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Tag: FIRS

  • Alleged fraud: Court fixes June 23 for EFCC to re-arraign FIRS officials, ex-directors

    Alleged fraud: Court fixes June 23 for EFCC to re-arraign FIRS officials, ex-directors

    The Federal High Court, Abuja, on Tuesday, fixed June 23 for the Economic and Financial Crimes Commission (EFCC) to re-arraign some top officials of the Federal Inland Revenue Service (FRIS) and two former directors over alleged fraud.

    Justice Bolaji Olajuwon fixed the date after counsel to the EFCC, Ekele Iheanacho, informed the court that the matter was formally before a sister judge, Justice Ijeoma Ojukwu, who had been transfered to the Calabar division.

    The News Agency of Nigeria (NAN) reports that Justice Olajuwon from Markudi division took over from Justice Ojukwu.

    “This matter was slated for the prosecution to open its case but due to recent transfer that took place, the matter will have to be commenced denovo (afresh),” Iheanacho told the judge.

    The EFCC lawyer hinted that though the defendants were already on bail, he would have prayed for an arrest warrant against three of the defendants who were neither in court nor represented by counsel.

    NAN observes that only the 1st, 2nd, 3rd, 4th, 6th and 9th defendants were either in court or represented by their counsel.

    “They are actually on bail. But if not for the fact that the matter is coming up for the first time before my lord, I will have made request for arrest warrant,” Iheanacho said.

    The judge, therefore, held that the defendants, who were absent, should be given another opportunity to come to court.
    .Olajuwon then adjourned the matter until June 23 for fresh arraignment.

    The News Agency of Nigeria (NAN) reports that the anti-corruption agency had, on March 11, arraigned Mr Peter Hena, former Coordinating Director; Mohammed Bello Auta, ex-Finance Director, and seven other staff of FIRS before Justice Ojukwu.

    The others are Aminu Sidi, Umar Aliyu Aduku, Mbura Mustapha, Obi Okeke Malachy, Obaje Napoleon Adofu, Udo-Inyang Effiong Alfred and Benjamin Jiya.

    They were arraigned on 42-count charge bordering on corruption, fraud and criminal misappropriation of funds running into millions and punishable under the Money Laundering (Prohibition) Act, 2011 (as amended in 2012).

  • Leakages: Resign now if you can’t perform your duties, Reps tell FIRS boss

    Leakages: Resign now if you can’t perform your duties, Reps tell FIRS boss

    By Emman Ovuakporie

    The Public Accounts Committee (PAC) of the House of Representatives, on Wednesday asked the Executive Chairman of the Federal Inland Revenue Services, FIRS, Alhaji Muhammad Manman Nami to resign his appointment if he can’t perform his duties immediately.

    The Committee also gave the FIRS boss 18 hours within which to appear before it or be sanctioned accordingly.

    Hon Busayo Oluwole Oke (PDP-OSUN) Chairman of PAC handed down the order while ruling on the failure of the FIRS boss to honour the invitation of the parliament currently probing the huge dwindling revenues of the Federal Government as reported by the office of the Auditor General of the Federation.

    At the resumption of the Committee session on Wednesday, the FIRS boss was billed to appear before the Committee on non payment of taxes to the Government by three foreign firms, Indorama Petrochemical, Indorama fertilizer and Petrochemical Ltd and OIS Indorama Eleme Port-Harcourt but absent and sent a representation

    Two of the firms were said to be enjoying duty waivers and capital allowances while the third one was said to be operating at the Export Free Zone in Port-Harcourt, Rivers State, thus causing huge loss of revenues to the nation

    Following this development, the Deputy Chairman of the Committee, Hon Abdullahi Sa’ad Abdulkadir decried the absence of the FIRS boss at such an important hearing which would have assisted the Parliament in unmasking the sources of the leakages of Government revenues and blocked such once.

    The Committee unanimously endorsed the motion and gave him 10.00 am Thursday to appear in person, failure which he would be sanctioned in line with the Constitution of the land.

