FCT-IRS urges residents to file annual

The Federal Capital Territory Internal Revenue Service (FCT-IRS) has urged all residents in the territory to file their Annual Income Returns before the deadline of March 31, 2025.

In a statement issued on Wednesday, FCT-IRS stated that the filing of annual returns of income from all sources is mandatory for all taxpayers, including those in employment (private and public sector), public office holders (elected and appointed), and those in self-employment, including business owners and partnerships/enterprises resident in the FCT for the preceding year, 2024. These returns must be filed in the manner and within the time specified by law.

In this regard, the Personal Income Tax Act provides that: “For each year of assessment, a taxable person shall, without notice or demand, file a return of income in the prescribed form and containing the prescribed information with the tax authority of the State in which the taxable person is deemed to be a resident.”
This must be filed with a true and correct statement in writing containing the amount of income earned by the taxpayer from every source in the year preceding (2024) the year of assessment (2025), along with any other information required by law concerning such income, allowance, relief, deduction, or other relevant details.

The law further states that the return shall include a declaration by or on behalf of the taxable person, confirming that the return contains a true and correct statement of the income computed in accordance with the provisions of the Personal Income Tax Act. There is a strict deadline for filing annual income returns, which is within ninety days from the commencement of each year of assessment, falling on March 31, 2025.

The statement noted that failure to file the returns by March 31, 2025, will result in FCT-IRS issuing a best-of-judgment assessment on all defaulters, who would then be required to pay in line with the provisions of Section 54(3) of the Personal Income Tax Act.
Additionally, defaulters may face other criminal and civil sanctions as prescribed by law.

It will be recalled that the Acting Executive Chairman, Mr. Michael Ango, has been leading the campaign for voluntary tax compliance by all FCT residents. According to him, it is in the interest of taxpayers to comply voluntarily, as any default will be taken seriously.

Ango emphasized that given the efforts of the FCT administration under the Minister of the FCT, His Excellency Ezenwo Nyesom Wike, CON, to improve infrastructure and social services in the FCT, it is incumbent on all taxpayers to contribute to the continued development of the territory by paying their taxes and filing returns as required by law.