FEDERAL CAPITAL TERRITORY INTERNAL H.EVEi'\UE SERVICE ACT, 2015
This Act establishes the Federal Capital Territory Internal Revenue Service charged with the responsibility, among other things, of assessing or charging tax and collecting internal revenue in the Federal Capital Territory.
FEDERAL CAPITAL TERRITORY INTERNAL HEVENUE SERVICE ACT. 2015
ARRANGEMENT OF SECTIONS
Sections: PART I - ESTABLISHMENT OF THE FEDERAL CAPITAL TERRITORY INTERNAL REVENUE SERVICE AND ITS MANAGEMENT BOARD
Establishment of the Federal Capital Territory Internal Revenue Service. 2 Objective of the Service. 3 Establishment ofthe Board and its membership. 4 Tenure of office, etc. 5 Cessation of membership. 6 E11101urnents, etc. of mern bel's.
PART II - FUNCTIONS AND POWERS OF THE BOARD AND THE SERVICE 7 Functions of the Board. 8 Powers of the Service. 9 Technical Committee of the Board. 10 Powers ofthe Technical Committee.
PART III - MANAGEMENT AND STAFF OF THE SERVICE 11 Chairman of the Board. 12 Secretary and other staff of the Board. 13 Staff regulations. 14 Remuneration and pension of employees.
PART IV - FINANCIAL PROVISIONS 15 Funds of the Board. 16 Proceeds of the Fund. 17 Annual estimates and accounts. 18 Annual reports. 19 Power to accept gift. 20 Power to borrow. 21 Investment. Cap. T22 LFN. 2004.
PART V - TAX ADl\IlNISTRATION AND ENFORCEMENT 22 Power to enforce tax law. 23 Person chargeable to tax. 24 Statement and returns of taxable person. 25 Request for further information or returns. 26 Assessment of tax of taxable person. 27 List of persons assessed. 28 Records oftax under PA YEo etc. 29 Service of notice of assessment. 30 Objection to assessment. 31 Tax clearance certificate 32 Access to property and records.
33 Reproduction or books, documents and records. 34 A ppointmen t 0 f agent. 35 Failure to comply with notices or enforcements. 36 Recovery of outstanding tax. 37 Investigation of offences. 38 Inter-agency cooperation in enforcement oftax law. 39 Enforcement warrants. 40 Reward and privileges of non-employee informant. 41 lmmunitv of the officers of the service. 42 Confidentiality of the documents. 43 Area Councils Revenue Committee. 44 Functions of the Revenue Committee. 45 FCT Joint Revenue Committee. 46 Functions 0 f the FCT Joint Revenue Com111ittee. 47 Designation of magistrate for adjudication of tax matters. 4~ Revenue collector. 49 Mode of payment.
PART VI - APPEALS 50 Tax Appeal Committee. Sl Appeals to the tax appeal Committee, etc. 52 Notice of appeal. 53 Consideration of appeal. 54 Service of notice to the appellant. 55 Period for the appeal. 56 Validity of objection.
PART VII - OFFENCES AND PENALTIES 57 Penalty for general offences. S8 Failure to attend to a notice. etc. 59 Penalty for making incorrect returns. etc. 60 False statements and returns 61 Offences relating to tax of officers, etc. 62 Failure to remit tax. 63 Failure to pay full rate of assessed tax or levy. 64 Falsification of documents. 65 Obstruction of the staff of the Service in the performance of their duty. 66 Abuse ofpower and corruption by the tax officer. 67 Use ofweapon to cause injury to staff of the Service. 68 Contravention of tax laws. 69 Impersonation of revenue officer. 70 Director of Legal Service of the Board. 71 Fine by the Service. 72 Liability to payment of tax.
PART VIII - GENERAL PROVISIONS 73 Conformity with tax laws. 74 Compliance with Minister'< directives. 7~ Confidentiality. 76 Delegation of power. n Signature of tile Chairman (lethe Board.
'7;'; , l
79 Imposition of surcharge. Limitation of suits. Service of document. A ttachrnen t of process. Indemnity. Directives by the Minister. Power to make regulations.
80 Sl 82 83 84
PART IX - MISCELLANEOUS PROVISIONS Interpretation, Citation. Schedules
FEDERAL CAPITAL TERRITORY Il\'TERl\'AL REVENUE SERVICE ACT, 2015 A Bill
An Act to establish the Federal Capital Territory Internal Revenue Service charged with the responsibility of assessment, collection of, and accounting for, revenues accruable to the Federal Capital Terr'ito ry; and for other related matters.
ENACTED by the National Assembly of the Federal Republic of Nigeria -
PART I - ESTABLISHMENT OF THE FEDERAL CAPITAL TERRITORY INTERNAL REVENUE SERVICE AND ITS MANAGEMENT BOARD
1. (I) There is established the Federal Capital Territory Internal Revenue Service (in this Act referred to as "the Service").
(2) The Service-
(a) shall be a body corporate with perpetual succession and a C011,mon seal;
(b) may sue or be sued in its corporate name; and
(c) may acquire. hold or dispose of any property, moveable or immoveable. for the purpose of carrying out any of its functions under this Act.
(3) The Service shall have such powers and duties as are conferred on it by this Act, or by any other enactment or law on such matters on which the National Assembly has power to make law.
2. The object of the Service shall be to control and administer the different taxes and laws specified in the First Schedule or other laws made or to be made from time to time by the National Assembly or other regulations made there under by the Government of the Federation and to account for all taxes collected.
3. (1) There is established for the Service the Federal Capital Territory Internal Revenue Service Board (in this Act referred to as "the Board"). which shall have overall supervision of the Service as specified under this Act.
(2) The Board shall consist of->
(a) the Chairman of the Service who shall be experienced in taxation as Chairman of the Service to be appointed by the Minister of the Federal Capital Territory (in this Act referred to as the "FCT") subject to the approval of the National Assembly;
(b) the FCT Director of Treasury who shall be the Deputy Chairman (lethe Goard:
(c) one representative each not lower than a Director from the following departments of the Federal Capital Territory Adrninistration->-
Establ ishrnent Cl i' the Federal Capital Territory Intcl"I131 Revenue Service.
