The Federal Capital Territory Internal Revenue Service (FCT-IRS) has threatened to impose a N500,000 minimum penalty on defaulters of annual returns filing in the FCT.

Acting Executive Chairman of the service, Michael Ango, gave the warning in Abuja on Thursday, during the FCT-IRS annual sensitization campaign to mobilise FCT residents for voluntary tax compliance.

Mr Ango said that for persons who did not file their 2024 annual returns in January 2025, the law had set a minimum penalty of N500,000.

He said that the first filing deadline for the year was January 31, 2025, where the employer’s annual returns were due, adding that a reasonable number of companies had filed.

He commended every company that filed their employees’ annual returns, adding that the FCT-IRS would write them a letter of commendation.  

He, however, said, “For those who did not file, we are also going to write them a letter but not a letter of commendation. We are sending out penalties’ notification for noncompliance and then giving them a chance to comply. We have already written to a number of them, informing them of the minimum penalty of N500,000, but that is not just it, we also have the power to prosecute defaulters.’’

He added that another deadline would come up in 30 days for every person, whether in employment or not, to file their annual income tax.

Mr Ango stated that the law mandates every person, whether in employment or not, to file their annual income tax returns by March 31 every year.

“This is one of the things that we hope this road show will be able to achieve. We want to see compliance as high as possible,” he said.

He appealed to law-abiding citizens to pay their taxes voluntarily, adding that payment of tax was a lawful obligation.

According to him, where the law creates an obligation, it also creates penalties and sanctions for noncompliance.

He said, “We believe in voluntary compliance as the best form of compliance, but if you do not comply voluntarily, we’ll have no option than to enforce the law, even if we don’t want to.
The laws mandate us to do so, but we pray, and we hope that it doesn’t get there, but there are also responsibilities expected from the public. We expect those of you who have not registered to come and register with the FCT-IRS.
We pray that one day we’ll have 100 per cent tax compliance in Abuja and we’ll all be able to sit down and say that I contributed to the building of this great city, Abuja.”

He pointed out that the focus of the current administration for about two years had been on infrastructure, roads, rehabilitation of schools and hospitals, and provision of other social infrastructure.

“The Abuja that we envisage is an Abuja that can compete with any major capital city in the world. That is the FCT Minister Nyesom Wike’s vision, and we believe that that vision is achievable. We are out on the road to let Abuja residents know that the FCT-IRS wants to partner with them to build a world-class city where we have good roads, running water, good hospitals, improved security, and where our children can go to good schools. We want a city where we have streetlights, recreation parks, and all of the other things that make a city lovable,” Mr Ango said. 

(NAN)