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Tag: FIRS

  • FIRS hammers firms over N2b tax default

    FIRS hammers firms over N2b tax default

    The Federal Inland Revenue Service (FIRS) at the weekend continued its crackdown on tax-defaulting companies in Abuja, The Nation was reliably informed.

    The Nation gathered that the FIRS enforcement team, led by Zubairu Usman, sealed the offices of Dayak Nigeria Limited located at Idu Industrial Layout in Area One part of the city. The company has a Value Added Tax liability of N41,535,829.47 owed between 2013 and 2016.

    However, R.T Communications, with a tax liability of N106,408,475.00, could not be located due to its use of a fake address.

    Ceezali Limited located at Thaba Tseka Street, thought to owe N14,603,941.00, presented evidence of payment and was not sealed.

    Earlier in the week, the FIRS shut Ace Products and Services located at Limited 20, Sanni Ashimu Close, Ologun Bus stop, Awoyaya, Lagos over a tax debt of N157.562 million.

    On Tuesday, the team sealed off Finchglow Travels Agency at 25 Ademola Street, Ikoyi, Lagos, over a tax debt of N30.553 million. Other firms sealed include Westcom Technologies at 18 A,Onikepo Akande Street, Lekki Phase 1, Lagos, over a tax debt of N25.978 million and Globasure Technologies Limited at Plot 10B2, Lekki Phase 1, Lagos which owed a tax debt of N34.572 million.

    On Monday, four companies in Lagos and Port Harcourt were shut over their failure to meet their tax obligations totalling N630 million.

    The affected firms comprised Charcoal and Spices Restaurant Limited, GRA, Port Harcourt, and Cioscon Nigerian Limited at 14 Aba Road, Port Harcourt.

    The leader of the FIRS enforcement team, Mrs. Anita Erinne, sealed both companies after showing a warrant of distraint to officials of the company.

    Charcoal and Spices Restaurant Limited owes N12,388,979.50 tax debt while Cioscon Nigerian Ltd has a tax liability amounting to N479,203,464.43 from 2014 to 2016 which the firm has failed to remit.

    Erinne told the defaulting firms that the companies’ premises will be unsealed when they clear their outstanding tax bills.

    She warned the workers not to unseal or tamper with the FIRS seal until the debts are cleared, stating that any attempt to remove the seals will be a contravention of the law.

    Erinne, however, noted that the firms have been officially notified of their indebtedness to FIRS, stating that all the companies’ taxes should be paid before their premises could be unsealed.

    In Lagos, the enforcement team of the FIRS sealed Joza Global Service situated at 18, Ribadu Road, Ikoyi, Lagos over a tax debt of over N30.6 million. The FIRS team also sealed-off Spog Petrochemicals Limited situated at 50d, Glover Road, Ikoyi, Lagos over a tax debt of N105.5 million.

  • FIRS seals four firms over N630m tax debt

    FIRS seals four firms over N630m tax debt

    Four firms in Lagos and Port Harcourt, River State were yesterday sealed by the Federal Inland Revenue Service (FIRS) over their failure to meet their tax obligations totalling N630 million.

    The affected firms include Charcoal and Spices Restaurant Limited, GRA, Port Harcourt and Cioscon Nigerian Limited at 14 Aba Road, Port Harcourt.

    The leader of the FIRS enforcement team, Mrs. Anita Erinne, sealed both companies after showing a warrant of distraint to officials of the company.

    Charcoal and Spices Restaurant Limited owes N12,388,979.50 tax debt and Cioscon Nigerian Ltd has a tax liability amounting to N479,203,464.43 from 2014 to 2016, which the firm has failed to remit.

    Mrs. Erinne told the defaulting firms that the companies’ premises will be unsealed when they clear their outstanding tax bills.

    She warned the workers not to unseal or tamper with the FIRS seal until the debts are cleared.

    According to her, any attempt to remove the seals will be a contravention of the law.

