The Nation Newspaper

Tag: FIRS

  • Presidential panel ratifies two days for new business registration

    The Presidential Ease of Doing Business panel has reduced the number of days required for registration of new businesses in Nigeria from 10 to two days.

    The panel also approved 24-hour timeline for company registration from when application form was completed and all required documents made available.

    Those were among highlights of a report presented at a Presidential Enabling Business Environment Council (PEBEC), on Monday at the Presidential Villa.

    The report was presented by Dr Jumoke Oduwole, Senior Special Assistant to the President on Trade and Investment and came as reforms targeting the end of the 60-day Action Plan on Ease of Doing Business in Nigeria.

    According to the recommendations prospective business owners can now search on Corporate Affairs Commission (CAC) portal   (www.cac.gov.ng) to avoid duplication of names and prevent selection of prohibited names.

    Also it is now optional for SMEs to hire lawyers to prepare registration documents for companies.

    The Council, established by President Muhammadu Buhari, is chaired by Vice President Yemi Osinbajo.

    However, Monday’s meeting was chaired by Transportation Minister Rotimi Amaechi, as the Vice President was busy with the work of the Presidential Investigative Panel set up for two top government officials.

    According to the report, CAC has introduced single incorporation form (CAC1.1) to save time and reduce costs while the agency has introduced document upload interface on its website to enable e-submission of registration documents.

    Other aspects of the reforms actualized in the last 60 days include the Integrated FIRS e-payment solution into CAC portal to enable e-stamping while the reform empowers CAC internal lawyers to certify company incorporation forms and conduct statutory declaration of compliance for just N500.

    According to the report, the PEBEC listed “dealing with construction permits, getting electricity, registering property, getting credit and paying taxes,” as some of the areas where the council recorded progress in the past 60 days.

    The report also highlighted the completed reforms on the “Entry and Exit of People,” indicator which includes Simplified Visa-on-Arrival process, Infrastructural improvements at the Abuja airport, and the new Immigration Regulation 2017.

    It also indicated that the completed reforms were being closely monitored to ensure diligent implementation with minimal disruption while pending reforms were being escalated to ensure completion in the coming weeks.

    On Trading across Borders, some of the completed reforms include palletisation of imports, advanced cargo manifests, reduction in documentation requirements and scheduling of Joint Physical Examination by the Customs Service.

    The National Action Plan contained initiatives and actions implemented by responsible Ministries, Departments and Agencies (MDAs), the National Assembly, a number of State Governments, as well as some private sector stakeholders.

    The Council emphasised that with the conclusion of implementation of the Action Plan, it would move into the next phase.

    That phase would involve “deepening existing reforms; completing and implementing pending initiatives; engaging with the public; validating completed reforms and kicking-off medium-term reforms.”

    The Council would also begin “sub-national reforms across Nigeria’s 36 states; trading within Nigeria; initiatives and reforms improving business processes and regulations within Nigeria; and ease of movement of goods within and across regions in Nigeria.”

    Ministers at the meeting included Foreign Affairs Ministers Geoffrey Onyeama, Minister of State for Industry Trade and Investment Aisha Abubakar, and her counterpart in Budget and National Planning Zainab Ahmed.

    Other government functionaries at the meeting included the Head of Service, Mrs Winifred Oyo-Ita, and several heads of MDAs.

  • FIRS raises N3.3tr in tax revenue

    FIRS raises N3.3tr in tax revenue

    The Federal Inland Revenue Service (FIRS) realised N3.3 trillion in- tax revenue in 2016, the Executive Chairman, Tunde Fowler, has said.

    The FIRS chief, who spoke in Abuja yesterday at a training for journalists on tax reporting, praised the efforts of the Service for raising the amount at a most trying period in the country’s economic history.

    He praised the FIRS performed for attaining the feat at a time when oil prices dropped to less than $50 a barrel for over nine months, and when the value of stocks on the Nigerian Stock Exchange (NSE) slid and purchasing power was slim.

    In achieving the goal, he  said the FIRS implemented “waiver of Interest and penalty as part of efforts to promote voluntary compliance and shield taxpayers from the burden of carrying forward tax liabilities that arose from penalty and interest.”

