The Acting Chairman, Federal Capital Territory Internal Revenue Service (FCT-IRS) Haruna Abdullahi, said the law is clear on where residents working in other states pay taxes.
Abdullahi gave the clarification when he appeared on the News Agency of Nigeria (NAN) Forum in Abuja, following concerns and complaints on multiplicity of taxes.
There has been concern with regard to proper categorisation of people residing in neighbouring states like Nasarawa and Niger but working in the FCT.
The FCT-IRS boss said the Personal Income Tax clearly stated that tax deductions should be done based on tax payers’ places of residence.
He said “Section 22 of the Personal Income Tax stated that tax payment should be made where people reside.
“For instance, we have employees in the FCT that are resident in places like Mararaba in Nasarawa State or Suleja in Niger State.
According to the law, yes they work today in Abuja but their home and place of residence is outside Abuja.
“So, according to Section 22 of Personal Income Tax, such persons would pay their taxes in Nasarawa State or Niger State as the case may be,” he said.
Abdullahi said that while there were still grey areas in following the law to the latter, the Joint Tax Board (JTB) was working to ensure proper tax remittance.
“It is an issue the Joint Tax Board is also trying to clarify because it is affecting a lot of states like Lagos , Ogun and probably Kano, Bauchi and Gombe.
“That is one of the reasons why we are here to enlighten people and educate them about their responsibilities before taking action.
“So, these are things we are working on.
“The law provides for it but because these things continue to happen, the system will continue to see how it can enlighten people on it,” he said.
Abdullahi therefore called on residents caught up in such circumstance to report any tax deductions that were not properly categorised.
He sad “if for instance a worker’s pay slip indicates tax deductions from Nasarawa State while the person resides in the FCT, a complaint should be lodged for proper categorisation.”