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  • FIRS boss says no hiding place for tax defaulters

    The Executive Chairman of Federal Inland Revenue, (FIRS), Tunde Fowler, yesterday said there is no hiding place for tax defaulters.

    Fowler, in his keynote address on training workshop for professionals advising clients on participation in the Voluntary Assets and Income Declaration Scheme (VAIDS), described VAID as a tax amnesty programme in which tax payers are expected to take advantage of because of its time limited opportunities given to tax defaulters to voluntarily come forward to regularise that tax status in consideration of certain incentives given by government.

    According to him, VAID is targeted at every tax payer, who have unlawfully underpaid or has not been paying tax by any means, adding that the scheme will run for a nine months period from July 1, 2017 to March 31, 2018.

    During the period, it would provide opportunities for tax payers to regularise their tax status relating to previous tax period through honestly declaring previously undisclosed assets and income they are entitled to benefit from the forgiveness of overdue interest and penalties, coupled with the assurance that they would not face criminal prosecution for tax offences or be subjected to tax investigations.

  • FIRS nets N4.03tr in 2017

    FIRS nets N4.03tr in 2017

    • Collects N720b more than 2016 collection

    The Federal Inland Revenue Service (FIRS) collected N4.03trillion in 2017, the Chairman, Tunde Fowler, has said.

    The FIRS chief, who spoke at the palace of the Oba of Lagos, Rilwan Akiolu, at the weekend, said the figure represented 82.38 per cent of government’s set target of N4.89 trillion for last year.

    FIRS’ Head, Communications and Servicom Department, Wahab Gbadamosi, who made this known in a statement, yesterday, said FIRS’ collection was N720 billion (22 per cent) more than the 2016 total collection of N3.305 trillion., adding that the 2017 collection performance exceeded the previous by 78.75 per cent.

    Fowler said: “With the support of the National Assembly and that of other stakeholders, FIRS was able to collect over N4trillion 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.”

    He said when he was the Lagos Internal Revenue Service Executive Chairman, the Oba of Lagos played an important role in tax collection, saying apart from supporting LIRS morally, 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.

    Fowler said: “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, stood at N2.45trillion, while it attained  N1.29trillion in 2015. In  2016, N1.16trillion was realised, and another another N1.52trillion came 2017, he stated.

    He pointed out that the trend has adverse effects on the ability of oil dependent countries to meet their development objectives. He said for Nigeria, the decline in receipts from oil revenue and the concomitant decline in accruals to states from the Federation Account, have placed many states in  financial difficulty 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 said  FIRS “hopes to ensure that it acts “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.”

    He said 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, attributing the reducing collection cost to growing efficiency in Information, Communication and Technology (ICT) tools.

    On his part, the Oba Akiolu, said 60 or 70 per cent of FIRS collection comes from Lagos, saying he would 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,  as well as two 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,” he said, stating that he lives by example as he pays as much as N350 million in tax every year.

    Akiolu said what Nigeria needs is good governance that will deliver development to the people, stating that 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 give President Mohammadu Buhari a chance and to support the anti-graft war by confirming the Economic and Financial Crimes Commission Chairman, Ibrahim Magu.

  • VAIDS nets N17b in six months, says FIRS

    VAIDS nets N17b in six months, says FIRS

    About N17 billion has been recovered in taxes from those who have voluntarily declared their tax liabilities, it was learnt yesterday.

    The tonic is the Voluntary Assets and Income Declaration Scheme (VAIDS), the Federal Inland Revenue Service (FIRS) said.

    FIRS Executive Chairman Tunde Fowler said the N17 billion came from about 500 firms; N6 billion is expected from Nigerians who voluntarily declared their tax liabilities to the authorities before month end.

    Fowler, who spoke at a workshop on VAIDS in Abuja, said firms were keen to seize the amnesty to regularise their tax status

    Fowler said the tax authorities had identified 2,000 properties in the Federal Capital Territory (FCT), Abuja whose owners neither pay taxes nor file returns.