    FIRS “successfully implemented a waiver of interest and penalty for three years (2013 to 2015),” he said, adding that the Service by engaging this entirely new idea, “has so far realized N27 billion.”

    Fowler said by expanding the tax net with a massive nationwide registration exercise of new tax payers, has  resulted in the registration of  814,000 additional taxpayers by December 2016, and 3.4 million taxpayers by State Internal Revenue Services (SIRSs).

    “By Decemeber last year, Nigeria has a National Tax Roll of 14 million,” he said.

    The  FIRS chief attributed last year’s tax revenue figure  to the ease of tax payment.

    He said the FIRS asked taxpayers to file their tax returns at the FIRS offices nearest to them. This novel idea has increased compliance as it eased the burden of taxpayers, who hitherto, had to travel from far places to pay their taxes.

    Another reason for the performance Fowler said, was the “improved collaboration with the office of the Accountant-General of the Federation to ensure that MDAs remit taxes such as Withholding Tax (WHT) Value Added Tax (VAT) promptly through the Government Integrated Financial Management Information System (GIFMIS).”

    Other factors that aided the FIRS in raising the impressive N3.3 trillion tax revenue Fowler said, included collaboration with the Joint Tax Board (JTB) and SIRSs on several fronts, such as Taxpayer Enlightenment, Tax Enforcement and registration of new taxpayers and Tax Education, among several others.

    Fowler said Integrated Stamp Duties Services (ISDS) portal for ease of tax payment, “was introduced by the Service for a purpose-built Stamp Duty portal that facilitates the online assessment and payment of Stamp Duties by Nigerian taxpayers.

    The FIRS “is convinced that with progressive application of technology, persuasion and enforcement on recalcitrant taxpayers, and partnership with key stakeholders like the press, we will collect enough revenue for the nation in 2017,” Fowler said.

  • FIRS taps Goldlink for tax compliance

    The management of Goldlink Insurance Plc has received a team of the Federal Inland Revenue Service (FIRS) at its Head Office on a tax compliance visit, its Managing Director,Mrs. Funke Moore has said.

    According to her, the visit was also to foster a better relationship that would ensure the underwriting firm’s continuous commitment to its tax responsibilities as required by the law.

    While appreciating the FIRS support over time, Mrs. Moore assured the team of the company’s unwavering commitment in ensuring full compliance with tax laws and obligations.

  • FIRS shuts two firms over N884 million tax debt

    FIRS shuts two firms over N884 million tax debt

    The enforcement team of the Federal Inland Revenue Service (FIRS), yesterday, shut the premises of AOP Logistics Limited, at Breweries new site area, Ibadan. The firm has a tax debt profile of N863, 188,498.00. The enforcement team leader said the premises of the firm will not be re-opened until it pays up it tax debt accumulated between 2007 and 2011.

    A senior staff at the haulage firm, who refused to disclose his name, said the firm had been making some tax payments to the FIRS. He, however, failed to provide prove of such payments.

    The FIRS team was also at Markfina International Limited at Kilometre 9, Kulodi, New Ife Road, Ibadan. The staffers of the firm, which is owing N21, 183, 020.95, were ordered out of the premises.

    Mr. Ayodele Oluwalekan, a management staff of the frm, told the FIRS team that the firm has not been able to pay what is owes because it stopped operations for a while, an explanation that did not impress the FIRS team leader, who ordered the premises sealed.

  • FIRS nets N27b from ‘tax amnesty’, as 814,000 new payers are listed

    FIRS nets N27b from ‘tax amnesty’, as 814,000 new payers are listed

    Tunde Fowler, executive chairman of the Federal Inland Revenue Service (FIRS), says the agency realised N27.086 billion from the waiver of tax penalty and interest programme.

    The programme was introduced to allow defaulters regularise their relationship with the agency.

    Fowler spoke yesterday in Abuja during the oversight visit by the  House of Representatives Committee on Finance, according to a statement endorsed by Wahab Gbadamosi,  head of communications and servicom department at FIRS.

    The N27.086 billion came from the tax waiver programme came from the payment of a minimum of 25 per cent of the principal of outstanding tax liabilities between 2013 and 2015 and continued payment of agreed instalments.

