TheNewsGuru

Tag: FIRS

  • No plans to tax online content creators – FIRS

    No plans to tax online content creators – FIRS

    The Federal Inland Revenue Service (FIRS) says it has no plans to tax online content creators.

    According to a staff of the agency who spoke under the condition of anonymity, skit makers are individuals who do not fall within the purview of the FIRS.

    “FIRS do not tax Personal Income Tax, States governments do.

    “FIRS collects Company Income Tax. Only those who are corporate names and earn profit of N25 million and more are required to pay tax,’’ he said.

    A section of the media recently quoted the FIRS as saying that media content creators and influencers constituted a major block of tax evaders.

    Meanwhile, the FIRS recently unveiled a new structure to improve the country’s tax administration.

    The Executive Chairman of the FIRS, Dr Zacch Adedeji, said that the structure was in pursuit of a more efficient and contemporary tax administration methodology.

    He said that the agency was embracing an integrated tax approach, leveraging technology at every step.

    “This approach positions FIRS at the forefront of innovation, ensuring that we meet the evolving needs of our taxpayers in a rapidly changing world.

    “The structure advocates a comprehensive approach to taxpayer services, consolidating our core functions and support under one umbrella.

    “By tailoring our services to specific taxpayer segments, we aim to simplify the taxpayer experience.

    “No more complexities, no more overlaps, just a seamless and user-friendly interaction for every taxpayer,’’ he said.

    He said that the move would shift the agency away from traditional tax categorisation.

     

  • FG orders banks to start deducting EMTL on foreign currency transactions

    FG orders banks to start deducting EMTL on foreign currency transactions

    The federal government (FG) has directed commercial banks in the country to start deducting Electronic Money Transfer Levy (EMTL) on foreign currency transactions.

    TheNewsGuru.com (TNG) reports the FG gave the directive through a circular by the Federal Inland Revenue Service (FIRS) to the commercial banks.

    This follows implementation of the Finance Act 2020, Section 48 and Stamp Duties Act 2004 Section 89A (1) as amended, which imposes a levy referred to as Electronic Money Transfer Levy (EMTL) on electronic receipts on transfers for money deposited in any deposit money bank or financial institution, on any type of account.

    Already, the commercial banks have started sending notices for implementation of the deductions to their customers, who own domiciliary accounts.

    According to the notice, the deductions will be retrospectively implemented from January 2021 when the Finance Act, 2020 became effective.

    One of such notices by Zenith Bank reads: “Dear Valued Customer, we have been mandated by the Federal Inland Revenue Service (FIRS) to deduct and remit Electronic Money Transfer Levy (EMTL) on foreign currency denominated inflows into your account in line with the provisions of the Finance Act 2020, Section 48 and Stamp Duties Act 2004 Section 89A (1) as amended which imposes a levy referred to as Electronic Money Transfer Levy (EMTL) on electronic receipts on transfers for money deposited in any deposit money bank or financial institution, on any type of account.

    “While the bank has been implementing provisions of the Acts on Naira denominated inflows, the directive from FIRS has mandated us to extend the levy to foreign currency inflows equivalent of #10,000 and above, and charged at equivalent of #50.00 per transaction.

    “The FIRS further directed that this levy be retrospectively implemented from January 2021 when the Finance Act, 2020 became effective.

    “Please note that FGN Electronic Money Transfer Levy is a statutory levy payable wholly to Federal Government and not to Zenith Bank Plc”.

    TNG recalls the FG had disclosed intentions to go after the stockpile of foreign currencies in domiciliary accounts.

    However, the Minister of Finance and Coordinating Minister for the Economy, Wale Edun, who disclosed the intentions of the FG, said forceful measures would not be imposed.

    Edun said the government’s intention was to encourage investments by incentivising the release of funds from these accounts.

    “There is a lot of FX liquidity in Nigeria and the federal government would take steps to make holders of such accounts release the money.

    “The government would not force holders of such accounts to give them up but would provide incentives to enable them invest in attractive instruments, going forward,” Edun said.

  • FIRS cancels penalties, interests on pending tax liabilities

    FIRS cancels penalties, interests on pending tax liabilities

    The Federal Inland Revenue Service (FIRS), has approved amnesty on penalties and interests for outstanding tax liabilities.

    The Chairman of FIRS, Zacch Adedeji, said this in a statement on Sunday in Abuja.

    The FIRS imposes sanctions and interests for failure by companies to fulfill their tax obligations.

    Adedeji said that the step was in recognition of the challenges that many taxpayers had faced in settling their tax obligations.

    He said that it was a demonstration of President Bola Tinubu’s commitment to support businesses.

