₦airaland Forum

Contractors owe govt N100bn in tax liabilities, Adeosun says
Published January 9, 2018

Minister for Finance, Kemi Adeosun
Ifeanyi Onuba, Abuja

The Federal Government on Tuesday said about N100bn has been discovered as tax revenue shortfall by contractors between 2012 and 2017.

The figure was given by the Minister of Finance, Mrs. Kemi Adeosun, in a statement issued by her Special Adviser, Media and Communications Mr. Oluyinka Akintunde.



The minister, in the statement, said she had ordered vendors of Ministries, Departments and Agencies to display their Tax Identification Numbers on their invoices before they make payments.

She said already, the Federal Government’s directive has been handed down to the Accountant General of the Federation, Ahmed Idris, for implementation

Adeosun said the order was part of the government efforts to block revenue leakages.

The finance minister in the memo entitled, “Compliance with tax payments by Federal Government vendors,” disclosed that persistent leakages in revenue remittances by vendors was uncovered by the government’s Project Lighthouse, a system-wide revenue intelligence data warehouse.

The leakages, according to her, were due to the lack of TIN, particularly on Value Added Tax, Withholding Tax and other related inflows into the government coffers.

The minister said, “In order to address these lapses in the implementation of the 2017 budget as well as boost the revenue accruable to the government, all MDAs should be directed to insist that invoices submitted by vendors for payments must clearly state the TIN.

“This is to confirm tax compliance by relevant government vendors before payments are effected.”

She added that the directive to the government vendors is in compliance with the provisions of both the Federal Inland Revenue Service and the Public Procurement Acts of 2007 respectively.



Adeosun noted that spot checks would be undertaken on MDAs to confirm their level of compliance with the directive.

http://punchng.com/contractors-owe-govt-n100bn-in-tax-liabilities-adeosun-says/

Everyday na so We go dey hear billions this billions that from these folks, $40 billion treasury reserve this & that! Yet people are dying daily on our streets, graduates are walking about no job, retrenchment everywhere. No tangible thing to show for all the billions we've been hearing! scam people!!! Ndi ara!!!!

okachie1:
Everyday na so We go dey hear billions this billions that from these folks, $40 billion treasury reserve this & that! Yet people are dying daily on our streets, graduates are walking about no job, retrenchment everywhere. No tangible thing to show for all the billions we've been hearing! scam people!!! Ndi ara!!!!

Farming is becoming lucrative these days. You don't need Govt permit or license to practice. Many are embracing it. There is no where in the world that Govt feeds or provides job for everyone.
Govt job is to provide the necessary infrastructure and enabling environment.

Despite this, dey 'll still award dem more contracts...

The leakages, according to her, were due to the lack of TIN, particularly on Value Added Tax, Withholding Tax and other related inflows into the government coffers.

This is hardly the fault of the vendors. If VAT and WHT are not deducted accordingly at the point of payment, the MDA's should be held responsible. The responsibility of deducting and remitting VAT and WHT is that of the paying MDAs and not government contractors.