Operations and Administration

Operational Details

Department of Income Tax has been in existence long time ago and was established for the purpose of carrying out administration of personal income tax as well as assessment and collection of government revenue through Direct Assessment.  The Department functions with the following units.

• Relationship Management Unit (RMU) which is responsible for the assessment of High Networth Individuals for the purpose of taxation.
• Station Managers. There are Thirty-Three (33) Station Managers who conduct direct assessment of income tax in all the Thirty-Three (33) Local Governments of the State and follow up on PAYE remittances of companies and enterprises.
• PAYE Government is in charge of PAYE of all the MDAS whose staff is in need of Tax Clearance Certificates. The Unit also monitors the monthly remittances of PAYE deductions of all the Federal MDAS in the State.
• Withholding Tax Unit assists in collecting all the withholding taxes both from within and outside the state.
• Stamp Duty Unit collects and pays money collected from the stamps of all important legal documents by the taxpayers into the State Government purse.

Type of revenue collected by directorate of income tax with the relevant revenue codes:

• Direct Assessment             -           4010001
• Development Levy             -           4010003
• PAYE                                     -           4010002
• Capital Gain Tax                 -           4010004

The Department consists of various categories of officers headed by a Director, who is an Administrative Officer and supported by other Administrative Officers and sub-officer cadres namely:  Executive, Clerical and Work Superintendent.

• The traditional functions of this Department are general administration and coordination of personnel activities which include:

Coordinating matters relating to documentation, appointment, advancement, conversion, confirmation, promotion, posting, discipline and other routine duties such as processing of retirement papers, transfers, certificate of service, annual and maternity leaves and training of staff.

• The Department is responsible for the handling of human resources staff development and welfare, coordinating transport and store section and other general administrative processes as well as other duties that may be assigned to it.
• The Department serves as the secretariat to Management meetings.
• The Department also work in conjunction with the Department of Finance and Accounts and other departments in preparing the annual estimates of Personnel Revenue and Expenditure. It also prepares statutory and periodic reports.
• It is one of the Departments which affirm the administrative authority of the Board. The Department has the following Sections under it:

• REGISTRY SECTION

The Department has three (3) registries namely:

• Main Registry – in charge of policy files, dispatch and receiving of mails
• Open Registry – in charge of personnel file. It also houses the records units.

The Section is the nerve center of the Administration Department. The Section receives, records and dispatches official mails. It generates and keeps records of each staff of the Agency; serving and retired for reference purpose. The section is in charge of preparation and processing of all kind of leaves such as maternity, casual, sick, annual leave etc.

Approval of all terms of leave is usually granted when the Director of the Department of such applicant must have endorsed it.

• Confidential Registry- The Section keeps staff confidential files and records and is in charge of confidential issues. It handles discipline and promotions.

• STORES SECTION

The section issues purchase requisitions as and when necessary. It receives purchased materials and confirms their quality and quantity with the purchase order. It stores the materials in such a way to minimize the occurrence of risks and prevent loses. The section issues materials to various departments after due authorization and undertake regular inventory.

The Finance and Accounts Department is saddled with the responsibility of taking charge of all the financial activities and accounting duties of the Board.

 The underlisted are the brief outline of the schedule of duties of the department.

• Responsibility for the development and installation of efficient accounting system of the Board with appropriate in-built control as approved by the Office of the Accountant-general in line with Financial Regulations.
• Taking charge of the financial and accounting duties of the Board.
• Advising in the financial management and disbursement of fund by the Board.
• Participating in the preparation of Annual Budget Estimates.
• Reconciliation and preparation of monthly commission due to revenue consultants.
• Managing all funds and money due and recoverable in the Board.
• Interpretation of financial regulation and treasury circulars
• Serving as co-signatory to bank account and monetary instruments of the Board.
• Performing any other function as may be assigned by the Executive Chairman of the Board.

Presently, the following are the units under the director’s supervision.

• Personal Emolument Unit
• Other charges Unit
• Loan and Advance unit
• Cash office.

OPERATIONAL DETAILS

What is the Informal sector like at the OYSIRS?

The Department is a novel idea that the Government inaugurated about four years ago in line with the current global trend of IGR generation. Its many activities have now been organized into a major revenue hub with a view to harnessing its huge but largely untapped revenue potentials.

The tax-paying public in this category include, traders, vendors, artisans, commercial motor vehicle owners, craftsmen, dealers and all who are engaged in one form of micro self-employment or the other.

How does the Informal sector contribute to the Oyo State Economy?

Informal sector trading/businesses have always played an important role in that it has the potentials to create livelihood opportunities, contributes to alleviating poverty and serves as a buffer between employment and unemployment.

What is the impact of the Informal Sector? 

There is a widespread assumption that the Informal economy contributes to sustainable growth.

Generally speaking, the Informal sector is that part of an economy that was neither taxed nor monitored by the Government for quite a long time. All that have changed now as the State Government has taken keen interest in the sector with a view to developing its revenue streams and making its huge potential as an Internally Generated Revenue major earner a reality.

