FCT-IRS Goes Hard On Defaulters, Issues Fresh 14 Days Demand Notice To Settle Income Tax

…Send Tax Demand Notice To Our Employers, Not Us, Workers Kick
The Federal Capital Territory Internal Revenue Service (FCT-IRS) has intensified efforts to recover outstanding taxes, following the issuance of bulk notices to over individuals flagged for non-compliance with the tax laws.
The move is in line with sections 41, 68, and 81 of the Personal Income Tax Act of 2011.
The letters, dated December 24, 2024, and signed by the acting tax controller, Hamza Muhammad, accused the recipients of failing to file and remit their Pay-As-You-Earn (PAYE) and Personal Income Tax (PIT) as required by law.
The notice, titled “Notice of Default for Pay-As-You-Earn (PAYE) Tax and Personal Income Tax (PIT),” informed recipients that they have failed to file and remit their staff PAYE/PIT contributions to the Kubwa tax office since their business inception.
According to the notice, the tax agency gave defaulters a 14-day ultimatum to regularize their records and settle outstanding liabilities to avoid penalties.
Recipients were instructed to remit their tax obligation through approved FCT-IRS channels using their Taxpayer Identification Number (TIN) and provide supporting documents such as certificates of incorporation, staff nominal rolls, and evidence of previous remittances.
The notice partly read, “Our records indicate that you are in default of your tax obligitions as required under the provision of sections 41, 68. and 81 respectively of the personal income tax of 2011 as amended.
“You have failed to file and remit your staff PAYE/PIT with the Kubwa tax office of which you are under the office jurisdictions since your inception.
“Payment should be made at any of the approved FCT-IRS payment channels. Kindly ensure you use the year Taxpayer Identification Number (TIN) as a reference.
“For further details, please contact office using the information provided below.
“You are by this letter required to update your PAYE/PIT records and remit all outstanding payments with this office within 14 days of this letter to avoid further accumulation of tax liability, stand penalty are also required to forward the following documents: certificate of incorporation, staff nominal will stating basic salary and other allowances, evidence of remittance of withholding tax (WIFT) for individual and enterprise, evidence of PAYE remittance
“We strongly encourage you to take the matter seriously and resolve your tax obligations promptly to avoid unnecessary complications,”
Following the notice, some of the FCT residents who spoke to THE WHISTLER questioned why tax notifications were sent directly to individuals rather than their employers.
In response to complaints from residents questioning the direct tax notifications, FCT-IRS Acting Executive Chairman Michael Ango defended the agency’s actions, stating that they are legally empowered to collect taxpayer information and enforce compliance.
Ango said, “I am the chief executive of the organization, and I did not personally send out emails, so I cannot confirm their source. However, I can clarify the legal authority and processes of the FCT-IRS.”
He emphasized that the agency is empowered by law to register and identify taxpayers, likening its mandate to other government agencies such as the National Identity Management Commission (NIMC) and the Nigeria Immigration Service.
“When we register taxpayers, we collect their information, including email and phone numbers. There is nothing wrong with contacting taxpayers to request tax returns,” Ango explained.
He further clarified that all individuals—whether employed, self-employed, or working for the government—are required by law to file their tax returns by March 31, 2025, while employers’ returns are due by January 31.
“If the communication relates to a tax not meant for an individual, they should respond and clarify that it falls under their employer’s responsibility
“Every individual in employment, not employed or self-employed, working for a company, working for government, has a requirement to file their own returns by 31st of March.
“They are two types of return: there’s employers returns which is 31st of January and then the individual returns which is 31st of March.
“I won’t be able to say which of the two was sent to them (complainant) but these obligations exists in law,” he added.
Regarding the 2025 revenue target, Ango stated that while the agency has internal benchmarks, the official target would be set by the FCT administration and approved by National Assembly.
“We are still working on the target. Once it’s set and approved, we will make it public and share our progress,” he said.
Ango stressed that tax revenues are used to fund road construction, security, and infrastructure development in the FCT.
“At the end of the day, the revenue if from me and you. it is the revenue that the minister uses to build road, provide security, pay NSCDC, support police, buy vehicles for them and provide the street light amongst others,” he added.
Recall the FCT-IRS on December 19, 2024, revealed that it generated over N252.8bn in revenue during the 2024 fiscal year, which represents a 19.8 per cent increase from the N211.1bn recorded in 2023.
Ango said the milestone represents 101 per cent of the agency’s target of N250.2bn for the year.
In October 2024, the FCT Minister, Nyesom Wike, urged residents to prioritize tax payments, and stressed their role in national development.
“If the government is not to make money, how do we fund services? Tax compliance is crucial for providing infrastructure and ensuring everyone benefits,” Wike stated.
FCT-IRS Goes Hard On Defaulters, Issues Fresh 14 Days Demand Notice To Settle Income Tax is first published on The Whistler Newspaper