THE Federal Inland Revenue Service (FIRS) will soon commence the process of enforcement and recovery of unremitted tax deductions owed by some states and Local Government Councils in Nigeria.
The Executive Chairman, FIRS, Muhammad Nami, who gave the clampdown warning in a public notice he personally signed, noted that most states and Local Governments have failed to remit to the Service Withholding Tax (WHT) and Value Added Tax (VAT) deductions from payments made by them to contractors and service providers as required by law.
Following the failure by defaulting states and Local Governments to remit the deducted taxes, the FIRS has warned that it would “Consequently advise the Federal Government and the Minister of Finance, to henceforth decline approval of any request for the issuance of state bonds or other securities in the capital market, as well as requests for external borrowing and approval for domestic loans from commercial banks or other financial institutions by any of the states and Local Governments with outstand
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