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Tag: FIRS

  • CBN sends out strong warning over abuse of new Naira notes

    CBN sends out strong warning over abuse of new Naira notes

    The Central Bank of Nigeria (CBN) has cautioned against abuse of the newly redesigned Naira notes and warned that it is working with security agencies in the country to prosecute sellers and abusers of Naira.

    The apex bank also assured that the queues currently piling up at the ATMs will disappear soon and that commercial banks in the country have been directed to pay the redesigned Naira notes over the counter.

    In a statement by Osita Nwanisobi, CBN Director, Corporate Communications, the apex bank also noted the reported cases of unregistered persons and non-bank officials swapping banknotes for members of the public, purportedly on behalf of the CBN.

    “We wish to state unequivocally that, contrary to the practice of these unpatriotic persons, it is unlawful to sell the Naira, hurl (spray), or stamp on the currency under any circumstance whatsoever,” Nwanisobi stated.

    The statement reads in full: “The Central Bank of Nigeria (CBN) has observed, with grave concern, the activities of persons who sell the newly redesigned banknotes and those who flagrantly abuse the legal tender by hurling wads of Naira notes in the air and stamping on the currency at social functions.

    “We have equally noticed the queues at Automated Teller Machines (ATMs) across the country and an upward trend in the cases of people stocking and aggregating the newly introduced banknotes they serially obtain from ATMs for reasons best known to them.

    “Also worrisome are the reported cases of unregistered persons and non-bank officials swapping banknotes for members of the public, purportedly on behalf of the CBN.

    “We wish to state unequivocally that, contrary to the practice of these unpatriotic persons, it is unlawful to sell the Naira, hurl (spray), or stamp on the currency under any circumstance whatsoever.

    “For the avoidance of doubt, Section 21(3) of the Central Bank of Nigeria Act 2007 (As amended) stipulates that “spraying of, dancing or matching on the Naira or any note issued by the Bank during social occasions or otherwise howsoever shall constitute an abuse and defacing of the Naira or such note and shall be punishable under the law by fines or imprisonment or both.”

    “Similarly, Section 21(4) states that “It shall also be an offence punishable under Sub-section (1) of this section for any person to hawk, sell or otherwise trade in the Naira notes, coins or any other note issued by the Bank.”

    “Accordingly, the Central Bank of Nigeria (CBN) is collaborating with the Nigeria Police, Federal Inland Revenue Service (FIRS), the Economic and Financial Crimes Commission (EFCC) and the Nigerian Financial Intelligence Unit (NFIU) to address the unpatriotic practice.

    “We, therefore, warn Nigerians, particularly those at social functions such as birthdays, weddings and funerals, to desist from disrespecting the Naira or risk being arrested by law enforcement agencies.

    “While reiterating our commitment to Nigerians to ensure the effective distribution of the newly introduced Naira banknotes, we urge them to exercise patience as the CBN is working assiduously to address the challenge of queues at ATMs.

    “In line with this resolve, the Govenor, Mr. Godwin Emefiele, has directed deposit money banks (DMBs) to commence the payment of the redesigned Naira notes over the counter, subject to a maximum daily payout limit of N20,000.

    “We also admonish members of the public to embrace and adopt other payment channels for their transactions.

    “The Naira is our legal tender and symbol of national pride. Therefore, let us respect it and handle it with care”.

  • CBN blows hot over abuse after redesign of Naira notes

    CBN blows hot over abuse after redesign of Naira notes

    The Central Bank of Nigeria (CBN) on Tuesday in Abuja sounded a note of warning to those abusing the Naira notes, stressing they are liable to go to jail.

    CBN warned that the law banning the “spraying’’ and the stepping on the naira, especially at social gatherings is still in force and offenders are liable to six months imprisonment or a fine of N50,000.

    TheNewsGuru.com (TNG) reports the warning is coming after the apex bank carried out a redesign of some denominations of the Naira.

    Section 21(3) of the CBN Act 2007 provides that mishandling of the naira is a punishable offence.

    Principal Manager, Currency Operations Department at the CBN, Ms Ngozi Etim, who gave the warning, said the apex bank was working with the police, the FIRS, the EFCC and the Nigerian Financial Intelligence Unit (NFIU) to curb the abuse.

    She condemned the “spraying’’ of money in public, adding that the envelope remained the best and acceptable means of extending goodwill at events.

    “Money should not be squeezed but be put in envelopes. Oil should not be allowed to touch money; keep it neat like you keep your clothes.

    “You do not dirty your clothes and you do not keep your clothes on the ground, so, there is need to keep our naira well,’’ she said.

    She added that the CBN Act empowered it to arrest those who abused the naira.

