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Tag: FIRS

  • Okonjo-Iweala to FIRS: Consider birth certificate as tax registration

    Okonjo-Iweala to FIRS: Consider birth certificate as tax registration

    As the country’s fortunes dwindles from the sale of crude oil, the Coordinating Minister for the Economy and Minister of Finance, Dr Ngozi Okonjo-Iweala, has instructed the Federal Inland Revenue Service (FIRS) to employ “any efforts” to grow the nation’s revenue base.

    She urged the FIRS to consider birth certificate as registration for taxation purposes as obtained in South Africa and Namibia, where tax registration and TCC are being linked to birth certificate.

    Represented by the ministry’s Permanent Secretary, Mr. Danladi Kefas, she said FIRS’ efforts to grow the nation’s revenue base remain a step in the right direction, most especially, in the face of the dwindling oil income.

    The minister said,”any efforts by the FIRS to grow the revenue base of the country are welcome and everybody must contribute his or her share, especially, when somebody is earning taxable income.”

    A statement from the FIRS said Okonjo-Iweala gave the directive in Abuja on Thursday at a one-day sensitization workshop for Local Staff of Embassies on PAYE, Withholding Tax (WHT), Value Added Tax (VAT) on Contracts, and Taxpayer Identification Number (TIN).

    The statement signed by Emmanuel Obeta, Director, Communications and Liaison Department quoted Okonjo-Iweala as saying that “you cannot escape tax and claim to be a responsible citizen of that country. Once you pay tax, you can now have the benefits that come with payment of taxes. Tax payment is the backbone of any country.”

     

  • Seven FIRS workers to be arraigned for ‘fraud’

    The North Central Zone of the Tax Appeal Tribunal, sitting in Jos, the Plateau State capital, has ordered the Department of Public Prosecution (DPP) Office of the state Attorney-General to arraign the seven workers of the Federal Inland Revenue Service (FIRS) for alleged tax fraud.

    The suspects allegedly forged Federal Government’s tax receipts and claimed over N17 million from the Plateau State Universal Basic Education Board (SUBEB).

    The forged tax receipts were reportedly uncovered when FIRS sued SUBEB at the Tax Appeal Tribunal for tax evasion.

    The forged documents, which were tendered by SUBEB before the court to substantiate the claim that the board remitted some taxes, led the court to suspect that there was fraud.

    The tribunal ordered the Plateau State Police Command to investigate the forged documents.

    Presenting its report during the tribunal’s sitting yesterday in Jos, the police said they had investigated the matter and discovered that the documents were truly forged.

    Corporal Yahaya Adamu, who appeared before the tribunal for Police Commissioner Chris Olakpe, said: “The command has arrested seven suspects in connection to the fraud and are in custody, awaiting order of the court for prosecution.”

    Tribunal Chairman Abraham Ndana Yisa ordered the Attorney-General and Commissioner for Justice to ensure that the suspects are arraigned without delay.

  • Tribunal orders Mobil to pay N13.09bn to FIRS

    Tribunal orders Mobil to pay N13.09bn to FIRS

    Oil giant, Mobil Producing Nigeria Unlimited was on Friday ordered by The Tax Appeal Tribunal, Lagos Zone, to pay 83.4 million dollars (about N13 .09 billion) to the Federal Inland Revenue Service (FIRS) as education tax liability for the year 2008.

    A five-man tribunal presided over by Mr Kayode Sofola (SAN) unanimously gave the order while delivering judgment on an appeal filed by the oil exploration company against the FIRS.

    Mobil had on May 5,2011 filed the appeal after the FIRS issued it an education tax assessment of 83.4 million dollars for the year 2008.

    Counsel to Mobil, Mr T. Emuwa, had claimed in their appeal that the assessment breached the Memorandum of Understanding signed by the company with the Federal Government of Nigeria and the Nigerian National Petroleum Corporation (NNPC) in 2000.

    Emuwa had argued that the 2000 MoU allowed the company, in computing its education tax liability, to deduct all amounts it incurred in paying taxes and levies to the federal and state governments and other agencies.

    The FIRS, through its counsel, Mrs B.H. Oniyangi, however claimed that the 2000 MoU was signed for a three-year term.

