ReportsNG
The Military Pension Board in Abuja was reported to have failed to remit ₦12,967,425.70 in statutory tax deductions to the Federal Inland Revenue Service (FIRS), with the outstanding amount relating to Withholding Tax and Value Added Tax deducted in 2020.
Similarly, the details show that the sum comprised ₦5,305,543.50 in Withholding Tax and ₦7,661,882.16 in Value Added Tax (VAT). Although the taxes had been deducted, the amount was not remitted to the tax authorities as required. The issue was identified under Financial Regulations 2009, paragraphs 234(i) and 235, which address the handling and remittance of statutory deductions. The failure to transfer the money to the appropriate tax authority raised concerns about the proper management of public funds and the loss of government revenue.
More so, the outstanding amount of nearly ₦13 million represents money that had already been deducted for tax purposes but remained unremitted, according to the findings. Such a situation creates a gap between deductions made and the funds actually received by the relevant tax authority. The document also identified the possibility of public funds being diverted and government revenue being lost as risks associated with the non-remittance. However, it did not establish further details about what happened to the money after it was deducted.
Furthermore, the Military Pension Board’s management did not provide a response to the issue in the records presented. The recommendation was for the Board to explain the circumstances surrounding the outstanding deductions and recover the full ₦12,967,425.70 for remittance to the relevant tax authorities. The recommendation further stated that sanctions under Financial Regulations 2009, paragraphs 234(ii) and 3112, could apply if the matter was not satisfactorily addressed.
