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Tag: Federal Inland Revenue Service (FIRS)

  • FIRS goes after 6,000 billionaire tax defaulters 

    The Federal Inland Revenue Service (FIRS) has vowed that it will soon go after the bank accounts of defaulting taxpayers who are raking in billions in Nigeria and are not paying taxes.

    FIRS Chairman, Mr. Tunde Fowler said the FIRS, through all banks in the country, will do substitution on accounts for such identified taxpayers, noting that “there are Over 6772 of such defaulting billionaire taxpayers been identified by the FIRS, leveraging on banks data.”

    Fowler who disclosed this at a stakeholders’ meeting noted that “most of such taxpayers, who have between N1 and N5 billion in their accounts have no Taxpayer Identification Number, TIN, or have TIN and have not filed any tax returns as taxpayers.”

    According to Fowler, “what we have done is what we call ‘’substitution‘’ which also is in our laws which empowers us to appoint the banks as collection agents for tax. So, all these ones of TIN and no pay and no TIN and no pay, to the total of 6772 will have their accounts frozen or put under substitution pending when they come forward.”

    He added that “first, they refused to come forward in 2016, they refused to come forward under VAIDS and are still operating here. So, we are putting them under notice that it is their civic responsibility to pay tax and to file returns on these accounts.”

    Fowler explained further that: “we looked at all businesses, partnerships, corporate accounts that have a minimum turnover of N1 billion per annum for the past three years. First of all, the law states clearly that before you open a corporate account, part of the opening documentation is the tax I.D. From the 23 banks, we have analysed so far, we have 31,395 records, out of which effectively minus duplications we had 18,602.”

    “We broke those into three categories: Those that have TIN tax I.D; those that don’t have no TIN and of course no TIN no pay; and those that have TIN and have not even paid anything.

    “So, on a minimum, every company or business included here over the last three years have had a banking turnover of N3 billion and above. Some of them have had banking turnover of over N5 billion and have not paid one kobo in taxes. Now the total number of TIN and no pay is 6772.

    “So, if someone is good in mathematics and you take the minimum level of N3 billion multiply by 409 and they are operating within our society and economy and do not remit or make any tax payment.”

    Fowler pleaded “with the banks to support us in supporting us, you are supporting Nigeria. In supporting Nigeria, you are supporting all Nigerians and those who have chosen Nigeria as home. And most of all, you are supporting a future that we can leave behind for the upcoming youth of Nigeria.”

    He noted that FIRS is also paying closer attention to Audit. ”we have started a comprehensive Audit exercise that involves both national and regional Audits… because we got to a position where we found out that majority of the major organizations that were allowed to do self-assessment, do not truthfully declare or pay the taxes that were due. To date we have raised assessment of over N805 billion from 1324 National Audits out of which 499 (taxpayers) have N219 billion to pay.”

    “N219 billion, it can do a lot of things. It can provide certainly a lot more infrastructure, healthcare and educational facilities. These monies that are supposed to go into the Federation Account are shared between Federal, Local and State governments. So, every state can get an additional 1 billion from such monies, hopefully if you vote right, that governor would deploy it to the right place.”

    Fowlers noted that its is not fair nor right for businesses to be making money in the Nigerian space and fail or refuse to contribute no tax to the till. “Gone are the time or days we ask what has government done for me.  We should ask what are we doing for ourselves and the nation first. We should obey the law, pay our taxes, empower our governments at various levels then sit back and see the end results. If we see the amount of the budget that has gone into capital under this present government, but not only gone into the government but being expensed, it is at least three times more when the revenues were even higher.”

    He did not spare the FIRS either, even though it had made over N1 trillion over its 2017 collection between January to August by N1 trillion. “If you look at 2018 revenue to date, between January and August, we have done N3.5 trillion, which is N1 trillion over 2017. But the main point I want to make is that majority of taxpayers that accounted for this revenue have not changed. The laws have not changed. And to a great extent, the consultants to these companies have not changed. If you look at 2017, there is an increase of close to N800 billion over the 2016 collection.

    “The increase in 2018 so far showed N 1 trillion. If the same consultants advised or reviewed the accounts of the majority of the taxpayers, one would wonder why such large increases occurred. It is either the taxpayers did not disclose fully their financials to the consultants or the consultants involved in tax planning.

    Either way, it is not to the wellbeing of our nation, Nigeria.”