Objective (li"tile Service. Firs: Schedule
Establ ishmen: 01' t:ll' BO~lrd ~l1ld i::-,
(i) the Department of Legal Services.
(ii) the Department of Lands. Planning and Survey.
(iii) the Department of Area Councils,
(iv) the Abuja Infrastructure and Investment Company,
(vi Department of Economic Planning, Research and Statistics, and
(vi) Department of Public Enlightenment:
(d) six persons from the six geopolitical zones who shall be members of relevant professional body and knowledgeable in tax matters to represent public interest, and two of whom shall be women; and
(e) the Secretary to the Service who shall be the Secretary and an ex-officio member of the Board.
(3) The Chairman and other members of the Board shall be appointed by the Minister.
(4) The members of the Board, other than the Chairman. shall be part time members.
(5) The supplementary provisions set out in the Second Schedule to this Act shall have effect with respect to the proceedings of the Board and other matters mentioned therein.
4. The Chairman and other members of the Board, other than ex-officio members, shall each hold uffice-
(a) for a term of four years renewable once only; and
(b) on such terms and conditions as may be specified in the letter of appointment.
5. (1) Notwithstanding the provisions of section 4 of this Act, a member of the Board shall cease to hold office as a member of the Board if-
(a) he resigns his appointment as a member of the Board bv notice. under his hand. addressed to the Minister;
(b) he beC0111eS of unsound mind:
(c) he becomes bankrupt or makes a compromise with his creditors;
(d) he is convicted ofa felony or any offence involving dishonesty or corruption:
(c) he bCC01l1C incapable of carrying on the functions of his office either arisilig 11"On1 an infirmity in mind or body:
(I) he is guilty ora serious misconduct in relation to his duties:
(g) the Minister is satisfied that it is not in the interest of the Service or of the public for the person to continue in office and the Iv!inister removes him from office:
(h) he has been found guilty of contravening the Code of Conduct Bureau and Tribunal Act or gross misconduct in relation to his duties;
(i) in the case of a person possessing a professional qualification, he is disqualified by a competent authority; or
U) in the case of a person who becomes a member by virtue of the office he occupies, he ceases to hold such office.
(2) If a member of the Board ceases to hold office for any reason whatsoever, before the expiration of the term for which he is appointed, another person representing the same interest as that member shall be appointed to the Board for the unexpired term.
(3) A member of the Board may be removed by the Minister, ifit is established that it is not in the interest of the Board or of the public that the member continues in office, subject to a resolution of the National Assemblv.
6, The Chairman and members of the Board shall be paid such emoluments. allowances and benefits as may be approved by the Minister.
PART II - FUNCTIONS AND PO\VERS OF THE BOARD AND THE SERVICE
7. (l) The Board shall -
(a) provide the general policy guidelines relating to the functions oftl:e Service;
(b) manage and superintend the policies of the Service on matters relating to the administration of the revenue assessment, collection and accounting system under this Act or any enactment or law;
(c) review and approve the strategic plans of the Service:
(d) employ and determine the terms and conditions of service including disciplinary measures of the employees of the Service:
(e) make recommendations, where appropriate, to the Joint Tax Board on tax policy, tax reform, tax registration and exemptions as may be required from time-to-time;
(f) stipulate remuneration, allowances and benefits of staff and employees in consultation with the Minister; and
(g) do such other things, which, in its opinion, are necessary to ensure the efficient performance of the functions of the Service under this Act, from time to time.
C1P_ C I:' 1.1'1\.20(1":
Emoluments. etc. ot- member».
Functions of the Bll~1rC1.
(2) The Board shall have power to--
(a) with respect to any revenue clue to the Fer acquire, hold and dispose of an) property taken as security for or in satisfaction of the sum or of any judgment debt due in respect of any revenue and shall account for any property and the proceeds of sale thereof in a manner to be prescribed by the Minister;
(b) appoint such other persons to be employees of the Service in position created by the Board and on such terms and conditions as shall be laid down by the Board subject to the provisions of this Act;
(c) appoint persons from outside the Public Service of the Federation or of the FCT or of the Area Council whenever it deems it necessary for the proper and efficient performance of its functions under the Act;
(d) appoint either directly or on secondment hom any Public Service of the Federation or of the State or the FCT or Area Councilor otherwise however, and other employee as it may, from time to time, deem it necessary to assist the Board in the discharge of any of its functions under this Act.
(e) determine the terms and conditions of service (including remuneration, allowances, benefits and pensions) of staff and employees of the Service after consultation with the Federal Civil Service Commission;
(0 function autonomously in the daily operations of the technical, professional and administrative affairs of tile Service;
(g) subject to such conditions as it may determine, appoint and employ practicing tax practitioners or chartered accountants as well as professional firms for the collection of revenue and monitoring agents to collect information through tax audit and to monitor compliance \','lth relevant tax laws except as it relates to Income Tax Assessment, to do any act required to be done by it in the execution of its functions under this Act with the aim of achieving the internally generated revenue target of the rCT; and
(h) subject to prevailing conditions, appoint and employ consultants. including tax consultants or accounts and agent to transact any business or to do any act required to be transacted or done in the execution of its functions or for carrying into effect the purpose of this Act.
