The Federal Capital Territory Internal Revenue Service has moved to rectify anomalies bedeviling the nation’s capital city and the country’s tax system, primarily due to Integrated Payroll and Personnel Information System (IPPIS) and the Government Integrated Financial Management Information System (GIFMIS).
Executive Chairman, Federal Capital Territory Internal Revenue Service, Haruna Abdullahi, disclosed this to newsmen in Abuja on Tuesday, during the opening of a 2-day training workshop on the proper use of IPPIS and GIGMIS platforms, an event put together in collaboration with Joint Tax Board and the office of the Accountant General of the Federation.
He said, “We are here to deliberate upon and rectify the significant issues our nation’s tax system is currently grappling with, primarily due to the Integrated Payroll and Personnel Information System (IPPIS) and the Government Integrated Financial Management Information System (GIFMIS).
“It has come to our attention that there have been recurring instances of errors in remitting taxes of individuals residing in the FCT to other states. This anomaly, likely due to inaccurate data entries on the IPPIS platform, not only distorts our financial records but also deprives the rightful states of their due resources.
“Part of this anomaly lies in another common misconception. It appears that some desk officers believe that the FCT-IRS is not present on the GIFMIS platform. As a result, they automatically remit the taxes due to the FCT-IRS to the Federal Inland Revenue Service (FIRS).
“I would like to clarify this misconception today: the FCT-IRS is indeed on the GIFMIS platform, and our code is 100419. I encourage all desk officers to take note of this and ensure that subsequent tax remittances for the FCT are accurately made to the FCT-IRS, not the FIRS.
“This workshop aims to provide detailed guidance to correct these inaccuracies and enhance the understanding and competence of our tax officers on both the IPPIS and GIFMIS platforms. Through shared knowledge, we can ensure that these issues are addressed and that such mistakes are avoided in the future.
“Firstly, these inaccuracies distort our financial records, leading to inefficiencies in tax administration and the misallocation of funds. Secondly, and perhaps more concerning, these errors deny the rightful states their due resources, consequently affecting the development and welfare schemes in these regions.
“As we make these strides towards rectifying past errors, we must also engage in a crucial conversation with our counterparts at the Federal Inland Revenue Service (FIRS). This engagement is vital to correct the misallocations of past tax remittances. I would like to stress that the Federal Capital Territory Internal Revenue Service (FCT-IRS) exists to serve the people of the FCT, just as the FIRS exists to serve the entire nation. We are not competitors but rather collaborators in the larger scheme of national development.”
Going forward, Abdullahi implored staff, desk officers, in particular, to be meticulous with their duty. Double-check every data entered, every form filled, and every tax remittance made. Stating that it would lead to a more efficient and effective tax administration system in the FCT and Nigeria as a whole.
He suggested the following as corrective measures against past erroneous entries:
“Reconciliation: This would involve collating all past data, identifying discrepancies, and rectifying them in our records. It’s a significant task, but it will enable us to accurately determine the extent of the misallocations and work towards rectifying them.
“Engagement with FIRS: We have engaged with the Federal Inland Revenue Service (FIRS) to discuss these inaccuracies and develop a mechanism for transferring the wrongly credited amounts to the rightful states. I assure you that our engagement with FIRS will be done in the spirit of collaboration and mutual understanding.
“Training and Capacity Building such as this one: As we rectify past mistakes, we must also equip our desk officers with the right tools and knowledge to avoid such issues in the future. We will be conducting regular training sessions on the proper use of the IPPIS and GIFMIS platforms, focusing on accurate data entry, reconciliation procedures, and effective use of the system for tax remittances.
“Implementation of a Review and Feedback System: To ensure that we remain on the right track, I propose the implementation of a regular review and feedback mechanism. This system will allow us to monitor the accuracy of tax remittances, address any emerging issues promptly, and continually improve our processes.” He stated.
On his part, the chairman Chartered Institute of Taxation of Nigeria (CITN) FCT chapter, Dr Kennedy Iwundu, said the government must comply with the provisions of tax law to avoid lapses.
“The provision of the tax law made it that business names are administered by state Internal Revenue Service, where we are in Abuja, FCT-IRS takes charge. But companies are administered by Federal Internal Revenue Service (FIRS), representing the Federal Government.
“When MDAs are giving out contracts to companies, they are obligated to remit the revenue to FIRS, but if the contract is in the business name, the withholding tax is to go the FCT-IRS, where the business name is residence”
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