Informal sector contributions in the last six months

• The Government had engaged the services of sub-revenue Consultants and also a Lead Consultant for the sector to mobilize more IGR
• The Consultants are to man different areas of collections such as daily road tax collection from commercial motorcycles, tricycles and motor vehicles, presumptive tax collection from traders, artisans and craftsmen etc.
• They are to get a database of the people working in this sector and ultimately bring them into the tax net.
• They are also to deploy cutting edge online/real time technologies in the collection process that ensures revenue leakages are blocked.
• A lot of stakeholders’ engagements have been done between the OYSIRS, the Consultants and different umbrella associations bodies of the targeted tax payers with a view to getting them to cooperate with Government and as well fulfill their civic obligations.
• The efforts are gradually yielding results. It is believed that once the right trajectory is continuously worked on, the revenue streams would soon start making an appreciable impact in large quantum and in a sustainable manner.

ADMINISTRATIVE DETAILS

The department reports directly to the Executive Chairman. It does all the departmental tasks assigned by the Executive Chairman and collaborates with the consultants and other departments in any capacity required as directed by the Executive Chairman.

• The department is charged with the responsibility of administration, enforcement and collection of all other taxes/levies outside formal revenue collection in the State.
• Other taxes/levies are revenue sources from Ministry, Department & Agency (MDAs). The MDAs thereafter liaise and report to the Oyo State Internal Revenue Service (OYSIRS) on their needs for effectiveness, enforcement and generations respectively.
• Taxes/levies under informal sector including revenue collectible from the Markets, Artisans, Roads are also categorized broadly under other taxes and the Department of Other Taxes with the Department of Informal Sector to facilitate collection.
• The department is in charge of revenue collections and enforcement across the State. This is usually discharged after the tax payers must have been served with demand notice, the bills, and letters of reminders accordingly.
• The department operates in conjunction with engaged Consultants in the enumerated areas of revenue. Storing of all data submitted by consultants is another important responsibility of the department.
• The department liaise with the relevant revenue generating Ministries /Departments/Agencies (MDAs) and also generate revenue codes for new areas of revenue discovered.
• It coordinates the revenue generating activities of all MDAs through the Internal Revenue Service officers appointed as revenue officers and seconded to the MDAs to co-ordinate and facilitate the revenue activities of the MDAs.
• Department of Other Taxes through the Chairman, State Internal Revenue Service has the responsibility to advise the Government appropriately on matters affecting/relating to Other Taxes emanating from the MDAs.   

The department is primarily responsible for the handling of data and other activities which include:

• Downloading and Monitoring of monthly revenue figures from ICMA platform.
• Collection, collation, editing, and analysis of revenue figures and submitting same to the management for further actions.
• Preparation of monthly, quarterly and annual revenue activities.
• Rendition of monthly returns to necessary agencies like, Ministry of Finance and Ministry of Economic Planning and Budget.
• Collation and keeping of Local Government PAYE indebtedness submitted by district or zonal officers.
• Keeping and updating of all records of revenue from other agencies, including PAYE deductions at source.
• Reconciliation of revenue figures with the Accountant General office.
• Annual Budget preparation in conjunction with directorates of Admin and Supplies, and Finance and Account.
• Correction of error on receipts in collaboration with the office of Accountant        

Statutorily, the State Board of Internal Revenue has the responsibility to coordinate and monitor the revenue due to the State from motor vehicle registration and renewal from time to time.

Over a time, with introduction of automationin registration and renewal which involve Vehicle License, Road Worthiness and Hackney Permit, the activities of touts issuing fake certificates have reduced drastically. This has translated to increase in revenue accruing to the state in recent years. Revenue from all motor vehicle license and other related taxes are authorized under the Taxes and Levies (Approved Act for Collection) Decree No 21 of 1998 Law of the Federation of Nigeria.

WORK PROCESS FLOW FOR MOTOR LICENSING UNITPROCUREMENT OF PLATE NUMBER

Procurement of plate number isthe responsibility of Oyo State Internal Revenue Service and it is underthe Service budget estimate of2020. Anytime there is need for plate numbers to be replenished, the State Licensing Officer will inform the Executive Chairman, Board of Internal Revenue and the Chairman will write a letter to His Excellency for the release of fund (from past revenue).  When the fund is released, OYSIRS Internal Revenue will generateremittal from the bank to the Federal Road Safety plant in Lagos for the production of plate numbers.

The Oyo State Internal RevenueService (OYSIRS) would receivethe plate numbers and Auditor-General for the State andthe Due Process Department would confirm the plate numbers before distributing it to all Motor Licensing Authority stations.