8. ( I ) The Service shall have powers to -
(a) assess all persons chargeable with tax within the FCT:
(b) collect. recover and pay to the designated account an) tax or levv clue to the FeT under this or any other enactment:
(c) collect. account and enforce payment of taxes as may be clue to the FeT;
(d) ill collaboration with the relevant agencies. review the tax regime and promote the
application of tax revenues to stimulate economic activities and development:
(e) make, from time to time, a determination of the extent of financial loss and such other losses by the FCT arising from tax waivers and other related matters:
(f) adopt measures to identify, trace.Treeze, confiscate or seize the proceeds of tax fraud or evasion;
(g) issue 3 tax payer identification number to every person taxable in the FCT;
(h) collate and keep under review all policies of the FCTA relating to taxation and revenue generation and undertake a systematic and progressive implementation of such policies;
(i) maintain a database statistics, records and reports on persons, organizations, proceeds, properties, documents or other items of assets relating to tax waivers, fraud or evasion:
(j) establish and maintain a system for monitoring dynamics of taxation 111 order to identify suspicious transactions and the persons involved;
(k ) collaborate and facilitate a rapid exchange of scientific and technical information with relevant national or international agencies or bodies on tax matters:
(l) provide and maintain access to up-to-date adequate data and information on all taxable persons, corporations and real property for the purpose of efficient, effective and correct tax administration which will prevent tax evasion or fraud:
(111) undertake and support research on similar measures with a view to stimulating economic development and determining the manifestation, extent, magnitude and effects cf tax fraud. evasion and other matters that affect effective tax administration and make recommendations to the government on appropriate intervention and preventive measures;
(n) carry out and sustain public awareness and enlightenment campaigns on the benefits of tax compliance within the FCT;
(0) in collaboration with the relevant law enforcement agencies, carry out the examination and investigation with a view to enforcing compliance with the provisions of this Act:
(p) administer, collect and enforce payment of property tax in the Federal Capital Territory; and
(q) carry out such other activities as are necessary or expedient for the full discharge of ,111 or any of the functions prescribed under this Act:
(2) The Service may. from time to time. specify the form of returns, claims. statements and notices necessary for the due administration of the powers conferred on it by this Act.
9. (I) There shall be the Technical Committee or the Board (in this Act referred to as the "Technical Committee") which comprises- (a) the Chairman of the Board;
(b) two Directors appointed to the Board from within the Service: and
(c) the Director of Legal Services or his representative not below the rank of a Director.
(2) The Technical Committee shall-
(a) have power to co-opt additional staff from within the Service and persons from the private sector who are experienced in revenue matters for the effective discharge of its duties; and
(b) consider all tax matters that require professional and technical expertise and make recommendations to the Board.
10. The Technical Committee shall->-
(a) advise the Board on all its powers and duties specifically mentioned in section 7 of this Act and on any aspect of the functions and powers of the Service under this Act; and
(b) attend to such other matters as may, from time to time. be referred to it by the Board.
PART III - MAl\'AGEMEl\'T AND STAFF OF THE SERVICE
] 1. The Chairman of the Board shall-
(a) be the Chief Executive and Accounting Officer of the Service:
(b) be responsible for the execution of the tax policies of the FCT and the daily administration of the Service:
(c) keep proper accounting records in accordance with standard accounting practice and financial regulations ofthe FCT in respect of-----
(i) all revenues and expenditure of the Service,
(ii) all its assets. liabilities and other financial transactions.
(iii) all other revenue collecteel by the Service; and
(d) prepare an annual report. including financial statements. in accordance with generally accepted accounting principles and practice and ensure that the available accounting
Technical COllllllitlcc "i'the Bozll'd.
Powers of the 'I echnica: Committee.
Chairman orthe BOClI·d.
records are adequate, in line with financial regulations and prepared b) qualified personnel. who I11Llstbe a member of a recognized professional body: and
(e) have cognate experience and skills in accountancy. economics. taxation. law and related field.
12. (I) There shall be a Secretary for the Board who shall- Secrel~lr: aile! other sta IT () r the Goard.
(a) be appointed by the Board within the Service;
(b) issue notices of meetings of the Board;
(c) keep the records of the proceedings of the Board: and
(d) carry out such duties as the Chairman or the Board may direct.
(2) The Secretary shall summon a meeting of the Board whenever business requmng its attention warrants same or on the request of the Chairman or any three members.
(3) Any five members of the Board, one of whom shall be the Chairman or a Director, shall constitute a quorum.
(4) A rnajority decision of the members on any matter obtained by the Secretary in written correspondence shall be treated in all respects as though it were a decision of the Board in an actual meeting unless a member has requested the submission of the matter to such meeting.
13. (1) Subject to the provisions of this Act. the Board may make staff regulations relating Staffreuulations. generally to the conditions of Internal Revenue Service of the staff and. in particular, such regulations may provide for-
(a) the appointment promotion. termination, dismissal and disciplinary control of staff or employees of the Service; and
(b) appeals by staff or employees against dismissal or other disciplinary measures. and until such regulations are made, any instrument relating to conditions of Service in the Public Service of the FCT shall be applicable, with such modifications as may be necessary. to the employees of the service.
(2) The staff regulations made under subsection (I) of this section shall not have effect until approved by the Minister, and when so approved, they must be published in the FCT Gazette but the Service shall cause a notice of the staff regulations to be issued to all affected staff in such manner as the Internal Revenue Service may. from time to time, determine.
(3) If the Board thinks it expedient that any vacancy in the Service should be filled by a person holding office in the Civil Service of the FCT. it shall notify the Civil Service Commission to that effect and the BD~1rd lll~-:y,by arrangement with the C'O!l1!11iss10n. cause such vacancx to be filed bv wav of sccondrnent or transfer.
14. ( i) Employment in the Service shall be subject to the provisions or the pension legislation for the time being in force in the rCT and accordingly. officers and employees of the Service shall be entitled to pensions and other retirement benefits as are prescribed under the relevant law.
(2) The term and conditions of service, including remuneration. allowance, benefits and pensions of the employees or the Service, shall be determined by the Minister.
PART IV - FINANCIAL PROVISIONS
15. The Board shall establish and maintain a fund subject to appropriation to be applied towards the discharge of its functions which shall consist of and to which shall credit-
(a) an amount not more than Y% of all revenues collected by the Service in the preceding Year as administrative charge or cost of collection subject to appropriation;
(b) all other moneys which may, from time to time, accrue to the Board for other services including the disposal, lease or hire of any other dealing with, any property vest in or acquired by the Board;
(C) any subvention or budgetary allocation from the Federal Government and FCTA; and
(d) all moneys raised for the purpose of the Board by way of gifts grants-in-aid or testamentary disposition to the Board.
Remum-rmion and pension oj' elllpi(\1 r c-;
Funds or the Bn;lrd,
16. The Board may. from time to time, apply the proceeds of the Fund established under Proceeds (lithe Fund. section 15 of this Act-
(a) to the cost of administration of the Service:
(b) to paying of the emoluments, all allowances and benefits of members of the Board and for reimbursing members of the Board or of any committee of the Board for such expenses as may be expressly authorized by the Board.
