The Minister of the Federal Capital Territory, Nyesom Wike, has ordered the verification of Tax Clearance Certificate (TCC) as a pre-condition for business transactions in the FCT.
According to Chinedum Elechi, the Mandate Secretary, Economic Planning, Revenue Generation and Public Private Partnership Secretariat, FCT Administration (FCTA), made this known at a press conference in Abuja on Monday.
“I am here today to announce that the Minister of the FCT has approved the implementation of Section 85 of Personal Income Tax Act (PITA) and Section 31 of the FCT Internal Revenue Service Act, 2015.
“Both sections provide for demand and verification of TCC by the Federal Government Ministries, Departments and Agencies (MDAs); Commercial banks; and FCT Secretariats, Departments and Agencies (SDAs).
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“Implementation of these laws is intended to ensure that all eligible taxpayers in the FCT comply with their tax obligations.
“This will ensure that the FCT Administration gets the required resources it needs to provide essential services to FCT residents,” he said.
“Section 85 of PITA also provides that for purposes of obtaining a TCC, any person who gives incorrect information or obtains a TCC through misrepresentation, forgery or falsification is guilty of an offence.
“Such a person is liable on conviction to a fine of N50,000, plus twice the tax payable by him or her, or to imprisonment for three years or to both such fine and imprisonment.
“Similarly, a person, be it a government organisation or corporate entity to whom Section 85 applies, who fails to demand for, or verify a TCC, is guilty of an offence and is liable on conviction to a fine of N5 million, or to imprisonment for three years or both fine and imprisonment,” he said.
Other affected transactions include: registration of a limited partnership, application for market stalls, and appointment or election into public office among others.
“Consequently, all MDAs, commercial banks and SDAs were required to demand and verify TCC from all taxpayers before providing them with any services.
“On behalf of the FCT Administration, we urge all individuals, corporations, corporation-soles, trustees, or executors to ensure that they pay their taxes, obtain their TCCs and present them whenever required,” Elechi said