    According to him, full payment of outstanding original tax liabilities without interest on or before Dec. 31 must be done by companies wishing to benefit from the concession.

    “Taxpayers are advised that the waiver of interest is subject to the full settlement of outstanding principal on or before 31 Dec. 2023.

    “Please note that the full penalty and interest shall be reinstated after the expiration of this one-off concession window where the outstanding undisputed liability remains fully or partially unpaid.

    “The Service appreciates all taxpayers who have been diligent in complying with their tax obligations as and when due while seeking their continued support and cooperation for a more responsive and robust tax system,” he said.

  • Senate confirms Zaccheus Adedeji as FIRS Chairman

    Senate confirms Zaccheus Adedeji as FIRS Chairman

    The Senate has confirmed the appointment of Mr Zaccheus Adedeji as the Executive Chairman, Federal Inland Revenue Services (FIRS).

    This follows the adoption of a motion by the Senate Leader, Sen. Opeyemi Bamidele (APC-Ekiti) at the Committee of the Whole on Tuesday.

    Presenting the motion, Bamidele urged the Senate to consider the request of President Bola Tinubu for the confirmation of Adedeji for appointment as Executive Chairman of FIRS.

    Prior to the screening and confirmation procedures, the Senate suspended its rule to allow the admittance of the nominee and other guests into the Red Chamber.

    The Senior Special Assistant to the President on National Assembly Matters (Senate), Sen. Abdullahi Gumel led the nominee into the Red Chamber.

    Thereafter, the nominee gave the highlights of his career profile and professional experiences.

    Adedeji was Commissioner for Finance in Oyo State, as well as Special Adviser to President Tinubu on Revenue, before his nomination as FIRS Chairman-designate.

    The new FIRS boss told the lawmakers during his screening that, if confirmed, he would work to develop data upon which revenue generation would be anchored.

    He stressed that there was need to improve on the data mining capacity of the nation.

    Adedeji also said he would promote the national identification system for data generation, saying that FIRS under him would make best use of data for revenue generation.

    While responding to further questions on tax credit scheme, pioneer status and wavier policies, for companies, he said there was need to ascertain it based on current realities.

    According to him, this is necessary if the laws enacting the policies are still serving the initial purpose for which it was earlier formulated.

    He said that current realities necessitated looking at the laws by re-evaluating and re-assessing the policies on waivers, tax credit and pioneer status.

  • FIRS will not increase taxes further – Acting Chairman assures

    FIRS will not increase taxes further – Acting Chairman assures

    Acting Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, has assured Nigerians and corporate organisations that the FIRS will not further increase taxes despite its resolve to increase the country’s tax-to-GDP ratio to 18 per cent from 10.86 per cent.

    Adedeji said such resolve would not necessarily lead to increase in taxes or introduction of new taxes as the President Bola Tinubu-led administration is determined to create a wholesome environment for businesses to flourish.

    The FIRS chairman had said the agency under his leadership would, in the next three years, achieve an eight per cent rise in tax-to-GDP ratio to surpass Africa’s average of 16.5 per cent without stifling investment or economic growth.

    The plan had triggered muffled apprehensions among entities corporate that the decision could cause an increase in tax rates or introduction of new ones.

    Addressing representatives of top large tax-paying companies during a get-together, Adedeji said, “Our belief, understanding and vision as a revenue-generating agency is not to introduce any new tax as we only want to use data to improve compliance.”

    A statement by his Special Adviser on Media and Communication, Dare Adekanmbi, quoted the FIRS chairman as saying that the invited companies and those willing to voluntarily carry out their tax obligations have nothing to be afraid of.

    “Our plan is simple. We want to grow tax revenue and we only want to tax prosperity and not poverty. Therefore, it is not in our interest to kill the trees that bear the fruits. My first ‘love letter’ to you is to appreciate what you have done. So, you don’t have anything to be afraid of.

    “We will not collect what is not due to us. But we don’t want anyone not to pay what is due to us. Fair engagement is our plan. Rest assured that the 18 per cent tax-to-GDP target will not translate to increase in taxes,” he said.

  • Suspicious payments: I inherited only N1.4bn at FIRS, I left N129bn – Nami

    Suspicious payments: I inherited only N1.4bn at FIRS, I left N129bn – Nami

    Muhammad Nami, former Chairman of the Federal Inland Revenue Service (FIRS) has disclosed that he left N129 billion in the purse of the Service when he left office.

    TheNewsGuru.com (TNG) reports Nami was reacting to a report of suspicious payments he allegedly made while FIRS Chairman when he made the disclosure, adding that he inherited only N1.4 billion when he assumed office.