(c) to the payment of the salaries. fees or other remuneration or allowances, gratuities, pensions and other benefits payable to the officers and other employees of the Service, so that no payment of any kind uncler [his paragraph (except such as may be expressly authorized by the Minister) shall be made to any person who is in receipt of emoluments from the Federal, State and Local Government or Area Council;
(d) for the development and maintenance of any property vestee! in or owned b> the Service; and
(e) for. and in connection with. all or :111) of its functions under this Act.
17. (I) The Service shall. not later than .ic" September in each year. submit to the Minister an estimate of its expenditure and income (including payments to the Boards Fund) for the next succeeding year.
/\nIHldJ estilll~lle; ~lIld
(2) The Service shall keep proper accounts in respect of each year and proper records in relation to those accounts and shall cause its accounts to be audited within six months after the end of each year by auditors appointed by the Board from the list and In accordance with the guidelines supplied by the Auditor-General for the Federation.
18. The Service shall prepare and submit to the Minister, through the Chairman, not later than Annual reports six months after the end of each year, a report in such form as he may direct on the activities of the Service during the immediately preceding year. and shall include in such report a copy of the audited accounts of the Board for that year and the auditor's report on the accounts.
19. (I) The Service may accept any gift of land, money or other property in accordance with Pov, er to accept gijt the law on such terms and conditions, if any, as may be specified by the person or organization making the gift.
(2) The Service shall not accept any gift if the conditions attached by the person or organization offering the gift are inconsistent with the functions of the Service.
20. (I) The Service may. from time to time, borrow by overdraft or otherwise such sums as it P(l\\er lo bOITOI\ may require for the performance of its functions under this Act.
(2) The Service shall not, without the approval of the Minister, borrow monev which exceeds, at any time, the amount set by the Minister.
(3) Notwithstanding the provisions of subsection (I) of this section, where the sum to be borrowed is in foreign currency, the Service shall not borrow the sum without the prior approval of the I\/Iinister.
21. The Board may, subject to the provisions of this Act and the conditions of any trust created lnvcsuueni. in respect of any property, invest all or any of its funds in any security prescribed by the Trustee Investments Act or in such other securities as may, from time to time, be approved C8p. T22 LrN. 2(]O-l. by the Minister.
PART v - TAX ADl\IINISTRATIO:\ AND ENFORCEl\IENT Puwel" to cill'urcc t~L\
22. (I) The Service shall have power to administer any 121\\ on taxation in respect of which the i.rvv. Federal Capital Territory Authority (in this Bill referred to as the "FeT A") or the National Assembly may confer power on it.
(2) The Service may, with the approval of the Minister by instrument published in the FCT Gazette, appoint any of its Secretariats, Department or Agency to collect revenue pursuant to its powers under subsection (I) of this section.
(3) Notwithstanding the provision of paragraph 10 to the First Schedule of the Federal Inland Revenue Service (Establishment) Act, 2007, the Federal Capital Territory Inland Revenue Service, shall have exclusive powers to control, administer CIne! impose
the different taxes and levies within the Federal Capital Territory as provided III this Act.
(4) In carrying out the provision of this Act on property tax, existing collecting authority on tenement rates [mel charges may voluntarily delegate such authority or power to the Service.
23. (I) subject to the provision of this Act, a taxable person shall be chargeable to tax-
(a) in his name: and
(b) in the name of an)' receiver, trustee, guardian, guarantor or committee who has the control or management of any property or concern on his behalf.
(2) Any person whose name is chargeable to tax shall be answerable for all matters within his competence which are required to be done by virtue of this Act for the assessment of the income of such taxable person and payment of any charge thereon.
(3) Where two or more persons act in the capacity of trustees, they may be charged jointly or severally 'with the tax with which they are chargeable in that capacity and shall be jointly and severally liable for payment of the same.
24. (1) A taxable person shall, during each year of assessment, prepare and submit to the Service. in such form as the Service may prescribe from time to time, a true statement in writing and without prejudice to the generality of the following, the statement shall contain-
(a) the amount of his income for the year of assessment;
(b) the source of such income:
(c) allowance, reliefs and deduction: and
(d) such other particulars as may be required by the Service.
(2) The Service 111ay, by notice in writing. publish in any two daily national newspapers, a request to any person or group of taxable persons to submit their tax returns in such form and within the duration that the Service may, from time to time. determine.
(3) For the purpose of subsection (1) of this section, the Service shall, hom time to time by notice. prescribe the forms or formats in which the statement shall be submitted.
(4) The form for the return of taxable statements shall contain a declaration which shall be signed by or on behalf of any taxable person to whom a notice has been given under subsection (2) of this section, stating that the form contains a true statement of his income computed in accordance with the provision of (his Act. or that any particulars given in the return in accordance with all other requirements of such notice. are true and complete.
(5) Any taxable person who has not been required (0 prepare and to deliver a statement
Staicmcm aile! r~turn~ oftaxable person.
under the provisions or subsection (2) of this section for an) year shall do so whether or not any tax chargeable on him for that year
(6) For every yearly assessment, any trustee, executor, body corporate or individual and every other taxable person whose total income for such year exceeds N40, 000:00, unless required to make any return for such year under the provisions of subsection ( I ) of this section, shall be given notice in writing to the Service within one month after the end OfSLlChyear, the source of his income liable to tax under this Act.
(I) The Service may give notice in writing to any person, from time to time, as it may think necessary requiring him to submit within a reasonable time such information or further information or returns as the Service may require for the purpose of proper tax assessment of such person.
(2) The Service may, by notice in writing, require any person to keep such records, books and accounts in such form and language as specified in such notice as the person to whom such notice was issued shall keep such records or books or accounts.
26. (I) After the expiration of the time allowed to any person under section 24 of this Act and the person has not submitted the statement or returns, the Board may assess such taxable person chargeable with income tax in such manner as the Board may determine.
(2) Where a taxable person has submitted a statement or a return, the Service-
(a) shall accept the statement or return and make an assessment accordingly;
(b) may refuse to accept the statement or return and, to the best of its judgment, determine the amount of the assessment tax, total or chargeable income of such person and make an assessment accordingly.