    At the end of the VAIDS, if the owners of the 2,000 properties refuse to pay the due taxes on these properties, Fowler said, the FIRS would approach the court for approval to dispose of the properties. “After netting off taxes due on them, the balance, if any, will be handed to their owners.”

    He stressed that the March 2018 deadline for individuals and firms to regularise their tax liabilities remained sacrosanct.

    Managing Consultant, Pedabo Associates Limited, Alberto Folorunso, shed more light on the status of churches, mosques and other houses of worship,.

    The VAIDS consultant said churches and mosques are exempted from taxes by law but if they engage in business activities that generate income, those income will be taxed.

    Regarding property tax, Albert Folorunsho explained that, “when a property, whether owned by individuals or company begins to generate income, the owner will be required to pay tax on the income on the property. Rent is a taxable income”, he said.

  • FIRS rakes in N3.2tr in 10 months, says Fowler

    •Agency shuts firms in Lagos, Port Harcourt over tax debt

    The Federal Inland Revenue Service (FIRS) has generated N3.233 trillion in 10 months. The amount is 79.35 per cent of the agency’s collection target for this year, its Executive Chairman Tunde Fowler said yesterday.

    He spoke at an interactive session on the review of 2018–2020 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), organised by the House of Representatives Committee on Finance and Appropriations.

    He told the joint committees on key strategies for achieving the objectives of the 2018 budget that the FIRS justification for 2018-2020 revenue framework was based on the Economic Recovery and Growth Plan (ERGP) introduced by the Federal Government.

    Fowler said the FIRS deployed technology to ramp up more revenue, especially as its tax assessment between 2013 and 2015 revealed N1 trillion after tax audit.

    The chief tax officer of the country said the exercise had already yielded over N3.7 billion in collection of taxes into Federal Government coffers.

    This, he said, was a pointer to FIRS’ ability to meet its assumptions for the 2018–2020 M-TEF expectations.

    These successes, he noted, were as a result of various measures adopted by the service to ensure increased collections of Federal Government dues in corporate and individual taxes.

    He added that the measure would continue to be relevant in achieving better collections in 2018.

    Listing the measures that triggered the feat, Fowler said the new modalities structured for optimal access of accruable dues from Voluntary Assets and Income Declaration Scheme (VAIDS) had yielded over $54 million (abot N16.73 billion) and N207.41 billion), totalling about N16.40 billion at the federal level only.

    He said: “We have stepped up enforcement activities against task defaulters on different fronts; these include placing non-compliance stickers on business premises of tax payers with outstanding amounts but made no move to liquidate it.

    “We also adopted substitution as enforcement tool by putting a lien on the bank account of errand tax payers.

    “This, in my view, will serve as deterrent to defaulters and consequently increase tax collection.

    “FIRS has so far collected over N6 billion and 4.2 million dollars (over N1.4 billion), totalling over N7.7 billion.

    “This drive is continuous and will be unrelenting going forward.”

    The FIRS has sealed some firms In Lagos, Port Harcourt over tax debt.

    Some of the firms affected in the enforcement exercise led by Mrs. Anita Erinne were LASACO Assurance Plc headquarters and MTS Nigeria Limited.

    LASACO was sealed over a tax liability of N278.5 million, while MTS got its gates locked for owing N169.6 million.

    The others are: Sterling Assurance, Fatmark International Limited, which owes N16 million, and LC Divine Link Limited, which owes N13.6 million.

    In Port Harcourt, the FIRS team, led by Mr. Umar Gana, sealed three hotels – Randolph Hotels and Resorts Titie Hotels which owes N17.8 million; Sasun Hotels Limited, owing N149.6 million, BMA Nigeria Limited, said to have an aggregate tax liability of N69.2 million.

     

  • Reps flay CBN, FIRS over alleged missing $60bn petroleum profit tax revenue

    Reps flay CBN, FIRS over alleged missing $60bn petroleum profit tax revenue

    House of Representatives Committee on Public Petitions says it will investigate alleged missing 60.3 billion dollars Petroleum Profit Tax and Royalty revenues at the Central Bank of Nigeria ( CBN ).