The Motor Licensing Unit is in all Tax Stations of OYSIRS

Major areas of generating revenue in MLAs are:

• Motor Vehicle Registration
• Motor Cycle Registration
• Renewal of Vehicle License
• Renewal of Road Worthiness
• Renewal of Hackney Permit
• Revalidation of Number plates
• Effect of change of ownership
• Administration of the Process for obtaining of Driver’s License
• Issuance of Learner’s Permit
• Procurement of Special Plate Number(Fancy Plate Number, out of series)
• Dealers Plate Number

PROCESS FLOW FOR REGISTRATION OF MOTOR VEHICLE

• Clearance must be obtained from the Police authorizing the Registration of the Vehicle.
• Documents relating to the vehicles to be registered will be submitted by the Owner. This document must include the receipt of purchase, the Engine Number of the Vehicle and the Custom Papers.
• When the officer is satisfied with the documents, an assessment will be raised and payment will be made through the bank or via the POS terminals and confirmed by OYSIRS.
• Upon confirmation of payment, Number Plate is allocated and the Vehicle License is processed through the Autoreg platform.
• Details of the Vehicle registered are recorded in the Motor Vehicle Registration Ledger showing Name of the Owner, Address, Engine Number, Type of Vehicle, Date of Registration and Payment Details.

PROCESS FLOW FOR REGISTRATION OF MOTOR CYCLE

• Documents of the Motor Cycles to be registered are presented to the officer in charge. This must include the receipt of purchase and other relevant documents showing the Name of the Owner and Address.
• If the officer is satisfied with the documents, an Assessment will be raised and Payment made accordingly.
• After the confirmation of payment, Number Plate is allocated and the Vehicle License is processed through the Autoreg platform.
• Details of the Motor Cycle are recorded in the Motor Cycle Registration Ledger showing the Owners Name, Address, Engine Number, Type of Motor Cycle, Date of Registration and Payment Details

RENEWAL OF LICENSE/HACKNEY/ROAD WORTHINESS

• Motorists present the expired License for Renewal and it will be checked on the Autoreg Platform if there is any arrears outstanding before assessment.
• After the assessment, payment is made through the bank or POS terminal.
• On confirmation of payment by OYSIRS staff the Autoreg Processor renews the License accordingly.
• A ledger is maintained by the Autoreg processor to record all the license under the various Heads.
• The Autoreg Processor downloads transactions on the Autoreg platform at the close of the business day and this will be reconciled with the Ledger Records for the day to ensure that the figures tally with payment made into the bank or through POS, which is always done by the Revenue Officer at the end of the day.

REVALIDATION OF NUMBER PLATES

Revalidation of Number Plates entails the exchange of old FRSC Number Plates for the new ones. The Motorist must present the following documents for approval of the application by the State Licensing Officer (SLO):

• Old Plate Number removed from the Vehicle.
• All document relating to the Plate Number i.e Assessment Document, Police Report
• Old Vehicle License
• Copy of the POC
• Sworn Affidavit & Police Report

Upon approval by the SLO, payment will be made after Assessment. When payment is confirmed, Number Plate is allocated and Vehicle License processed. Recording is effected on the ledger for Registration of Vehicle.

EFFECTING CHANGE OF OWNERSHIP

To effect Change of Ownership with the introduction of the personalized Number Plates, the previous owner removes his/her Number Plates on the Vehicle when sold to a new owner.

The new owner presents to the MLA the following documents to effect Change of Ownership and the Owner of the Plate Number. Before the use of the Plate Number, the Vehicle must be registered.

• Receipt of Purchase from the former owner
• Letter from the owner authorizing the MLA to effect the Change of Ownership to the new owner.
• All document relating to the Vehicle and POC
• Sworn Affidavit from the new owner
• Police report for the Change of Ownership.

When the documents are presented and they are satisfactory to the MLA officer, the Change of Ownership is effected and the new owner is allocated a new Number Plate with Vehicle License.

DRIVER’S LICENSE PROCESS: New applicant and Renewal

Applicants for Driver’s License are to obtain relevant form from the Oyo State Internal Revenue Service. They can also complete the application online at: http//www.nigeriadrivers

license.org and print the form.

• All fresh applicants are to go through mandatory training from the FRSC accredited Driving School.A certificate from Driving School, Learner Permit issued by OYSIRSand PAYARENA generated and payment made into designated Banksand confirm by Board of Internal Revenue
• The VIO conducts a proficiency on the applicant and issues a certificate of proficiency for the new license.
• All Commercial Vehicle Applicants are to go for mandatory medical test/examination from the FRSC certified Hospitals. A certificate from the certified Hospital along with JTB form duly endorsed by VIO is to be submitted to the FRSC/DLC to generate PAYARENA and a Certificate Number.
• Payment is to be made via the PAYARENA Platform through the banks or on the State designated platform.
• The completed forms are to be submitted to the Oyo State Internal Revenue Service for endorsement and confirmation
• The FRSC carries out the Biometric Data capture of the applicants.
• The FRSC issues a temporary license to the applicants, which will be valid for sixty (60 days).
• FRSC produces and sends final license to the Oyo State Internal Revenue Service for onward release to the applicants.

Procurement of Special numbere. Fancy, out of series plate number application is carried out by SLO through the letter to Federal Road Safety Plant and registration by MLA Secretariat

Dealers Plate Number: Thedocuments to produce include:

• Certificate of Registration from CAC
• Letter of introduction from Dealer association.
• Three Years Tax Clearance.
• Passport photograph.
• Letter of introduction from the Bank.
• Business premises payment Receipt.