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Ogun, Lagos partner on implementation of Tax Act

LAGOS—OGUN State Government, Tuesday, said it was working with Lagos State Government to fashion out modalities for a seamless implementation of Residency Rule of the Personal Income Tax Act and its compliance between the two states.

At an interactive session with Organised Private Sector, OPS, jointly organised by Ogun State Internal Revenue Service, OGIRS and the Nigeria Employers Consultative Association, NECA, in Lagos, the government lamented that the state had been short changed for so long and said both state would definitely work out modalities to ensure smooth compliance and implementation.

Commissioner for Finance, Mrs. Kemi  Adeosun while answering a question from the audience,  said the state was not interested in the past but in the present and was determined that the right thing was done.

Represented by Babatunji Odubanjo, the commissioner said: “We see Lagos as our sister state. Governor Ibikunle Amosu has been meeting with Lagos State Governor and discussions are on. We (Ogun and Lagos) are working out modalities on how to ensure smooth implementation and compliance to Residency Rule of the Income Tax Act.”

We do not believe in going to war over Federal Government Law. Like I said, talks are going between the two states to ensure its smooth operation and compliance.”

Similarly, Special Assistant to Ogun State Governor on Taxation and Executive Director OGIRS, Chief Femi Allen, said the government was paying special attention to taxes and taxation to ensure that government was able to raise enough funds to deliver its mandate, saying that when the government came into office, it discovered that political appointees and civil servants in the state were not paying appropriate taxes.

Earlier, Director-General of NECA, Mr. Segun Osinowo, while welcoming participants, said it had been observed that many employees are increasingly residing in satellite towns of Agbara, Acute, Agbado, Sango, Mowe and Ibafon in Ogun state and commute to Lagos state on daily basis to work.

Represented by a director, Mrs C. Oni, Osinowo said “It is therefore expected by law (Section 2(2) of the personal Income tax Act (PITA) that their PAYE should be deducted by their employers and

remitted to the Ogun State Internal revenue Service.  Like you are aware, corporate ignorance of the tax laws of the Federation is not an excuse where companies remit incorrectly, as there is bound to be consequences of fines, penalties, double payment, etc. Following this, NECA In Collaboration with the Ogun State government has organised this forum o address the importance of compliance with the residency rule as contained in the Personal Income Tax Act (PITA).

According to him “The objectives of the forum is to provide a platform for all stakeholders to be enlightened on residency rule of the personal income tax act, to provide a forum for all stakeholders particularly the Organised Private Sector companies, governments of Lagos and Ogun State to

deliberate on the issues arising from the provisions of the law, remittance and compliance with the personal income tax with respect to the residency rule and t proffer a mutually acceptable and sustainable framework for smooth flow of operations by all stakeholders on the tax issues.”

….As Govt moves to stop infighting among communities
Akure—ONDO State Government yesterday gave the chairmen of the 18 local governments in the state a marching order to set up Boundary Commission in their council areas to tackle infighting among the communities.

Deputy Governor of the state  Alhaji Ali Olanusi gave the order at a one-day seminar titled “creation of new local government areas and its consequential effects on Boundary in Ondo State”.

He chided local government administrators for their inability to set up Boundary Commission at the grassroots despite government’s directive.

According to him, many communities had submitted memoranda seeking additional local governments in the areas, saying the leaders must be careful so that the agitation and citing of headquarters did not result into crisis after the creation.

He said “Boundary disputes are man-made, as boundary disputes often erupt due to inadequacies of delimitation when new state and local governments are created. These inadequacies have manifested as ambiguities in the boundary description as near-total absence of demarcation of these boundaries which will in turn result in numerous disputes and demands for boundary adjustments and which we are all discussing.”

“The scope of activities of the state Boundary Commission involves the definition and settlement of boundary disputes in collaboration with the Ministry of Lands and Housing within the state and her neighbouring states. It serves also for the prevention of borders conflicts, disputes and the building of mutual confidence amongst our border communities.”

The Deputy Governor said the National Boundary Act as applicable to state gave the commission the additional responsibilities of intervening in inter-communal and inter-local government disputes.


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