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FIRS threatens deduction of taxes from defaulters’ bank accounts

FIRS threatens deduction of taxes from defaulters’ bank accounts
May 06
12:14 2021

The Federal Inland Revenue Service (FIRS) has threatened to commence deduction of taxes directly from the bank accounts of defaulters.

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The agency issued the warning in a statement signed by Abdullahi Ismaila, FIRS director of communication, on Wednesday.

The federal government revenue collector said the warning became necessary following rising cases of willful and illegal withholding of taxes collected by companies, corporations, ministries, departments, and agencies (MDAs) and other agents of collection.

It said necessary steps will be taken “to recover taxes due from defaulters’ asset in the custody of any person, including but not limited to sums standing to its credit with financial institutions in Nigeria”.

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FIRS said it has served notices to all concerned companies, corporate entities, and other agents of collection.

It added that tax debtors would be required to pay all outstanding tax liabilities to the FIRS within 30 days from the date of publication of the notice.

The revenue agency noted that it had previously issued a similar notice demanding payment of all outstanding tax liabilities by defaulters.

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“It becomes clear, following these notices, that any MDA, company, corporation and other collecting agents that fails to comply with the directive stands the risk of having all outstanding taxes deducted directly from their bank accounts or statutory allocations, or have their other assets seized by the FIRS and turned over to the government of the Federation in lieu of the withheld taxes,” the statement read.

“The Service shall, without further notice, apply the provisions of Section 31 of the Federal Inland Revenue Service (Establishment) Act, 2007 (as amended) to recover taxes due from the defaulters’ asset in the custody of any person (including but not limited to sums standing to its credit with a financial institution in Nigeria).

“In addition, the Service shall take all necessary steps to prosecute defaulters for wilful negligent, tax evasion, unlawful conversion of government property, etc. as the case may be.”

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