting Executive Chairman stated that HNIs are “any individual whether in paid employment, self-employed, carrying on business or having passive annual income of N25 million and above in any financial year”.
He therefore urged all taxpayers that fall within this category to comply with their tax obligations and pay up all outstanding liabilities within two weeks.
“For our HNI taxpayers, we believe it is in our mutual interest that they comply voluntarily and we have identified over 10,000 of such individuals, with income in trillions of Naira, to whom we have started to send notices. We expect that they will respond and comply voluntarily, otherwise, we will apply the relevant provisions of the law and exercise our powers to recover all the outstanding liabilities”, said Ango.
“It would be recalled that since assuming office as Chief Executive of the Service, Mr. Ango, has consistently emphasized the need to enhance revenue generation in the FCT, in order to support the aggressive infrastructural transformation being undertaken by the Federal Capital Territory Administration under the Honourable Minister of the FCT, His Excellency, Barrister Ezenwo Nyesom Wike, CON.
“The Acting Chairman stated that he would continue to take steps to ensure compliance by all taxpayers, irrespective of status and enjoined all residents of the FCT to continue to support the efforts of this administration to improve the infrastructure and public services in the FCT and satellite towns by paying their taxes”, the statement added.
