The House of Representatives on Thursday unveiled plans to investigate allegations bothering on over N5.2 trillion withholding taxes allegedly owed by over 5,000 Companies as well as Ministries, Departments and Agencies (MDAs) of the Federal Government owing N5.2 trillion in withholding taxes.
The resolution was passed sequel to the adoption of a motion on alleged non-remittance and under-remittance of taxes by MDAs, Oil Companies and other Organizations.
To this end, the House tasked the Federal Inland Revenue Service (FIRS) to, as a matter of urgency, embark on immediate recovery of all taxes owed the Federal Government by Ministries, Departments and Agencies (MDAs), oil companies, as well as other corporate organisations and individuals.
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During the plenary, the House observed that taxation is a veritable tool used by governments to regulate economic and commercial activities and ensure availability of funds for sustainable national development.
“The House also notes that the Federal Inland Revenue Service Act, 2004 established the Federal Inland Revenue Service (FIRS) for the core purpose of assessing, collecting, remitting and accounting for the Federation’s taxes.
“The House is concerned that in 2021, the Federal Inland Revenue Service (FIRS) revealed that the sum of N17,690,341,565 was owed in tax by some Companies, whose addresses were untraced till date, but no action was taken to locate or recover the funds.
“The House is also concerned about audit reports from 2015 to 2019 which revealed government agencies owing hundreds of billions in FIRS taxes comprising underpayments and under recoveries and over 5,000 Companies and Ministries, Departments and Agencies (MDAs) of the Federal Government owing N5.2 trillion in withholding taxes.
“The House is disturbed that under-remittance and non-remittance of tax deprive the Federal Government of much needed funds to drive its policies for national development and if the situation is not urgently addressed, the effect could be crippling on the country’s already dwindling economy.
“The House is worried that while small-scale businesses in Nigeria are frustrated by multiple taxation by the Federal Inland Revenue Service, States and Local Government Authorities, Multinational Companies and other corporate organisations are getting the kid-glove treatment,” the House noted.
To this end, the House mandated the joint Committees on Public Accounts and Finance to investigate the non-compliance on tax remittance by MDAs of Government, Oil Companies and other organisations, with a view to ensuring that all debts in taxes owed the Federal Government are duly recovered, and report back within four weeks for further legislative action.