    Chairman of the committee, Mr Uzoma Nkem-Abonta (Abia-PDP), stated this on Wednesday in Abuja following failure by the CBN to appear before the committee to defend its submissions over the alleged infractions.

    He said that the committee would conduct a public hearing as part of the process of investigating the allegation.

    The allegation emanated from a petition by Mr Fidelis Uzonwani, a chartered accountant with Synergy Resources Nigeria Limited, to the committee.

    Uzonwani, who appeared at the committee’s sitting, told the members that “from 2004 to 2016, over 60 billion dollars of petroleum profit tax and royalty revenues were unaccounted for by the CBN’’.

    According to him, the CBN and the Federal Inland Revenue Service (FIRS) failed to appear before members of the committee to defend their submissions upon realising that their secrets have been unveiled.

    “We discovered that something was going wrong and we approached the CBN to take actions to remedy those infractions but it remained adamant, probably that is how they benefit from the system.

    “They have engaged in forgery and when in 2017 they were asked to produce the documents they made available to the Federal Government since 2006, they started manipulating them with computers.

    “We discovered that the CBN adds naira and dollar into one column to arrive at a total.

    “It is done even to the extent of taking money outside an account to a secret account and returning same at the end of the month after earning secret interests,’’ Uzonwani said.

    Nkem-Abonta said because CBN, FIRS and Department of Petroleum Resources (DPR) had repeatedly failed to appear before the committee, “we will be left with no option than to work with materials before us’’.

    “We will conduct a public hearing on the matter and we will compel them to appear because what we are trying to do is to have a situation where all the loopholes for leakages are blocked,’’ he said.

    Read Also: Buhari signs University of Petroleum Resources Bill

  • FIRS rakes in $50m through VAIDS

    FIRS rakes in $50m through VAIDS

    More Nigerians are voluntarily coming out to pay taxes  –  thanks to the Voluntary Assets and Income Declaration Scheme (VAIDS). The scheme has fetched $50 million, Federal Inland Revenue Service (FIRS) Chairman Babatune Fowler has said.

    VIADS was introduced in July  as an initiative designed to encourage voluntary disclosure of undisclosed assets and income for the payment of outstanding taxes.

    A nine-month grace was granted all tax defaulters to pay up.

    The scheme is being implemented by the FIRS in collaboration with all the 36 State Internal Revenue Services and the FCT IRS.

    The scheme allows the government to gather intelligence locally and through various international conventions and multilateral agreements to obtain information required for prosecution of defaulting taxpayers or those who make false declarations.

    An international forensic and asset tracing company has been engaged to support the process.

    Speaking at the Nigeria Governors’ Forum (NGFS) annual IGR Peer Learning Event, the FIRS chief said barely four months after its introduction, VAIDS has increased Nigeria’s  earnings by $50 million.

    At the event, which is part of the forum’s strategic mandate to improve fiscal governance at the subnational level were  all Commissioners for Finance of the 36 states and chairmen of states’ Boards of Internal Revenue.

    “I am glad to note that  a lot of enquires have been made both at the states and federal levels. At the federal level, over $50 million has been realised through this scheme,” Fowler said, urging the public to support the tax authorities  and revenue agencies.

    The FIRS chair expressed hope that the  database of tax payers  would be completed, stating that from next year, defaulters may not enjoy government services.

    “ I will like to inform everyone here that the consolidation of our tax database is now being  completed. This means that before the end of  2017, wherever you are, as long as you are a tax administrator, you hit the button and know the tax status of any individual and organisations, regardless of where they are located.

    “There  will also be a  time when we ask other revenue agencies, such as Customs and Immigration, that their services should be offered to only tax inclined corporations and individuals,” he said.

    “We highlighted sometime last year that before you get service from any of these organisations, be it Immigration for your passport renewal,  issuance, you have to show evidence of your tax payment. I am glad to report that by the end of this year we will be in the position to confirm the tax status of individuals and corporate organisations and those that are in default will not be allowed to benefit from government services.”