    Mrs. Erinne, however, noted that the firms have been officially notified of their indebtedness to FIRS, stating that all the companies’ taxes should be paid before their premises could be unsealed.

    In Lagos, the enforcement team of the FIRS sealed Joza Global Service situated at 18, Ribadu Road, Ikoyi, Lagos over a tax debt of over N30.6 million. The FIRS team also sealed-off Spog Petrochemicals Limited situated at 50d, Glover Road, Ikoyi, Lagos over a tax debt of N105.5 million.

     

     

     

  • Senate gives CBN, NNPC, Customs, others seven- day ultimatum to submit budgets

    Senate gives CBN, NNPC, Customs, others seven- day ultimatum to submit budgets

    The Senate on Wednesday gave the Central Bank of Nigeria (CBN), Nigerian National Petroleum Corporation (NNPC), Nigerian Customs Service, Federal Inland Revenue Service (FIRS) and 34 other statutory federal agencies a seven- day ultimatum to submit their 2017 budgets to the National Assembly for vetting and passage into law.

    The upper chamber said the directive for the agencies and corporations to submit their budgets to the National Assembly was in line with the Fiscal Responsibility Act 2007.

    The directive followed the observation by the Senate leader, Senator Ahmed Lawan, that a greater number of the statutory agencies and corporation have failed to comply with the requirement of the Fiscal Responsibility Act to submit their 2017 budget proposals for scrutiny by the National Assembly.

    Lawan noted that ordinarily, the budget proposals of the agencies should have been presented with the 2017 Appropriation Bill presented by President Muhammadu Buhari.

    He noted that it has become necessary for the agencies to submit their budgets for consideration and passage before the National Assembly goes on recess.

    He insisted that the submission of the budget proposals must be done within the week to enable the parliament do its constitutional duty.

    Senate President, Bukola Saraki, agreed with Lawan that the consideration and approval of the budgets must be concluded before the end of the session.

    Saraki said it was imperative to pass the budgets before the Senate goes on recess to pave the way for its full implementation.

     

  • Our VAT plan for domestic airlines, by FIRS

    Our VAT plan for domestic airlines, by FIRS

    The Federal Inland Revenue Service (FIRS) has opened a payment window to assist domestic carriers meet their Value Added Tax (VAT) remittance obligations, its Chairman, Babatunde Fowler, has said.

    He made this known during a meeting with a delegation of the Airline Operators of Nigeria (AON) and the International Air Transport Association (IATA) in Abuja.

    The window, according to him, is where airlines can structure payment of their VAT after two months of billing.

    Fowler described the window as a soft landing for domestic carriers, which will allow for payment reconciliation.

    Under the new arrangement, he said, payments collected by airlines will require two months for reconciliation and remittance to enable the carriers recoup sales.

    The new system, according to him, will allow operators remain in business in the face of economic challenges.

    To him, there is a need for FIRS to support domestic carriers because they are catalysts for economic development.

    This is the first time the tax agency will be partnering AON and IATA to stimulate the growth of aviation.

    Fowler said:“We agree that the airline industry is challenged. Government is not out to make profit, but to make life more comfortable for the people. Exemptions on tax issues  are beyond FIRS as we do not make the law. So, all we can do is to make it easier to give domestic airlines a soft landing by meeting them halfway in order to obey the tax laws.”

    He added that he understood the challenges and multiple charges airlines are faced with, urging the AON to engage the Presidency through the Department on The Ease of Doing Business, the Senate and the Minister of Finance to dialogue on how the laws could be amended to make airlines competitive. Doing this, he said, was one of the ways of achieving lasting solution.

    On his part, AON Chairman, Capt. Nogie Meggison, said the airlines’ body was excited over the partnership, but would want  the tax agency look into complaints lodged by its members.

    He called for more dialogue between the FIRS and AON in order to enhance  understanding of the automation process and allow smooth operations by both parties.