    He noted the perfidy of businesses who collect VAT and not remitting to government covers: “we have found out that a number of businesses , collect VAT  that do not remit to government, So we are going back to the old school way and I would just like to publicly display this, this is the new VAT  certificate which would be given to all tax payers and we expect them to display it in their places of business because we also found out that the number of businesses were not even registered tax payers and were collecting VAT. Without having a tax, I.D as an agent or a collector of VAT there is no way you can remit that VAT to government. So, in short, they were collecting and adding it to their income and spending it.”

    The FIRS Chairman noted that taxpayers can now enjoy the flexibility of choosing their tax offices and paying online “Prior to now, at times your tax office can be an hour away fromyour office, tax payers can now choose where their file reside You can pay anywhere in the world: London, Dubai, New York, pay your taxes online and download your receipt immediately.

    Citing the example of taxes FIRS is levying on corporates who have property, but are now being assessed on the value of their property’s turn over, Fowler clarified on why such property owners are being assessed for tax

    “First of all, banking turnover does not mean that is the turnover of your business it simply means the money that has gone in and out of your account, but what the tax law says is that’’ if you do not file your returns and you are in constant default we use turnover as a basis of estimating your tax liability’. For example, if your turnover is N100 million we assume that 20% of that is profit and we tax that at 30%.”

    “Some of them claim not to own the property, those of them that claim not to own the property and of course were sent to government, Presidency to decide what would happen to those properties that have no owners. To those that have owners and have not paid they would be prosecuted. We are also in the process of going to court to get the approval of the court orders to sell those properties. We are not only doing that in Abuja. We’ve concluded in Lagos. We are currently doing it in Osun, Oyo, Kaduna and eventually we would cover the whole federation.

    “The idea here is simple if you have had the opportunity to make your wealth in this economy, in this society, the least you can do is pay your tax. We have not included any group who by law are not meant to pay tax in this group. So far, we have sent out 2980 letters and we believe that before the end of September we would get most of them out. 

  • FG reconstitutes tax appeal tribunals

    The Federal Government has reconstituted the Tax Appeal Tribunals in the six geo-political zones as well as Lagos and Federal Capital Territory.

    A statement from the federal ministry of finance said the “the reconstitution of the Tribunals is in accordance with Section 2(1) of the Fifth Schedule of the Federal Inland Revenue Service (FIRS) Establishment Act.”

    Minister of Finance, Mrs. Kemi Adeosun, who announced this Thursday in Abuja, said “the Tribunals would adjudicate over disputes arising from the operation of Federal Tax Laws and Regulations in the country.”

    Read Also:Appeal Court upholds tax tribunal’s jurisdiction

    The Minister added that, “the reconstitution of the Tax Appeal Tribunals is an essential part of building tax payers trust and confidence in the fairness of the system and the Federal Ministry of Finance has undertaken a rigorous process to select competent persons on the basis of merit who will be expected to discharge their duties professionally.”

    She stated that the Ministry sought nominations from a number of professional bodies and stakeholders, including the Institute of Chartered Accountants of Nigeria (ICAN), Association of National Accountants of Nigeria (ANAN), Chartered Institute of Taxation of Nigeria (CITN), Nigeria Bar Association (NBA) and the Nigerian Association of Chambers of Commerce & Industry, Mines and Agriculture (NACCIMA).

    The Tax Appeal Commissioners, according to the Minister, are expected to hold office for a term of three (3) years from the date of appointment.

    Each Tribunal is made up of a Chairman and four Commissioners knowledgeable in the laws, regulations, norms and practices of taxation in Nigeria, management and trade.

     

    1. ABUJA TAX APPEAL TRIBUNAL
    S/N NAME DESIGNATION
    1 Iriogbe Ayo Alice Chairman
    2 Prof. Ishola Rufus Akintoye Member
    3 Ajayi Julius Bamidele Member
    4 Dr. Almustapha Aliyu Member
    5 Nasiru Kuliya Member

     

    1. LAGOS TAX APPEAL TRIBUNAL
    S/N NAME DESIGNATION
    1 Lassise-Phillips Olanrewaju Moshood Chairman
    2 Dike Mark Anthony Chidolue Member
    3 Sanusi Maijamaa Ajiya Member
    4 Mrs Titilola Akibayo Member
    5 Rasaq Adekunle Quadri Member

     

    1. NORTH-EAST ZONE TAX APPEAL TRIBUNAL – SITTING IN BAUCHI, BAUCHI STATE
    S/N NAME DESIGNATION
    1 Bagoni Alhaji Bukar Chairman
    2 Barr. Bashir Maidugu Member
    3 Adamu Ismaila Member
    4 Tijanayi Musa Isa Member
    5 Mrs. Nafisa Shehu Awak Member