    FIRS said that the validity of the MoU had lapsed since January 1, 2003.

    Oniyangi had submitted to the court that the Federal Government of Nigeria confirmed the expiration of the MoU it had with Mobil on the matter.

    Government, according to her, through a letter issued by the Department of Petroleum Resources (DPR) on January 17,2008, confirmed the expiration of the MoU.

    She said the 2000 MoU has since been replaced by the Petroleum Profits Tax Act (PPTA) which was used to issue the disputed assessment.

    Delivering the judgment, Sofola agreed that the said MoU was only for a three-year term.

    The lead judge noted that there was no evidence before the panel that the MoU was ever renewed.

    “The 2000 MoU thus expired at the end of 2002. The parties never did anything to keep it alive any longer, as stated in clause 7.1.

    “In effect, clause 7.1 contains an ‘option to renew’, exercisable at the joint instance of all the parties. This option was never exercised, an thus no renewal or extension was triggered,”she said.

    In view of this, Sofola said the appellant was no longer entitled to make the deductions allowed under the 2000 MoU, in calculating their education tax.

    “The PPTA is the legislation in force and cannot be subordinated to the mere contemplations of the MoU.

    “We uphold the respondent’s (FIRS) assessment of the appellant to education tax of 83,414,793 US dollars.

    “ We order the appellant to pay accordingly,” the tribunal chairman added.

  • Tribunal orders Mobil to pay $83.4m to FIRS

    The Tax Appeal Tribunal, Lagos Zone, on Friday ordered Mobil Producing Nigeria Unlimited to pay 83.4 million dollars (N13 billion) education tax to the Federal Inland Revenue Service (FIRS).

    The News Agency of Nigeria reports that the tribunal gave the order while delivering judgment on an appeal filed by the oil company against the FIRS.

    Chairman of the five-man tribunal, Mr. Kayode Sofola (SAN), said the amount represented the company’s education tax liability for 2008.

    The company had instituted the appeal on May 5, 2011 when FIRS issued with it an education tax liability of 83.4 million dollars for 2008.

    The appellant’s counsel, Mr. T. Emuwa, had claimed that the assessment breached an agreement signed by the company with the Federal Government of Nigeria and the Nigerian National Petroleum Corporation (NNPC).

    Emuwa said the Memorandum of Understanding (MoU) was first signed in 1986 and renewed in 2000.

    He said the 2000 MoU allowed the company to deduct all amounts paid to other agencies from the tax due to the federal and state governments

    FIRS had through its counsel, Mrs. B.H. Oniyangi, claimed that the 2000 MoU was signed for a three-year term, adding that its validity ended on January 1, 2003.

    Oniyangi held that the federal government, through a letter issued by the Department of Petroleum Resources (DPR) on January 17, 2008, also confirmed that the MoU had lapsed.

    According to her, the 2000 MoU was replaced by the Petroleum Profits Tax Act (PPTA) which was used to issue the disputed assessment.

    Delivering the judgment, Sofola agreed that the said MoU was only for a three-year term, noting that there was no evidence before the panel that it was renewed.

     

     

  • FIRS to automate VAT, WHT in Sept.

    FIRS to automate VAT, WHT in Sept.

    The Federal Inland Revenue Service (FIRS) will implement the automated Value Added Tax (VAT) and Withholding Tax deductions at source for the aviation industry in September.

    The Acting Executive Chairman of FIRS, Alhaji Kabir Mashi made this known yesterday in Abuja at a one-day sensitisation workshop for FIRS field officers, collection agents and banks.

    The Pilot Scheme of the automation processes, which is expected to go live in the third quarter of 2013, according to a statement from the FIRS, would cover other sectors such as telecommunications, power, and financial institutions.

    Mashi was represented by the Coordinating Director, Direct Report Group (DRG), Mr. Onyekachi Ihedioha. He listed the automation of the FIRS receipt processes, increase in the number of payment channels as well as the implementation of the Integrated Tax Administration System (ITAS) among steps taken by FIRS to ensure increase in tax revenue collection for the government.

    He also disclosed that FIRS is collaborating with the commercial banks to make the Taxpayer Identification Number (TIN) mandatory for opening of an account and all transaction with the individuals and corporate bodies.

