The Minister of the Federal Capital Territory (FCT), Nyesom Wike, has approved the implementation of Section 85 of the Personal Income Tax Act (PITA) and Section 31 of the FCT Internal Revenue Service Act 2015.
Both sections provide for demand and verification of Tax Clearance Certificates (TCC), by Federal Government Ministries, Departments, and Agencies, Commercial Banks, and FCT Secretariats, Departments and Agencies.
Mandate Secretary of the Economic Planning, Revenue Generation, and Public Private Secretariat, Chinedum Elechi, made this known at q press briefing in Monday in Abuja.
“I am here today to announce that the Honorable Minister of the FCT, Ezenwo Nyesom Wike, has approved the implementation of Section 85 of Personal Income Tax Act (PITA) and Section 31 of the FCT Internal Revenue Service Act, 2015.
“Both Sections provide for Demand and Verification of Tax Clearance Certificate (TCC) by Federal Government Ministries, Departments and Agencies (MDAs); Commercial banks; and FCT Secretariats, Departments and Agencies (SDAs)”, he said.
Elechi warned that per Section 85 of the PITA, anyone who provided false information or obtained a TCC through forgery or falsification, was liable to a fine of N50,000 or a three year jail term or both upon conviction.
He added that a government entity or organisation who failed to verify a TCC was liable to a fine of N5,000,000 or a three year, jail term or both, upon conviction.
He also stated that Section 31 of the FCT-IRS Act provided that all SDAs, corporate bodies, or any person empowered by law, shall demand a TCC from any person or enterprises for the last three years “preceding the current year of assessment as a precondition for transacting any business in the FCT”.