(3) Where a taxable person has not delivered a statement or returns within the time allowed under this Act or pursuant to a notice given by the Service and is of the opinion that tax is chargeable upon such person, the Service may determine the amount of assessable tax, total or chargeable income and make such assessment: Provided that such assessment shall not affect any liability otherwise incurred by such person by reason of his failure to deliver a return or statement under the provisions of the Act.
(4) Notwithstanding the provisions of subsection (I) of this section, no assessment to income tax for a year of assessment shall be made by the Service upon a staff or employee with respect to his emoluments or other income if that tax is recoverable by deduction under the PA YE provisions of this Act unless, within six years after the end of such year, he applied to the Service so as to be assessed for repayment of tax or otherwise.
27. (I) The Service shall, from time to time, prepare a list of taxable persons assessed to income tax.
(2) The list of taxable persons assessee! prepared under subsection (I) of this section shall contain -
Request JC)I"further information 01" rcturnx.
Assessment ofiax or taxable pel"son.
List ofpersons assessed.
(ell (he name ami address of the taxable persons assessed to income lax;
(b) the name of the 1I1C0111eassessed:
(c) the amount of the assessable tax, total or chargeable on which the tax is computed as the case may be;
(d) the amount of the income tax charged; and
(e) such other particulars as may be prescribed by the Service.
(3) \Vhere completed copies of all notices of assessment and all notices amending the assessment are filed in the offices of the Board, they shall constitute a preliminary assessment] ist for the purpose of th is Act.
28. In the case of any employee from whom tax is recoverable by deduction from his emoluments under PA YE provisions of this Act, the Service may, from time to time prescribe -
(a) the form in which a record of his assessment tax and chargeable income and of the tax so recovered from him, shall be maintained in the offices of the Service;
(b) the form in which his employer shall maintain a record: and
(c) the form in which his employer shall account to the Board for the tax so deducted. and the employer shall produce the record maintained by him for examination by the Service within 21 days from the date of notice given by the Service thereto.
29. The Service may serve upon any taxable person or a person in whose name a taxable person is chargeable, a notice stating whose name appears in the amount of any assessable tax, total or chargeable income, the tax charged and the place at which payment shall be made.
30. (I) If any person is not satisfied with any assessment he may apply to the Board. by notice of objection in writing. to review and to revise the assessment.
(2) A notice of objection referred to uncler subsection (I) of this section shall state precisely the grounds of objection to the assessment and shall be made within 30 days from the date of service of the notice of assessment.
(3) The Board may. upon receipt of the objection. request for any information or such books or documents as may deem necessary, and may summon any person who may be able to give information which is material to the determination of the objection.
(4) Where an objection to review or revise any assessment has been considered by the Board and the correct amount chargeable has been determined by the Board. the assessment shall be amended accordingly and a new revised notice of assessment shall be served on such person.
Records of tax under I'A Yl:::. etc.
Service of notice or assessment.
Objection 10 ClSSCSSIllC 11t.
31. (1) The Board mav issue a tax clearance certificate to any person within two weeks of receipt of an application if-
(a) the Board is of the opinion that-
(i) taxes or levies passed on a person or his income or property for the three years immediately preceding the current year of the assessment and collectible by the Board as the revenue of the FCT has been fully paid,
(ii) no such tax or levy is due on the person or on his income or property, and
(iii) the person is not liable to tax for any of those three years:
(b) the person is able to produce evidence that he paid withholding tax deduction at source and that the assessment year to which the tax relates falls within the period covered by the tax clearance, and that he has fully paid any balance of the tax after credit has been given for the tax so deducted: provided that payment of income tax for the current year shall not be made a condition for the issuance of the certificate unless the applicant is leaving the FCT finally,
(2) The tax clearance certificate may be issued in paper form or stored in an electronic format 011 a machine-readable smart card ( in this Act referred to as "Electronic Tax Clearance Certificate") which holds tax information peculiar to that applicant and which shall be presented for checking by the holder whenever his tax compliance status is required,
(3) Where a person who has applied for a tax clearance has discharged his own tax liability but has failed to remit withholding tax or pay as you earn deductions collection by him on behalf of the FCT, no tax clearance may be issued to that person,
(4) The Board may decline to issue a tax clearance certificate but it shall within two weeks of receipt of the application give reasons for the denial.
(5) A department, agency or official of the FCTA, any Area Council official, any corporate body, statutory authority or person empowered in that regard by this Act or any other law shall demand a tax clearance certificate for the three years immediately preceding the current year of assessment as a pre-condition to transacting any business. including but not limited to-
(a) application for Minister's consent to real property transaction:
(b) application for certi ficate of occupancy:
(c) application for registration as a contractor;
(d) application for award of contracts by government, its agencies and registered companies:
(e) application for approval ofbuilcling plans;
'I d~ C/c:l:':IIKC l'Cl'li lic:llC,
(0 application for all) government licence or permit;
(g) any application relating to the establishment or conduct of business;
(h) application for FCTA loan for housing, business or any other purpose;
(i) registration for motor vehicles;
(j) registration for distributorship;
(k ) confirmation of appointment by FCT as Chairman or Member of any public board, institution, commission, company or to any other similar position made by the government:
(I) application for registration of a limited partnership;
(m) application for allocation of market stalls;
(n) appointment or election into public office; and
(0) any other application or process for which a tax clearance certificate is required ('lp.1'5 LF)\. ::'lIiJ"; under this Act, or section 84 of the Personal Income Tax Act.
(6) Without prejudice to the provisions of the Stamp Duties Act and the Registration of Titles Act, appropriate authority shall demand tax clearance when checking documents of property transaction before accepting such documents for stamping or registration as the case may be.
(7) The Chairman of the Board is empowered to prescribe, by notice in the FCT Gazette, other purpose for which a Tax Clearance Certificate may be required.
(8) A Tax Clearance Certificate shall contain the following information relating to each of the three years immediately preceding the current year of assessment -
(a) chargeable income of holder:
(b) tax payable;
(e) tax paid; and
(d) tax outstanding; and where no tax is due from the holder or h01l1 his income or property, the certificate shall contain a statement to that effect.