    However, the representatives of the FIRS boss, Mr Olusegun Olatunji pleaded with the Committee for the absence of his boss which he attributed to the lateness of the letter of invitation, but the Committee insisted that he must course appearance physically as earlier ruled.

    The Chairman of the Committee, Hon Oke expressed dismay over the lukewarm attitude of the Heads of Ministries Departments and Agencies MDAs of the Federal Government to their constitutional responsibilities on accountability.

    According to him, this Parliament is the symbol of democracy, we are the Representatives of the people, if President Muhammodu Buhari can course appearance before the Parliament whenever the needs be, why not his appointees? Enough is enough, if the FIRS boss can not perform his constitutional responsibilities again, he should turn in his letter of resignation immediately

    ” Is this how he wants to pay back the Mr President who gave him the appointment? The nation is losing billions of Naira from tax evasion on daily basis, and the man in charge is expected to come to the Parliament so that a solution can be found on how to stop the ugly development but he has refused to honor the invitation.

    “Based on the seriousness of this, the FIRS boss is to course physical appearance before this Honourable Committee by 10.00 am on Thursday, we determined to stop this nonsense the nation is bleeding”

  • FIRS introduces online naira tax-filing platforms

    FIRS introduces online naira tax-filing platforms

    The Federal Inland Revenue Service (FIRS) has introduced a new Tax Administration Solution (TaxPro-Max) to ease tax compliance and modernise tax administration in the country.

    Dr Abdullahi Ahmad, Director, Communications and Liaison Department of FIRS disclosed this in a statement issued in Abuja on Saturday.

    Ahmad quoted the Executive Chairman, FIRS, Mr Muhammad Nami, as saying that “TaxPro-Max enables seamless registration, filling, payment of taxes, automatic credit of withholding tax and other credits to the Taxpayer’s accounts, among other features.

    “The TaxPro-Max also provides a single-view to Taxpayers for all transactions with the Service”. The TaxPro-Max platform is accessible at www.taxpromax.firs.gov.ng.

    “From June 7, 2021, the TaxPro-Max becomes the channel for filing Naira-denominated tax returns in the country.”

    According to him, all taxpayers have been notified that all naira-denominated tax returns are to be filed via the TaxPro-Max Solution in order to generate the obligatory Document Identity Number (DIN).

    He added that henceforth, taxpayers would not be able to pay without DIN; as such taxpayers wanting to submit their tax returns manually must visit the relevant tax offices.

    He said FIRS personnel would be on hand to assist them upload the returns and generate the DIN.

    “In view of the time it might take to upload manual returns and generate the DIN, taxpayers are encouraged to bring manual returns for upload, at least, two weeks before the due date.

    “Qualified Personnel of the Service are on hand to assist taxpayers experiencing challenges in filing returns on the TaxPro-Max. They may be reached via email, taxpromax@firs.gov.ng”.

  • FIRS still in charge of Stamp Duties Collection – Official

    FIRS still in charge of Stamp Duties Collection – Official

    The Federal Inland Revenue Service (FIRS) says it is still in charge of Stamp Duties collection in the country.

    The FIRS Director, Communications and Liaison, Mr Abdullahi Ahmad, made this known in a statement in Abuja on Tuesday.

    Ahmad urged the general public to dismiss news reports which claimed that the Finance Act 2020 had stripped the FIRS of Stamp Duty collection functions on behalf of the Federal Government.

    “The attention of FIRS has been drawn to false publications in some newspapers and electronic as well as social media platforms misquoting a recent speech by the Minister for Communications and Digital Economy on the administration of Stamp Duties in the country.

    “For the avoidance of confusion arising from such publications, the FIRS hereby informs the general public, especially taxpayers, that the Minister was misquoted as saying that the administration of Stamp Duty was granted to NIPOST by the Finance Act 2020.

    “The speech attributed to the Honourable Minister was definitely, and unfortunately, quoted out of context.

    “For the record, the Honourable Minister merely stated that NIPOST would henceforth produce the ADHESIVE STAMPS required by FIRS to denote Stamp Duties.