    Etim stressed that the naira remains the pride of the nation and must be kept clean at all times.

    In his remarks, CBN’s Director, Corporate Communication, Mr Osita Nwanisobi, urged Nigerians to always treat the naira with care.

    Nwanisobi condemned the idea of hurling wads of naira notes in the air and stamping on the currency at social functions.

    “There have also been cases where people mishandle the naira, deface it, or hawk it at parties.

    “Contrary to the practice of these unpatriotic persons, it is neither cultural nor moral for people to disrespect the currency, which citizens trade in,’’ he stressed.

    There have been videos of famous Nigerians, including politicians, subjecting the naira to abuse.

    Naira notes have also become items of trade at garages and motor parks in different parts of the country, especially during festive periods.

    The CBN has, however, declared that anybody caught abusing the naira would be punished.

  • SPECIAL REPORT: Presidency glosses over misappropriation of stamp duty funds allegation

    SPECIAL REPORT: Presidency glosses over misappropriation of stamp duty funds allegation

    The Presidency has dismissed allegations of misappropriation of Stamp Duty funds levelled against some government agencies by a member of the House of Representatives, Gudaji Kazaure.

    Kazaure alleged during a BBC interview on Friday that N89.09 trillion purportedly realised from deductions by banks has been siphoned.

    A statement by the Senior Special Assistant to the President on Media and Publicity Garba Shehu, described the claim as a figment of Kazaure’s imagination.

    “Anyone familiar with our constitution will find it curious that a member of the Parliament is the secretary of an Executive Committee. It suffices to say that the entire net worth of the nation’s financial sector, the assets of the banking sector put together, is not worth N50 trillion, not to talk of the kind of money he is talking about.

    “The Central Bank assures that there is absolutely no problem, whatsoever, with money from Stamp Duties. As it is, there is nothing to give credence to wild accusations made against the administration. As for Hon. Gudaji seeing the President, I’ll like to assure you that there is nobody that can stop him from seeing the number one citizen. Gudaji is a friend of the President,” the statement said.

    Shehu added that it was unconstitutional for a member of the parliament to be secretary of an executive committee.

    Background

    There has been an allegation of systemic diversion of huge revenue flows from stamp duties collection on the electronic transfer receipt on online bank transactions said to have run into several trillions of naira over the years.

    Kazaure who claimed to be Secretary of the Presidential Committee on the Reconciliation and Recovery of All Stamp Duties, said the Presidential Committee on Reconciliation and Recovery of Stamp Duty was formed when he approached President Muhammadu Buhari with a research conducted in 2013 by the School of Banking Honours on Stamp Duties which showed that N20 trillion accruing from stamp duties were unremitted to government.

    The committee’s terms of reference was to investigate all stamp duties recovered from banks, into many accounts; transferring all stamp duties into Stamp Duties Central Account.

    According to a letter dated September 2nd, 2022 sighted by the Daily Trust, the Presidential Committee had among others, the Head of the School of Banking Honours Adetola Adekoya as Chairman, Kazuare as Secretary, while the Minister of Finance, Budget and National Planning Zainab Ahmed and the Minister of Justice Abubakar Malami as members.

    However, Adekoya resigned his appointment via a letter dated September 29, 2022 after only 27 days, saying that his decision is “to allow an independent investigation into all cases of unremitted stamp duty due to the federal government and all the constitutional beneficiaries from 2013 to date.”

    He also raised alarm that the Nigeria Inter-Bank Settlement System Plc (NIBSS) had been uncooperative in the effort to recover unremitted stamp duty revenue borne out of inter-bank electronic transactions and had refused on multiple occasions to grant access to data of relevant inter-bank transactions that passed through its central switch.

    In November 2017, the Senate kick-started a probe into the allegation that stamp duties revenue which accumulated over a period of five years and is valued at over N20 trillion has not been paid into the federation account.

    “The Senate is worried that the provision for stamp duty in the revenue framework of the nation’s annual budget for 2015, 2016 and 2017 has been N8.7 billion, N66 billion and 16.9 billion respectively despite the above reports; apprised of the anti-stamp duties collection stance of the Nigerian Inter-Bank Settlement System (NIBSS),” Enoh said.

    Kazaure on Friday alleged that critical institutions such as the Central Bank of Nigeria (CBN), the Office of the Secretary to the Government of the Federation (OSGF), and the Protocol Department of the State House prevented him from briefing President Muhammadu Buhari on findings made by his committee.

    He further stated that the committee had accused the government agencies of sabotaging the committee’s efforts and that the committee discovered additional diversions of stamp duty funds to the tune of N89.09 trillion, purportedly realised from deductions by banks which has been misappropriated.