(9) The Board shall be the sole authority to issue a Tax Clearance Certificate under this Act, but it may exercise its powers by employing the services of any person or company, provided (belt -
(a) the information which the Board requires the tax payer to provide (the data) shall not be excessive in relation to the purpose for which the Tax Clearance
Certificate is to be issued:
(b) the Board shall request from the taxpayer all details that are necessary to keep the data accurate and up to date;
(c) the Board shall make available to the taxpayer, at a price to be determined at its discretion, a smart card with the taxpayer's identity number, names, signature and photograph embossed on the front side:
(d) the card shall hold data in respect of a particular taxpayer in a secure format that can be accessed for authentication;
(e) the data shall be made accessible to third parties only in a form which permits identification of the taxpayer and access to information on him for no longer than is necessary for the purpose of verifying his tax clearance status;
(f) the Board shall provide terminals free of charge to all persons or authorities empowered by this or any other legislation to demand tax clearance certificate from any person;
(g) the Board shall ensure that the taxpayer's data on the card are kept confidential to the same extent as their ordinary tax records;
(h) every person having any official duty or being employed in the administration of this Act shall regard and deal with all documents, returns. assessment or other information as secret and confidential; and
(i) the Board shall not be liable for damages or any loss incurred by the cardholder as a result of inaccuracies in data supplied by him.
(10) The cardholder shall, upon application. be advised as to-
(a) confidentiality of the information supplied;
(b) fees or charges for reissuing a lost card;
(c) complaint handling procedure: and
(d) procedure for review of personal data.
(II) The Chairman of the Board shall have power. from time to time. to make such other regulations as he may consider necessary for effective implementation of the Electronic Tax Clearance Certificate Scheme in the reT.
32. (1) An authorized officer of the Service shall, between the hours of 9 a.m. and 4 p.m. have free access to all lands. buildings and places and to all books and documents. whether in the custody or under the control of a public officer. institution or any other person whatsoever, for the purpose of inspecting any book, or document including those stored or maintained on computers, or on digital, magnetic, optical or electronic media, and properly. process or matter which the officer considers necessary or relevant
Al'l'e~-i:-; to propCI'l~ ~il1cJ records.
enactment or laws or Cor the purpose of carrying out any other function lawfully conferred on the Service, or considered likely to provide any information otherwise required for the purpose of any of those enactment or any of those functions and may, without fee or reward, make any extract from or copies of such books or documents.
(2) Where the hard copies of any of the books or documents mentioned in subsection (I) of this section are immediately available because they are stored on a computer, or on digital, magnetic, optical or electronic media, the Service may take immediate possession of such removable media and the related removable equipment or computer used to access the stored documents on the media in order to prevent the accidental or intentional destruction, removal or alteration of evidence in the investigation of criminal proceedings.
(3) Where the Service is able to obtain, in place of taking physical possession of such equipment, computer or storage media under subsection (2) of this section and the Service possesses the ability, equipment and computer software or make exact duplicate copies of all information stored on the computer hard drive and preserve all the information exactly as it is on the original computer, the Service shall make such a copy and use it as digital evidence during any investigation or criminal proceedings.
(4) The occupier of a land or building or place that is entered or proposed to be entered by an authorized officer shall-
(a) provide the officer with all reasonable facilities and assistance for the effective exercise of power conferred by this Act; and
(b) answer questions relating to the effective exercise of the powers orally or, if required by the officer, in writing or by statutory declaration.
(5) Notwithstanding subsection (1) of this section, the authorized officer or a person accompanying the officer shall not enter any private dwelling except with the consent of an occupier or pursuant to an authorization issued uncler subsection (6) of this section.
(6) If the Chairman of the Service, on written application, is satisfied that the exercise by an authorized officer of his functions under this section requires physical access to a private dwelling, he may issue to the officer a written authorization to enter that private dwelling.
(7) Every authorization issued under subsection (6) of this section shall-
(a) be in the form prescribed by the Chairman as specified in the Third Schedule Third Schedule to this Act;
(b) be directed to a named officer of the Service;
(c) be valid for a period of 3 months from the elate of its issue or such lesser period as the Chairman considers appropriate; and
(d) notwithstanding paragraphs (b) and (c) of this section, be renewable by the
Chairman on application.
(8) Every officer exercising the power of entry conferred by an authorization issued under subsection (6) of this section shall produce the written authorization and evidence of identity ~
(a) on first entering the private dwelling; and
(b) subsequently when he is reasonably required to do so.
33. ( I ) An officer of the Service authorized by the Chairman ma) remove books or documents accessed under section 37 of this Act to make copies.
(2) After copies have been made, the books and documents so removed shall be returned as soon as practi cab Ie.
(3) A copy of a book or document or digital evidence certified by or on behalf of the Chairman is admissible in evidence in courts as if it were the original.
(4) The owner of a book or document that is removed under this section may at his expense inspect and obtain a copy of the book or document at the time the book is being moved or at a reasonable time thereafter.
34. (I) The Service may. by notice in writing. appoint a person to be the agent of another person and the person so declared as agent shall be the agent of that person for the purpose of this Act, and may be required to pay tax which is or will be payable by the person from any money which may be held by him for or due by or to become due by him to the person whose agent he has been declared to be, and in default of that payment the tax be recoverable from him.
(2) For the purpose of this Act, the Service rna; require any person to give information as to any money, fund or other asset which may be held by him or any money due from him at any person.
(3) For the purpose of this Act, if any tax is not paid within the period prescribed, a sum equal to 10 per cent of the amount of the tax payable shall be added and the provisions of this Act relating to the collection and recovery of such and further that-
(a) tax due shall carry interest at the prevailing commercial rate of the Central Bank of Nigeria fr0111 the date when the tax becomes payable until it is paid, and the provisions of the law relating to collecting and recovery of tax shall apply to the collection and recovery of the interest;
(b) the Service shall serve a demand notice upon the company or person in whose name the tax is chargeable and if payment is not made within one month 1'1'0111 the elate of the service of such demand notice, the Service may proceed to enforce payment under this Act; and
(c) an addition imposed under this section shall not be deemed to be part of the tax paid for the purpose of claiming relief under any of the provisions of this
Reproductiun uf' hooks. documcnt-,
(4) Any person who, without lawful justification or excuse, (the proofofwhich shall lie on the person), fails to pa; any tax imposed within the prescribed period commits an offence under this Act.