    According to Nami, every decision he made within the time of his stay in office was within the ambit of the law and within the lawful powers he exercised then as Executive Chairman.

    He also disclosed that his successor, Mr. Zacch Adedeji was fully briefed on all decisions reached and extant liabilities and commitments of the Service during his stay in office, and that they are contained in the handover notes made available to Adedeji.

    “For clarity the items listed in the Cable Newspaper Report were part of the N16 billion outstanding commitments contained in our handover note.

    “The N5 billion paid to Joint Tax Board was paid to fund the activities of Presidential Committee on Tax and Fiscal Policy Reforms two months before I left office.

    “It was paid after we received a letter to that effect from the office of Mr. President signed by Zacch Adedeji himself,” Nami stated in his rejoinder to the report.

    The rejoinder reads in full below:

    My rejoinder to the Cable Story: “Ex-FIRS Boss Nami Approved N11bn ‘Suspicious’ Payments After His Exit

    My attention has been drawn to a mischievous story by the Cable Newspaper claiming that I made approvals of over N11 billion after taking my pre-retirement leave.

    Nothing can be further from the truth. The entire story was sensationally written with mischief that took the ordinary events of my work out of context with the intent to tarnish my image.

    First and foremost, I want to categorically state that after my exit as FIRS Executive Chairman, I made no such approvals as claimed in the report.

    Fundamentally: It is important to note that no payment was made by the Service after the announcement of my pre-retirement leave as claimed by this story. An approval for payment in the Service is one step of a journey to payment.

    It is the custom that when a new Executive Chairman resumes office, he would review, validate and make final authorisation before any payments can be made.

    It is important to note for the record that all decisions reached and extant liabilities/ commitments of the Service during my stay in office are contained in the handover notes I made available to my successor, Mr. Zacch Adedeji. He is fully briefed on everything.

    For clarity the items listed in the Cable Newspaper Report were part of the N16 billion outstanding commitments contained in our handover note.

    The N5 billion paid to Joint Tax Board was paid to fund the activities of Presidential Committee on Tax and Fiscal Policy Reforms two months before I left office.

    It was paid after we received a letter to that effect from the office of Mr. President signed by Zacch Adedeji himself.

    The report maliciously attempts to portray a picture that I hurriedly left the country on September 16th after these so called suspicious approvals were made.

    Again, nothing can be further from the truth. If I traveled out of the country on the 16th of September, how then did I attend the handover ceremony with Mr. Zacch on the afternoon of Monday 18th September 2023?

    That handover ceremony was covered by the media, and can be cross-checked.

    It is disappointing to see the Cable, a revered online newspaper attempt to sensationalise events that took place in the ordinary course of my work in office, making them seem as if they were done in bad faith.

    I want to categorically state that every decision I made within the time of my stay in office was within the ambit of the law and within the lawful powers I exercised then as Executive Chairman.

    I inherited only N1.4 billion in the purse of the FIRS when I assumed office. I left N129 billion in the purse of the Service when I left.

  • How ex-FIRS boss approved N11bn ‘suspicious’ payments after sack

    How ex-FIRS boss approved N11bn ‘suspicious’ payments after sack

    Emerging reports indicate that the former Chairman of the Federal Inland Revenue Service (FIRS), Muhammad Nami approved N11 billion in suspicious payments after his exit from office.

    TheNewsGuru.com (TNG) recalls President Bola Tinubu recently sacked Nami, directing the erstwhile FIRS Chairman to proceed on a three-month pre-retirement leave with immediate effect.

    However, sources in FIRS not authorised to speak on the matter have revealed how Nami approved N11 billion suspicious payments after he was fired.

    According to the sources, who made the disclosure to TheCable, the former FIRS boss directed staff of the finance, audit, and internal affairs departments to work on Saturday and Sunday.

    This, according to the sources was to perfect some financial transactions while files were allegedly moved from the agency’s headquarters to his house, where they were said to have been “backdated and signed”.

    Sources familiar with the matter told TheCable that Nami also moved about N5 billion to the account of the Joint Tax Board (JTB) from the FIRS account.

    According to an official, the FIRS director, finance and accounts, was compelled to approve the payments despite allegedly warning Nami about the potential ripple effects.

    Nami was said to have assured the FIRS director that there was no cause for alarm, reportedly saying the incoming chairman of the agency would not find out about the approvals.

    An insider said Jibrin Jibrin, Nami’s cousin who is an assistant manager at the FIRS, assured some members of staff that the payments would raise no eyebrows, alleging that his uncle had “done the needful” when the acting executive chairman of the FIRS was the special assistant on revenue to the president.

    TheCable reports that Nami travelled out of the country following the approval of the payments on September 16.

