Less than 20 percent of contractors paid by FG pay taxes correctly - Kemi Adeosun
- Kemi Adeosun, minister of finance, has revealed that less than 20% of contractors paid by the federal government and its agencies pay taxes
- She stated that a new multi-agency, data-driven approach has now been set up to ensure that taxes are paid correctly
- All government agencies now have 30 days to return the information on payments made, and accounting officers are required to certify the accuracy of the data supplied
Minister of finance, Kemi Adeosun, has disclosed that among the hordes of contractors paid by the federal government and its agencies, less than 20% of them state the income received in their tax returns, The Cable reports.
The minister stated that the Buhari administration had now commenced a process of tax compliance review of contractors who have been paid by the federal government over the last 7 years.
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She stated: “It was a matter of concern that those who earned money directly from government, which is both traceable and verifiable, still failed to pay the correct taxes thereon.”
According to Adeosun, the new multi-agency, data-driven approach will ensure that taxes are paid correctly, by enabling tax authorities to cross check information provided in tax declarations more easily.
In a statement released to this effect, Adeosun further stated: “All agencies have 30 days to return the information on payments made, and accounting officers are required to certify the accuracy of the data supplied.
“Deliberate omission or manipulation of data by accounting officers will attract sanction”.
Adeosun disclosed that this latest approach is in a bid to reduce Nigeria’s dependence on oil.
She urged companies to take advantage of the concessions provided by the voluntary assets and income declaration scheme, while stressing that the Buhari government is committed to improving tax compliance.
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Meanwhile, Legit.ng previously reported that Vice President Yemi Osinbajo, gave an ultimatum to tax defaulters in the country to pay necessary taxes before March 31, 2018 or be punished.
Osinbajo gave the ultimatum on Wednesday, June 28, during the launch of the Voluntary Assets and Income Declaration Scheme (VAIDS) in Abuja.
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Source: Legit.ng