    More revenue is expected from instalmental payments of the principal, Fowler added.

    As many as 2,735 taxpayers applied under the tax waiver programme.

    “The aggregate tax revenue collection for the year 2016 amounted to N3.307 trillion which translates to 79 per cent of the government target of N4.200 trillion,” he said.

    Last year, FIRS gave a 45-day window, between October 5 and November 24 for taxpayers owing tax liabilities inclusive of interest and penalty for 2013-2015 to come forward and pay a minimum of 25 per cent of the actual  liabilities and spread the balance. Penalty and interest were waived.

    Fowler also told the committee members that FIRS implemented a nationwide tax registration drive in 2016 to bring additional taxpayers into the tax net.

    “We were able to bring in additional 814, 000 corporate taxpayers, exceeding our target of 500, 000 previously unregistered taxpayers. This was achieved through nationwide taxpayer registration drive, taxpayer engagement and enlightenment. We established the Federal Engagement and Enlightenment Tax Teams (FEETT) ran campaigns on television and radio in five languages. We are collaborating with Ministries, Departments and Agencies, MDAs on several fronts. With State Internal Revenue Service (SIRS), we are collaborating on engagement, education and tax audit. We signed a Memorandum of Understanding (MOU) with them,” he said.

  • FIRS shuts Imo firm  over N42.1m tax debt

    FIRS shuts Imo firm  over N42.1m tax debt

    The Federal Inland Revenue Service, (FIRS) yesterday shut the Imo Transport Company Limited (ITC), in Owerri, over a N42 million tax debt incurred between 2008 and 2016.
    The sealing of the company was done by an FIRS enforcement team led by Ruth Mandeun. The team leader told the ITC that the FIRS had come to execute a warrant of distraint served on the company following futile attempts to make it fulfil its tax obligation to the federal government.
    Although, officials of the transport company initially showed resistance, they later cooperated when they realised the government revenue-collecting agency had complied with due process in carrying out the action.

  • FIRS seals Kabo Airline, others over N200m tax liabilities

    The Federal Inland Revenue Services (FIRS) yesterday, sealed the offices of Kabo Airlines, Monaco Ventures Limited and Paki International Motors, all in Kano, over tax liabilities

    Kabo Airline owes N149,707,949.03 from the assessment year of 2004 to 2013. According to the head of the enforcement team in Kano, Mr. Bukar Gana, the airline’s liabilities are made up of Income Tax (IT) and Education Tax (ET).

    He explained that the company did not contest the liabilities, an action which led to the sealing of its premises on Ashton Road, Kano.

  • NECA cautions FIRS against Stamp Duty Act

    NECA cautions FIRS against Stamp Duty Act

    The Nigeria Employers’ Consultative Association (NECA) has advised the Federal Inland Revenue Service (FIRS) against its planned enforcement of Stamp Duty Act.
    The caution comes against the backdrop of unlawful increase in stamp duty collectible from 2kobo to N50, contrary to the FIRS Establishment Act. But experts said the increase might be as a result of naira devaluation and high exchange rate.
    The Federal Court of Appeal in the matter between Kasmal International Services Limited and Access Bank and 23 others, ordered banks to stop the illegal charging of N50 per transaction in lieu of stamp duties.
    Despite calls by NECA and other well-meaning Nigerians, the Central Bank of Nigeria (CBN) is yet to direct banks to obey the judgment.
    Speaking in Lagos, NECA Director-General, Olusegun Oshinowo, said; “The outright disobedience of court order by the CBN is not good for the country, especially as it sends a wrong signal to foreign investors and sets back the efforts of government at promoting the rule of law. The CBN is portraying itself to be bigger than the law of the land.”
    He however said the Organised Private Sector (OPS) welcomed the take-over of collection of stamp duty by the FIRS which is in line with extant law.

  • FIRS shuts more tax-defaulting companies

    FIRS shuts more tax-defaulting companies

    The Federal Inland Service (FIRS) yesterday continued its crackdown on tax-defaulting companies in Abuja.

    Ruth Mandeun led the enforcement team of the service to seal off the offices of Group Properties Limited located at 132, Mediterranean Street, Maitama, Abuja.