    “This position is in line with Section 2 of the Stamp Duties Act (as amended by Section 46 of the Finance Act 2020).

    “The FIRS, therefore, urges taxpayers, tax practitioners and the general public to ignore this unfortunate attempt to cause confusion by twisting the Honourable Minister’s speech.

    “The Honourable Minister for Communications and Digital Economy, Dr. Isa Pantami, is a patriot with unarguable passion for the rule of law and stability of the country.

    “The FIRS remains the only federal agency permitted by law to collect Stamp Duties on behalf of the Federal Government of Nigeria,” he said.

    The spokesperson of the Service urged all taxpayers to continue to pay their Stamp Duties charges to the FIRS nationwide.

  • Reps query FIRS boss over bogus recurrent expenditure

    Reps query FIRS boss over bogus recurrent expenditure

    By Emman Ovuakporie
    The House of Representatives committee on Finance on Thursday quizzed Chairman, Federal Inland Revenue Service (FIRS) Mohammed Nami over the bogus recurrent expenditure and the inability to meet the N5.077 trillion target set for his agency.
    Apparently disappointed, the lawmakers declared that despite the downward review of the N8.7 trillion initial proposed revenue for 2020, the agency still failed.
    The lawmakers, who declared this during the 2020 budget defence/2021 budget proposal of Federal Inland Revenue Service held at the instance of the House Committee on Finance chaired by Hon. Abiodun Faleke, queried the astronomical increase in various expenditures incurred during the period under review.
    The Committee in session also picked holes in the projected non-oil cost of collection of 4% worth N137.411 billion accrued to FIRS in 2020 and the rationale behind the proposed 7% cost of collection worth N298.441 billion for 2021 in breach of extant provisions in the Nigeria Customs Act.
    In his response the FIRS Chairman, Mohammed Nami, explained that the Service realized the sum of N4.95 trillion against the N5.077 trillion in the revised 2020 budget.
    Nami affirmed that no fewer than 5,000 staff out of total of 11,000 staff are to get salary increase in 2020, adding that about 70% of the staff work from home as a result of the COVID-19 pandemic/lockdown.
    According to the document submitted to the Committee, FIRS internally generated revenue stands the sum of N251,189,952 against the sum of N50 million proposed in 2020, while the sum of N50 million was also proposed for 2021.
    In addition, FIRS proposed increase in the personnel cost for 2021 is also predicated on payment of 13 month salary equivalent to one month salary (estimated at N5,717,228,982), subsistent allowance of 30% of consolidated salary (N20,582,024,334), 50% performance bonus of annual consolidated salary (N34,303,373,889), while N1,819,556,000 is to be expended on Contract Driver and N369,848,167 on Contract Staff.
    While presenting the 2021 budget proposal, Mr. Nami disclosed that presented a “total revenue collection of N5.900 trillion against budgeted N5.076 trillion in 2020 representing about 16.22% increase above the corresponding year’s budget. Out of the proposed total collection of N5.900 trillion, Non-Oil and Oil components are expected to contribute N4.26 trillion and N1.64 trillion respectively. Consequently, the cost of collection (7% net of 2% NCS VAT) is projected at N289.25 billion against the budgeted N180.76 billion in 2020 to fund the three operational expenditure heads for the year.
    “Out of the proposed expenditure of N289.25 billion across the three expenditure heads, the sum of N147.08 billion and N94.97 billion are to be expended on Personnel and Overhead Costs against 2020 budgeted sum of N97.36 billion and N43.64 billion respectively. Also, the sum of N47.19 billion is estimated to be expended on capital items against budgeted sum of N27.80 billion in 2020. The sum is to cater for on-going and new projects for effective revenue drive.”
    While responding to various queries raised by the lawmakers, he said: “Why we hope we would have done better, last year is because of the COVID-19 lockdown we could not do tax drive, the businesses also closed about four months, particularly if you even add the #EndSARS protest that rocked the entire nation.
    “We also suspended tax audit and investigation for about six months, because we couldn’t visit tax payers. We couldn’t also carry out enforcement activities to recover back debts. Reduction in revenue is an assumption whereas you have increased projected revenue to be collected.
    “We are very confident that with the MTEF projection that we have, we should be able to generate up to 5.9, with relative stability in the price of oil, we are very confident that people are in oil sector will be able to turn out positive returns on monthly basis between now and the end of the year.
    “On the overhead increasing astronomically, there’s a reason for that. The increase is due to full provision in the 2021 budget for 1800 staff recruited by the immediate past management and the little we added in 2019, 2020.
    “Another reason is that we carry out promotion exercise in order to deal with promotion arrears in 2019, 2020. And in so doing about 5,000 staff were promoted which means more cost for us to carter to.
    “And if you have more staff surely, their salary will go up, taxes that you’re going to pay on their behalf will go up, the National Housing Fund contribution, PENCOM contribution will go up. Those promoted you have to implement a new salary regime for them. There’s also the issue of inflation and exchange rate differential.”
    Speaking earlier, Chairman, House Committee on Finance, Hon. Abiodun Faleke described the budget defence as “all important Legislative assignment on the consideration of the FIRS proposed 2021 Revenue and Expenditure Estimates as submitted by the Agency.
    “The significance of this exercise cannot be overemphasized. As you are already aware, the Constitution of the Federal Republic of Nigeria 1999 (Amended) in Section 80(1) provides that all revenue raised under the Constitution or any other Act of the national Assembly shall be paid into and form part of the Consolidated Revenue Fund of the Federation.
    “Furthermore, subsection (2) states that no money shall be withdrawn from the Consolidated Revenue Fund of the Federation except in a manner provided by the National Assembly.
    “In response to the above, the Federal Inland Revenue Services as a responsible and law abiding agency has therefore submitted the 2021 revenue estimates and expenditure to this august committee for legislative scrutiny and consideration for onwards further legislative business of the House of Representatives.
    “On our part as a committee, we have the constitutional mandate under section 62(1) of the Constitution to discharge the onerous task of consideration and presentation to the plenary.
    “Also we are obligated by the oath of membership under the same Constitution to do justice to this assignment.”
  • FIRS blames #EndSARS protests, others for 2020 revenue target shortfall

