The Executive Chairman of the Imo State Internal Revenue Service (IIRS), Justice R. Okoye, has made a clear clarification, noting that Capital Gains Tax is payable by sellers of property, not buyers.
During a courtesy visit to the Ministry of Lands, Okoye emphasized the importance of collaboration between the IIRS and Imo State Ministry of Lands to boost revenue generation and prevent the use of fake receipts in land document processing. He expressed concern over the low revenue yield from the Ministry of Lands and attributed it to tax evasion and inadequate documentation.
Okoye stated that individuals who fail to pay Capital Gains Tax, Stamp Duty, and other relevant taxes should be encouraged to do so in order to perfect their land documents, as these taxes are prerequisites for processing of land documents.
The Commissioner of Lands, Hon. Enyinnaya Onuegbu welcomed the IIRS team and expressed optimism about the potential benefits the synergy between IIRS and the Ministry of Lands in strengthening Internally Generated Revenue (IGR).
The Commissioner also welcomed the digitalization process of the Ministry of lands which is nearing completion and will reduce document processing/perfecting time from weeks to hours.
Okoye stressed that many property sellers fail to pay Capital Gains Tax. He further noted that property buyers who wish to finalize and register their documents must provide necessary information about the seller. If the buyer fails to provide these information, they will end up being responsible for paying the Capital Gains Tax instead of the seller.
Both parties agreed on the need for collaboration to enhance revenue generation and tax compliance, particularly for property/land transactions.
This development is expected to improve tax administration, reduce time spent in processing documents at the Imo State Ministry of Lands and increase the Internally Generated Revenue (IGR) of the State, ensuring that the Government can fund essential services and infrastructural projects.
Remember, tax benefits you, pay your tax
