The Accountant-General of the Federation, Ahmed Idris, said the settlement followed claims by state governments of underpayment of tax by the institutions
Following reports of underpayment of PAYE taxes by tertiary institutions, Mr Idris said the Federal Government advised all the 36 state governments and the Federal Capital Territory Administration to submit their requests for reimbursement.
The OAGF said its attention was drawn to series of reports by tertiary institutions unions, led by ASUU, that the Integrated Personnel Payroll System was making huge deductions from their salaries and allowances to the extent that their take-home was reduced to 50 per cent or less of their earnings.
Mr Idris said the unions had demanded from the Federal Government their exemption from certain tax payments under the IPPIS. “These savings contributions are refundable with interest either at retirement by the university lecturers or at their exit from public service as Federal Government employees.
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