The Nation Newspaper

Tag: Federal Inland Revenue Service

  • FIRS to introduce electronic tax clearance certificate

    FIRS to introduce electronic tax clearance certificate

    The Federal Inland Revenue Service (FIRS) says it will soon introduce electronic Tax Clearance Certificate (TCC) system to help reduce fraudulent certificates.

    Mr. Kola Okunola, Director ICT, FIRS, said this in a presentation at the ongoing training by Journalism.com Ltd., in collaboration with FIRS on Thursday in Abuja.

    He said that the implementation of the e-TCC verification system had reached an advanced stage, adding that it was undergoing user’s acceptance test before deployment to production.

    “TCC will be out in the next four weeks. It will provide an e-repository of all TCCs issued by FIRS.

    “It will enable FIRS Staff and authorized third parties to verify tax clearance certificates, thereby reducing the incidence of fraudulent certificates.

    “It automatically sends Tax Clearance Certificates to the emails of taxpayers and also enables them to request for and print their TCCs online, ‘Okunola said’.

    He said that the service recently commenced modalities for implementation of robust VAT automation mechanism for power, telecommunications, e-commerce, financial services, oil and gas, insurance, major hotels, malls and hospitality sectors.

    Okunola said that the essence of VAT automation in the sectors was to help ensure transparency of tax remittance within the industry and help block leakages.

    “Meanwhile, FIRS management is currently adding additional payment gateway channels such as e-Transact to help expand the scope and widen the tax net”, he added.

    Okunola said that regular conduct of taxpayer sensitization was ongoing, adding that  FIRS established the Federal Enlightenment and Engagement Tax Team (FEETT) to educate taxpayers on their tax obligations and rights.

    According to him, FIRS has also installed customized digital signage that had been installed in FIRS Large Tax Offices nationwide to enhance taxpayers enlightenment as part of the efforts geared towards continuous taxpayer education.

     

  • Tax review committee recommends Customs, FIRS merger

    Tax review committee recommends Customs, FIRS merger

    The National Tax Policy Review Committee has advised the Federal Government to merge the Federal Inland Revenue Service and Nigeria Customs Service to improve revenue generation and accountability.

    The draft of the policy was presented at the committee’s second Stakeholders Engagement Tuesday in Abuja by Mr Taiwo Oyedele, who is the West Africa Tax Leader at PricewaterhouseCoopers.

    Oyedele said the committee agreed that the current system promoted multitaxation, tax evasion and wastage.

    According to him, “part of our recommendation will be that FIRS and Customs should be merged; but not just them, but all revenue generating agencies at the federal level should be merged into one.”

    He described what exists now as “not effective, because it duplicates the collection mechanism. All the structures you have in FIRS is replicated in Customs, so cost of collection goes up. It also makes it easier for tax evaders to manipulate the system. You can provide information for customs and FIRS is not aware of it.”

    However, having one revenue agency he said “will flag all the information about a tax payer when he or she is paying tax. It will also ensure that leakages in the system are reduced. This is why we are recommending merging, as part of the policy.”

    The committee also recommended that a Tax Amnesty Programme be introduced. He said that some companies or individuals might be afraid to join the tax net for fear of being asked to pay past tax liabilities. However, a tax amnesty he said “would assure the public that past offences would be forgiven, thus enable government to expand the tax net.”

    Other key recommendations of the draft policy include establishment of Taxation Committee at national, and state assemblies, administrative framework for amnesty and whistle blowing.

    These the committee said were necessary to move Nigeria from its current position of 181 out of 189 countries to top 50 on the Ease of Paying Taxes World Report.

    The Chairman of the National Tax Policy Review Committee, Prof. Abiola Sanni, said the need to improve revenue generation in the economy influenced the decisions of the committee.

    The National Tax Policy was first published in 2012 by the then Minister of Finance, Dr Ngozi Okonjo-Iweala, to entrench a robust and efficient tax system in Nigeria. The recent committee was, however, set up by the Minister of Finance, Mrs Kemi Adeosun on August 10 this year to review the existing policy.

  • FIRS seal off hotels in Makurdi over unpaid tax

    FIRS seal off hotels in Makurdi over unpaid tax

    The enforcement team of Federal Inland Revenue Service, FIRS from Abuja, on Thursday sealed off a five star Hotel located at No24 Aitku Abubakar Way, in Makurdi. Benue state.

    The team, led by Chinazor Edeh said the hotel belonging to a prominent person has refused to remit VAT to government since 2011; a development he said was unpatriotic.

    He gave the management of the hotel 30 minutes to do the payment before executing warrant on them.

    The hotel, according to a Warrant of Distraint used by the FIRS team to seal it off, was owing about N13, 518,493.00 unpaid tax liabilities.

    The amount was made up of unpaid/unremitted liabilities of the hotel in Company Income Tax, Education Tax, Withholding Tax and Value Added Tax between 2011 to 2016.

    Sealing off the hotel was a heavy task for the FIRS team as the management of Hotel led by Mrs. Margaret Hinger insisted that the company is not owing federal government such amount of tax liability.

