The big pot of water half buried at the middle of Malam Bizi’s expansive compound has served the family and guests for about two decades, providing cool water for drink especially during the dry season in northeast Maiduguri, known for its hotness in dry season. But something unusual is happening to the mud pot. It appears to be ‘drinking up’ the quantity of water kept in it and sometimes leaves the family in dire need of the natural gift. On the day Sunday Sun visited, Hajara and Hauwa had filled the pot with about four buckets of water in the morning but were surprised to note that the pot was half filled an hour later. Ironically, none of the family member had drank from the pot. In fact, the plastic cup usually placed on the pot for use still lay on a small table in the kitchen. Surprisingly too, the surrounding of the pot had remained unusually wet in recent time. “I eventually discovered the pot was licking,” Bizi told Sunday Sun during a visit to the family compound at Njimtilo, a suburb of Maiduguri. “The more my children fetch water into the pot, the more the water ends up in the soil around the pot. It is as if the pot is drinking the water,” he added. The case above clearly illustrates how officials siphon public funds through tax diversion without the authority knowing – in much the same manner that the Bizis couldn’t detect the water in the big pot was drying up. Millions in revenue had been reportedly diverted from the points of collection in Borno State. Sunday Sun investigations show that some officials collect taxes (water) in the name of government (big pot). Sadly, either half of the revenue is remitted or in most extreme cases, never get to the government coffers. Borno State Board of Internal Revenue (BSBIR) is empowered to collect all taxes on behalf of the state government. It is one of the busiest public offices in the state with more than 300 staff both in the state capital and local government areas. Human movements, brief conversations and movement of documents characterized activities at this office as the reporter observed for two weeks. There are also over a dozen racketeers around the building ready to procure various documents ranging from vehicle particulars to motor license for a fee. It is such a business centre but behind this lay a profiteering move by some officials, Sunday Sun gathered. According to information on the website of the board, www.bornosirs.bo.gov.ng, BSBIR collects both income and personal taxes. Taxes are collected from individuals either in employment of the state government or from those running their own small businesses under any business name or partner, a Lagos-based banker and tax analyst, Bamidele Bello told Sunday Sun. “The state government is responsible for collecting such taxes,” he explained. He said banks and commercial institutions also remit their taxes based on their profits. The Personal Income Tax Act (Cap P8 LFN 2004) guides the current taxation of personal income. The law empowers the federal and state tax boards to identify persons living in or earning income from the areas of their abode who are required to pay tax, assess incomes and tax their incomes using specified guidelines and rules. The law also guides tax officials to identify the residence of potential taxpayers, the sources and origins of their incomes for the purpose of taxing them based on their income. However, there are alleged leakages in the process of collecting these taxes by some officials of government, very credible sources in the tax offices revealed to Sunday Sun. Double invoicing/receipts. Some officials of the board have developed strategies to circumvent tax collection in Borno State. A source revealed that one of the ways is double invoicing. “It is a common thing and it has been happening for a long time,” the well placed said. “We have receipts for ourselves, sometimes we give return to our bosses in the office,” another official added. “It is not a new practice,” he insisted. A copy of the receipt shown to the reporter indicated a marked difference between the government own and the one done by the officials. The Nigerian coat of arms on the government’s receipt is bold and darker. Likewise, the receipt is thicker while the other one is lighter. Though, the board was said to have introduced e-payment few years ago to block leakages but it was gathered that some officials still found a way around it especially with taxes on businesses. Sunday Sun discovered it is one of the worst affected. Some officials also charged payees, especially owners of businesses, different amount without checking any income book. “Taxes are charged based on income and gains,” Bello explained but the approach of these officials differs. The poor collection system has not helped the matter,” a tax officer said. Taxpayers speak; The Board of Internal Revenue has a form which tax officials use in assessing amount payable by payee especially owners of business as part of the revenue to the state. “They have a form. They look at the shop and calculate what I will pay. Sometimes they charge higher and then we negotiate like from N15,000. You can beat down to N6,000,” Yohanna Ali (not real name) revealed. Sunday Sun probed further on why taxes would be negotiated without checking the book. “The men collecting aren’t remitting to government. This is why they are not following the right process,” he added. It was gathered that often times, receipts are not provided for the payment made. But many of the taxpayers alleged the officials often made promises to return with the receipts but never surfaced until another year. “It is a very clumsy situation but we can’t question them,” he said further. Taxpayers said they are sacred they could be victimized if they demanded explanation from officials. “We are here doing business. We don’t want problem with government people,” Aminu Ibrahim said. “Associations sometimes pay collectively; they pay on behalf of others. Sometimes we get receipts issued to payees on individual basis or we don’t get at all,” Chinelo Eze said.
Source: The Sun