    Fowler also noted that the Memorandum of Understanding (MOU) signed between the FIRS and various state revenue bodies was making progress.

    “I am glad to note that the governors and commissioners of finance have agreed in principle to update as all states have been signed on, we hope from this month on, all states will be complaint with remittance of VAT and holding tax  as at when due.

    “This will not only increase IGR at the state level but will also increase IGR at the federal level. It also  note that the VAT collected, 25% goes back to the states,” Fowler said.

    NGF Director-General Asishana Okauru said 23 states recorded growth in IGR, despite the recession in 2016.

    He said “Overall growth in IGR was 20 percent from N687 billion in 2915 to N821 billion in 2016 – far up from a three percent contraction recorded previously. We have an opportunity to strengthen the reform environment, by replicating these reforms across other states. At the Nigeria Governors’ Forum Secretariat, we have resolved to play a more active role in this process. Through our Help Desk Programme, we can provide technical assistance to states; and in the coming year, we plan to expand our support to other areas in public financial management.”

    The NGF has also entered into partnership with Department for International Development’s PERl Programme, the World Bank and the Bill and Melinda Gates Foundation, as parr of the efforts to bring reforms to states.

     

  • Senate passes FIRS 2017 budget

    Senate passes FIRS 2017 budget

    The Senate on Tuesday passed the 2017 budget of the Federal Inland Revenue Service (FIRS) of N147 billion.

    This followed the presentation of the report of the Senate Committee on Finance in Abuja.

    While presenting the report, the Chairman of the Committee, John Enoh, said the overhead cost was N46 billion, while capital expenditure was N31 billion.

    He said the FIRS was funded by four per cent cost of non-oil revenue collection which is appropriated by the National Assembly as stipulated in the FIRS Act, 2007.

    “The Service projected to collect N4.89trillion from oil and non-oil revenue for the year 2017,” he said.

    For the agency budget performance in 2016, Enoh said FIRS collected N3.3trillion in 2016 as against the approved collectable tax of N4.08trillion.

    The president of the Senate, Bukola Saraki, later passed the budget after deliberations by the law makers.

    NAN

  • House panel orders banks to allow Patience Jonathan access accounts

    House panel orders banks to allow Patience Jonathan access accounts

    THE Public Petitions Committee of House of Representatives has directed six banks to  allow former first lady Dame Patience Jonathan and her relatives to access their accounts  that have no restriction order from a court or any anti-corruption agency.

    The lawmakers urged the acting Chairman of the Economic and Financial Crimes Commission (EFCC), Ibrahim Magu, to appear before it on October 4.

    The committee regretted that Magu failed to honour its invitation on three occasions. It, however, advised that it should not be compelled to force his appearance before.

    At the continuation of hearing on a petition yesterday on harassment of the former first lady by security agencies, some of the affected banks denied restricting access to some of the accounts belonging to her.

    The banks said access was only denied to the accounts flagged by the EFCC.

    Diamond Bank said Mrs. Jonathan has three accounts with it. The bank said one was closed and the other two have no restrictions on them, including that of her non-governmental organisation (NGO), Women for Change.

    Fidelity Bank said it has no account being maintained by the former first lady. EcoBank requested for specific accounts involved as it has no previous knowledge of the accounts being mentioned by Mrs. Johnathan’s representatives.

    According to the former first lady, who was represented by Ayodeji Adedipe of Granville Abibo and Co, a Union Bank account belonging to her two NGOs , ARM Foundation and World Peace Outreach, were also placed on restriction without due process.

    The bank, in its response, said the ARM Foundation account became inaccessible as a result of the temporary precautionary order of restriction placed on it by EFCC.

    The committee ordered that the account be converted into a premium deposit account to enjoy necessary interest denied it since the restriction order until the EFCC gives a different directive.

    The committee asked Aridolf Jo Resort, another property belonging to Mrs. Jonathan, which was accused of evading tax by the Federal Inland Revenue Service (FIRS) to the tune of N10 million to pay its tax.

    Mrs. Jonathan’s representative said the company was up-to-date with its tax returns, adding that FIRS did not communicate details of the said evaded tax to it.

