PARASTATALS AND STAMP DUTY OPERATIONS IN KWARA EXPLAIN ON “MY TAX AND I”

The search light of the Tax Advocacy program of Kwara State Internal Revenue Service (KW-IRS), “My Tax and I” beams on the collections and operations of Parastatals, Institutions and Stamp duty on this episode, with Adewumi Adeleye, Hakeem Abiola, Ayodeji Koledade and Yusuf Aloba, taking turns to speak to these topics.

Did You Know?

“Other Revenue” operations of Kwara, see to effective mechanisms for collections and prompt remittance of Stamp Duties on related instruments from Individuals, Group of Individuals, Partnership, Business Ventures and Enterprise as due to the State government and appropriate capturing and reporting of revenues of Institutions of learning in the State.

Stamp Duty is a tax levied on documents known as Instruments paid to the Federal and State government as provided for by Stamp Duties Act.

Processes involved in Stamp Duty collection are:
i. Presentation of document to be stamped.
ii. Estimation and computation of stamp duty to be paid on the document.
iii. Payment is made based on assessed charges.
iv. Issuance of receipt to acknowledge payment.
v. Stamping and sealing of document.
vi. Signing of document by approved signatory.
vii. Appropriate filing of a copy of the document.

Stamp Duty is also a prerequisite for the processing of Certificate of Occupancy (C of O).

All property owners are eligible to pay Stamp Duty on their documents as it shows ownership or title of property and validates genuineness of instruments of a person.

Examples of documents on which Stamp Duty is paid on include:
i. Contract Agreement
ii. Land Agreement
iii. Sublease Agreement
iv. Leasehold Agreement Or Rent Agreement
v. Deed of Gift
vi. Deed of Release
vii. Appointment of trustee or of attorney

Before a document could be stamped, it must be duly prepared by a lawyer who must attach his/her Nigerian Bar Association seal and stamp.

Stamp Duty is charged at either:
i. Ad valorem rate of 2% for the original copy and N100 per extra copy or
ii. Fixed rate of N1,000 per copy

Section 4 (1) and (2) of the Stamp Duties Act empowers the Federal and State Government to impose, charge and collect Stamp Duties.

Section 5 of the Stamp Duties Act provides that Stamp Duties paid may be evidenced on the document in various forms which include adhesive stamp, postage stamp, or embossed stamp by means of a dye.

KW-IRS uses stamp, seal, and authorized signature to show evidence of payment of Stamp Duty.

As a revenue generating organization, other revenue adds to the achievement of the over set budget, as all Stamp Duties collectibles due to the State are collected, paid and remitted as promptly as possible which in turn increase the State’s IGR.

Parastatals are units of government saddled with the responsibility of providing specific services to the citizens of the State. They are the business or enterprise arm of government.

Parastatals are subsets of the various ministries and they exist both at the Federal and State levels.

Examples of Parastatals in Kwara State include:
i. Kwara State Water Corporation
ii. Kwara State Environmental Protection Agency
iii. Kwara State Broadcasting Corporation (Radio Kwara)
iv. Kwara State Printing and Publication
v. Kwara State Television Authority
vi. Kwara State Hospitals Management Bureau among several others

There are Fifty Four Hospitals under the control of Kwara State Hospitals Management Bureau.

There are 13 General Hospitals, 33 Cottage Hospitals, 4 Specialist Hospitals, 3 Special Hospitals and 1 Comprehensive Centre. (9) Nine in Kwara Central, (16) Sixteen in Kwara North and (29) Twenty Nine hospitals in Kwara South.

By the law establishing the KW-IRS, it is saddled with the responsibility of generating, collecting and reporting revenue from the various services being rendered by the Parastatals.

All revenues accruing to the State Government must be paid through the Kwara State Internal Revenue Service according to Kwara State Revenue Administration Law.

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.

All correspondence for Kwara State Internal Revenue Service (KW-IRS) are to be addressed as and only to the ‘’Executive Chairman, KW-IRS, 27, Ahmadu Bello Way, G.R.A, Ilorin, Kwara State for required attention.

KW-IRS COMMUNCATION CHANNELS are:
Website:  www.kw-irs.com
Customer Care line: 07006959477
Email: helpdesk@kw-irs.com
Facebook: KwaraIRS
Twitter: @KwaraIRS
Instagram: @kwirs

You can 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.

Signed
Corporate Affairs Department, KW-IRS
20/09/2021