GTBank To Refund VAT Commission Collected For 8 Years
The Public Accounts Committee (PAC) of the House of Representatives has instructed Guaranty Trust Bank (GTBank) to assess and remit Value Added Tax (VAT) on the commissions it received through the Remita platform from 2015 to 2022.
The remitted VAT is to be paid into the federal government’s recovery account.
Rep. Bamidele Salam, the PAC Chairman, issued the directive during an investigative hearing that focused on revenue leakages linked to the Remita platform and non-compliance with standard procedures for service agreements.
The committee identified two key issues: the remittance of VAT related to Remita collections and the collection of fees in the initial phase of Remita transactions.
Representatives from GTBank, alongside officials from several other financial institutions—Keystone Bank, Zenith Bank, Sterling Bank, Polaris Bank, FCMB, Ecobank, and Wema Bank—appeared before the committee.
GTBank’s Executive Director, Ahmed Liman, explained to the committee that the bank had not remitted the VAT over the last eight years.
He stated that the bank believed Remita was responsible for distributing the commission fees among the relevant parties, including handling the necessary tax deductions.
However, after reviewing the situation, the committee ordered GTBank to calculate and remit the VAT on the commissions it received from Remita between 2015 and 2022. The funds are to be transferred to the federal recovery account held by the Central Bank of Nigeria (CBN).
Other banks that faced similar issues were referred to a reconciliation sub-committee to resolve discrepancies and prepare for their next appearance before the PAC.