    FIRS blames #EndSARS protests, others for 2020 revenue target shortfall

    The Federal Inland Revenue Service (FIRS) has announced that it generated about 98 per cent of its targeted revenue for the year 2020.

    The tax body on Tuesday in a statement issued in Abuja by its Director of Communications, Mr Abdullahi Ahmad, that the sum of N4.952 trillion was generated as revenue last year, a shortfall of N124 million of its target for the year.

    Recall that the agency had projected to rake in N5.076 trillion in 2020, but the year was riddled by COVID-19 pandemic, which may have affected its revenue generated drive because the economy was shut down for months.

    In the statement, the Executive Chairman of FIRS, Mr Muhammad Nami, was quoted to have described the performance of the agency as remarkable, considering the devastating impact of COVID-19 on the Nigerian economy.

    He pointed out that some of the factors that negatively affected the operations of FIRS last year included low crude oil prices, business disruptions and lootings during the violent #EndSARS protests and the generous tax waivers granted to businesses to ease the impact of the COVID-19 lockdown.

    He also said that additional tax exemptions granted to small businesses in the 2019 Finance Act and insecurity in some parts of the country were other factors that affected collections.

    In the breakdown of the 2020 performance, the FIRS Chairman said that the oil revenue, which used to contribute over 50 per cent in tax returns through the Petroleum Profits Tax (PTT) in previous years, accounted for only 30.6 per cent of the tax revenue generated in 2020 due to low oil prices.

    He also pointed out that the non-oil tax collection, which was 109 per cent in 2020, was 9 per cent higher than the previous year and attributed these achievements to many reforms initiated by the board and management of FIRS under his leadership.

    Some of these reforms include the deployment of technology for tax operations, capacity building for staff, improved welfare for staff and so on.

