*Barr. Nyesom Wike, Minister for FCT, in a recent memo to concerned government agencies and financial institutions, lists several transactions requiring the mandatory demand for tax clearance certificates from firms before offering them services in the country’s Capital

Isola Moses | 绿帽献妻

Peradventure in line with the tenets of the ongoing fiscal policy and tax reforms in Nigeria, the Federal Capital Territory Administration (FCTA) has debarred Ministries, Departments and Agencies (MDAs), as well as Government secretariats, departments, commercial banks, and others from offering services to individuals and organisations without demanding and verifying their tax clearance certificates.

Barr. Nyesom Wike, Honourable Minister for the FCT had issued a directive in a recent memo to concerned government agencies and financial institutions.

The Minister specifically, addressed the memo to the Minister of State in the FCT, Permanent Secretary in the FCTA, Chief of Staff to the FCT Minister, FCT Mandate Secretaries, Chief Registrar of the FCT High Court, All Directors/Heads of Secretariats Departments and Agencies, SDAs.

Wike also listed several transactions requiring the mandatory demand for the said certificates in the memo titled, “Enforcement of Section 85 of Personal Income Tax Act, 2011 (as amended) and Section 31 of the Federal Capital Territory Internal Revenue Service Act 2015 on demand and verification of Tax Clearance Certificate TCC by MDAs, commercial banks and SDAs in the FCT”.

Some of the transactions are application for government loans, motor vehicle registration, application for landed property, application for certificates of occupancy and 22 others.

The memo partly reads: “The Federal Capital Territory Administration FCTA has observed with dismay, lack of implementation and adherence to the provisions of Section 85 of Personal Income Tax Act (PITA), 2011 (as Amended) and Section 31 of the Federal Capital Territory Internal Revenue Service Act, 2015 that provide for the demand and verification of Tax Clearance Certificates TCC from residents of the FCT before rendering of services or performance of transactions.

鈥淚t is pertinent to note that both the Personal Income Tax Act (PITA) 2011 (as amended) and the Federal Capital Territory Internal Revenue Service Act, 2015 provide that Ministries, Departments and Agencies (MDAs), Commercial Banks, Secretariats, Departments & Agencies (SDAs) of the Federal Capital Territory Administration (FCTA) as well as Area Councils, corporate bodies, and statutory authorities among others must demand and verify TCC from residents before rendering of services or performing any transaction.”