    The company has a tax liability of N52,808,953.48. But the management of the company produced an undertaking with the FIRS that it would pay on or before December 23.

    The company was subsequently unsealed off.

    Salem Quest Limited, which has its office at Block C8 Flat 3, Games Village, was not so lucky. The company, which has a tax liability of N273,536, made up of the company income and education taxes, was sealed off.

     Also sealed off in Abuja yesterday was Life Way Medical Centre at 60, Harper Street, Wuse Zone 7. The company is owing N106, 234.

     Earlier in the week, the FIRS enforcement teams in Lagos, Abuja and Port Harcourt had sealed off defaulting companies.

    In Lagos, the team led by Mr. Umar Bukar Gana sealed off Mayssa International Limited at 202, Etim Inyang Crescent, Victoria Island, Lagos, over a tax debt of N133.8 million.

    The managing director, who identified himself as Mr. Robert, told the team that “while the company owes, the debt is not on the scale the FIRS claimed”.

    He added that the organisation is making efforts to pay what it owes, an assurance that did not impress the team which shut down its premises. The team also shut Modesty Properties Limited at 255, Muri Okunola Street for a tax liability of N30.7 million.

    The exercise also affected Joza Global Logistics Limited at 8,Ribadu Road, Ikoyi which was shut for owing N62.4million.

    In Abuja, Mrs. Mandeun ordered the sealing off of the premises of Hakimco Automobiles Limited at the city’s Central Business District. The company is indebted to the tune of N335,902. The manager claimed to have paid the debt, but when given 30 minutes to produce the evidence of payment, he disappeared and the company was shut.

     On Wednesday in Lagos, the premises of Ace Products and Services at 20, Sanni Ashmiu Close, Awoyaya, Lagos, was shut over a tax debt of N157.3 million.

    The staff of the company refused to open the gates for the officials despite the fact that they properly identified themselves as FIRS staff.

    The refusal to open the gates lasted about 15 minutes, after which policemen attached to the team forced the gates open before the company was sealed off.

    The team also visited Globasure Technology Limited at 10, Ashabi Adewale Close, Lekki Phase 1, Lagos. The company is indebted to the tune of N36.5 million.

    On Tuesday, the FIRS sealed off Diplomat Hotel at 1, Shonny Way, Shonibare Estate, Maryland, Lagos, which is owing N35.1million.

     The same day, the team closed the premises of Island Power Limited, a power generating firm owing N132.5million from 2012 to 2014. The company’s administrative department was shut, leaving the power plant because of the essential service it provides.

    In Port Harcourt, Rivers State, the FIRS team, led by Mrs. Anita Erinne, shut the premises of Universal Insurance which has a tax debt of N82.1million. Also shut were the premises of Groundscan Services Limited which is indebted to the tune of N22.6million.

     Similarly shut was Moonwalker Connect Limited which has its office at the Palms Shopping Mall, Lekki. The company is owing N61.2 million.

  • FIRS seals Lagos hotel, Port Harcourt firms

    The Federal Inland Revenue Service (FIRS) yesterday sealed the Diplomat Hotel, located at 1, Shonnyway Street, Shonibare Estate, Maryland, Lagos, over a N351 million tax debt.

    Its Head of Enforcement Team, Bukar Gana, said the hotel owed taxes between 2012 and 2016. The hotel customer care manager, who didn’t give his name, said they were “concerned about the debt”.

    The team closed the premises of Island Power Limited, a power generating company, situated 1 Cable Street, Lagos. The firm owed N132.5million accumulated between 2012 and 2014. The administrative department was sealed off, leaving only the power plant because of the essential services it provides to organisations.

    The team visited Consertive Estimate Limited, situated at 15, Fatai Irawo Street, Papa Ajao, Lagos, which has a tax debt of N15.8 million. However, the company was said to have relocated over four months ago.

    The exercise equally took place in Port Harcourt, Rivers State, where the FIRS team led by Mrs. Anita Erinne, shut Universal Insurance, which owed N82.1million in income tax.

    Also, an eatery, Charcoal and Spices Limited, was shut for failure to pay taxes totaling N12,388,979,50.