    He further said, “The conscientious taxpayers in the country and dedicated members of staff of the FIRS nationwide for their support and devotion to work made this performance possible despite the numerous obstacles encountered in 2020.

    “The FIRS is optimistic that this current fiscal year will be better than in 2020. We shall perform well, given that our service reforms are expected to yield greater dividends, especially as different parts of tax administration are being automated.”

    “We are also optimistic that exploration activities will improve in the oil sector and increase the prospect of higher tax revenue from the sector.

    “Similarly, the ongoing reforms together with increased stakeholder collaborations will brighten the prospect of improved voluntary compliance and consequently higher tax revenue generation for the country this year and beyond,” he added.

  • FIRS generates N4.17trn in revenue

    FIRS generates N4.17trn in revenue

    Mr Muhammad Nami, Chairman, Federal Inland Revenue Service (FIRS) on Friday said that a total of N4,178 trillion was generated in taxes from January to October. 2020.

    Nami, represented by Mr Ezra Zubairu,
    Coordinating Director, Enforcement Support Group, FIRS, made this known at the opening ceremony of the Lagos International Trade Fair (LITF) in Lagos.

    The News Agency of Nigeria (NAN) reports that the fair had as its theme: “Connecting Businesses, Creating Value”.

    Nami stated that the target for the period was N4.23 trillion which indicates that the amount generated represents 99 per cent of the target for the period.

    According to him, revenue generation improved tremendously in spite of the challenges posed by the COVID-19 pandemic.

    Nami said the focus of the 34th edition of the 2020 Trade Fair was in line with President Muhammadu Buhari’s agenda of positioning Nigeria on the global map as a great trade and exporting nation.

    “The sum of N4,178 trillion has been generated by the Federal Inland Revenue Service from January to the end of October 2020.

    “The target for the period was N4.23 trillion. The amount generated represents 99 per cent of the target for the period.

    “The target for the whole year is N5.76 trillion,” he said.

    The FIRS Boss said the service putting the plights of taxpayers into consideration, introduced some palliatives to cushion the effect of the pandemic.

    Nami listed the palliatives to include: additional window of penalty and interest waiver for the business that pay up in full, the principal portion of their outstanding liabilities between 4th November, 2020 and 31st December, 2020.

    This, he said was, provided the outstanding arrears resulted from (a) self-assessment (b) government assessment arising from desk audit, field audit or investigation.

    Nami, however, stated that the window of opportunity for waivers of penalties and interest on outstanding taxes arising from desk examinations, audit exercises, investigations or all other forms of tax assessment will close on Dec. 31, 2020.

    “Consequently, all concerned taxpayers are to note that after the expiration date of Dec. 31, 2020, the Service shall recover all outstanding debt with penalties and interest.

    “In accordance with the provisions of the extant tax laws such as “the power of substitution” conferred on it by Section 31 of the Federal Inland Revenue Service (Establishment) Act 2007,” he said.

  • EFCC clarifies arrest of Babatunde Fowler, ex-FIRS boss

    EFCC clarifies arrest of Babatunde Fowler, ex-FIRS boss

    The Economic and Financial Crimes Commission (EFCC) has made a clarification on the arrest of Babatunde Fowler, a former chairman of the Federal Inland Revenue Service (FIRS).

    TheNewsGuru.com (TNG) reports an EFCC spokesperson, Wilson Uwujaren as saying Fowler on Monday morning responded to an invitation extended to him by the commission.

    “Yes, Fowler responded to an invitation this morning. I believe he is still here,” the EFCC spokesperson said.

    Fowler, an ally of former Lagos State Governor and APC chieftain Bola Tinubu, is being interrogated over an alleged tax evasion as it relates to Alpha Beta, a tax consulting firm.

    Alpha Beta has often been linked to Tinubu.

    The former Managing Director and Chief Executive Officer, Alpha Beta Consulting, Dapo Apara, had accused the firm of tax fraud to the tune of N100 billion.