    The company tendered two FIRS receipts dated August and October 2016 showing payment of N38, 700 and N43, 030.

    FIRS representative said records of the two payment were available but short of the official threshold, while adding that several correspondences sent to the company since June 2016 were ignored until enforcement was carried out in July  2017.

    According to FIRS, the company refused to supply it with relevant document with which to access it. Tax officials were also stopped from carrying out the enforcement by some militants after failed efforts to get the requested documents.

    In his ruling, Committee chairman, Uzomoma Nkem-Abonta, gave the two 14 days to reconcile their records, adding that the hotel must pay its tax.

    “We are not siding anybody. But as a legislature, we cannot condone tax evasion by any individual or organisation because tax is one resource we have not totally explored in this country as a source of revenue for government,” Nkem-Abonta said.

    The committee also gave the National Drug Law Enforcement Agency (NDLEA) two and a half hours to provide details of the November 30, 2016 raid on  Mrs. Jonathan’s Maitama, Abuja house.

    The committee said it was not convinced that there was a whistleblower that necessitated the raid in the first place.

    NDLEA’s representative , Femi Olruntoba, said the agency was misled into raiding Mrs. Johnathan’s house but declined to reveal the identity of the whistleblower in public.

    He said the agency had already apologised for the mistake.

    On the appearance of EFCC boss, the committee said collusion between government agencies was not healthy and should not be encouraged but Magu should not allow the House to force his appearance before it.

    According to the committee, the appearance of Magu or his representative was critical to the proceeding. It added that Magu’s absence was stalling the investigation.

  • FIRS generates N2.11t in seven months

    FIRS generates N2.11t in seven months

    THROUGH tax collections, the Federal Inland Revenue Service (FIRS) generated N2.11 trillion as revenue from January to July, it was learnt yesterday.

    The impressive scorecard is contained in a progress report of the Service from January to July, showing their revenue performance and impact of the new tax regime.

    The report was released yesterday.

    FIRS’ aggregate revenue projection as contained in the budget for the year is N4.94 trillion, out of which oil revenue will contribute N1.98 trillion.

    The projection is based on an estimated crude oil production of 2.2 mbpd converted at an exchange rate of N305 to a dollar.

    Non-oil revenue for the year is projected at N1.37 trillion, which represents about 28 per cent of the budgeted revenue.

    Independent revenues, various recoveries and mining will account for the balance of about N1.58 trillion.

    A breakdown of the report showed that the FIRS from January to July collected N720.28 billion as Petroleum Profit Tax (PPT) while the Value Added Tax (VAT) revenue collected in the same period was N548.22 billion.

    The Federal Government had also collected N679.9 billion as Company Income Tax (CIT) and N91.4 billion as Education Tax collection.

    The report also showed that consolidated tax revenue for the first seven month of the year was N62.3 billion, which already supersedes the N59.8 billion generated from the area in the entire 2016 financial year.

    Also, the service recorded success in boosting its collection of National Information Technology Development Fund (NITDEF) levy, which went from N6.75 billion in 2016 to N9.87 in the first seven months of 2017.

    A further analysis of the report showed that the service generated more money from taxing the non-oil sector compared to the oil and gas sector.

    The report showed that non-oil tax revenue contribution was at 65.9 per cent while oil and gas contribution to revenue for the year was at 34 per cent so far.

    According to the report, tax improvements recorded so far was due to the latest steps by the service to increase tax collection.

    The report said: “FIRS have adopted e-services as a medium to achieve innovation, convenience and transparency of its operations to ensure that every effort is made to improve efficiency in collections and tax administrations.

    “A 45-day window from October 5 to November 2017 was given to tax payers with tax liabilities to come forward and pay 25 per cent of the agreed tax liability, spreading the balance liability while waiving penalty and interest.

    “FIRS in collaboration with Corporate Affairs Commission, Central Bank of Nigeria (CBN) and Nigeria Customs Service (NCS) undertook a massive nationwide registration exercise of new taxpayers in 2016.