    According to documents seen by TheCable, the former FIRS chairman approved N5,628,496,823.04, $863,293.00 and £8,780 for express payment to 196 beneficiaries — all in one day.

    Nami approved the payment of N1,409,950,625.00 to 807 nominees for a ‘Business Case for Strategic Leadership’ retreat which is billed to take place in November 2023 while N250,325,000 was greenlit for FIRS Data Mining Management and Analytics in Taxation Course.

    The ex-FIRS chairman also approved N221,311,840.00 to be paid to Odey Jacob & 611 others for “Skill Development and Management Improvement Workshop Training”; N42,398,000.00 was earmarked as payment to Mawo Dav Printing Nig. Ltd for the “production of letterhead papers & call cards” while another N36,513,718.75 was approved for Gebos Nig. Ltd — also for the production of letterhead papers and call cards.

    Nami appropriated N81,488,127.00 to himself — and nine others — as estacode for a study visit to the Inland Revenue of Malaysia while N54,979,390 was approved for to CDP Partnership Ltd as payment for engagement as a consultant for “stage I &II quantity surveying services”.

    In total, over N591 million was approved as estacode payment for official trips made by staff to Rwanda, Kenya, and Morocco, among other countries.

    The former FIRS boss approved over one billion as payment for the training of staff on tax disputes, capital market operations, and tax evasion strategies, among other modules.

    As an engagement fee for consultancy work in respect of “education and enlightenment of civil society organisations”, Nami approved over N173 million to Juzor & Company Ltd. while Jiop Azzy Ltd was listed to receive over N132 million for the same purpose.

    Nami also reportedly signed off on the payment of over N100 million to Skymart Capital Trading Ltd, Toplead Consulting Limited and Alim and Associates Limited for consultancy, monitoring and evaluation services.

    TNG reports President Tinubu fired Nami and replaced him with Zacch Adedeji as the new acting Executive Chairman of the FIRS. The former FIRS Chairman had said there potential record-setting achievements he would have accomplished if Tinubu had not sacked him.

  • BREAKING: Tinubu appoints Zacch Adedeji as FIRS’ acting Chairman

    BREAKING: Tinubu appoints Zacch Adedeji as FIRS’ acting Chairman

    President Bola Tinubu has approved the appointment of Mr Zacch Adedeji as the new acting Executive Chairman of the Federal Inland Revenue Service (FIRS).

    This is contained in a statement by Chief Ajuri Ngelale, Special Adviser to the President on Media and Publicity, on Thursday in Abuja.

    The president has directed the erstwhile FIRS Chairman, Mr Muhammad Nami, to proceed on a three-month pre-retirement leave with immediate effect.

    This is in accordance with the provision of the Public Service Rule (PSR) 120243, which will lead to Nami’s eventual retirement from service on Dec. 8.

    He said: ‘’Adedeji is hereby appointed in acting capacity for a 90-day period before his subsequent confirmation as the substantive Executive Chairman of the Federal Inland Revenue Service for a term of four (4) years in the first instance.

    ‘’Adedeji is a first-class graduate in accounting from the Obafemi Awolowo University.

    ‘’He most recently served the nation as the Special Adviser to the President on Revenue, following meritorious service terms as the Oyo State Commissioner of Finance and as the Executive Secretary / CEO of the National Sugar Development Council (NSDC).’’

    The new appointment takes immediate effect.

  • Alleged tax evasion: Reps Committee indicts over 30 oil companies

    Alleged tax evasion: Reps Committee indicts over 30 oil companies

    The report of the House of Representatives ad hoc Committee investigating the Structure and Accountability of Joint Venture (JV) Business and Production Sharing Contract (PSC)of NNPC has indicted several oil companies for alleged tax evasion.

    The report also said the Chairman of the Federal Inland Revenue Service (FIRS), Mr Mamman Nami should be arrested and prosecuted for aiding tax evasion by oil companies.

    In the report obtained by the News Agency of Nigeria (NAN), investigation by the house of representatives committee began from 1991 till date with tax evasion running into trillions of naira.

    The report is expected to be laid before the lawmakers this week.

    The ad hoc committee investigation, chaired by Rep. Abubakar Fulata revealed that the JVs and PSCs of NNPC sold Nigerian oil at lowest cost to their own subsidiaries in a ”tax haven”.

    The committee alleged that the company subsequently sold the same oil to other buyers at full price, while  inflating the cost of their Nigerian production operations and under reported the volume of oil they produced.

    This, apart from outright circumvention of the Nigerian tax laws, the committee said is abusive and contrived tax avoidance scheme to minimise their tax liability.

