Post Views: 92 • Begins No Tax ID, No Payment Policy • To undertake compliance spot checks on MDAs Photo Caption: Minister of Finance, Mrs. Kemi Adeos...
• Begins No Tax ID, No Payment Policy
• To undertake compliance spot checks on MDAs
Photo Caption: Minister of Finance, Mrs. Kemi Adeosun with the Chief of Air Staff, Air Marshal Sadique Baba Abubakar, during the visit of Abubakar to the Minister on Tuesday, 9th January, 2018.
The Federal Government, on Tuesday said it recently discovered tax revenue shortfall amount to N100bn by contractors between 2012 and 2017.
A statement by Oluyinka Akintunde, Special Adviser, Media & Communications to the Finance Minister, Mrs. Kemi Adeosun, said the Federal Government’s directive was handed down in Abuja by the Minister, Mrs. Kemi Adeosun to the Accountant General of the Federation, Alhaji Ahmed Idris, as part of its resolute efforts by the administration to block revenue leakages by the MDAs’ vendors.
Adeosun’s memo titled: “Compliance with Tax Payments by Federal Government Vendors,” said persistent leakages in revenue remittances by vendors had been uncovered by the Government’s Project Lighthouse, a systemwide revenue intelligence data-warehouse.
The leakages, according to her, were due to lack of TIN particularly on Value Added Tax (VAT), Withholding Tax (WHT) and other related inflows into the government coffers
According to her, “to address these lapses in the implementation of the 2017 Budget as well as boost the revenue accruable to the Government, all MDAs should be directed to insist that invoices submitted by vendors for payments must clearly state the TIN.
“This is to confirm tax compliance by relevant government vendors before payments are effected.”
Vendors of Ministries, Departments and Agencies (MDAs) are to henceforth display their Tax Identification Numbers (TINs) on invoices before payments are effected.
She added that the directive to the government vendors is in compliance with the provisions of both the Federal Inland Revenue Service (FIRS) and Procurement Acts of 2007 respectively.
The Minister also stated that spot checks would be undertaken on MDAs to confirm compliance with the directive.