The Kwara State Internal Revenue Service (KW-IRS), in its Tax enlightenment Programme for the week under review, discussed the INFORMAL SECTOR COLLECTIONS.
The sessions held on three different radio stations in the State, featured the Head of Informal Sector, KW-IRS, Maimunat Amasa, Unit Head, Micro, Business, KW-IRS, Olajide Aina and Unit Head, Market, KW-IRS, Bolanle Awogun.
Did You Know?
• Informal Sector collections in Kwara State, covers taxpayers whose income fall between the threshold of N 1,500.00 and N49, 999.00.
• Classification of taxpayers in the Informal sector could be done by size, volume or type of trade.
• It is beneficial for taxpayers to pay his/her Personal Income Tax (PIT) within stipulated due date of payment. PIT payment after enforcement attracts penalty, such taxpayers pay higher amount than those that pay within stipulated due date of payment.
• Legal actions could be taken against defaulters.
• Taxpayers under association arrangements under informal sector in the State are usually given consideration on payment of PIT, while taxpayers who are not registered under any association arrangements are assessed accordingly.
• The only tax collectible by the Informal Sector of KW-IRS is the Personal Income Tax (PIT).
• The collection process of revenue in the Informal Sector include serving of Notice of Assessment via Route Ledger approach, request for preceding 2 years receipts before issuance of consolidated revenue receipt for current year payment, and collection of PIT through Artisan, Market and other major association executives.
• Taxpayers under the Informal Sector can pay online, make bank transfer/lodgment or pay via POS.
• The law provides that revenue and levies such as Trade Permits, Liquor License and Building Permits are collectible by the Local Government.
• Shops in different locations are expected to carry their different receipts or evidences of cumulative payment of all shops.
• Most taxpayers hide under the Informal Sector to pay because it is lower, but with the synergy between collecting departments in KW-IRS, records of taxpayers are evaluated and taxpayers sorted into High Networth Individuals (HNIs) and informal sector categories.
• PAYE paid under an employment is separate from private business. Individual with an additional source of income, is treated as such. This implies that, additional tax due is given.
• PAYE is based on current year for those in structured employment, while payment made by an individual on income from a private business is based on preceding year.
• All revenue payments are to be made into the Kwara State Government IGR Accounts through the online payment platforms provided by the State. That is REMITA, QUICKTELLER, PAYARENA and others to be communicated in due course.
• KW-IRS COMMUNCATION CHANNELS
Visit us at our Corporate Head Office on 27, Ahmadu Bello way, GRA, Ilorin OR any of our offices within Ilorin and across all Local Government Areas of the State.
• For ease of Revenue administration, among other benefits, the harmonized collection was introduced as an approach to effective collection by and for the State. This tool is being used in collection of revenue meant strictly for the State and for few collectible items of Local Government as agreed with the LGAs for efficiency. These collectibles on behalf of LGAs are reported and remitted accordingly at the end of each month. Such collections include Tenement rate, Radio License, Citizenship etc.
• Taxpayers in Kwara State could transact directly with the official revenue offices of KW-IRS at the various KW-IRS offices and payment points situated in the 16 Local Government Areas across the State and ensure all payments are receipted for accordingly.
Corporate Affairs Department, KW-IRS