    The ad hoc committee is praying the house to adopt the recommendations with a view to bringing sanity in the oil and gas operation in Nigeria.

    This according to the report of the committee would be a greater benefits to the citizens.

    The committee report also showed that all international and national oil companies who enjoyed capital allowance in Nigeria had no Certificate of Acceptance of Fixed Asset (CAFA) as prescribed by the Industrial Inspectorate Act.

    The report however said that all oil companies that benefited from capital allowance without obtaining CAFA as prescribed by the Industrial Inspectorate Act be made to refund all the monies to the government treasury.

    NAN reports that on Nov. 1, 2022 the house ad hoc committee investigating the structure and accountability of the Joint Venture (JV) Businesses and Production Sharing Contracts (PSCS) of the Nigerian National Petroleum Limited began probing oil companies accused of tax evasion.

    The probe was at the backdrop of alleged tax evasion by some oil companies operating in Nigeria, which led to the constitution of the committee by Speaker Femi Gbajabiamila.

    Fulata at a meeting with stakeholders in the oil and gas industry cited relevant a sections of the 1999 Constitution as amended.

    He said: “This committee is relying on Section 88 and 89 of the 1999 Constitution of the Federal Republic of Nigeria as amended and we are asking heads of agencies who failed to forward their submissions to do so.

    “This committee cannot fail in its mandate and we might resort to the use of Police and other security agencies to compel heads of agencies to do so.”

    Fulata decried that tax evasion by oil companies, particularly the International Oil Companies (IOCs) has negatively affected the revenue for the country.

    Fulata has expressed disappointment that several letters of invitation sent out to some organisations were not responded, revealing that those who responded did so shabbily.

    On Nov. 16, 2022, the house committee summoned chairman of the FIRS.

    A representatives of FIRS, a Director and Special Assistant were not permitted by members of the committee to make presentation as they insisted that only the chairman is expected to speak on behalf of FIRS.

    The FIRS representatives had earlier told the committee that the service does not have access to the Stock Certificate of crude oil being lifted.

    The representatives said they only relied on the invoice produced and presented to it by the oil companies, this, the committee referred to as ridiculous.a

  • FIRS official emerges winner of Africa’s award in taxation

    FIRS official emerges winner of Africa’s award in taxation

    A staff member of the Federal Inland Revenue Service, Dr. Anthonia Alebiosu, has won the ‘Forty Under 40 Africa Award’ in South Africa.

    The award ceremony, which took place in South Africa in late March, saw Dr. Alebiosu win the taxation category of the award, with over a thousand entries received for the preliminary stage of the award.

    Awardees that won other categories alongside Dr. Alebiosu are the first African woman referee at the 2022 men’s World Cup, Salima Mukansanga; Lagos State Commissioner of Finance, Rabiu Olowo; Global President, Association of Chartered Certified Accountants, Joseph Owolabi and Broadcast Journalist and British Broadcasting Corporation’s Presenter, Nyasha Michelle.

    The Forty Under 40 Africa Award identifies, honours, and celebrates a cross-section of the continent’s most influential and accomplished young business leaders under the age of forty from a wide range of industries. These individuals are committed to business growth, professional excellence, and community service, and have risen-up the ranks of their companies or industries at a relatively young age as a result of this.

    Speaking during the event, the Director of the Award Ceremony, Richard Abbey Jnr, said that they organised the event not only to put a spotlight on young achievers but also to build a strong platform for them to share their voices and opportunities with the next generation of industry pacesetters. This would also help to build a positive attitude in young people to strive for excellence at a tender age.

    “Year after year, we have seen outstanding individuals and trailblasers strive hard with dedication and perseverance by overcoming challenges and economic instability. These are the people we had honored,” Abbey added.

    Dr. Alebiosu is a highly accomplished and versatile professional with a wealth of experience in accounting and taxation and presently works as a Manager at the Federal Inland Revenue Service, where she’s responsible for assessing and collecting tax revenues for the Federal Government. She has over 15 years of work experience, including over 10 years at the Federal Government Revenue Agency.

    She has a strong academic background, having obtained a bachelor’s degree in business administration from Olabisi Onabanjo University, a master’s degree in finance from the University of Lagos, and a Master of Philosophy and Doctoral Degree in Accounting from Babcock University.

    TheNewsGuru.com (TNG) reports that Dr. Alebiosu is also a Fellow of both the Institute of Chartered Accountants of Nigeria and the Chartered Institute of Taxation of Nigeria.

    The FIRS official expressed her joy as she received the award and thanked the FIRS for the opportunity to work with the agency.

    She also pledged to remain committed to her work and strive for excellence in all that she does.