The Federal Capital Territory Internal Revenue Service (FCT-IRS) has taken a significant step to boost its internally generated revenue by creating a specialized unit to tax high-net-worth individuals (HNIs) in Abuja. This initiative, aimed at strengthening tax compliance, was announced by the acting executive chairman of FCT-IRS, Michael Ango, in a circular on Sunday.
Purpose of the New Unit
The newly established unit will focus on the following:
- Tax Assessment and Collection: Ensuring that income and other taxes are accurately assessed and collected from HNIs.
- Compliance and Enforcement: Overseeing the adherence to tax laws and enforcing compliance where necessary.
- Collaboration with Other Agencies: Interacting with government bodies and organizations, both within and outside Abuja, to ensure the proper taxation of HNIs.
- Profiling and Identification: Properly identifying and managing HNIs for efficient tax compliance.
Who Qualifies as a High-Net-Worth Individual?
According to Mr. Ango, HNIs are defined as individuals with an annual passive income, business earnings, or employment income of ₦25 million or more in any financial year.
Call for Voluntary Compliance
FCT-IRS has identified over 10,000 high-net-worth individuals with combined incomes in the trillions of Naira. Taxpayers within this category are being urged to fulfill their tax obligations and settle any outstanding liabilities within two weeks.
Mr. Ango emphasized the importance of voluntary compliance, stating:
“We believe it is in our mutual interest for taxpayers to comply voluntarily. Notices have been sent to these individuals, and we expect timely responses. Failure to comply will lead to the application of legal provisions to recover outstanding liabilities.”
Support for Infrastructure Development
The initiative is aligned with the Federal Capital Territory’s commitment to improving infrastructure under the leadership of Nyesom Wike. The enhanced revenue generation is expected to contribute significantly to the ongoing transformation efforts in Abuja.
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