     

    1. NORTH WEST ZONE TAX APPEAL TRIBUNAL – SITTING IN KADUNA, KADUNA STATE
    S/N NAME DESIGNATION
    1 Umar Mohammed Adamu Chairman
    2 Isa Kabir Dandago Member
    3 Bayero A.S. Muhammad Member
    4 Abubakar-Gwandu Sameerah Member
    5 Dr. Ahmad M. Kumshe Member

     

    1. NORTH CENTRAL ZONE TAX APPEAL TRIBUNAL – SITTING IN JOS, PLATEAU STATE
    S/N NAME DESIGNATION
    1 Barr. Richard Bala Chairman
    2 Barr. Emmanuel Seungwa Ukera Member
    3 Ogbaenyi Ivan Chikwendu Member
    4 Abdul Zaidu Idde Member
    5 Mrs. Atoki Dupe Member

     

    1. SOUTH WEST ZONE TAX APPEAL TRIBUNAL – SITTING IN IBADAN, OYO STATE
    S/N NAME DESIGNATION
    1 Ajibola Akinmade Chairman
    2 Atitola Felix Bimbo Member
    3 Falade Sufian Alani Member
    4 Mrs. Queensley S. Seghosime Member
    5 Princess Elemanya Ebilah Member

     

    1. SOUTH EAST ZONE TAX APPEAL TRIBUNAL – SITTING IN ENUGU, ENUGU STATE
    S/N NAME DESIGNATION
    1 Chukwuemeka Eze Chairman
    2 Ide John Udeagbala Member
    3 Anyaduba John Obiora Member
    4 Mazi Nnamdi Okwuadigbo Member
    5 Obri Francis Ogar Member

     

    1. SOUTH SOUTH ZONE TAX APPEAL TRIBUNAL – SITTING IN BENIN, EDO STATE
    S/N NAME DESIGNATION
    1 Odiase-Alegimenlen Obehi Chairman
    2 Ala Peters David Member
    3 Mrs. Hilda Ozoh Member
    4 Ajokwu Vitalis Friday Member
    5 Otusanya Olatunde Julius Member

     

     

  • ‘Osinbajo for Ondo MSME clinic Thursday’

    The Ondo State Government says the Vice President, Prof. Yemi Osinbajo, will  be in the state on Thursday for the inauguration of  the Micro, Small and Medium Enterprises ( MSME ) Clinic in Akure.

    The clinic was an initiative of the office of the Vice President in partnership with the Federal Ministry of Industry, Trade and Investment as well as  11 other federal agencies.

    This was revealed during a news conference on Sunday in Akure by the Special Adviser to the Governor on Public and Inter-Governmental Affairs, Mrs Olubunmi Ademosu.

    According Ademosu, the programme would kick off on Wednesday while the Vice President is expected in the state on Thursday for the inauguration.

    She said  the Ondo State Government had  put in place all the required structures and processes that would ensure the success of the programme, adding  that the state government was targeting no fewer than 10,000 beneficiaries.

    “The Akeredolu’s administration has always prioritised the people as a key point of his administration as all programmes we have carried out have been evenly implemented.

    “We have also ensured that political influence is avoided with the commitment to facilitate a sense of belonging to residents of the state.

    “The Micro, Small and Medium Enterprises Clinic will never be an exemption,’’ Ademosu said.

    She expressed confidence that the programme would go a long way in raising  a new set of entrepreneurs while the existing ones would be guided on the best steps to take to add value to their efforts.

    “ Owners of micro, small and medium enterprises are expected to focus on capacity building before accessing the most appropriate financial facility.

    “This is why you have businesses that open and shut down in less than few months of establishment.

    “Access to finance for at least five years is the right structure for these businesses and government is already working toward  addressing that with the establishment of the Development Bank of Nigeria ( DBN ), ‘’she said.

    The Special Adviser explained that the idea of the MSME Clinic is part of the efforts of the Buhari administration to close the gap between  enterprises and relevant government agencies.

    She also said that agencies like NAFDAC, Corporate Affairs Commission ( CAC ), Standards Organisation of Nigeria ( SON ), Bank of Industry ( BoI ), Federal Inland Revenue Service (FIRS) and others serve as facilitators of businesses and not obstacles to business development in the country.

    Similarly, the Ondo State Commissioner for Commerce and Industry, Mr Timehin Adelegbe, said the implementation of the programme was timely.

    “It is coming at a period that the Akeredolu administration is intensifying efforts at creating a conducive environment for small scale businessmen in the state,’’ he said.

