Reps Summon Banks Over Under Remittance Of Education Tax

The House of Representatives Committee on Tertiary Education Trust Fund (TETFund) has summoned all banks operating in the country  to appear before it alongside its tax consultant to reconcile the Education tax computation not remitted to TETFund by the bank between 2011 and 2022.

The chairman of the committee, Mariam Odinaka Onuoha, gave the directive when some banks appeared before the committee to defend their EDT remittances to the Fund over the years.

She alleged that there were disparities in the EDT remittances submitted by the Banks to the FIRS over the years, adding that what was computed by the banks’ auditors did not tally with tax consultants.

“The bone of contention has always been that the banks seem to be relying on a purported exemption order which clearly mentioned the company income Tax exemption order of 2011. We have asked the banks to produce an EDT exemption order and they have failed to present it, 1st

This followed a motion by Oluwole Oke asking the bank to appear before the committee with the tax consultants with details of that tax computation yearly.

Mariam said out of the 15 banks invited, about seven were supposed to appear before the committee while only three of them showed up with three others writing to seek a new date to appear.

Deputy Chairman of the committee, Hon Bappa Aliyu Misau had observed that First Bank remitted its education tax deductions to TETFund, an action which he said was punishable under the law.

An Executive Director with First Bank, Bashir Yusuf who represented the bank at the meeting told the lawmakers that between 2011 and 2022, the Bank posted a Profit Before Tax (PBT) of N795,123 billion.

When asked to take the figure year by year, the FBN executive director said, it was a summary of the presentation, saying, “Unfortunately Madam Chair what I have is the summary of the presentation. I crave the indulgence of the committee to take what we shared with the Committee. I prepared the summary for the presentation, so that if there are issues, we can tackle those issues, especially if they are matters that we need to settle outside the Committee room, our consultants.

He said further that there were issues that could not be resolved at the committee hearing, adding that “what you have are items that are classified as taxable. We have some differences based on the provision of the exemption order that was issued by the President in 2011. That’s why I said some of these issues we will not be able to resolve at this sitting.

“It is good we have time, and I believe this does not just apply to First Bank because it’s an issue that applies to other banks as well. Our consultants have been interacting over time and the issue of the exemptions that are provided for in the Presidential order of 2011 that exempt certain categories of income from tax.

“Based on that Presidential order issued in 2011, there are certain categories of incomes that are exempted from tax. Some of them include; Short Term Investment income from Short Term Government Instruments and Securities such as Treasury Bills, Promissory Notes, Bonds issued by federal, state and local governments and Bonds issued by Corporate bodies including Supra-Nationalities. The last item is interests earned by holders of the Bonds on Short Term Securities.

“By the time you take into consideration, income earned from these instruments over the period of the audit of the Committee, the difference between the submissions we have made Committee and the submissions you have in your records will be identified and we will be able to reconcile. It will be zero, we are very sure.”

Oduyemi Odumade, Edited By Shakirah Alabi