    Mashi said :“We have extended invitations to our collecting agents for their magnanimity in collecting and remitting taxes on behalf of the Service. Businesses now know that there is no hiding place for them anymore. Yes they can run, but they can no longer hide.

    “We appreciate the level of cooperation thus far in the implementation of the Taxpayers Identification Number (TIN) system. We have achieved some significant mileage with the introduction of TIN and we hope the banks will fully adopt the “No TIN No Account” option as we go on.’’

    He noted that efficient revenue management entails generating the maximum level of revenue without leakages, prompt delivery of quality services to the taxpaying public and high level of transparency and accountability.

    He said while part of the ITAS project focuses on Taxpayers Registration using TIN, the filing and registration and returns processes, payment processing was being addressed by the collection automation project.

    The FIRS boss explained: “we have adequate mechanisms for proper analysis and monitoring of these initiatives to enable us address attendant challenges as they occur.

    “The success or otherwise of some of the above initiatives depended on the level of cooperation of agencies like the Nigeria Customs Service, Central Bank of Nigeria, Nigeria Civil Aviation Authority, Office of the Accountant General of the Federation.

    “I am sure you are all aware of the introduction of the Electronic Form M by the Nigeria Customs Service and the Central Bank of Nigeria. We have also keyed into this arrangement in such a manner that transaction involving the use of e-form M cannot be processed without a valid Taxpayers Identification Number (TIN).

    “Equally important for the success of this idea is the level of cooperation of banks, we therefore solicit for your assistance in the implementation of this and other various initiatives.’’

    Mashi noted that the Service at inception focused on efficiency in collection, assessment and accounting, adding: “while the primary mandate remained unchanged, a lot has since changed from process reengineering to process automation through our modernisation programme’’.

  • FIRS first quarter collection hits N 1.5t

    FIRS first quarter collection hits N 1.5t

    A total of N1.5 trillion (1,581,480,553,562.50) revenue had been collected as at the end of April, 2013, the Federal Inland Revenue Service (FIRS) has disclosed.

    Director, Communications & Liaison Department, Emmanuel Obeta said this in a statement. He added that the figure is an improvement on what it collected same period 2012.

    The revenue collecting agency has assured that it will meet the government revenue target of N5.72 trillion by September 2013, he said.

    The statement noted that  drawing confidence from the result of its modernisation and automation projects, particularly, the Integrated Tax Administration System (ITAS), FIRS has jerked up its internal revenue target of 2013 to N6trillion

    The director said at the Regional Enlarged Management Meeting (REMM) in Lagos, yesterday, FIRS Management team strategised on how to achieve the targets. Some of the issues discussed at the Lagos REMM included how to improve efficiency in FIRS revenue collection through the implementation of ITAS and improve staff motivation to ensure utmost performance.

    The statement quoted the FIRS Ag Chairman, Kabir Mashi as saying  that  ”What I want to tell staff is that we must be focused and not to be distracted. I like to assure you that we will remain resolute and committed on our mandate. You must have heard that the Honourable Minister of Finance and Coordinating Minister for the Economy, Dr. Ngozi Okonjo-Iweala has restated her support for our staff. What is expected of us is to be focused and committed to our duty.

  • Non-remittance of taxes: Affected banks risk sanction

    Non-remittance of taxes: Affected banks risk sanction

    MONEY deposit banks found culpable in the ongoing probe of banks allegedly involved in taxes and duties irregularities risk serious sanction by the Federal Government, it was learnt.

    The Nation can authoritatively report that the 24 money deposit banks involved in the collection of revenue on behalf of the Federal Government specifically for the Federal Inland Revenue Service (FIRS) and the Nigerian Customs Service (NCS) would face the wrath of the law.

    Speaking with The Nation over the weekend, a source at the FIRS Abuja, who would not be named because he was not authorised to speak, said the agency was doing everything to assist members of the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) committee on non-oil revenue on monitoring of banks’ compliance with taxes and duties remittances.

    The RMAFC is the Federal Government agency charged with the responsibility of among other things to monitor revenue accruals and disbursements of federally-collected revenue to the three tiers of government.

    About 21 banks in the country have been contracted by the FIRS and the NCS to collect taxes and duties for government.

