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Senate To Probe Banks Over Non Remittance of Withholding Tax




The Nigerian Senate on Thursday, September 26, commenced the consideration of its Legislative Agenda.

Nigerian Senate has expressed their dissatisfaction with banks over an allegation of non remittance of withholding taxes levied against the financial institutions and has ordered a probe into the matter.

The Senate gave a directive to its Committee on Banking, Insurance and other Financial Institutions to investigate the allegations within four weeks.

The committee was also tasked with the duty of recovering all withholding tax revenues on both bank deposits and dividends.

This probe came after a motion was moved by Senator Uche Ekwunife for the digitisation of collection and remittance of withholding tax on bank deposits and dividends payments for enhanced state governments’ Internally Generated Revenue.

According to Ekwunife, the alleged non-remittance of the taxes had hindered the state governments from paying salaries or meet their financial obligations as a result of poor and dwindling revenue.

Speaking further, Ekwunife urged the banks to stop either the form of under-remittance or non-remittance of withholding tax due to the government.

Going forward, Ekwunife, suggested that the leakages with respect to remittance of Withholding Tax can be addressed using modern tax solutions and information technology.

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