There is a clear indication that the tax administration is about to get more wings to fly especially with the monthly remittances of proceeds from employee’s Pay As You Earn (PAYE) deduction as two agencies under the supervision of the federal government collaborates to ensure that each tier of government receives accurately what is due it from PAYE tax.

OAGF, JTB to reconcile PAYE tax remittances

The two agencies in collaborative talks are the Office of the Accountant General of the Federation (OAGF) and the Joint Tax Board (JTB) which will now establish a Joint Reconciliation Team to reconcile differences observed in the monthly pay As You Earn (PAYE) tax remittances.

Taxmobile.Online learnt from a recent statement by leaderships of the two agencies; the Accountant General of the Federation, Mr. Ahmed Idris, and the Secretary of the Joint Tax Board (JTB), Ms. Nana-Aisha Obomeghie on a visit by the JTB counterpart that the move was necessary to correct day-to-day accounting errors by the end of the month.

This applaudable development came on the observation of inconsistencies in PAYE tax remittances by the Secretary of the JTB.

Monthly PAYE Remittance reconciliation now requires a joint effort.

In response to the JTB’s Secretary, the AGF explained that variations in figures from time to time could be due to many legitimate reasons. He further reiterated the importance of setting up a reconciliation team that will enable such differences to be corrected and reconciled.

Composition of the Reconciliation Team

Idris highlighted that the Joint Reconciliation Team will comprise officers from both agencies and will sit monthly to resolve issues concerning non-remittance and variations observed in remittance of monthly PAYE tax.

The rest of the statement below,

“I recommend that all matters concerning non-remittances, figures not agreeing on month by month basis as far as deductions are concerned, can easily be addressed if we have a common joint reconciliation team that will be sitting monthly, made up of officers from the OAGF and the JTB. Let there be an established team that will be looking at these figures”, a statement by the Director of Information, Mr Henshaw Ogubike, Monday, quoted the AGF as saying.

 “There are many legitimate reasons why variation arises from time to time,  it is known to us as accountants that figures will never be the same from one period to another. That is why in accounting, reconciliation exercise is recognised so that figures are harmonized and the cause of the variations are revealed,” he said.

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