FIRS to deduct tax liabilities from defaulters’ bank accounts

The Federal Inland Revenue Service has threatened to deduct tax liabilities from defaulters’ bank accounts, assets or allocations to recover funds being withheld by some tax collectors or agents.

The FIRS, in a statement by its Director of Communication, Abdullahi Ahmadin, on Wednesday said the move was being considered, “following rising cases of wilful and illegal withholding of taxes collected by companies, corporations, Ministries, Departments and Agencies (MDAs) and other agents of collection.”

It said the agency would take steps “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.”

Already, the FIRS said notices to that effect had been served on all companies, corporate entities and other agents of collection.

All affected organisations were required to pay all outstanding tax liabilities to the FIRS within 30 days from the date of publication of the notice.

The FIRS had previously issued a similar notice to the MDAs demanding payment of all outstanding tax liabilities to the Service within 60 days from the date of publication of the notice.

It said, “It becomes clear, following these notices, that any MDA, company, corporation and other collecting agents that fail to comply with the directive stand 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,” it said.

The action, it added, was in line with Section 31 of the Federal Inland Revenue Service (Establishment) Act, 2007 (as amended).

It stated, “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).”