    “We are also carrying out a sector-by-sector tax audit, which have increased compliance across all tax types and taxpayers categories. Over N8 billion have been recovered through this.

    “Also, the Voluntary Assets and Income Declaration Scheme (VAIDS) encourage voluntary disclosure of previously undisclosed assets and income for the purpose of payment of all outstanding tax liabilities to boost revenue collection.

    “All this will help improve the low tax ratio from 6 per cent to 15 per cent by 2020 and curb the use of tax havens for illicit fund flow and tax avoidance.”

    According to the report, the service was instrumental in the signing of a Bilateral Taxation Agreement on double taxation on income and capital gains.

    The service had signed the Organisation for Economic Co-operation and Development’s Multilateral Instrument, which aims to tackle issue of base erosion and profit shifting by multinational companies operating in the country.

    The report showed there were currently a number of bills at the National Assembly that when passed would help to improve tax revenue.

    Some of the bills include the Stamp Duties Act Bill, 2017 and the Value Added Tax Bill, 2015.

  • FIRS, others share data of high income earners

    FIRS, others share data of high income earners

    The Joint Tax Board (JTB) and the Federal Inland Revenue Service (FIRS) have started sharing data of high net worth individuals to profile income earners and taxpayers and get them to pay appropriate taxes.

    Twelve states have signed the Memorandum of Understanding (MoU) under the Voluntary Assets and Income Declaration Scheme (VAIDS).

    The JTB also announced yesterday that it had hired a consultant to ensure that the databases of states’ tax authorities and the FIRS speak to each other.

    The integration of data will help data sharing among states, improve compliance and tax revenue.

    Executive Chairman of FIRS and JTB, Mr. Tunde Fowler, announced the MoU with states on VAIDS in Abuja at JTB’s 138th meeting.

    He said the integration of data among states between FIRS and JTB would help to identify high net-worth individuals, track their tax status and compliance. He announced that there are no untouchables as regards the implementation of VAIDS

    Fowler said that the Federal Government has demonstrated an uncommon political will to entrench tax compliance in Nigeria, saying issues of taxation are taking a centre stage in the country.

    ”Speaking on behalf of the FIRS and the JTB, I want to assure you that we have received the blessing and political will of Mr. President, the Acting President to implement VAIDS.

    ”The Executive is behind us, the Senate, the House of Reps, are behind us and the Judiciary is behind us. The government is behind us. It is now left for us to perform our duties in the right and best way.

    ”A lot of special things are happening to the country. We are changing the financial profile of the country and of course, taxation is in the forefront. I can’t recall any time in the past when we had had such integration and cooperation. Our vision is to ensure that the governments, at all levels have enough resources to provide essential facilities to everyone. We are also moving away from taxes based solely on oil—that are not predictable to non-oil taxes”.

    ‘I am Happy to announce that at no time in the history of the FIRS have states and JTB have enjoyed this level of collaboration that we are enjoying today. Collaboration is important. States cannot be said to be doing well if the FIRS is not doing well.  In the same vein, FIRS cannot be said to be doing well if states are not doing well.

    ”Between 25th and 29th September 2017, the African Tax Administration Forum, ATAF will be meeting in Abuja. Leaders of tax authorities will be in attendance. Many will come with their ministers. We believe that collaboration between heads of tax authorities and Ministers of Finance is healthy for tax work. We will encourage them to come.

    ”In the same vein, we expect that all of you (Chairmen of State Internal Revenue Services) will be in attendance and at least one other person—possibly your commissioner of Finance.

    At the enlarged meeting of the JTB, convened mainly to discuss stakeholders’ implementation of VAIDS, the body ratified the election Chief Oseni Elamah, former Chairman of Edo State Board of Internal Revenue, as the new Executive Secretary of JTB.

    Mr. Elamah takes over from Mr. Mohammed Lawal Abubakar, a Director with the FIRS, who has led the JTB Secretariat for seven years.

    Fowler thanked the JTB members for their activities on the Tax Thursday and further urged them to put more efforts in observing the weekly tax education programme.