Tax Administration

Prior to the year 2008, there were virtually no automated systems in all ANSG MDAs, including AIRS. This situation bred corruption, slow workflow and poor record-keeping in the businesses of Government and governance. At AiRS, e-tax administration is in effect in the areas of Assessment and Collection of taxes assessed, performance reporting, audit trails and inter-staff/ departmental internal mail communications. AiRS has advanced plans to enable and encourage individuals and companies to do self-assessments using our electronic Tax Management System. The various avenues of e-governance at AiRS include;

• Electronic payment solution owned by Interswitch – the paydirect platform: This became imperative as it was realised that the funds in government coffers varied at a great length with total amounts receipted at the end of reporting periods. Therefore, to narrow/ close-up the gap, Pay Direct e-slip, a real-time credit system was to be the major supporting/ evidential document for the issuance of government revenue receipts.
• Anambra State Motor Vehicle Administration System (AMVAS): This started as AutoReg, for Vehicle Registration and was initially totally contracted to a consultant, OlisWarren Associates. Vehicle information were captured on a database which serves as a point of reference for future fees and change of Vehicle information. This replaced the Manual vehicle licensing operations and insurance. The activity of Autoreg were domiciled within the Vehicle licensing offices of the AIRS for control. In 2014, there became a need to further strengthen the controls on Autoreg by introducing the AMVAS to domicile all vehicle licensing payments with the State government and make the consultant – AutoReg subject to a fee.

   

• AIRS Tax Management System (TMS): This solution was mooted in mid-2015 by the incumbent leadership of the AIRS and was bought by the State government as part of the moves to prevent leakages of government revenue at the tax assessment stage of the AIRS Operations loop. The solution is to assign Tax IDs to taxpayers, and assessment IDs to each assessment, to ensure that the exact amount assessed gets paid and to maintain a database of taxpayers and tax-remitting organisations and generate reports on all assessments made, period and revenue-wise. It is being executed by a consultant and is expected to kick-start before the end of the 3^rd quarter of 2016. The proposition is that the TMS will be integrated to the existing Paydirect.

   

• Anambra IGR Central System (ANICS): ANICS was created in the last quarter of year 2017 to streamline the receipting processes of all ANSG MDAs, for uniformity, drastic reduction of expenditure on printing of security documents and the incidence of forgery. It also affords better collection accounting to the relevant MDAs, each according to its designated revenue heads.

Tax Types

Personal Income Tax:

This is tax imposed on incomes earned by individuals who are either in employment or are self-employed or a partnership. The tax is assessed and collected by the Tax Authority/ Agency/ Internal Revenue Services of states, from those that are resident in the state, irrespective of whether they are federal, state, local government or private sector workers. This however excludes taxes from residents of Abuja FCT, staff of the Federal Ministry of Foreign Affairs, Non-residents earning income in Nigeria, Police officers, members of the Armed forces of the Federal Republic of Nigeria. The Personal Income Tax (Amendment) Act 2011 guides the administration of Personal Income Tax in Nigeria. It also guides the tax authority in establishing ‘residency’ of a taxpayer and taxability of the sources of income. It is of two types namely;

• Direct assessment Tax (for self-employed persons)
• Pay-As-You-Earn (for persons in employment)

Withholding Taxes (Individuals only):

It is the specific amount deducted/ withheld at source from payment accruing to or made to individuals in respect of income receivable for services rendered or from investment and certain kinds of one-off incomes e. g. Rent, Commissions, Professional fees, Directors fees, Dividends. The rates of deduction for each Withholdable item are spelt out in the Withholding Tax Schedule.

Capital Gains Tax (Individuals only):

This is tax on gains/ profits made from the sale or exchange of capital assets. The rate is 10%.