FG Contractors Evade Tax, Adesoun Says

More than 80 percent of Federal Government contractors do not state the actual income they receive in their tax returns, Kemi Adeosun, minister of finance, says.

Adeosun made the revelation in a statement released by the finance ministry in Abuja on Wednesday.

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According to her, the loophole was discovered in a sampling exercise carried out by the Ministry of Finance.

She disclosed that the government has begun reviewing the tax compliance of contractors who have received payments in the past seven years.

According to the statement, the ministry of finance and office of the accountant general of the federation are now compiling records of all payments exceeding N100m made since 2010 including details of the beneficiary bank accounts.

“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,” she said.

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“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 explained that the Federal Government has commenced a database project that will be used to crosscheck information provided to tax authorities.

The scheme, “Project Light House”, would build comprehensive profiles of tax payers using bank verification numbers, foreign exchange allocations, land registry records and information obtained from foreign governments.

The minister said the Muhammadu Buhari-led administration is committed to improving tax compliance as this is related to efforts being made to reduce dependence on oil.

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