BY VICTOR BUORO, ABUJA – The Accountant General of the Federation (AGF), Mr Ahmed Idris on Monday declared that the request by the tertiary institution unions led by ASUU, to formalise tax evasion through the IPPIS is not only untenable, but unpatriotic request to violate extant laws on tax.
Idris said that the Pay As You Earn (PAYE) Tax is a statutory tax deductions paid by all salary earners, stressing that the IPPIS applied the correct rate in compliance with Section 34 of the 6th schedule on personal income tax (Amendment) Act of 2011.
The AGF explained that prior to migration to IPPIS, the rate of tax being applied by tertiary institutions was not correct, leading to underpayment of PAYE Tax.
Idris said the development had led all states governments of the federation to make claims on the federal government to pay the differential arising from underpayment of tax by these institutions.
According to the statement, the federal government has paid several billions on behalf of these institutions because of their underpayment of PAYE Tax.
Idris, who stated these while reacting to reports on claims by tertiary institutions unions, that the IPPIS deducted their salaries and allowances to the extent that their take home is now only 50% or less of what they earn, said that ASUU is bringing claims that those laws should not be applicable to them and thereby should be exempted or be made optional for them.
These were contained in a statement by the Director, Information, Press and Public Relations in the office of the AGF, Mr Henshaw Ogubike, who said that the request for breach of the Act of Parliament is not within the ambit of the IPPIS or the (OAGF).
The AGF said; “They have been advised to approach the National Assembly for amendment of the Act.
“NHF Deductions: The National Housing Fund (NHF) is 2.5% of basic salary. This is another statutory contribution backed by the Act of National Assembly. This is a savings contribution by all federal employees to enable them have access to short life loans to own their personal houses. These savings contribution are refundable with interest either at retirement or exit from being an employee of the federal government.
“Similarly, another issue raised by the unions is the Employees’ Pension Contribution deductions. Employees’ Pension Contribution 7.5%. The ASUU claim that the Employee Contributory Pension should be based on basic salary and not on consolidated salary and it has increased their employee deductions thereby reducing their take home. This is a penny wise argument not expected from Ivory Tower.”
On payment of allowances, the AGF said that it should be stated that this is based on the salary structure as approved by Salaries, Incomes and Wages Commission (SIWC), adding however that he has advised the tertiary institutions academic unions to approach the Salaries, Incomes and Wages Commission (SIWC) to formalise any agreement on salaries and allowances that they claim to have been approved for them.
According to the AGF; “It said It is the responsibility of the Institutions or Agencies to inform the IPPIS office about death, resignation or exit from service before due date. We sent payroll analysis to the tertiary institution Bursars for review of any omission or names to be excluded.
“This issue is a cheap propaganda by ASUU to denigrate IPPIS for obvious reasons. Mention must be made here that good spirited members of the union personally wrote to inform this office of their not being entitled to February salary payment and requested for account to refund the salary.”
The OAGF assured tertiary institutions staff that his office is always willing and ready to serve them as best as possible, but pleaded for their understanding and cooperation.