    However, Shehu stated that the presidential committee the lawmaker purportedly serves as its secretary had since been dissolved and another committee chaired by the Attorney-General of the Federation and Minister of Justice Abubakar Malami, was set up by the president to reconcile Stamp Duties accounts.

    “There is a committee duly set up by the President in June 2020, chaired by the Attorney-General and Minister of Justice and the Secretary is the Chairman of the Federal Internal Revenue Service (FIRS) that is currently reconciling the stamp duty accounts. The job is not finished,” he said.

    Dispute Over Collection of Stamp Duties

    There has been no lost love between the FIRS and the Nigerian Postal Service (NIPOST) over the collection of stamp duties in the country.

    The Board Chairman of NIPOST, Maimuna Abubakar, had accused the FIRS of usurping the mandate of the country’s postal service by selling stamps, in an attempt to ‘kill and ‘bury’ NIPOST.

    “FIRS did not only steal our stamps but also our ideas, what NIPOST had worked for since 2016, our documents, patent and sneaked everything into finance bill and tactically removed the name of NIPOST,” Abubakar lamented.

    She reiterated that NIPOST is the only agency charged with the responsibility of producing adhesive stamps and revenue for the purchase of such stamps accrues to NIPOST.

    But the FIRS argued that ‘stamp duty’ was different from ‘postage stamp’, noting that the two separate entities were being mixed up by Abubakar.

    “Stamp duty is a tax payable in respect of dutiable instrument as provided under the Stamp Duties Act, CAP S8, LFN 2004 (as amended),” the FIRS clarified.

    The FIRS also accused NIPOST of illegalities ranging from the illicit operation of Stamp Duty account to suspected misappropriation of funds.

    FIRS’ Director of Communication and Liaison Abdullahi Ismaila Ahmad, said the Service would ensure that all monies diverted to the wrong quarters by NIPOST are remitted into the Federation Account, with proper accountability.

    “The FIRS is determined to not only ensure that all monies collected by NIPOST into its illegally operated Stamp Duties Account are fully remitted into the Federation Account but also make sure that any kobo not accounted for in that account is legally recovered,” a statement signed by Ahmad read in part.

     

  • Alleged tax evasion: Reps panel summons FIRS Chairman

    Alleged tax evasion: Reps panel summons FIRS Chairman

    The House of Representatives Ad hoc Committee Investigating the Structure and Accountability of Joint Venture (JV) Business and Production Sharing Contracts (PSCS) of Nigerian National Petroleum Corporation (NNPC) Ltd has summoned the Chairman of Federal Inland Revenue Service (FIRS).

    The Chairman of the service, Mr Muhammad Nami, was summoned over alleged tax evasion by oil companies.

    Rep. Abubakar Fulata made this known on Wednesday during the committee’s hearing in Abuja.

    He said the non-remittance of appropriate taxes by the oil companies in Nigeria had serious adverse effects on the economy.

    Nami is expected to appear before panel on Nov. 21.

    The committee also expressed worry over the inability of FIRS to have  access to the Stock Certificate of Crude Oil.

    The 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.

    The committee said it would be ridiculous for FIRS to rely on invoice produced by the oil companies instead of the Stock Certificate which gives clearer pictures of the oil being lifted.

    The committee alleged that oil companies were not paying the required taxes while many of them collected huge amount of money from federation account in the name of joint venture with NNPC.

    The committee said that NNPC continued to pay money running into billions of dollars to oil companies in the name of joint venture despite presidential directive halting it since 2018.

    The representatives of Chevron Nigeria Ltd who appeared before the committee were also sent back.

    The committee however insisted that the Chairman of the company must appear to answer questions regarding their activities in the country.

    The probe panel adjourned sitting to Nov. 21.

  • ICAN sues FIRS to court over tax seal

    ICAN sues FIRS to court over tax seal

    The Federal Inland Revenue Service, FIRS, has been dragged before the Federal High Court in Lagos by five Accountants over its plan to coerce tax practitioners to use a seal of the Chartered Institute of Taxation of Nigeria for filing annual returns to the Service from October 1, 2022.

    They filed the suit, marked FHC/L/CS/1837/2022, through their counsel Olaniyi George on behalf of themselves and members of Licensed and Concerned Members of the Institute of Chartered Accountants of Nigeria.

    The five plaintiffs are Chief Afolabi Igbaroola, Alhaji Ademola Ogunsesan, Deacon T.J. Ishola, Mr. Gbenga Afolabi and Mr. Abiodun Adedeji who are members of ICAN.

    The FIRS is the sole defendant.

