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N100bn Revenue Gap: FG Orders Contractors To Provide TIN Before Payment

….to undertake compliance spot checks on MDAs

The Federal Government today ordered contractors handling various projects in Ministries, Departments and Agencies (MDAs) to attach copies of their Tax Identification Numbers (TINs) on their invoices before their outstanding claims can be paid.

The directive was given by the Minister of Finance, Mrs. Kemi Adeosun, to the Accountant General of the Federation, Alhaji Ahmed Idris, to ensure compliance.

A statement by the Special Adviser, Media to the Minister, Oluyinka Akintunde, indicated that the order was part of the sustained efforts by the government to block revenue leakages by the MDAs’ vendors.

Specifically, the minister confirmed that about N100 billion revenue shortfall was discovered as payable  tax by contractors handling sundry projects between 2012 and 2017.

Adeosun, in a memo titled “Compliance with Tax Payments by Federal Government Vendors”, stated that persistent leakages in revenue remittances by vendors had been uncovered by the Government’s Project Lighthouse, a system-wide revenue intelligence data-warehouse.

According to her, the leakages were due to lack of TIN, particularly on Value Added Tax (VAT), Withholding Tax (WHT) and other related inflows into the government coffers

She stated: “In order to address these lapses in the implementation of the 2017 Budget as well as boost the revenue accruable to the Government, all MDAs should be directed to insist that invoices submitted by vendors for payments must clearly state the TIN. This is to confirm tax compliance by relevant government vendors before payments are effected.”

Adeosun stated further that the directive to the government vendors was in compliance with the provisions of both the Federal Inland Revenue Service (FIRS) Act and Procurement Act 2007.

She also hinted that spot checks would be undertaken on MDAs to confirm compliance with the directive.

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