The Federal Capital Territory Internal Revenue Service (FCT-IRS) has unveiled a new unit dedicated to the taxation of high net-worth individuals (HNIs) within the Federal Capital Territory.
A circular signed by Acting Executive Chairman, Michael Ango, noted that the newly formed unit will focus on the assessment and collection of income and other taxes.
It also stated that the unit will oversee compliance and enforcement of tax obligations for individuals classified as HNIs.
Furthermore, the unit will serve as the primary liaison with government agencies and organizations, both within and outside the FCT, on matters relating to HNI taxation.
Sumaila stated that during a recent meeting to unveil the unit, Ango clarified that HNIs are defined as individuals earning an annual income of N25m (Twenty-Five Million Naira) or more from any source, including employment, business, or passive income.
“Any individual whether in paid employment, self-employed, carrying on business or having passive annual income of N25,000,000.00 (Twenty-Five Million Naira) and above in any financial year,” Ango was quoted as saying.
The Acting Executive Chairman also urged taxpayers within this category to comply with their obligations and settle any outstanding liabilities within two weeks.
“For our HNI taxpayers, we believe it is in our mutual interest that they comply voluntarily and we have identified over 10,000 of such individuals, with income in trillions of Naira, to whom we have started to send notices. We expect that they will respond and comply voluntarily, otherwise, we will apply the relevant provisions of the law and exercise our powers to recover all the outstanding liabilities,” he added.
The circular noted that the initiative is part of broader efforts by the FCT-IRS to enhance revenue generation to support the ambitious infrastructural projects led by the Federal Capital Territory Administration under the leadership of Barrister Ezenwo Nyesom Wike, Minister of the FCT.
The Acting Chairman stated that he would continue to take steps to ensure compliance by all taxpayers, irrespective of status and enjoined all residents of the FCT to continue to support the efforts of the administration to improve the infrastructure and public services in the FCT and satellite towns by paying their taxes.