Reps probe MDAs over alleged N115bn tax evasion

The House of Representatives has mandated its Committees on Finance and Public Accounts to investigate an allegation that some Ministries, Departments and Agencies (MDAs) of Government owed N115 Billion as tax liabilities.

The Committee was also told to investigate another allegation that some taxes collected by banks were not remitted to the Federal Inland Revenue Service (FIRS).

The investigation was a sequel to the adoption of a motion titled: “Need to investigate the allegations that Ministries, Departments and Agencies (MDAs) of Government owe N115 billion tax liabilities and that some taxes collected by banks were not remitted to the Federal Inland Revenue Service (FIRS)”, sponsored by Jerome Amadi (PDP-Rivers).

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In his lead debate, Amadi said that the allegation by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) that some MDAs were owing to the Federal Government such amounts of money, was a serious issue that needed to be investigated.

He said: “The House notes that with the receding economic recession in the nation, the need to increase government revenues, through aggressive taxation drive, policies, remittances and accountability, cannot be over-emphasised, as they continue the veritable measures towards the country completely exiting recession.

“The House is aware of the low culture of individual and corporate organisation’ tax compliance, despite taxation being the means through which governments can earn extra revenues to bring about the much-desired development to the country, especially in the face of declining revenues from crude oil.

“The recent allegation by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) that some MDAs are owing to the Federal Government N115 billion, which is such a serious issue that should not be allowed to be swept under the carpet, especially that those funds could have either been mismanaged or squandered by those agencies.

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