    In a petition to the EFCC in 2018, Apara stated that Alpha Beta, the firm given exclusive rights to monitor and collect Internally Generated Revenue on behalf of the Lagos Government, “has become an avenue for official corruption of government officials, a conduit pipe for massive money-laundering scheme, tax evasion, among other vices.”

    In the petition which was written by his lawyer, Adetunji Shoyoye and Associates, the ex-CEO claimed that the fraud had been covered by powerful politicians in the state.

    The petition read in part, “Over the years the company has been protected and shielded by some powerful politicians and people in the society which made them to always boast of being untouchable, but our client, feeling the need not to keep quiet again and strengthened by his belief in the fact that the government of President Muhammadu Buhari is keen on fighting corruption, which has been the bane of our country, is of the firm belief that it’s time to expose and open the can of worms called Alpha Beta Consulting.”

    TNG reports President Muhammadu Buhari refused Fowler as FIRS chairman for a second term when in December 2019 his first term in office terminated.

  • FIRS breaks silence over misleading directives on Self-Certification Forms

    FIRS breaks silence over misleading directives on Self-Certification Forms

    The Federal Inland Revenue Service (FIRS) on Friday cleared the air on the controversies generated by an order directing all account holders to re-register their details with their financial institutions.

    The order which has generated several criticisms online and offline has since been rested and the federal government later apologised for the confusion.

    According to the FIRS, only non-residents and other persons who have a residence for tax purposes in more than one jurisdiction or Country are expected to complete the Self-Certification Forms by Reportable Persons.

    Clarifying the directive and those it was directed at, the FIRS through its twitter handle clarified that “the publication is for the fulfillment of Automatic Exchange of Information Requirements.”

    The FIRS went on to state that “the Self Certification form is basically to be administered on Reportable persons holding accounts in Financial institutions that are regarded as “Reportable Financial Institutions” under the CRS.”

    “Reportable persons are often non-residents and other persons who have a residence for tax purposes in more than one jurisdiction or Country.”

    According to the FIRS ”financial Institutions are expected to administer the Self Certification form on such account holders when the information at its disposal indicates that the Account holder is a person resident for tax purpose in more than one jurisdiction.”

    It explained that ”information that indicates an account holder is a resident for tax purposes in more than one jurisdiction, is expected to be available to Financial Institutions during the account opening processes for the KYC and AML purpose.”

    This exercise the FIRS said, “is required for due diligence in line with requirements of Income Tax (Common Reporting Standards) Regulations 2019, and the ultimate objective of the Automatic Exchange of Information is to improve transparency in Nigeria’s tax system and boost the anti-corruption drive of the Government.”

    “The Self-Certification Forms are to be administered by Financial Institutions to enable account holders to clearly document their respective jurisdictions of tax residence.”

  • FIRS rakes N438bn from non-oil tax revenue in one month

    FIRS rakes N438bn from non-oil tax revenue in one month

    The Federal Inland Revenue Service (FIRS), has said that it collected N490 billion in tax receipts in July, with a sum of N438 billion, representing 89% came from Non-oil receipts.

    The revenue agency in a statement on Thursday explained that the significant drop in oil revenue to N52 billion, representing 11%, is due to the global shock caused by the COVID-19 pandemic which led to a significant cut in crude oil production by oil-producing nations.

    The statement quoted FIRS Executive Chairman, Mr. Muhammad Nami, who attributed the increase in the non-oil sector receipt to reform measures introduced by the FIRS Board and Management as well as the renewed vigour in the Service workforce.

    He stated that despite the national and global economic upheaval caused by the pandemic, the FIRS has continued to record a significant increase in collectible tax revenue from the non-oil sector of the economy.

    According to Mr. Nami, non-oil tax receipts have consistently contributed 75-90 percent of total tax revenue in recent months.

    “For instance, out of N490 billion collected by the Service in July, only N52 billion was from the oil sector with the rest coming in through non-oil receipts.”

    The FIRS boss noted that Value Added Tax (VAT) and Stamp Duties receipts have boosted government revenue despite the pandemic.