    A special account is to be opened with the CBN where all recoveries made shall be paid from where consultants engaged are also to be paid their relevant professional fees and the balance remitted to the Federation Account.

    Confirming this development, the Chairman of RMAFC, Elias Mbam , at a press conference in Abuja, last Thursday said the Federation Accounts Allocation Committee (FAAC) following a report to it by the RMAFC has authorised it to carry out an investigation of the banks’ activities beginning from January 2008 to June 2012.

    Accordingly, Mbam said the commission in line with due relevant provisions of the Public Procurement Act has appointed a lead consultant, J.K. Consulting, led by Mr. Joseph Kayode Naiyeju, former Accountant-General of the Federation (AGF) and also one-time chairman of the FIRS and 52 other consultants, including PriceWaterhouseCoopers Ltd, to look into the activities of the banks throughout the country.

    Expatiating, the RMAFC boss said the terms of reference would be to: “Supervise and co-ordinate the activities of other consultants; develop data capturing and reporting template; verify, reconcile and ensure that the flow of revenue from collecting agencies from January 2008 to June 2012 is in accordance with the relevant agreements between the collecting banks, FIRS and the NIS; produce a comprehensive report of all the findings and recommendations.”

    On the other hand, the task for other consultants, according to the chairman of RMAFC, is: “cover allocated bank(s) and revenue sources as provided by the Commission; reconcile the flow of revenue from collecting banks to Lead banks; reconcile all transfers from the Lead banks to the Federation Account in the CBN.

    Others are: verify that the remuneration paid to each Lead and collecting banks is in accordance with the agreement signed with FIRS and NCS; submit comprehensive report of all findings to the Lead Consultant.”

    The consultants are expected to begin their assignment on Monday and to turn in their report by August 15, 2013.

  • RMAFC appoints 53 consultants to screen banks on revenue collection

    RMAFC appoints 53 consultants to screen banks on revenue collection

    • Commission to plug leakages in Federation Accounts

    The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has engaged 53 consultants to verify and reconcile revenue collected by banks on behalf of the Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service (NCS).

    Addressing journalists in Abuja yesterday at the launch of the exercise, the Chiarman, RMAFC, Elias Mbam, said the Commission discovered leakages involving banks which have agreements with the FIRS and the NCS.

    Twenty-one banks are involved in the revenue collection exercise.

    He alleged that the banks milked the Federation Account by levying excessive charges on the revenues collected by the two agencies, a development he stressed was unacceptable.

    Asked if the Central Bank of Nigeria (CBN) was involved, Mbam stated that “the CBN banks all collections and moves them straight to the Federation Account and is not involved in the irregularities.”

    The leakages he insisted, “involves banks which have agreements with FIRS and NCS in the nature of excessive charges and Cost of transactions (COT), which is not acceptable.”

    To this end, the RMAFC has requested the Accountant General of the Federation (AGF) to open a special account with the CBN into which all recoveries made shall be paid, in respect of this exercise.

    Mbam explained that “the consultants shall be paid their relevant professional fees and the balance shall be remitted to the Federation Account for distribution to the three tiers of government.”

    The RMAFC chairman said the “best way to confirm these irregularities is to engage  consultants. RMAFC does not know the amount involved and will leave this to the consultants to determine.”

    He defended the large number of consultants for the exercise, saying that “all the 21 banks are collecting banks for the FIRS and NCS, and they have branches all over the country, as a result, the RMAFC has distributed  consultants to specific banks and time frames and the FIRS and NCS to stop these leakages.”

    He said the Commission “engaged large consultants to complete the assignment on schedule as it would take too long for very few consultants to complete the assignment.”

    The exercise is scheduled to commence on the 3rd of June, 2013 and to be completed on the 15th of August, 2013 when the lead consultant is expected to submit a final report to the RMAFC. However, the exercise may go beyond 2008, if the need arises, “but we need to work within this time frame first to know the extent of the leakages,” he said.

    The RMAFC appointed J.K. Consulting, led by Joseph Kayode Nayeju, former Accountant-General of the Federation (AGF) as the lead consultant. Mbam said he has “reasonable international experience to lead the exercise.”