    NAN

  • VAIDS: Buhari under pressure to extend tax amnesty period

    As the tax amnesty under the Voluntary Assets and Income Declaration Scheme ( VAIDs ) ends on Saturday, some private sector players are said to be lobbying President Muhammadu Buhari to extend the amnesty period.

    An official at the Presidency, who craved for anonymity, told our correspondent on Friday that governors and company owners had called the President and Vice President to push for the extension of the programme.

    “We are expecting Mr President to make an announcement on the tax amnesty deadline by this weekend.

    “To be frank and honest, nobody knows whether the President will decide to extend it or not, but there has been calls by state governors and key private sector players calling for the extension.

    “However, it still remains unclear if the President will take the recommendation to extend it by another three months, since he had been advised otherwise by the Minister of Finance and Federal Inland Revenue Service ( FIRS ) chairman,” the source said.

    Meanwhile, the Adamawa state Commissioner for Finance, Mr Mahmoud Yunusa, told our correspondent that many of the states were in support of extending the tax amnesty past the March 31 deadline.

    “It should be extended because people are just beginning to buy into the programme. We see people coming up willingly to declare their assets and it shouldn’t end soon.

    “Nigerians deserve more time and I believe that some of them are still collating their assets to know their worth before doing so.

    “Also, some haven’t declared because they operate businesses without any formal documentation so it will take time before they get their books in order.

    “So it’s my opinion that extending it for another six months would ensure better success,’’ he said.

    Yunusa lauded the programme, saying that in Adamawa State, it had helped the state to improve its Internally Generated Revenue ( IGR ) by more than 200 per cent despite still recovering from insurgency and recession.

    Also, Mr Tunde Dare, an economist, held the view that the VAIDs programme should be extended.

    “Even though I think the programme should be extended, I think the government went about this business of tax amnesty the wrong way.

    “I think the scheme should be aimed at capturing more people into the scheme without asking them to pay backlog of taxes,” he said.

    Meanwhile, on Thursday, which was the last working day before the expiration of the programme, many accountants and lawyers stormed the offices of the FIRS to submit applications of their clients.

    We gathered that many tax defaulters, who had thought that the amnesty programme would be extended, were making last minute efforts to key into the scheme.

    The VAIDs programme was launched on July 1, 2017 and was expected to last for nine months.

    The government threatened to prosecute tax evaders that do not take advantage of the scheme thereby risking imprisonment of up to five years.

    According to the Minister of Finance, Mrs Kemi Adeosun, the Federal Government had the political will as well as the means to gather evidence that will enable it to prosecute tax evaders.

    She once said that using Project Lighthouse, a data mining agency, the government had been gathering information from different sources to enable it to identify and properly prosecute tax evaders after the expiration of the deadline.

    She said information had so far been gathered from Bank Verification Number records, engagement with foreign private investigation firms on a retainership to trace assets of Nigerians abroad.

    Also, the Federal Government plans to use the Nigeria Financial Intelligence Unit records and land ownership records in locations like Maitama, Asokoro, Garki, Wuse, Banana Island, Magodo, Lekki, Ikoyi, and Victoria Island.

    The government further plans to beam its searchlights on people that over the years have received major payments from it or foreign exchange allocation and also people with private jets.

    Also, the Federal Government have agreements with many foreign governments like the United Arab Emirates and United Kingdom to get records of Nigerians with property there.

    The government also threatened to go after Nigerians who frequent tax havens as mentioned in the panama paper leaks.

    NAN

  • NIS generates N38.5bn, $29.9m in 2017, says C-G

    The Nigeria Immigration Service ( NIS ) generated a total revenue of N38.532 billion and 29.9 million dollars in 2017.

    The Comptroller-General of NIS, Mr Muhammad Babandede, made this known at an operational review meeting with zonal coordinators and state controllers of the agency in Abuja on Wednesday.

    Babandede also said that the NIS made a total payment of N38, 531 in the year under review, leaving a surplus of one million naira.

    He said that the dollar component (29.9 million dollars) was deposited into the Federation Account in line with financial regulations.

    Giving a breakdown of the funds generated, he said N14 billion was generated from passport issuance, N72 million from ECOWAS travel documents, and N1.9 billion from address verification fees paid by passport applicants.

    Babandede said that N186 million was realised from non-refundable administrative fees, N20 billion from issuance of resident permits and N1.6 billion from e-pass (penalties paid by foreigners, who overstayed in the country).

