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Tag: FIRS

  • FIRS speaks on alleged N90b cash gift to APC through Osinbajo

    The Federal Inland Revenue Service (FIRS) on Monday debunked an online report that it supported the ruling All Progressives Congress (APC) with N90 billion through Vice President Yemi Osinbajo.

    The publication in some online and daily newspapers was credited to APC’s former Deputy National Publicity Secretary Timi Frank.

    In a statement by FIRS’s Director of Communication & Servicom, Wahab Gbadamosi, said among others things:

    • That the entire allegation being spread by one Timi Frank that the Federal lnland Revenue Service spent N90 billion to fund the last election is mendacious, wicked, malicious and a calculated attempt to smear the image of the Service and that of his Excellency, the Vice President, Prof. Yemi Osinbajo.
    • This campaign of calumny and villifying false claims are entirely, libellous, unfounded in fact, irresponsible and a brazen assault on the integrity of the Service as a responsible and accountable organisation and clearly demonstrates an abysmal ignorance of the budgetary and expenditure process of the FIRS.
    • That in the last four years since Mr. Tunde Fowler has supervised operations at the FIRS, the agency had not received up to N90 billion, per annum, as Cost of Collection from the Federation Accounts Allocation Committee (FAAC). Mr. Frank and his band of liars might wish to cross-check this from FAAC, a public institution, whose records are open to the public.
    • That it is from the remittances from FAAC — which had never grossed up to N100 billion, per annum, that FIRS pays the salary and emoluments and trains it’s over 8000 staff, runs over 150 offices and provides for other needs of the Service.
    • That given the above, it is not plausible nor does it make any sense that FIRS will commit its resources to a phantom campaign of N90 billion as suggested by Mr. Timi Frank and FIRS does not fund political associations.”

    Urging members of the public to disregard the report as a tissue of lie, Gbadamosi said: “The FIRS is a public trust, which the agency operates on behalf of Nigerians. Taxpayers money – including the operational funds of the Service – are sacred and we exercise, extra care and diligence in expenditures, even after such funds must have been appropriated by the National Assembly.”

  • Taxation remains Nigeria’s lifeline – FIRS

    Dr Babatunde Fowler, Chairman Federal Inland Revenue Service (FIRS), says taxation remains the country’s lifeline for economic development.

    Fowler made this known on Tuesday night in Abuja, at the investiture of Hajia Kudirat Abdul-Hamid, as the 3rd National Chairperson of Society of Women in Taxation (SWIT).

    Fowler was represented by a FIRS official, Mr Abiodun Aina.

    He noted that aids, grants and loans were not reliable revenue sources to ensure the development of any economy.

    The FIRS boss charged SWIT under Abdul-Hamid’s leadership to continue to educate Nigerians on why they should pay tax for economic and national development.

    He added that on its part, the FIRS was working to ensure that the burden of taxation was reduced to the bearest minimum.

    Although Fowler noted that Nigerians were not convinced that their taxes were being judiciously used, he said the Federal Government had been more prudent in utilization of generated revenue from taxation.

    According to Fowler, revenue generated from taxation are currently being utilised by government to improve the country’s infrastructure, electricity as well as create employment.

    He congratulated Abdul-Hamid on her investiture and prayed God to grant her a successful tenure as she piloted the affairs of the body.

    Fowler, however, charged Abdul-Hamid to ensure that more women were made to study accounting, saying that they had greater roles to play to ensure that the younger generation paid their taxes.

    “We encourage SWIT to continue in its good work, believing that jointly, we will move this country to greater heights.

    “I pray that in your time, you will lead the society higher and higher and Nigerians will fill your impact and the impact of taxation in the country,” he said.

    Mrs Bosede Ikhanoba, SWIT National Secretary and President FCT ICAN, described Abdul-Hamid as a hard-working, innovative and reliable professional cum excellent manager of human and capital resources.

    She represented Dr Abiola Adimula, Chairman of the Investiture Planning Committee.

    Abdul-Hamid in her remarks, assured that she would not let Nigerians and members of SWIT down.