    The applicants are questioning FIRS over a May 31, 2021 Memorandum of Understanding published in the Tribune of July 27, 2022 announcing the implementation of the CITN seal as a condition-precedent for filing of annual returns to the FIRS by Tax Practitioners from October 1, 2022.

    They said that the subject matter of the MoU was litigated by the plaintiffs and the FIRS at the Federal High Court in Lagos in Suit FHC/L/CS/1480/18, which is still pending before the Court of Appeal, Lagos as Suit CA/L/CV/1210/19.

    They urged the court to determine, among others, whether the FIRS being an interested party and a party that actively participated in Suit FHC/L/CS/1480/18, and Suit CA/L/CV/1210/19 can amongst “syndicate, facilitate, and/or mediate” on the subject matter of the appeal without their consent.

    They asked the court for five reliefs, including an order that the FIRS “cannot tamper, vary and dissipate the ‘res’ which is the subject matter of appeal in the Appeal and having had the knowledge of the appeal and injunction pending appeal and that the activities of the defendant in respect of the MoU amount to affront to the power and jurisdiction of the Court of Appeal.”

    A declaration that the defendant cannot violate its own rule/regulation as provided in Section 61 of the FIRS Act 2007; Section 11 of Tax Administration (Self-Assessment) Regulations 2011 on the appointment and delisting of proper persons to be a tax practitioner in Nigeria and that the advertisement/publication vide the newspaper is not contemplated by the law guiding the exercise of the appointment and delisting of tax practitioners in Nigeria.

    “An injunction restraining the defendant or any other committee that may be set up under the relevant provisions of the FIRS Act 2007 from taking any step or carrying out any action including the ones already published in the Tribune July 27, 2022, which is expected to be enforced on the 2nd day of October 2022 pending the final determination of the Appeal.”

    TheNewsGuru.com had earlier reported that said the mandate of the service is to collect taxes due to the federation and the Federal Government.

  • We do not grant waivers to taxpayers – FIRS

    We do not grant waivers to taxpayers – FIRS

    The Executive Chairman, Federal Inland Revenue Service (FIRS), Muhammad Nami says the mandate of the service is to collect taxes due to the federation and the Federal Government.

    Nami, in a statement issued in Abuja by his Special Assistant on Media and Communication, Johannes Wojuola, said that FIRS did not grant tax waivers to any taxpayer in the country.

    He was reacting to some media reports that some companies including Dangote, Sinotruck Limited, Lafarge, Honeywell, were granted tax waiver on pioneer status between 2019 and 2021 in the sum of N16 trillion by the FIRS and other agencies.

    According to Nami, FIRS does not have the power or responsibility of facilitating or implementing tax waivers to investors in Nigeria.

    “There are relevant agencies of government that are charged with such responsibility,” he said.

    Nami, however, said that the Service was not unmindful of the objectives of granting tax waivers to investors.

    “This includes helping to grow local companies, stimulate economic growth and earn investors’ confidence.

    “I am confident that the companies which are now enjoying tax breaks will eventually exit shortly and begin to pay taxes to the Federal Government.

    “This is as it is currently being done by the companies that have equally enjoyed such tax breaks in the past and are now paying taxes in hundreds of billions of naira.

    “Such companies will continue to pay taxes to the government so long as they remain in business.”

    Nami further said that the companies enjoying the pioneer status would be exempted from paying only the direct taxes from their profits.

    “But will continue to act as agents of collecting and remitting Indirect Taxes (VAT, WHT) in the ordinary course of their operations,’’ he said.

    He emphasised that FIRS remained focused on the task of achieving its mandate of assessing, collecting, and accounting for taxes due to the federation and the Federal Government.

    “This task is challenging, more so at this time of global economic disruption occasioned by the Russia-Ukraine war and the pandemic.

    “However, the management is steadfast in achieving the target set for it by the Federal Government.

    “For instance, in 2021, the Service surpassed its target by collecting an unprecedented amount of N6.4 trillion in taxes.

    “So far this year, the Service is poised to perform even better than its record for 2021,” he said.

    Nami urged stakeholders to join hands with the Service to improve the nation’s economy.

  • FIRS Director killed by gunmen is a dutiful officer – PEBEC

    FIRS Director killed by gunmen is a dutiful officer – PEBEC

    The Secretariat of the Presidential Enabling Business Environment Council (PEBEC) has described the Director of the Federal Inland Revenue Service (FIRS), Alhaji Mohammadu Kudu Lawal killed by suspected gunmen as a dutiful officer.

    PEBEC disclosed this on Monday in a condolence message by Dr Jumoke Oduwole, its Secretary and Special Adviser to the President on Ease of Doing Business to the Management and Staff of FIRS over the demise of its Coordinator for Kebbi, Sokoto and Zamfara.

