The Central Bank of Nigeria (CBN) has said it would no longer accept foreign draft and cheques as mode of inflows for customers as regards tax remittances.
Deputy Director, Banking Payment Systems Department (CBN), Jack Ukitetu, disclosed this during the 2018 Nigerian Capital Development Fund (NCDF) Stakeholders Sensitisation Workshop organised by the Nigerian Content Development and Monitoring Board (NCDMB), in Lagos, on Wednesday.
Delivering a lecture on the Remittance template of taxes in foreign currencies: Payment process and procedures, Ukitetu explained that due to the delays in getting value for such instruments, risk of return even after the value has been given and as regards the global trend in payment practices, it will no longer accept foreign drafts and cheques.
“Cash payment is also discouraged in view of the need to promote Anti-money Laundering/Counter-Terrorism Financing initiatves. CBN recommends and prefer electronic funds transfer through SWIFT from the tax-payers bankers to the account of the revenue collecting agency with the CBN.”
“Preference for this mode of payment is largely due to Global best practice and the promptness with which funds are easily transmitted to the final beneficiary.” He said.
While stating the challenges of remitting taxes in foreign currencies, Ukitetu pointed out that tax payers continue to pay stipulated taxes into the main account instead of the dedicated account with the financial institution.
He thereafter urged stakeholders to provide the adequate information to their banker when sending remittance instruction to ensure prompt payment of taxes.
“Tax payers should also ensure that appropriate information is obtained from the revenue collecting agencies for remittances to reduce wrong routing of payments into unauthorized account.”
In his earlier address, Executive Secretary, NCDMB, Simbi Wabote revealed that forensic audit of NCDF remittances will be conducted with regards to deduction and remittance of deductions meant for NCDF, especially in the areas of contracts and subcontracts for certain supplies in the upstream oil and gas industry.