Borno State Internal Revenue Service (BIRS) is to seize property of United Nations (UN) agencies over non-payments of income and withholding taxes to the state government.
The seven tax defaulters included World Health Organisation (WHO), World Food Programme (WFP), United Nations High Commission for Refugees (UNHCR), United Nations Children’s Fund (UNICEF) and three others operating in the state.
Announcing the seizure, yesterday, in Maiduguri, Chairmen of BIRS, Muhammad Alkali, noted: “Taxes are compulsory contributions to the state revenue, levied on workers’ income and profits from business outfits.”
He said the agencies’ offices and staff domiciled in the state were to comply with the payment of taxes to the government.
According to him, the affected agencies are, however, exempted from payment of taxes from their operational funds.
“They are mandated by the provisions of the 2004 Personal Income Tax Act to remit to the state government Pay As you Earn (PAYE) and withholding tax of UN agencies’ staff and their contractors,” he said.
He explained that the agencies in the tax-payers category had complied with the provisions of tax laws.
Alkali lamented that series of efforts and engagements with UN agencies since June 2021 were to no avail.
He enjoined the UN agencies to respect and comply with the laws of the states in which they render humanitarian services.
“Our reasons to demand data on agencies’ Nigerian staff and enterprise contractors, however, proved abortive. We are left with no option but to employ legitimate means in paying income and withholding taxes,” he said, adding that the agencies had been served notices to seize properties of tax defaulters.
He warned that the payments would lapse on February 24, 2022.
“Letters of reminders and notification that the enforcement powers of BIRS under PAYE shall be invoked against tax defaulters have been sent. But there has been no response from the defaulting UN agencies till date,” he lamented.
Alkali, therefore, called on the agencies to respect laws and constituted authority, and comply in paying income and withholding taxes to the government.