(5) The Board shall have the power to remit any part or the whole of the addition due under subsection (I) of this section.
35. (I) Notwithstanding the power conferred on the relevant revenue authority for the enforcement ofpayment of revenue, if payment has become due and a demand notice has, in accordance with the provisions of the relevant law, been served on the chargeable person or his agent. and payment is not made within the time limited by the demand notice, the Service or other relevant revenue authority may, for the purpose of enforcing payment of the amount due, distrain ~
(a) upon the goods, chattels or other properties movable, the person liable to pay the tax outstanding; and
(b) upon all machinery, plant, tools vehicles, animals and effects in the possession. lise or found on the premise or on the land of the person.
(2) The authority to distrain under this section shall be in such as the relevant revenue authority may direct and that authority shall be sufficient warrant and authority to lev) by distress the amount of revenue due.
(3) For the purpose of levying any distrain, under this section, an officer duly authorized by the Chairman of the Board may apply to a Judge of the Federal High Court sitting in Chambers under oath for the issue of a warrant under this section.
(4) A judge of the Federal High Court sitting in Chambers may authorize such officer, referred to in subsection (3) of this section, in writing to execute any warrant of distrain and, if necessary, break open any building or place in the daytime for the purpose of levying such distrain and he may call to his assistance any police officer and it shall be the duty of any police office when so required to aid and assist in the execution of any warrant of distrain and in levying the distrain.
(5) Things distrained under this section may, at the expense of the defaulter, be kept for 14 days and if at the end of this period the amount due in respect of the revenue, cost and charges of and incidental to the distrain are not paid, they may, subject to subsection (6) of this section. be sold at any time.
(6) Out of the proceeds ofa sale under this section, the cost of charges of and incidental to the sale and keeping of the distrain and disposal thereunder, shall be payable to the defaulter on demand being made by him or on his behalf within one year of the date of the sale or shed 1 be forfeited.
(7) Nothing in this section shall be construed as to authorize the sale of an immovable property without an order ora Federal High Court, made upon application in such form
luilnre 10 comply with nouccs or cnlorcemcnt-;
as may be prescribed by the rules of court
(8) In exercise of the power of distraint conferred by this section, the person to whom the authority is granted under subsection (4) of this section may distrain upon all goods chattels and effects belonging to the debtor wherever the same max be found in Nigeria.
36. (1) Notwithstanding the provisions of this Act or any other relevant law, any amount due by way of tax shall constitute a debt clue to the FCT and may be recovered by a civil action brought by the Board.
(2) Where any tax has been short-levied or to whom the repayment has erroneously been made shall, on demand by the proper officer, pay the amount short-levied or erroneously repaid, as the case may be, and any such amount may be recovered as if it were tax to which a person to whom the amount was so short-levied or erroneously repaid were liable.
37. (I) The Service shall take all necessary measures to assist any relevant law enforcement agency in the investigation of any offence under this Act.
(2) The Service shall have the power to investigate or cause investigation to be conducted to ascertain the violation of anv tax law. whether or not such violation has been reported to the Sen ice.
(3) In conducting any investigation under subsection (2) of this section, the Service may cause investigation to be conducted into the property of any person if it appears to the Service that the lifestyle of the person and extent of his properties are not justified by his declared source of income.
(4) Where any investigation under this section reveals the commission of any offence or an attempt to commit any offence, the Service shall submit its findings to the relevant law enforcement agency and the Attorney-General for the purpose of further investigation.
38. (1) The Service may co-opt the assistance and co-operation of law enforcement agency in the discharge of its duties under this Act.
(2) The law enforcement officers shall aid and assist an authorized officer in the execution of any warrant of distrain and the levying of distrain.
39. Any tax officer armed with the warrant issued by a Judge of the Federal High Court and accompanied by a number of law enforcement officers as shall be determined by the Chairman may -
(a) enter any premises covered by such warrant and search for, seize and take possession of any book, document or other article used or suspected to have been used in the commission of an offence:
(b) inspect, make copies ClJ~ or take extracts including digital copies from ZlI1Y book. record. document or computer regardless of the medium usee! for their storage or maintenance:
I~cc()vt:r) or outstundirn; UI\.
Invesiiguuon of offences.
liller-agency cooperation ill enforcement or tax ](1\\
F:11JOI"C\.?111('n[ \ •..·(\I"1",I[l[:).
(c) search any person who is in or on such premises;
(d) open, examine and search any article, container or receptacle;
(e) open any outer or inner door or window of any premises and enter same or otherwise forcibly enter the premises;
(f remove by reasonable force any obstruction to such entry. search. seizure or removal as he is empower to effect; and
(g) not be bod ily searched under this section except by a person of the same gender.
40. (I) The Service may, with approval of the Board, reward any person, not employed in the Service, in respect of any information that may be of assistance to the Service in the performance of its duties under this Act upon meeting such conditions as may be determined bv the Board and the amount of such reward shall also be at the discretion of the Board.
(2) The identity of the person who gave information to the Service or Board shall be dealt with in accordance with the provisions of section 42(J) of this Act with regard to confidential information.
41. An officer of the Service or of any other tax authority in the FCT shall not be liable in any civil action or proceedings for any act or omission done by him in good faith in the performance of his duties or exercise of the powers conferred upon him under this Act or any other law.
42. (1) All information and documents supplied or produced in pursuance of any requirement of this Act or any other legislation being implemented by the Service shall be treated as confidential.
(2) Except as otherwise provided under this Act or as otherwise authorized by the Minister or Chairman, any member or former member of the Board or any employee or former employee of the Service of the FCT who communicates or attempts to communicate any confidential information or the content of any such document to any person, commits an offence and is liable on conviction to a fine of N200,OOO:OO or to imprisonment for 3 years or both.
43. (I) There is established for each Area Council of the FCT the Area Council Revenue Committee (referred to in this Act as the "Revenue Committee").