    She pledged that her administration would give listening ears to women and the citizens in general, saying, “we will not disappoint you or dash your hope.

    “We shall ensure global best practices, value creation and addition; we hope to bring more women on board, including those operating in isolation.

    “We will remain resolute in not just talking taxation, but working to ensure that Nigerians pay their taxes,” Abdul-Hamid said.

    The investiture brought together renowned tax professionals and accountants from across country, including representatives of Institute of Chartered Accountants (ICAN) and Economic and Financial Crimes Commission among others.

    Abdul-Hamid, a fellow of ICAN and Chartered Institute of Taxation (CIT) and a member of Nigerian Institute of Management, is presently the Auditor-General for Federal Capital Territory (FCT) Area Councils.

    SWIT is an umbrella body of female members of Chartered Institute of Taxation of Nigeria (CITN) inaugurated to meet the yearnings and aspirations of women for recognition as a force to reckon with on tax policy issues.

    It is also a forum for the promotion of social-economic development of women.

  • Proposed increase in VAT: Senate to invite finance minister, FIRS chairman

    The Senate Committee on Finance says it will invite the Minister of Finance and the Chairman, Federal Inland Revenue Service, (FIRS) to give details on reasons for the proposed increase in Value Added Tax (VAT).

    The Chairman of the Committee, Sen.Solomon Adeola, made the disclosure in a statement issued by his Media Adviser, Mr Kayode Odunaro, in Abuja on Thursday.

    Adeola said the invitation was hinged on the proposed plan to increase VAT from 5 per cent to 7.2 per cent .

    The Minister of Finance, Mrs Zainab Ahmed had after the Federal Executive Council (FEC) meeting on Wednesday spoken on the proposed plan to increase VAT.

    Adeola, said the proposed increase in VAT had generated mixed reactions among the public on its possible effects on living standards and the economy.

    “We are glad that the minister of finance indicated that the VAT act will have to be amended for the increase to take effect.

    “But we are concerned about the current economic situation of the country as it affects the generality of the people.”

    The chairman said the interaction with the two key officials of Federal Government would form part of the basis for possible amendments of the VAT Act.

    According to him, the meeting will further assuage any sentiments against the proposed VAT increase, if eventually the act is amended.

  • BREAKING: Court orders Shell to pay $10 million to FIRS

    The Federal High Court in Lagos, Southwest Nigeria on Friday ordered Shell Petroleum Development Company (SPDC) to pay the Federal Inland Revenue Service, FIRS, the sum of $10 million as unremitted revenue.

    Details later…

  • Tribunal reverses N29.2m VAT imposed by FIRS on bank

    The Tax Appeal Tribunal, sitting in Abuja on Wednesday, reversed N29.2 million Federal Inland Revenue Service’s (FIRS) imposed as value added tax on Infinity Trust Mortgage Bank.

    The bank had challenged FIRS’s imposition of the amount.

    The tribunal chairman, Mrs Alice Iriogbe, delivering judgment, held that FIRS failed to prove that those services carried out by the bank were VATable.

    He held further that the bank were not liable to be taxed on those services according to the VAT Act and Central Bank of Nigeria (CBN) Act, 2011 as amended.

    Iriogbe further held that the FIRS Service Information Status number 9 also supports the fact that such services by Mortgage Institutions were not VATable.

    ” In this circumstance, the tribunal holds that the VAT assessment dated May 17, 2018, in the sum of N29.2 million and the Respondent’s Demand Notice dated July 5, 2018 are hereby discharged, ” The tribunal held.

    The appellant (the bank) had sought the order of the tribunal for the annulment of the FIRS’s assessment or demand notice dated May 17 and July 6, served on it with penalty at 10 per cent and interest at 15 per cent.

    In its defence, FIRS argued that the letter of review and audited accounts were valid and issued in accordance with the relevant provisions of the law.

    It, therefore, asked the tribunal to declare that the VAT demand served on the Bank was valid and made in accordance with the law.

    The respondent further sought for a declaration that the VAT transaction by the appellant outside the main objectives of its business was liable to VAT.

    FIRS further sought for an order compelling the appellant to pay to the respondent the sum of N29. 2 million, being its VAT liability for the period of 2015 to 2016 as contained in the demand letter.