    He said:“Airlines have no issue with paying or collecting the statutory VAT for FIRS, but there was need to take a look at the issue of fairness against our competitors, clarity on the automation as well as a 30-day period to allow for invoicing, reconciliation and billing before payment.“

    Meggison praised  the FIRS boss for the concessions to airlines, noting that it was a step forward in alleviating challenges that have consumed over 25 airlines.

    The AON Chairman appealed  to the FIRS boss to take a closer look at VAT for domestic air transportation in Nigeria, adding that if VAT were to be removed, it would make air fares cheaper.

    His words: “Accra has become the hub for doing business in West Africa today due to the fact that Accra has adopted a deliberate economic policy to make the city a hub for West Africa and as a way of achieving this, it adopted zero VAT for air transportation.

    “ This has also  lowered taxes on aviation fuel by 25 per cent, which has attracted more airlines to fly into Ghana for technical stops and connections to cities around the world. This has had a multiplier effect on the economy and the country at large.

    “Nigeria, therefore, needs to take a bold economic step to jumpstart aviation,”he said.

    Meggison said going by a recent study, the greatest challenge for airlines in Africa is not low cost carriers, but road transport.

    He said this is despite the fact that operators in road, marine and rail transportation do not pay VAT. “It is even painful that  foreign airlines don’t pay VAT,” he added.

    The IATA Area Manager, Southwest Africa,  Samson Fatokun, said  the tax agency should assist airlines in Nigeria by evolving measures that will ensure their sustenance. Absence of such assistance, he said, has led to the collapse of many airlines.

    While identifying multiple charges as part of the problems airlines grapple with, Fatokun said Nigerian carriers have an average mortality rate of 10 years.

    He said there was an inherent problem in the operating environment that increases the high mortality rate.

  • FATE Foundation may seek FIRS tax amnesty for MSMEs

    FATE Foundation may seek FIRS tax amnesty for MSMEs

    FATE Foundation (FATE) may  seek  the extension of tax amnesty for Micro, Small, MediumEnterprises and new startups on account of the challenging economic environment.

    Last  year, FATE and other organisations got Federal Inland Revenue Service (FIRS) to free small businesses from tax burdens as it waved all outstanding tax liabilities against them up till the end of the year.  Following this, the Service granted a 45-day tax amnesty for businesses that had not paid taxes between 2013 and 2015.

    Executive Director, FATE Foundation, Mrs. Adenike Adeyemi said the  45-day window, which was to close on November 24, last year was extended to December 31 for SMEs

    FIRS Executive Chairman, Tunde Fowler, said  the agency realised N27.086 billion from the waiver of tax penalty, adding that FIRS introduced the programme  to allow defaulters regularise their relationship with the agency.

    Despite this, Mrs. Adeyemi said the heavy tax on pioneering small businesses could pose threat to earlier investments in the light of the declining economic growth.

  • FIRS rakes in N778.19b in Q1

    FIRS rakes in N778.19b in Q1

    The Federal Inland Revenue Service (FIRS) generated N778.19 billion revenue in the first quarter of 2017, a progress report by the agency has indicated’

    The report which was sent to the Federal Ministry of Finance, showed the revenue performance for the first quarter of 2017 and the breakdown of money collected.

    According to the report, the FIRS collected N338.3 billion as Petroleum Profit Tax between January and March, as against the N176.7 billion collected in the review period in 2016.

    Also, Value Added Tax (VAT) collection increased from N198.7 billion in the first quarter of 2016, as against the N221.37 billion realised in the first quarter of 2017.

    The report showed that the biggest improvement in 2017 was from Education Tax, which surpassed that of 2016 by 311.7 per cent. It said in the first quarter of 2017, N33.9 billion was generated as Education tax revenue, as against the N8.24 billion generated in the same period of 2016.

    Also, the service said it achieved 284.3 per cent improvement in Stamp Duty collections, generating N3 billion in the first quarter of 2017, while it raked in N785 million in 2016.