    Hinger admitted that the Hotel is aware of the tax liability saying there was delayed in the payment of the said VAT because the figures were duplicated by audit firm mandated to audit the Hotel’s accounts, disclosing that they have already paid the sum of N700, 000.00 to the tax office in Makurdi and appeal to the team to unseal the hotel as they are willing to pay the over N13 millions.

    According to Mr. Edeh, ”I Am ordered by my boss, the Chairman of FIRS Mr. Fowler to seal off the hotel and and am under instrument not to speak with anyone on phone. Please pay the money, we can leave your premises”

    The team ordered the Hotel to discharge its guests and the enforcement team locked up the gates while workers of the hotel instantly closed for the day.

    Consequently, when the period of grace granted to the hotel management elapsed, the enforcement team has no choice but to proceed with the sealing and closing down of operations at the hotel.

    It was at the process of sealing off the premises that a guest who identified himself as Mr. Chukwuemka Chikera  disagreed with the FIRS team, saying he is not checking out of the hotel that the action of FIRS was a violation  human right and infringement on his privacy.

    It took the intervention of security personnel who are members of the team to move him out of the premises.

    The team left a part of the entrance to the hotel opened for guests who may not be in when the warrant was executed and may return to pick their properties later.

    The team warned the security officers at premises that no business should be allowed to take place inside the premises until the payment of the tax liability.

    The next point of call for the team was Treaties Bukka located at Old Otukpo road Makurdi, which according to the Warrant shown to the management of eatery joint, was owing N52 million in unremitted Withholding Tax and VAT from 20013 to 2015.

    The team sealed off the kitchens and all other entrances leading to joint.

    But the Chief Executive officer of the eatery who refused to identified himself but said he was a government appointee, disputed the warrant insisting the name that was written on the warrant is disputable because his company name is not limited company but admitted that his company collects VATs on behalf of government without remittance.

    The enforcement team also sealed off Gwalina Suites Nigeria limited  in unremitted Withholding Tax and VAT from 20012to 2016.

  • Tax tribunal ordered JIB, bank, to pay FIRS N29.3 million

    Tax tribunal ordered JIB, bank, to pay FIRS N29.3 million

    The Tax Appeal Tribunal, North Central Zone, sitting in Jos Thursday ordered the Jos International Breweries PLC and Gains Micro-Finance Bank Ltd to pay a total sum of N29.3 million to the Federal Inland Revenue Service.

    Both companies, Jos International Breweries Plc (JIB) and Gains Micro-Finance Bank Ltd are to pay the stated sum having been found guilty of tax evasion by the tax tribunal.

    Out of the total sum, Jos International Breweries Plc is to pay FIRS the sum of N26.1 million as company income tax owed by the company, while Gains Micro-Finance Bank Ltd is to pay N3.2 million as penalty and interest owed by the bank.

    The Tribunal presided over by Hon. Abraham N. Yisa, who is also the Coordinating Chairman of all the Zonal Tax Appeal Tribunals in Nigeria passed this verdict at its sitting held at the Tribunal Premises at No. 13C, Wamba Road, GRA, Jos.

    The FIRS had dragged the Companies before the Tribunal in 2013 having defaulted taxes remittance to FIRS.

    The tribunal had in the course of the trial given judgement in the sum of N28.2 million with the issues of penalty and interest outstanding as parties sought time to explore out of Court settlement on the said figures.

    Delivering the lead judgement, Hon. Yisa stated that in giving the judgment the Tribunal was invoking its powers under “Paragraph 15 (8) of the Fifth Schedule to the Federal Inland Revenue Service (Establishment) Act 2007.

    The FIRS was represented by Nasiru Ahmad Esq with Talatu Aliyu (Miss) while Jos International Breweries was represented by N.N Adangu, with B. Haruna and A.G. Lawal.

  • Senate confirms Fowler as FIRS chairman

    Senate confirms Fowler as FIRS chairman

    The Senate Wednesday confirmed the appointment of Dr. William Babatunde Fowler as Executive Chairman, Federal Inland Revenue Service (FIRS).

    This followed the presentation and adoption of the report of the Senate Committee on Finance which screened Fowler.

    Chairman of the Finance Committee, Senator John Owna Enoh who presented the report, asked the Senate to confirm the appointment of Fowler.

    Senator Gbenga Ashafa informed the Senate that many of them who know the antecedent of Fowler firmly believed that his appointment is in the right direction.

    Ashafa said that the fact that Fowler moved the internally generated fund of Lagos State to greater heights remained a shining testimony for him.

    The Lagos State lawmaker noted that he had no doubt that Fowler would assist the Federal Government to improve its tax collection system.

    Deputy Senate Leader, Senator Bala Ibn Na’Allah moved that the Senate should confirm Fowler especially when all the members of the committee endorsed the report that his appointment should be confirmed.

    When Senate President, Abubakar Bukola Saraki put the question for the confirmation Fowler, it was unanimously carried.