Nigeria news : Senate probe banks over alleged under remittance, of withholding tax

Nigeria news : Senate probe banks over alleged under remittance, of withholding tax, The Senate has resolved to probe the Central Security Clearing System (CSCS) and other banks over alleged non-remittance of withholding tax on bank deposits and dividends due to state governments.

It also mandated its Committee on banking, Insurance and other Financial institutions to investigate and ensure that all withholding tax revenues on both bank deposits and dividends are recovered and reported back in four weeks.

The upper chamber also expressed its regrets on the consequential implications the alleged sharp practices impacted on state governments as most of them were said to have been unable to pay salaries and meet other financial obligations due to dwindling revenue.

These resolutions followed an adopted motion sponsored by Senator Uche Ekwunife representing Anambra Central, titled, “Digitization/automation of collection and remittance of withholding tax on bank Deposits and Dividends payment for enhanced state governments internally generated revenue.

In her lead debate, Ekwunife alleged that banks, hitherto, hold billions of naira in form of under remittance or non-remittance of withholding tax due to government.

The lawmaker also emphasised that withholding tax on bank deposits and dividends remains one of the major sources of revenue but has been difficult for the states to track.

Further, Ekwunife pointed out that leakages could be addressed using modern tax solutions and information technology.

In their contributions at plenary, many lawmakers supported the motion. It was on this basis that the Senate President, Ahmad Lawan hit the gavel in affirmation of the resolutions.