    The report also showed that consolidated tax revenue for the first quarter of the year grew by 123 per cent, from N11.5 billion in 2016 to N25.7 billion in the same period of 2017.

    The Service also recorded a boost in its collection of National Information Technology Development Fund (NITDEF) levy, which went up from N129 million in 2016 to N179.2 million in the review period of 2017.

    However, the report showed a reversal in Company Income Tax and Capital Gains Tax collections in the period under review.

    While the service collected N155.6 billion as Company Income Tax in the first quarter of 2017, it collected N166.85 billion in the same period of 2016.

    It said N110.9 million was generated from Capital Gains in 2017 as against the N859.1 billion generated in the same period of 2016.

    “The analysis showed that we have recorded an increase of N214 billion, representing an overall increase of 38 per cent in 2017, when compared with the collection performance of the corresponding period in 2016.

    “We attained this collection performance in spite of several challenges, as we have continued to vigorously pursue our strategies internally, while improving collaboration with relevant stakeholders to boost our collections.

    “The strategies put in place are still on course and progressively yielding,’’ the FIRS said.

    The FIRS Chairman, BabaTunde Fowler had pledged to improve tax collection by capturing more people and companies under the tax net.

    In April, he said four million individuals have been included in the tax net, bringing the total to about 20 million individuals,  leaving a gap of about 40 million taxable individuals and corporate organisations both in the formal and informal sectors.

    The National Bureau of Statistics (NBS), said Nigeria generated N204.77 billion as Value Added Tax (VAT) in the first quarter of 2017.

    The NBS stated this in a Sectoral Distribution of VAT Data for first quarter of 2017, published by the bureau yesterday in Abuja.

    The report showed that the N204.77 billion generated in the quarter was lower than the N207.35 billion generated in the fourth quarter of 2016.

    According to the report, the decline in the amount generated represented 1.25 per cent decrease quarter-on-quarter.

    Comparing the amount to the first quarter of 2016, the report stated that VAT generated was N186.43 billion in first quarter of 2016, representing 9. 84 per cent increase year-on year.

    The bureau said other manufacturing sectors generated the highest amount of VAT, equivalent of N28.73 billion.

    This was  closely followed by Professional Services and Commercial and Trading,  generating N20.82billion and N12.89billion  respectively.

    The bureau stated that Mining generated the least, and was closely followed by Local Government Councils and Textile and Garment industry with N35.07 million, N99.84 million and N230.89 million respectively.

  • FIRS introduces six online tax solutions

    FIRS introduces six online tax solutions

    •Fowler: innovation represents revolution in tax administration

    The Federal Inland Revenue Service (FIRS) has introduced six key electronic solutions (e-Services) to enhance convenience, transparency and round the clock processing and payment of taxes.

    Some of the e-Services, which could now be accessed online, are taxpayer registration (through e-Registration); payment of Stamp Duties (through e-Stamp Duty); payment of taxes (through online payment: e-TaxPay, Remita); receiving of electronic receipt after payment of taxes (through e-Receipt); filing tax returns online (through e-filing) and online Tax Clearance Certificates (TCC) through electronic Tax Clearance Certificate (e-TCC solution).

    Executive Chairman Tunde Fowler, who explained this in Abuja, said the e-Services innovation represent “a revolution in tax administration in Nigeria”.

    “The idea behind the six ICT solutions is to make tax payment as easy as ABC, to bring convenience to our taxpayers. The ICT solutions, which we are bringing to the doorsteps of taxpayers, will ensure that taxpayers could pay, get receipt and get TCC from the comfort of their homes and offices anytime, anywhere in the world and round the clock. This saves the time of taxpayers, it is transparent, fast, easy to use and convenient,” Fowler said.

    According to FIRS, the implication of e- Receipt, for example, is that when tax payments are made, an electronic notification will be automatically sent to the taxpayer’s email and or phone number within 24 hours after payment.