    On the dollar component of the revenue, he said 28 million dollars was generated from passport and one million dollars from the issuance of visa on arrival.

    The NIS said the monies were generated under a Public Private Partnership (PPP) arrangement, thus the expenditure involved payments to private companies for services rendered to the agency.

    The breakdown of the expenditure shows that N10 billion was paid to Iris Technologies, N1.4 billion to New works Solutions, N303 million to the National e-Government, and N744 million to Greater Washington.

    Babandede said that N15 billion was paid to Contec, the NIS technical partner on resident permits, N219 million to the Federal Ministry of Interior for supervision of the issuance of resident permits, and N2 billion to NIS “payment to IP Telcom’’.

    The comptroller-general said N268 million was paid to the Nigeria Security and Minting Company for services rendered to the agency, one billion naira to the Federal Inland Revenue Service ( FIRS ) as tax on services rendered by the NIS.

    The immigration boss further said that N5 billion was paid to government as sub-treasury, while N101 million went to IP Telcom for document-scanning services rendered to the NIS.

    NAN

  • FIRS seals two companies over N8bn tax debt in Delta, Edo

    FIRS seals two companies over N8bn tax debt in Delta, Edo

    Officials of the Federal Inland Revenue Service ( FIRS ) on Wednesday sealed two companies in Delta and Edo over N8 billion tax debt.

    The Leader of the enforcement team, Mrs Anita Erinne, said the companies were sealed over failure to remit over N8 billion taxes payable to the Federal Government.

    She said that one of the affected companies (name withheld), located in Uvwie Local Government Area of Delta, was indebted to the tune of N121 million.

    She also revealed that the other defaulting company in Edo owed the government N8.1 billion.

    The team leader tendered separate “Warrant of Distraints’’ signed by the FIRS Chairman, Mr Babatunde Fowler, to the companies to justify the exercise.

    According to her, Section 3 of FIRS (Establishment) Act, No.13 of 2007 and Section 44(2) of the Constitution of the Federal Republic of Nigeria 1999 empowers the FIRS to close any defaulting company.

    “No member of staff or anybody should remove the FIRS seals until the companies paid their debts.

    “Any attempt to do that, the company will be liable to a tune of N200,000 as a fine to the government,’’ she warned.

    Erinne, however, advised companies to comply with the tax laws and remit their taxes promptly to avoid being sealed.

    The FIRS in 2017 netted N3.2 trillion in 10 months, an amount that represented 79.35 per cent of its target for the year.

    The Chairman of the Service, Mr Babatunde Fowler, then expressed readiness of his personnel to help Federal Government in blocking revenue leakages and increase collection of taxes payable to the government.

    NAN

  • FIRS, NIPOST battle over control of stamp duties funds

    FIRS, NIPOST battle over control of stamp duties funds

    *Senate uncovers N18.6bn NIPOST fund

    Federal Inland Revenue Service ( FIRS ) and the Nigeria Postal Services ( NIPOST ) are battling over who controls billions of naira accruing from Stamp Duties payment.

    While FIRS said that collection of stamp duties is part of its statutory function, NIPOST stoutly disagreed.

    NIPOST is spearheading a bill for an Act to amend the Stamp Duties Act, Cap.S8, laws of the Federation of Nigeria 2004, to ensure compliance with current realities and for related matters.

    The controversial bill, which emanated from the House of Representatives, has already been passed by the House and referred to the Senate for concurrence.

    The bill seeks the amendment of Section 2 of the principal Act by changing the definition of “Stamp” and addition of the definition of words “Proceeds” and “Stamping Protocol”

    The bill also seeks the amendment of Section 5 of the principal Act by substituting the word “may” for “shall” in Section 5(2) to read “Where the duty may be denoted by adhesive stamp, Postage Stamps shall be used for the purpose.”

    It further seeks amendment of Section 89 of the principal Act in sub 2 to change “may” to “shall” to read “For the purposes of the Act, all income from denotation of receipt, document or instrument with postage stamp shall be known as Stamp Proceeds.”

    The Post Master General, Bisi Adegbuyi and Ike Odume, Director Legal Services, FIRS who appeared before the Senate Committee on Finance, argued for and against the bill.

    Minister of Finance, Mrs. Kemi Adeosun was also represented at the hearing by Tor Tsavsar, Director Technical Services, Federal Ministry of Finance.

    Chairman of the committee, Senator John Owan Enoh, said that the hearing became necessary to enable the Senate take informed position on the bill.

    Enoh noted that although the House of Representatives has passed the bill, his committee was mandated to consider it for its merit or demerit.

