FIRS Resolves to Punish Banks over Tax Remittance Default

The Federal Inland Revenue Service (FIRS) has given a warning to banks that any bank that fails to forward tax collected from them public on their behalf would be punished accordingly.

The State Monitor, Government Business Tax Office, Mr. Akin Oluyide who said this while delivering a paper at a sensitization workshop on Tuesday, May 20, 2014, in Ibadan, said that banks which are found guilty of the offence would be charged with a huge interest and this interest depends on the duration at which the funds to be remitted is in their possession.

‘’The significance of banks in our collection cannot be over emphasized, hence the need for continuous interactions in order to overcome challenges that are always festering. However, any bank that delays remittance of taxes collected for a period of 30 to 60 days will be made to pay an interest of 10%’’ he said.

Mr. Oluyide further advised tax collecting banks to immediately inform the FIRS whenever any of them had challenges. He added that the purpose of the workshop was to discuss matters with the stakeholders in the business.

He said ‘’There are dangers involved in delaying tax remittance and such problems include remittance into the wrong channel and outright loss of the money when it is not lodged with the Federation Account’’.