    “If for any reason a taxpayer loses the print out, they can access FIRS e-Receipt platform by log in into the FIRS website and download their receipt. This process eliminates manual interventions.

    The e-TCC provides an e-repository of all Tax Clearance Certificates (TCCs) issued by FIRS. It enables FIRS Staff and authorised third parties to obtain their TCC online without visiting a tax office. E-TCC reduces incidence of fraudulent certificates.

    “E-TCCs are automatically sent to the emails of taxpayers. Taxpayers can also request for and print their TCCs online.

    Fowler said the introduction of the new solutions is one of the key steps to make FIRS services convenient, easy and available everywhere and at all times.

    “It is a revolution in tax administration that combines innovation, convenience and transparency,” the FIRS Chairman said.

  • FIRS shuts more tax-owing firms in Umuahia

    FIRS shuts more tax-owing firms in Umuahia

    The Federal Inland Revenue Service (FIRS) at the weekend sealed off Mentors & Partners Limited in Umuahia, Abia State, over tax liabilities of N308.9million. The sealing off of the company was a continuation of the enforcement exercise, which began on Wednesday.

    The FIRS team, led by Mrs. Ruth Mandeun, sealed over 13 tax-owing firms across the state.

    Among those affected are Michael Okpara University of Agriculture Guest House and the university’s petrol station, which have joint tax liabilities of N3.5million. Also affected were De-Latino Concert Limited and Hotel Macbeck Limited, owing N6.7million and N273,313 respectively.

    Others are Ohama Suites Ltd (N1.1million), Onyems Classic Pharmacy (N400,000), Otubraco Nigeria Limited (N540,437) and Ziggi Services Limited (N250,000) value added tax and income tax for 2016.

    Enforcement team leader, Mrs. Mandeun warned sealed tax-defaulting companies against reopening them without clearing their liabilities and getting approval from the agency, as that would constitute a breach of the law.

  • Waiver policy: FIRS rakes in N27b, says Fowler

    Waiver policy: FIRS rakes in N27b, says Fowler

    The Federal Inland Revenue Service (FIRS) raked in N27billion over three years from its waiver of interest and penalty policy for tax defaulters, the Executive Chairman, Tunde Fowler, has said.
    Fowler, who was represented by the Deputy Director, Communications & Servicom Department, Nneka Ifekwuna, at the opening of a five-day Journalism Training on Taxation in Lagos, last week, said the measure which was implemented from 2013-2015, was designed by the Service to promote voluntary compliance and shield taxpayers from the burden of carrying forward tax liabilities that arose from penalty and interest.
    “The Service, by this entirely new idea, has so far realised N27 billion,” he stated, adding that there is a massive nationwide registration exercise of new tax payers that has resulted in the registration of 814, 000 additional taxpayers by FIRS as at December 2016 and 3.4 million taxpayers by States Internal Revenue Services (SIRSs).
    He said cumulatively, Nigeria has a National Tax Roll of 14 million as at December, 2016.
    The FIRS chief said the Service has adopted other measures to ease the burden of paying taxes by Nigerians. He said taxpayers are now required to file their tax returns at the FIRS offices nearest to them, stating that this novel idea has increased compliance as it eased the burden of taxpayers who have had to travel from far places to pay their taxes.
    Fowler said the FIRS is collaborating with the Joint Tax Board and the States’ Internal Revenue Services on several fronts, including taxpayer enlightenment, enforcement and registration of new taxpayers, adding that these measures, including inter-agency collaboration with the Nigeria Customs Service, Federal Road Safety Commission, (FRSC), the Immigration Service and the Corporate Affairs Commission are being strengthened to attain the desired objective.
    “The deployment of technology, expansion and deepening of ongoing ICT initiatives became a marked feature of our bid to shore up non-oil revenue,” Fowler said, adding that the Service deployed the Integrated Tax Administration System, (ITAS), in key tax offices in 2016.
    He said: “ITAS will be rolled out nationwide in 2017. ITAS is targeted at automating all core tax administration processes (registration, filing, audit and payments ) and the provision of multiple tax payment channels such as Pay Direct, e-tax pay and Remitta. Savvy taxpayers have started e-filing.”
    Fowler said in a year when oil prices dropped less than $50 dollars a barrel for over nine months and when the value of stocks on the Nigerian Stock Exchange (NSE) slid and purchasing power was slim, the service collected over N3.3trillion, stating that the Service is convinced that with progressive application of technology, persuasion and enforcement on recalcitrant taxpayers, and partnership with key stakeholders like the press, the Service “will collect enough revenue for the nation in 2017.”

