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FCTA restricts MDAs, SDAs, banks from providing services without tax clearance certificates

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The Federal Capital Territory Administration (FCTA) has barred Ministries, Departments and Agencies (MDAs) as well as its own Secretariats, departments, commercial banks and others from offering services to people without demanding and verifying their tax clearance certificates.

The directive was contained in a memo dated 4th October 2023 and signed by the FCT Minister, Chief Nyesom Wike.

It was addressed to the Minister of State in the FCT, Permanent Secretary in the FCTA, Chief of Staff to the FCT Minister, FCT Mandate Secretaries, Chief Registrar of the FCT High Court, All Directors/Heads of Secretariats Departments and Agencies SDAs.

Titled ‘Enforcement of Section 85 of Personal Income Tax Act, 2011 (as amended) and Section 31 of the Federal Capital Territory Internal Revenue Service Act 2015 on demand and verification of Tax Clearance Certificate TCC by MDAs, commercial banks and SDAs in the FCT’, the memo listed several transactions requiring the mandatory demand for the said certificates.

Some of the transactions are applications for government loans, motor vehicle registration, application for land, application for certificate of occupancy and 22 others.

Part of the memo reads; “The Federal Capital Territory Administration FCTA has observed with dismay, lack of implementation and adherence to the provisions of section 85 of Personal Income Tax Act (PITA), 2011 (as Amended) and Section 31 of the Federal Capital Territory Internal Revenue Service Act, 2015 that provide for the demand and verification of Tax Clearance Certificates TCC from residents of the FCT before rendering of services or performance of transactions.

“It is pertinent to note that both the Personal Income Tax Act (PITA) 2011 (as amended) and the Federal Capital Territory Internal Revenue Service Act, 2015 provide that Ministries, Departments and Agencies (MDAs), Commercial Banks, Secretariats, Departments & Agencies (SDAs) of the Federal Capital Territory Administration (FCTA) as well as Area Councils, corporate bodies, and statutory authorities among others must demand and verify TCC from residents before rendering of services or performing any transaction”.

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