    The committee questioned the submission of the Post Master General, “because it came without letter head and was not signed.”

    Enoh asked Adegbuyi to do the needful before he could be allowed to make his presentation.

    The FIRS representative said that the Service was opposed to the bill in its entirety because NIPOST wanted to usurp its statutory function.

    Odume said that the Act NIPOS sought to amend affects the 36 states of the Federation “and for the amendments to pass 36 states of the Federation must be around to make their input.”

    He noted that the Stamp Duties Act is a tax legislation which has nothing to do with NIPOST.

    The subsisting Stamp Duties Act, he said, gave the Federal Government and states the leeway to generate revenue and has nothing to do with post office.

    Odume noted that the proposed amendment aimed at eroding the statutory powers of the FIRS.

    He said, “FIRS was given a law to administer which includes Stamp Duties Act. Item 96 of FIRS Act is the administration of Stamp Duties Act. What is the mischief of NIPOST in amending the law. Stamp Duty is a form of tax. All NIPOST is seeking is to usurp the power of the FIRS and the 36 states. It should not be allowed.”

    Representative of the Ministry of Finance adopted the position of FIRS on the bill and sought periodic review of the rate of stamp duty.

    The committee chairman remarked that any body could seek amendment of a law “what is important is the content and what the bill seeks to achieve.”

    The Post Master General told the committee that the bill is a private member bill

    Adegbuyi in his presentation said that the amendment of the Stamp Duties Act became necessary because the law has become obsolete and no longer relevant to meet the challenges of modern day.

    He said that NIPOST was only asking to be allowed to sell stamp either manually of electronically.

    Adegbuyi said, “We are seeking the amendment of the Act to include sale of postage stamp. We are not collecting tax. It is in the interest of Nigeria to draw a line between duty and stamp. We want to sell our stamp.”

    He prayed the committee to allow the bill to pass.

    Chairman of the committee asked the Post Master General the whereabouts of N18.6 billion the committee stumbled upon in the account of NIPOST.

    Enoh asked severally “where is this money, where is it. This committee wants to know where the money is. This committee is interested to know where the money is kept.”

    The committee also demanded to know how the huge fund was accumulated.

    The Post Master General told the committee that the money is with the Central Bank of Nigeria (CBN).

    Adegbuyi said that NIPOST do not have access to the fund.

  • FIRS nets N4.03tr in 2017

    FIRS nets N4.03tr in 2017

    …collects N720bn more than 2016 collection

    The Federal Inland Revenue Service ( FIRS ) said it collected a total of N4.03 trillion in 2017.

    This figure represents 82.38% of government set target of N4.89 trillion for the last year.

    A statement signed by Wahab Gbadamosi, Head, Communications and Servicom Department of the Service said “FIRS’ collection of N4.03 trillion is N720 billion (22%) more than the 2016 total collection figure of N3.305 trillion. The 2017 collection performance exceeded the 2016 collection performance of 78.75%.”

    Executive Chairman of FIRS, Mr. Tunde Fowler was quoted to have said “with the support of the National Assembly, and that of other stakeholders, FIRS was able to collect over N4 trillion in 2017. This is an increase of over 20 per cent relative to our collection in 2016. We are hopeful that going forward, FIRS will be able to fund this country through taxation.

    Going back memory lane, the FIRS Chairman recalled that when he was the Lagos Internal Revenue Service, LIRS Executive Chairman, the Oba of Lagos played an important role in tax collection. Apart from supporting LIRS morally, Fowler recalled that Oba Akiolu mandated the White cap chiefs to accompany LIRS officials to key markets and most parts of Lagos to sensitise the people on tax collection.

    The FIRS Chairman shed light on FIRS’ collection in 2017: “we all recall that beginning from the second half of 2014, there has been a sustained decline in the global prices of oil. Oil Revenue Generated by FIRS in 2014 – 2.45 Trillion; Oil Revenue Generated in 2015 – N1.29 Trillion; FIRS Oil Revenue Generated in 2016 – N1.16 Trillion; FIRS Oil Revenue Generated in 2017 – N1.52 Trillion.”

    This trend he said had adverse effect on the ability of oil dependent countries to meet their development objectives. “For us in Nigeria, the decline in receipts from oil revenue and the concomitant decline in accruals to States from the Federation Account has placed many States in a financial quandary to the point where basic obligations such as the payment of employee wages has become a perennial challenge. This is not the first time Nigeria will experience economic slow-down as a result of fluctuations in global oil prices.”