  • FIRS reconfirms support for empowerment program

    FIRS reconfirms support for empowerment program

    Africa’s largest entrepreneurship network, Africa’s Young Entrepreneurs (A.Y.E) recently met with FIRS chairman, Mr. Babatunde Fowler at his office in Abuja. In the meeting, the Chairman of FIRS acknowledged the role of A.Y.E in development and commended the organization for its growth and impact on entrepreneurship in Nigeria and Africa. The two teams led by A.Y.E President Summy Francis and FIRS chairman Mr. Babatunde Fowler met to extend their ongoing partnership of  the AYEEN 2017 program.

    In the 2016 report compiled by FIRS communications and Servicom department, it was stated that the AYEEN 2016 partnership was favorable and instrumental in delivering thousands of new TIN registrations across the 6 different regions in Nigeria through the AYEEN program, the report also stated that through the program they were able to engage with thousands of entrepreneurs and business owners. The Johannesburg based organization through its AYEEN entrepreneurship program and reality TV show supported hundreds of young entrepreneurs with Grants, Equipment and Business loans.

    The organization made it mandatory for the thousands who took part in AYEEN 2016 to be responsible tax paying citizens. FIRS team acknowledged the benefit of A.Y.E- FIRS long term partnership; Mr. Fowler expresses his faith in the partnership and encourages the organization to continue with the great work on private entrepreneurship and not rest on its horses until entrepreneurial advocacy and development culminate into job creation and have a significant impact on our Nation’s economy. He further guaranteed the continuous support of FIRS to A.Y.E.

    Firs Chairman Mr. Babatunde Fowler presents token of appreciation to A.Y.E President Mr. Summy Francis.

    The AYEEN program this year dubbed AYEEN2017 has also attracted several other sponsors and partners, the reality TV show this year which is now co-produced by Wazobia Max will be televised across Nigeria and Africa by over 10 television stations: All MNET African Magic Channels, NTA, TVC, STV, WAZOBIA MAX , RAVE TV, WAZOBIA TV, BRTV etc. The broadcast which is scheduled to air on prime belt time in Q4 is set to reach over 30 million viewers and engage over 15 million online.  Other partners include: GLOBAL ENTREPRENEURSHIP INSTITUTE (GEI), AEES, SSF INVESTMENTS, AVIS NIGERIA, LAGOS ORIENTAL HOTEL, DANA AIRLINES, LASAA, THE NATION NEWSPAPER, MEGAMINDS,G.A PRODUCTIONS, EXP AGENCY, COOL FM, WAZOBIA FM, NIGERIA INFO, RHYTHM FM, RADIO CONTINENTAL…

    The meeting ended with an exhibition of FIRS top achievements and photo session led by the Chairman.

    The AYEEN 2017 registration for entrepreneurs and startups who need funding is ongoing and is set to close soon for registration, visit www.ayeen.ng, for sponsorship/partnership email sponsorship@ayeonline.org or call 080 6004 0620.

    AFRICA’S YOUNG ENTREPRENEURS EMPOWERMENT NIGERIA (AYEEN2017) PROUDLY SUPPORTED BY THE NATION NEWSPAPER.