  • FIRS to charge VAT on lottery, betting, automate collection

    The Federal Government has announced plans to charge Value Added Tax (VAT) on lottery and gaming activities and automate collection from operators in the.

    This was announced on Monday in Lagos at a stakeholders’ engagement session with lottery and gaming operators.

    The session, organized by the Federal Inland Revenue Service (FIRS) in conjunction with the National Regulatory Commission (NLRC), had in attendance top brass of the revenue agency, led by FIRS Chairman, Mr. Tunde Fowler; Mr. Lanre Gbajabiamila, NLRC Director-General; representative of the Senate Committee Chairmen on Sports, representative of the Chairman, House Committee on Governmental Affairs; and industry operators.

    The plan will see users of the services provided by the industry paying 5 per cent VAT on each transaction made.

    Speaking at the session, the NLRC D-G stated that lottery and gaming operators collect VAT from users of the industry’s services without remitting such to the government, a situation that results in revenue losses. The session also noted that betting slips issued to consumers do not indicate VAT as they should.

    At a presentation made at the session by Zurich Technologies, provider of the automated software solution for VAT collection, the process will be made electronically in a way that computes the VAT payable by consumers on each operator’s platform by aggregating transactions for a 21-day period and the operator is given a bill for the VAT payable. The bill is then settled through the online platform, as the software allows operators to file VAT returns and is flexible enough to accommodate disputation over the figures, which operators can resolve with the FIRS through the provision of documents to back such claims. The Zurich Technologies representative, who made the presentation, explained that automation will improve transparency in the collection process.

    Industry operators, however, argued that automation has the potential of killing the industry, as the additional 5 per cent charge for VAT could discourage punters from using their services with the frequency they currently do.

    Speaking on behalf of lottery and gaming operators, Mr. Akin Alabi, founder of Nairabet and House of Representatives member-elect, said the potential reduction in hoped-for winnings, especially on low-odds bets, will drive customers from regulated operators into the hands of unregulated ones. He argued that the FIRS should have consulted operators before taking the decision to impose 5 per cent VAT and the automation of collection.

    Responding, the FIRS Chairman assured that VAT is not a tax to be borne by operators, but their customers.

    “Tax has to do with law and the law says that for every transaction that is VATable, 5 per cent should be charged. You have to be aware that we are automating collection in all industries. This is not a tax on the business, but on a bettor who hopes to win. You also have to realize that 85 per cent of VAT goes to the state, which are supposed to be closer to us. In this case, we are all winners,” Fowler said.

    The FIRS Chairman further stated that additional revenue from VAT will aid provision of better social economic infrastructure for the country.

