CITN News |
| TREATMENT OF TAX COMPLAINTS |
As responsible Internal Revenue Service, we are always committed to serving the
taxpayers to the best of our ability. On daily basis, there are series of complaints
coming in from the taxpayers. To ensure that these complaints are properly looked
into and solved, an office was set up to deal with, and solve such complaints.
These are samples of complaints based on some taxes, levies and fees charge by the
local government councils within the state. These complaints were received by the
revenue complaints and information unit under the office of special adviser,
taxation and revenue. We can also say that these complaints have been reviewed and
attended to.
Trade and lock up: Some Local Government Authorities give shop owners assessment to
pay “trade and lock up permit” fees. Going by basic principles, no charge can be
imposed on the citizenry except by clear statutory provision. Once the statute is
made, the charge must also conform exactly to the statutory provisions. As a matter
of fact, what the Constitution and relevant bye-laws empower local governments to
regulate are ‘shops, kiosks and open market trading. It is then advised that Local
Government Authorities should adhere strictly to this nomenclature. Any other name
given to the charge could be viewed by the tax paying public as illegal.
It must al so be noted that except for specified businesses (like sale of liquor,
slaughter slab, restaurants and bakeries which require some local regulation)
issuance of trade permits is not a local government function. Furthermore,
collecting “trade” and “lock up” differently will amount to double taxation as both
are viewed as one and the same thing.
Corporate trade permit: As earlier said the Local Governments are entitled by Law to
regulate activities of shops, kiosk and open markets within their Local Government.
However, extending this to corporate organisations is well beyond the powers of
Local Authorities. Corporate organisations pay income to the Federal Government and
business premises levy to the State Government. It must also be noted that Decree 21
has also fixed the amount to be so collected by the State.
Radio and television license: The Local Governments are constitutionally empowered
to issue radio and television licenses to owners of such equipment within their
respective jurisdictions. However, some local authorities have also extended this
to computer and satellite, which are beyond the scope of Local Governments. It is
advised that the revenue officer should stick to radio and television to avoid any
form of controversy. The amount payable should also be fixed per tenement.
Parking: What is envisaged here is payment of parking fees by people that do
on-street parking on local government roads. However, we have seen bills issued to
corporate organisation (called corporate parking) even when those organisations only
park within their own premises. Even the criteria for charging the amounts indicated
are never clear.
Stacking of building material permit: This should not be a tax or levy. When
building materials are stacked on the road or in any public place, the proper thing
for the Local Government to do is to impose a fine on the offender and ensure that
the materials are removed at the earliest opportunity. LGCs should not encourage
public nuisance by issuing permit to discharge building materials on roads or
drainages.
Collection of revenue from lotto operators: It is only the State Government that has
the authority to regulate the activity of Lotto operators. Any assessment or permit
issued by Local Government Authorities in this respect is ultra vires, null and
void.
Ground rent and right of occupancy: In Lagos State, all lands have been designated
as ‘urban’ and we no longer have customary rights of occupancy. Statutory Right of
occupancy can only be granted by the Governor who issues a certificate of occupancy
to the grantee. Also the ground rent is paid only to the state government. There is
therefore no basis for any Council charging ground rent or right of occupancy fee.
This article is culled from Financial Standard of September 4, 2009 |
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