    Fowler noted that the FIRS under his watch “hopes to ensure that we act differently this time around by looking beyond oil as the mainstay of our economy. By putting our hands together in contributing to our set goal, I am confident that we will surpass our past results and we’ll be well on our way to the future we hope to achieve.”

    Fowler noted that though collection increased by 20 per cent relative to 2016, the Cost of Collection went down to 2.49 per cent in 2017 relative to the 2.60 per cent cost of collection in 2016 and   2.62 in 2015. This, the FIRS Chairman noted, attests to the growing efficiency in collection by the Service and to which the embrace of Information, Communication and Technology (ICT) tools contributed.

    On his part, the Oba of Lagos noted that 60 or 70 per cent of FIRS collection comes from Lagos, to this end he said he will be sending a letter to Senate President Bukola Saraki to draw his attention to the 1851 treaty, which the colonial government signed with Oba Akintoye: that three per cent of all taxes collected in Lagos will go to the Oba, while 2 per cent of all exports will go to Oba Akintoye. “While I am not asking that this be paid to me now, it could be paid to the Lagos State Government”.

    The Oba who said he lives by example stated that he pays as much as N350 million in tax every year.

    Nigeria he said now needs good governance that will deliver development to the people. “FIRS has collected N4 trillion and they will collect more in the futures. The legacy that Tunde Fowler has made in Lagos is still felt but you have more work to do,

    Lagos does not discriminate against anybody just as the state will not accept any injustice from any quarters.”

    He enjoined Senators and members of the House of Reps to dialogue with and give, President Muhammadu Buhari a chance as he loves Nigeria. He also called on the federal parliamentarians to support the anti-graft war by confirming the Economic and Financial Commission Chairman, Ibrahim Magu. Nigeria, the monarch assured will not break.

    The FIRS contributed N2.78 trillion to the Federation Accounts. Representing 99.5% of the target for 2017 (7.5% higher than 2016 performance).

    An analysis of the collection performance indicates that non-oil accounted for 63% while oil tax accounted for 38% of the total collection. Stamp Duty recorded the most increase in performance with 94%.

    The achievements recorded by the FIRS from the administrative and operational initiatives introduced by the Executive Chairman, Tunde Fowler in 2015 and 2016 were designed to reposition the agency.

    The 2018 Ease of Doing Business report, released by the World Bank Group late last year, shows that Nigeria moved up 11 places in terms of the ease of paying taxes. This contributed to Nigeria’s movement by 24 points/places in the (from 169th to 124th position in the Ease of Doing business globally.

    The initiatives which directly impacted on business owners, implemented by the Service with the support of the Presidential Enabling Business Environment Council ( PEBEC ) contributed to Nigeria’s upward movement in global ease of doing business ranking.

  • FIRS reiterates commitment to seamless tax payment

    FIRS reiterates commitment to seamless tax payment

    The Federal Inland Revenue Service ( FIRS ) has said it is in full alignment with all efforts to grow national revenue from taxation while easing the inherent administrative burdens.

    It said though there are in existence various incentives in tax related laws that can benefit various businesses, it have also undertaken countless initiatives to lighten the burden of taxation on all payers.

    FIRS Chairman, Babatunde Fowler disclosed this Thursday at the special day of FIRS at the ongoing Lagos International Trade fair.

    Fowler, represented by Cyracus Nkechi, Lagos state coordinator, said the country has endured a severe economic downturn over the last two years, but as the country is gradually emerging from recession, governments at the federal and state levels are focusing energy and scarce resources towards reversing the negative impact of the recession on business via targeted tax and fiscal policies and other actions aimed at reinvigorating the business environment.

    He said: “With an eye on future developmental needs, we supported the changes introduced by the Revised National Tax Policy and working under the auspices of the joint tax board, we continue to advocate for the simplification, harmonisation and streamling of processes, levels and taxes at all levels.

    “Our participation in  the Presidential Ease of Doing Business Council project resulted in several changes to our operations in a bid to make compliance easier for tax payers and thus contributing to the significant upward leap of Nigeria’s ranking on the World Bank records.

    “We are also encouraging businesses and individuals to take advantage of VAIDS, a time limited opportunity for tax payers to tidy up their tax positions without fear of criminal prosecution before it winds down in December”.

    Fowler said to move from absolute dependence on oil to growth of the non-oil sector, attracting both entrepreneurs and investors to boost growth, jobs and revenue, it is critical to provide the information, resources and structures that will enable successful execution of the national economic recovery and growth plan.

    He commended LCCI on the theme of the fair which is timely and further illustrates the alignment between government and various stakeholders in the Nigeria project.

