FIRS Fails to Remit N1.4 Billion Withholding Tax, VAT

The Federal Inland Revenue (FIRS) has received two queries from the National Assembly over
its failure to remit N1.4 billion in both withholding tax and Value Added Tax (VAT)
deducted from 33 Ministries, Departments and Agencies (MDAs) in 2015.

The two queries were issued by the Senate committee on public accounts headed by Senator
Mathew Urhoghide.

The first query read in part: “N700.2 million Withholding Tax (WHT), which were deducted
from 33 government MDAs, were not remitted to FIRS. This negates the provision of
Financial Regulation 234 (III), which stipulates that officers who fail to provide for
remit VAT and WHT due on vatable supplies and services shall be sanctioned under the
applicable VAT Act No. 102 of 1993 which may include fine and/or imprisonment.

“The Executive Chairman has been requested that the unremitted WHT of N700.2 million be
deducted at source from budgetary allocations of the affected MDAs in line with section 24
of FIRS Act of 2007 empowering the Accountant-General of the Federation to make such
deduction to the service.”

However, the Executive Chairman of FIRS, Mr. Mamman Nami, confirmed that the deductions
were yet to be remitted.

In response, the Executive Chairman, Mr. Mamman Nami, who confirmed that the deductions
had not been remitted, said “The total amount of N700.2 million Withholding Tax was
deducted by 33 government MDAs but had not been remitted to the FIRS. Efforts are still
being made by the service and the Debt Management Office (DMO) to advise the Accountant-
General of the Federation to deduct at the source from budgetary allocations of the
affected MDAs in line with the provisions of section 24 of FIRS Act of 2007.”

The second query read: “N708.5 million of Value Added Tax was deducted from 31 government
MDAs but was not remitted to FIRS.”

Again, Nami said plans were underway to deduct the VAT from budgetary allocations of the
MDAs.

“Efforts are still being made by the service and Debt Management Office (DMO) to deduct at source from budgetary allocations of the affected MDAs in line with the provisions of section 24 of FIRS Act of 2007,” FIRS stated.