KT-IRS denies direct tax deduction from payers’ bank accounts

The Katsina State Internal Revenue Service (KT-IRS) has dismissed a viral claim that starting from January 2026, tax authorities would begin automatically deducting taxes from the residents’ bank accounts.

The KT-IRS Chairman, Alhaji Muhammad Isiyaku, denied this while briefing newsmen in Katsina on Friday, describing the information as misleading.

Isiyaku highlighted the importance of Tax Identification Number (TIN) as emphasised in the new tax-law, clarifying that the registration for tax-payers is free.

He explained that the TIN was linked to the National Identification Number (NIN), Bank Verification Number (BVM), and is used for registration of tax payers within Katsina State.

He further stated that personal income tax was only charged on earnings from the preceding year, emphasising that the tax authority will not deduct from their bank accounts.

“The process of filing personal income tax involves completing form 49, which details earnings/expenses, and submitting it to the state’s revenue service,” he said.

According to him, tax assessments for the current year (2025) will not be done until next year (2026), unless there is a change in residency or business status.

“The form 49 is self-explanatory, requiring business owners to declare their earnings and expenses for the year, to be reviewed and compare it with the record we have.

“If there is a dispute, the case can be escalated to a tribunal, and the final decision will be binding. The tax authority will not deduct money from bank accounts without consent.

“In 2026, individuals can file their returns for the previous year, and the tax authority may review bank transactions to verify the accuracy of the returns.

“If the tax authority finds discrepancies, they will issue a new assessment, which may differ from the individual’s self-assessment,” Isiyaku clarified.

According to him, the new tax law includes an ombudsman office to resolve disputes between taxpayers and the tax authority, ensuring fairness and protection of taxpayers’ rights.

The KT-IRS boss disclosed that the tax authority will review the entire year’s transactions for small businesses to ensure accuracy in tax assessments.

He encouraged them to keep detailed records of their income and expenses to facilitate the tax assessment process.

Isiyaku said the tax authority aims to provide guidance and support to small businesses to ensure they comply with tax laws and meet their tax obligations.