    LCCI president, Nike Akande said though they celebrate exit of the economy from recession, attention must be paid to policies and regulations that drive revenues, create jobs and attract investments to sustain the recovery.

    She said recent reports from FIRS that it had already collected N1.782 trillion as tax between January and July, 2017 shows the innovations deployed by the service in boosting the economy of the country.

     

  • FG saves N24.7bn from TSA, IPPIS/BVN monthly – Buhari

    FG saves N24.7bn from TSA, IPPIS/BVN monthly – Buhari

    President Muhammadu Buhari says Federal Government’s leveraging on Information and Communication Technology ( ICT ) and the enforcement of Bank Verification Number ( BVN ) has saved the nation of N24.7 billion monthly.

    The president disclosed this when he declared open the 2017 eNigeria Conference, organised by National Information Technology Development Agency ( NITDA ) at the International Conference Centre, Abuja, on Tuesday.

    The president also revealed that the implementation of the Integrated Payroll and Personnel Information System ( IPPIS ) and Bank Verification Number (BVN) had eliminated ghost workers and reduced waste, thereby saving the nation N20 billion monthly.

    He said that the consolidation of 20,000 accounts had saved the nation N4.7 billion.

    According to him, the TSA policy has also facilitated transparency, accountability and ease of transactions and payments between government and businesses as well as government and citizens.

    “We have done a lot to transform our government, especially in the areas of strategy, policies and digital infrastructure investments.

    “You may recall that on assumption of office, we enforced the policy on Treasury Single Account (TSA). Today, we are all witnesses to the impact it has made on our financial management.

    “We have so far consolidated over 20,000 accounts, resulting into about N4.7 billion monthly savings.

    “In addition, the policy facilitated transparency, accountability and ease of transactions and payments between government and businesses as well as government and citizens.

    “Another initiative leveraging on ICT and making huge impact on the economy is the introduction of the Integrated Payroll and Personnel Information System (IPPIS) and Bank Verification Number (BVN).

    “Its implementation has helped to eliminate the menace of ghost workers, thereby reducing waste in the system by saving government over N20 billion monthly.

    President Buhari described his presence at the event as a demonstration of his commitment and strong belief in using ICT as a major driver of developmental governance and economic reform plans aimed at bringing about the true CHANGE his administration promised Nigerians.

    According to him, ICT is strategic in driving productivity and efficiency in all sectors of the economy.

    He noted that currently, almost all sectors of the nation’s economy leverage on ICT to increase efficiency, productivity and performance.

    President Buhari commended NITDA’s efforts on fostering the patronage of indigenous IT products and services through continuous engagement with indigenous OEMs, relevant stakeholders and other laudable initiatives.

    He observed that ICT played a pivotal role with agencies of government such as the Corporate Affairs Commission ( CAC ), Federal Inland Revenue Service ( FIRS ) and the Nigeria Immigration Service ( NIS ).

    He stated that the affected agencies had leaned on ICT in improving public service delivery in an efficient and transparent manner.

    “So far, 31 reforms have been completed by the council and these reforms are already making noticeable impact on our economic diversification efforts.

    “The Agency’s efforts at enforcing Federal Government’s directive on ensuring that all ICT projects in the country are cleared by it before implementation are highly commendable.

    “These efforts will ensure that government’s ICT procurement is transparent.

    “It is aligned with government’s IT-shared vision and policy, save costs through promotion of shared services, avoid duplication, ensure compatibility of IT systems, thereby improving efficiency across government and enforce the patronage of indigenous companies.’’

    The president expressed the hope that the conference would come up with practical, viable solutions and recommendations to further develop local content in ICT as well as how it could best regulate the deployment and use of ICT systems to foster a digital economy in Nigeria.

    The president used the opportunity of the conference to express displeasure over refusal of some heads of government’s ministries, agencies and departments to wear the Armed Forces Remembrance Emblem.

    He noted that very few of dignitaries at the conference wore the 2018 Armed Forces Remembrance Day emblem, which he inaugurated on Wednesday.

    He urged all heads of ministries, departments and agencies to wear the emblem with pride, to encourage the legionnaires as well as families of those who paid the supreme price for the unity of the nation.

    Buhari said the emblem launch was a worthy tradition of recognizing and appreciating the sacrifices of the veterans in the First and Second World Wars, Nigerian Civil War and Peace Support Operations around the world.

    The three-day conference has as theme: “Fostering Digital Economy through Local Content Development and Effective Regulations.”

    NAN