The FCT Administration has reiterated that tax default in the FCT and non compliance with voluntary tax clearance certificate will attract a fine of N5 million or an imprisonment term for three years, or even both.

This disclosure was made in Abuja on Wednesday at the Ladi Kwali Conference Centre of the Abuja Continental Hotel, formally Sheraton Hotels and Towers during a town hall meeting on the Demand and Verification of Tax Clearance Certificate by MDAs, SDAs Commercial Banks and Corporate Bodies.

Delivering his key not address, FCT Minister, Malam Muhammad Musa Bello warned that tax default was a serious crime that was normally punished by the law.

Bello who was represented by the FCTA Permanent Secretary, Olusade Adesola noted that their actions were not only morally wrong , but also serious criminal offences for which they can face very severe penalties on conviction.

He reiterated that if the relevant authorities of the FCT Administration are to continue to provide world class infrastructure for the city, they needed a greatly improved revenue base which can only be attained by a robust tax policy where all who call FCT home also contribute through taxes to her development.

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” I therefore, use this opportunity to send a note of strong warning to tax evaders to desist from their actions,” he stressed.

He, however, noted that the FCT Administration is not unmindful of complaints of multiple taxation and other sundry challenges in FCT tax regime.

“This matter is also of grave concern to us and we are taking measures to resolve the issue because it also impacts negatively on our efforts of encouraging investment in theTerritory.

Earlier, in his welcome address,  Ag. Executive Chairman, FCT-IRS, Haruna Y. Abdullahi, said while working towards ensuring the provision of Taxpayer-centric services, it will not hesitate to take punitive measures on defaulters of the law.

Abdullahi however urged FCT  residents and other stakeholders to choose voluntary compliance over compulsion, which would be last resort.

According to him, “the demand and verification of tax clearance affects specific transactions required by individuals (residents of FCT) from MDAs, FCT-SDAs and financial institutions to mention a few.

“Consequently, the failure to demand and verify a Tax Clearance Certificate presented by an individual is liable to

sanctions and possible conviction with a fine of N5,000,000.00 or three years imprisonment or both the fine and imprisonment according to the relevant tax laws.

“To this end, the FCT-IRS has trained its staff on effective monitoring and enforcement procedures as well as investigation for violations of any aspect of the tax laws.”