    Oduwole described Kudu as a consistent high performing Reform Champion, known for his dedication to the implementation of critical reforms such as the electronic tax filing.

    “He was a dutiful officer who was readily available to support the activities of the secretariat across the country, even at short notice. He will surely be missed by all.

    “We celebrate the life he lived and the impact he made during his life time. We pray that the Almighty God grants him eternal rest and peace at his bosom, and to grant his former colleagues at the FIRS the fortitude to bear the irreparable loss,” she said.

  • Gov. AbdulRazaq condemns killing of FIRS Director

    Gov. AbdulRazaq condemns killing of FIRS Director

    Governor AbdulRahman AbdulRazaq of Kwara State has condemned the killing of Alhaji Mohammadu Lawal, a Director of the Federal Inland Revenue Service ( FIRS) by some gunmen on Monday.

    TheNewsGuru.com (TNG) reports the deceased was said to have been killed along Lapai — Lambata road in Niger.

    In a statement from the Chief Press Secretary to the Governor, Rafiu Ajakaye in Ilorin, Governor AbdulRazaq was quoted as describing the death of the FIRS top official as unfortunate.

    ”The incident is one tragedy too many. With total submission to the will of God, I send my heartfelt condolences to the people of Lafiagi Emirate, the Emir of Lafiagi, Alhaji Mohammed Kawu and the family of Kudu on this sad development.

    ”We are again renewing our calls on the security agencies to not spare any efforts to take out the daredevils who continue to terrorise and waste innocent lives under whatever guise.

    “We pray to Allah to bring comfort to the family of Alhaji Kudu at this moment and always. We pray to Allah to grant us peace and security,” AbdulRazaq was quoted to have said.

  • BREAKING: FIRS Director, Mohammadu Lawal shot dead

    BREAKING: FIRS Director, Mohammadu Lawal shot dead

    A Director with the Federal Inland Revenue Service (FIRS), Alhaji Mohammadu Kudu Lawal has been killed by suspected gunmen.

    TheNewsGuru.com (TNG) reports Lawal was shot dead on his way to Abuja, the federal capital territory (FCT) on Sunday 7 August 2022.

    The FIRS Director was shot dead while another staff of FIRS who was travelling with him sustained injuries as a result of the attack that happened in Saminaka village of Lapai Local Government Area (LGA) in Niger State.

    It was gathered that Lawal, an indigene of Lafiagi in Kwara State, ran into the gunmen who rained bullets on the Hilux vehicle he was travelling in.

    Until his death, he was the State Coordinator for Kebbi, Sokoto, and Zamfara States.

  • Customs distance self from claims of auctioning 7000 cars

    Customs distance self from claims of auctioning 7000 cars

    The Nigeria Customs Service(NCS), has distanced itself from rumours making the rounds that a special auction of over 7000 cars would soon be held by the Service.

    The Public Relations Officer of Customs, Deputy Comptroller Timi Bomodi, made this known in a statement signed on behalf of the Comptroller General of Customs in Abuja.

    He urged Nigerians to always refer to the electronic auction (e-auction) platform at https://app.trade.gov.ng/eauction/  for authentic information on auctioning.

    According to him, e-auction remains the only authentic means of auctioning goods to members of the public.

    “Auctions are periodic and advertised in advance on our website to avail the public the opportunity of selecting and bidding for items of their choice.

    “It will be recalled that the service deployed the e-auction platform in July 2017 to improve efficiency in revenue generation to the federal government.

    “It was also deployed to provide equal opportunities to all Nigerians in the seamless disposal of seized and condemned, and overtime and abandoned cargoes.

    “Since its implementation, the e-auction has lived up to expectations by guaranteeing transparency and integrity in the auctioning process,” Bomodi said.

    The spokesperson said that the requirements to take part in the e-auction bidding process by interested members of the public were clear.

    He said that applicants must process a valid Tax Identification Number (TIN), issued by Federal Inland Revenue Service (FIRS), with an active e-mail account.

    Bomodi added that the conditions and terms of the auction must be carefully considered by an interested person before acceptance.

    Bomodi further said an applicant must have an authentic and nationally accepted means of identification.

    He explained that those means of identification include an international passport, driver’s license, national identity card or voter card.

    Bomodi referred the public to the service’s e-auction portal at https://app.trade.gov.ng/eauction/ for further guidelines.

    Bomodi used the opportunity to call on owners of uncleared vehicles at the various ports to avail themselves of the VIN-Valuation protocols to clear them.

    He said the clearance procedure had been simplified, automated and made more user-friendly.