  • Tax Fraud: FIRS sets N750bn target from deviant accounting firms, others

    Sustained efforts by the Federal Government to boost revenue generation on Tuesday got a boost as Federal Inland Revenue Service (FIRS) unveiled plans to generate N750 billion from erring Accounting firms and others with N1 billion turnover and above.
    Chairman of FIRS Mr Babatunde Fowler who disclosed this during the budget defence of key revenue generating agencies held at the instance of House Committee on Finance chaired by Hon.Ibrahim Babangida, explained that the Service achieved 78.86% or N5.320 trillion out of its revenue target of N6.747 trillion for the 2018 fiscal year.
    The Service’s initiative tagged: ‘Bank Accounts substitution exercise’, was aimed at using banking information of non-compliant tax
    payers with N1 billion and above turnover into the tax net. So far, the sum of N23.25 billion has been recovered by the Service from undisclosed firms, while efforts are being intensified to cover those with turnover of N100 million and above.
    Our Correspondent further gathered that Economic and Financial Crimes Commission (EFCC) has also hunting for some law firms which have failed to comply with extant financial regulations.
    According to the report obtained from FIRS, the joint task set up to actualize the recovery: FIRS/EFCC Joint Task Force, was introduced in
    2018 to enhance the fight against tax related fraud. As at December 2018, a total of N6.94 billion and $278,430 had been recovered by the JTF. This and other such initiatives are continuous and will be continuous going forward.
    In his presentation, Fowler disclosed that additional sums of N28.51 billion and $77.83 million has been recovered through regular enforcement from various tax offices, tax audit and investigation assessments.
    He informed that through the recently introduced Voluntary Assets and Income Declaration Scheme (VAIDS), the Service through the implementation of Executive Order 004, recovered the sum of N53.04 billion at federal level out of N92.7 billion liability declared as at December 2018, adding that the agency is vigorously pursuing the balance of N39.68 billion from indebted tax payers.
    Similarly, FIRS has recovered revenue worth N4.3 billion accruing from property owners in Abuja and Lagos state, just as it unveiled plans to extend the initiatve to other parts of the country.
    “In this regard, Oyo and Kaduna states have commenced. It is important to note that this is not a property tax but rather the use of the
    provisions of the law to bring into the tax net, companies that own properties but failed to file necessary tax returns and pay appropriate taxes due.
    Through its Strategic Revenue Growth Initiative (SRGI) for the year 2018 aimed at securing some quick wins for short and medium terms
    period, FIRS realized the sum of N212.79 billion through National Tax Audit and Pioneer Audit, sequel to improvements to the audit process and resultant increased efficiency.
    According to the FIRS, following the expiration of the Pioneer Audit granted several companies, we have identified 190 companies in this
    category and have commenced post Pioneer Audit of 129 out of the identified companies. We expect to conclude the process before the end of 2019, the FIRS chairman told the lawmakers.
    In its quest to improve of the collection process through the deployment of technology, FIRS is expected to go live in 2019 with hospitality, branded superstores, eCommerce, professional service and maritime sectors, to complement the achievements recorded in Banking and Cable TV sectors which have gone live in 2018.
    Through the State Offices of Accountants General Platform (SAG) which is an automated system for the deduction at source and remittance of Value Added Tax (VAT) and Withholding Tax (WHT) from State Governments’ contract payments, 23 states remitted total sum of N14.99 billion as at December 2018, and expected of bringing on board other states in 2019.

  • VAT designed to support the poor – Fowler

    The Federal Inland Revenue Service (FIRS) has stated the Value Added Tax (VAT) is a consumption tax primarily designed to support poor people, and not to create hardship for them.

    Executive Chairman of the FIRS Babatunde Fowler allayed fears that the increase in VAT may cause hardship for the poor, stating that VAT is charged on consumption and capacity to consume.

    A statement by the Service on Tuesday quoted the FIRS Chairman as saying: “When you don’t consume certain categories of goods and services, you are not liable to pay VAT charges on those items.

    “VAT is not charged on all medical and pharmaceutical products. It is not charged on basic food items.

    “It is not charged on books and educational materials. It is not charged on baby products, fertilizers, locally produced agricultural and veterinary medicine.

    “VAT is not charged on farming machinery and farming transportation equipment.

    “VAT is not charged on all exports, plant machinery and goods imported for use in Export Processing Zones and free trade zone: Provided that 100 percent production of such company is for export.

    “Other services exempted from VAT are Medical services, Services rendered by Community Banks, People’s Bank and Mortgage Institutions, plays and performances conducted by Educational Institutions as part of learning and all exported services are exempted from VAT.”

    Fowler said he understands “that some people misunderstand what the VAT is. VAT is a consumption tax.

    “If you don’t have money to purchase certain categories of goods and services and you don’t consume them, then VAT is not your problem.

    “The VAT is used to assist the needy. VAT provides support for the needy, not a hardship on them.

    “85 percent of VAT collected is shared among states for them to provide free education, free health services, provide basic amenities among others.

    “We can see what the Federal Government is doing with the tax money. Look at the rail system, the Abuja-Kaduna rail is complete.

    “Look at the Lagos-Ibadan expressway, look at the education system, the school feeding program among others.

    “If at the state level, your government cannot justify the taxes you pay to them, you have the right to vote them out in the next four years,” Fowler said.

    Fowler said that if countries like United Arab Emirate (UAE), Saudi Arabia who are rich in oil resources would be laying emphasis on taxation, Nigeria should also emulate them.