(2) The Revenue Committee shall consist of-
(a) a person versed in revenue matters appointee! by FCTA, (not being a political appointee or public office) from within the Area Council as the Chairman);
(b) three heads ofdepartment ofthe Area COll11ciL--
Reward and prj\'ill'.:;c~ or 1l01l-ClllPI oycc informant
1111:llUnit; or the onjc~rs or lhl' service
CrjJl~'ldellti;Jlilyof the documents.
(a) the appellant has, for the year of assessment concerned, failed to prepare and deliver to the Service returns to be furnished under the relevant provisions of the tax laws mentioned in paragraph II,
(b) the appeal is frivolous or vexation or is an abuse of the appeal process:
(d) it is expedient to require the appellant to pay an amount as securitv for prosecuting the appeal,
the Committee may adjourn the hearing of the appeal to any subsequent day and order the appellant to deposit with the Service, before the day of the adjourned hearing, an amount, on account of the tax charged by the assessment under appeal, equal to the tax charged upon the appellant for the preceding year of assessment or one half of the tax charged by the assessment.
(8) Under appeal, whichever is the lesser plus a sum equal to ten percent of the said deposit, and if the appellant fails to comply with the order, the assessment against which he has appealed shall be confirmed and the appellant shall have no further right of appeal with respect to that assessment.
(9) The Committee may, after givmg the parties an opportunity of being heard, confirm, reduce, increase or annul the assessment or make any such order as it deems fit.
(10) Every decision of the Committee shall be recorded in writing by the Chairman and subject to the provisions of paragraph 16, a certified copy of such decision shall be supplied to the appellant or the Service by the Secretary, upon a request made within 30 days of such decis ion.
( 11) Where. upon the hearing of an appeal -
(a) no accounts, books or records relating to profits were produced by or on behalf of the appellant,
(b) such accounts, books or records were so produced but rejected by the Committee on the ground that it had been shown to its satisfaction that they \vere incomplete or unsatisfactory.
(c) the appellant or his representative, at the hearing of the appeal, has neglected or refused to comply with a notice delivered or sent to him by the Secretary to the Committee, without showing any reasonable cause,
(d) the appellant or any person employed, whether confidentially or otherwise, by the appellant or his agent (other than his legal practitioner or accountant acting for him in connection with his ability to tax) has refused to answer any question put to him by the Committee, without showing any reasonable
cause the Chairman of the Committee shall record particulars of the same In his written decision.
i 2. (J) Notice or the amount or the tax chargeable LInder the assessment as determined by the Committee shall be served by thc Service upon the taxpayer or upon the person in
whose name such taxpayer is chargeable.
(2) An award or judgment of the Committee shall be enforced as if it were a judgment of the Federal High Court upon registration of a copy by the party seeking to enforce the award or judgment with the Chief Registrar of the Federal High Court by the part seeking to enforce the award or judgment.
(3) Notwithstanding that an appeal is pending. tax shall be paid in accordance with the decision of the Committee within one month of notification of the amount of the tax payable in pursuance of subparagraph (1) of this paragraph.
Appeal to the Federal High Court
13. (1) Any person dissatisfied with a decision of the Committee constituted under this Schedule may appeal against such decision to the Federal High Court upon giving notice in writing to the Secretary to the Committee within 30 days after the date on which such decision was given.
(2) A notice of appeal filed pursuant to subparagraph (1) of this paragraph shall set out all the grounds of law on which the appellant's case is based.
(3) If the Service is dissatisfied with the decision or the Committee, it may appeal against such decision to the Federal High Court all points of law by giving notice in writing as specified in subsection (1) of this section to the Secretary within 30 days after the date on which such decision was given.
(4) Upon receipt of a notice of appeal under subparagraph (I) or (2) of this paragraph, the Secretary to Committee shall cause the notice to be given to the Chief Registrar of the Federal High Court along with all the exhibits tendered at the hearing before the Committee to the Secretary within 30 days after the date on which such decision was given.
(5) The Chief Judge of the Federal High Court may make rules providing for the procedure in respect of appeals made under this Act and until such rules are made, the Federal High Court rules relating to hearing of appeals shall apply to the hearing of an appeal under this Act.
Right to legal representation
14. (1) A complainant or appellant. as the case may be, may either appear in person or authorize one or more legal practitioners or any of its officers to represent him or its case before the Committee.
(2) Every individual or company in a case before the Committee shall be entitled to be represented at the hearing of an appeal by a solicitor or chartered accountant or adviser provided that, if the person appointed by the taxpayer to be representative in ,11lVmatter before the Committee is unable for good cause to attend hearing thereof. the Committee 111a),adjourn the hearing for such reasonable time as it deems tit. or admit the appeal Imide by some other person or by wav or a written address.
Application ofstatute oflimitation
15. The provisions of any statute of limitation shall not apply to any appeal brought before the Committee.
Powers and Procedures ofthe C01l7117irree
16. (I) The committee may make rules regulating its procedures.
(2) The Committee shall, for the purposes of discharging its functions under this Schedule, have power to -
(i) summon and enforce the attendance of any person and examine him on oath;
(ii) require the discovery and production of documents;
(iii) receive evidence on affidavits;
(iv) call for the examination of witnesses or documents:
(v) review its decisions;
(vi) dismiss an application for default or deciding matters ex-parte;
(vii) set aside any order or dismissal of any application for default or any order passed by it ex parte; and
(viii) do anything, which in the Op1l110n of the Committee, IS ancillary to its functions under this Schedule.
(3) Any proceeding before the Committee shall be deemed to be a judicial proceeding and the Committee shall be deemed to be a civil court for all purpose.
Minister to make Rules and Regulations
17. The Minister may make rules prescribing the procedure to be followed in the conduct of appeals before the Committee.
18. Each party to an appeal shall bear its own cost
19. An appeal against the decision ofthe Federal High court at the instance of either party shall lie to the Court ofAppeal.
i >:1IUln' TITLI': OF rur: BI LL
i"elieral Cap it al Terri tory III rcrna I Rcvcuue SlTvice Bill,2015
Schedule to Federal C'apibd Territory l urcrual Revenue ~1ervicc Bill, 2015