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FCT makes tax clearance certificates mandatory for business transactions



The Minister of the Federal Capital Territory (FCT), Mr. Nyesom Wike, has mandated the verification of Tax Clearance Certificates (TCCs) as a pre-condition for business transactions in the FCT.

The Mandate Secretary, Economic Planning, Revenue Generation and Public Private Partnership Secretariat, FCT Administration (FCTA), Mr. Mrhinedum Elechi, made this known at a press conference in Abuja on Monday.

Elechi explained that the implementation of these laws is intended to ensure that all eligible taxpayers in the FCT comply with their tax obligations.

He noted that this will ensure that the FCT Administration gets the required resources it needs to provide essential services to FCT residents.

He further explained that Section 85 of PITA, 2011, provides that MDAs or commercial banks may demand a TCC when transacting with any person as specified by the law. The TCC would cover the immediate past three years preceding the current year of assessment.

He further said that MDAs or commercial banks should also verify the authenticity of the tax clearance certificate by the issuing tax authority before carrying out any of the transactions.

The mandate secretary added that Section 31 of the FCT – IRS Act equally makes TCC a pre-condition for transacting any business in the FCT.

He identified some of the transactions that require a TCC as property transactions, certificate of occupancy, registration as a contractor, awards of contracts, and building plan approval.

Others are government licenses or permits, applications relating to the establishment or conduct of business, FCTA housing loans, motor vehicle registration, registration of distributorship, and confirmation of membership of any public board.

Other affected transactions include registration of a limited partnership, application for market stalls, and appointment or election into public office among others.

According to him, the primary mandate of the government is to provide security and welfare to the people, adding that this cannot be achieved if citizens do not pay their taxes.