FIRS to withdraw taxes from defaulters’ bank account

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FIRS to withdraw outstanding taxes directly from bank account of defaulters
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FIRS now proposing to withdraw outstanding taxes directly from bank accounts in connection with tax evaders and defaulters as a step to improve it’s revenue.

The Federal Inland Revenue Service (FIRS) has menaced to subtract tax liabilities from defaulters’ bank accounts.

It said in a statement in Abuja, Wednesday, that the move was being considered, “following rising cases of willful and illegal withholding of taxes collected by companies, corporations, Ministries, Departments, and Agencies (MDAs MDAs) and other agents of collection.” The statement by the Director of Communication, Mr Abdullahi Ahmad, indicated that the agency would take route “to recover taxes due from the defaulters’ asset in the keeping of any person, including but not limited to summations standing to its credit with a monetary institution in Nigeria”. According to the FIRS, notices to that effect have been served to all companies, corporate entities, and other agents of collection. It stated that they were necessitated to pay all outstanding tax laibilities to the FIRS within 30 days from the date of publication of the notice.


It would be recalled that FIRS had anteriorly issued a ditto notice to Ministries Departments and Agencies (MDAs) demanding payment of all outstanding tax liabilities to the Service within 60 days from the date of publication of the notice. FIRS has stated, “It becomes clear, following these notices, that any MDA, company, Corporation and other collecting agents that fails to curb with the directive stands the peril of having all outstanding taxes withdrawn directly from their bank accounts or statutory allocations, or have their other assets seized by the FIRS and turned over to the Government of the Federation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.

According to the FIRS, this move is in line with Section 31 of the Federal Inland Revenue Service (Establishment Establishment) Act, 2007 (as amended). “The Service shall, without other notice, apply the provision of Section 31 of the Federal Inland Revenue Service (Establishment Establishment) Act, 2007 (as amended) to recover levies due from the defaulters ’ asset in the ward of any person (including but not limited to sums standing to its credit with a financial institution in Nigeria). “In addition, the Service shall take all necessary way to perpetrate defaulters for wilful negligence, tax evasion, unlawful conversion of government property, etc. as the case may be. ”

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