    The other 52 consultants, including PriceWaterhouseCoopers, will carry out the verification and reconciliation exercise covering January 2008 to June 2012.

    Mbam said RMAFC was compelled to undertake the exercise when both the non-oil monitoring committee and the mobilization department of the RMAFC observed some irregularities in the remittances of revenue from some collecting banks, adding that “the Commission views this as a serious leakage to the Federation Account.”

    On March 19th, 2013, the Federation Accounts Allocation Committee (FAAC) gave approval to RMAFC to engage consultants to verify and reconcile revenue  collections and remittances by the banks in order to recover any excess deduction and stop further leakages.

    Mbam noted that “the essence of the exercise is to ensure transparency and accountability in revenue remittances into the Federation Account, and given the seriousness with which the RMAFC and FAAC view this assignment, it is hoped that all consultants will collectively bring their professional experience to bear on it in order to achieve the desired result.”

    He appealed to all the lead and collecting banks to cooperate with the consultants to ensure a very successful exercise which is to promote transparency, efficiency and accountability in the business relationship between the banks and the government.

  • FIRS boss to officers: Improve your capacity

    The Acting Executive Chairman of the Federal Inland Revenue Service (FIRS), Alhaji Kabir Mashi, has urged leaders of state tax boards to develop their capacity.

    Marshi told the states tax board leaders to dream, articulate visions, objectives and develop strategies to actualise them.

    He spoke in Abuja yesterday at a two- day Leadership Enhancement Programme organised by the Joint Tax Board (JTB) in collaboration with ReStral Consulting.

    Mashi, who doubles as the Chairman of the JTB, told the Chairmen of the Inland Revenue boards of the 36 states and Federal Capital Territory (FCT) that as leaders, they owe themselves, their organisations and Nigeria the duty to developed themselves.

    He said capacity building is the most important challenge facing leaders in modern societies today. “As Chief Accounting Officers of our respective tax authorities, the need for continuous capacity building programmes cannot be over emphasised. You are all aware that we are constantly faced with the challenge of how to effectively and adequately manage both human and material resources at our disposal for optimum revenue collection,” he added.

    He said the programme was organised to build the capacity of the tax chiefs Who must strive for perfection, saying, “we equally need avenues like this to share and compare notes of the goods and not too pleasant situations around us.”

    Marshi noted that leadership capacity building “remains a major tool in helping chief executives develop essential skills necessary for achieving organisational goals and objectives.

     

     

     

     

     

     

  • Tax remittance: Bank chiefs snub Reps’probe

    Tax remittance: Bank chiefs snub Reps’probe

    • Nine CEOs risk arrest

    Investigation into remittance of tax to the Federal Inland Revenue Service (FIRS) by the House of Representatives Committee on Finance got underway yesterday with no bank Chief Executive Officer (CEO) in attendance.

    The Committee is probing banks’ tax returns between 2008 and 2012, as well as their level of compliance with collected tax remittances to the Federal Government within the period.

    Though 12 of the 21 banks under investigation sent representatives, all the banks’ CEOs were asked to present themselves before the Committee tomorrow (Wednesday), or they would be compelled to do so. Nine bank chiefs were specifically asked to appear before the Committee on Wednesday, or they would get a warrant of arrest.

    The affected banks are Zenith Bank, Sterling Bank, Stanbic IBTC, Skye Bank, Heritage Bank, First City Monument Bank (FCMB), Ecobank and Enterprise Bank.

    The Committee stressed that it would not welcome any representation of a lower subordinate.

    In his opening remarks, Chairman of the Committee, Abdulmumin Jibrin, warned that the investigation should not be viewed as overstepping of its mandate.

    “We are here today (yesterday) in line with the oversight mandate of the Committee on the FIRS and tax matters. Our vision is to strengthen the FIRS and optimise the potentials of our tax system.

    “All over the world, banks are under tight scrutiny by the parliament because of their strategic role in the economy, and of course tax matters are treated with utmost importance,” adding that what the Committee was seeking to do, is for the banks to give more, or at worst give exactly what they were expected to give in accordance with the laws as and when due.

    “This will sufficiently deal with your responsibility as tax payers. We also intend to look into your roles as collecting agents to see how well you have complied with laid down rules and regulations,” he added.