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Tag: FIRS

  • Income tax: FIRS inaugurates online portal for financial institutions

    Income tax: FIRS inaugurates online portal for financial institutions

    The Federal Inland Revenue Service (FIRS) says it has inaugurated a new Automatic Exchange of Information-Common Reporting Standard (AEOI-CRS) system for the use of financial institutions in the country.

    FIRS Director, Communications and Liaison, Mr Abdullahi Ahmad, said this a statement in Abuja on Sunday.

    Ahmad said the step was part of the service’s ongoing reforms to align the nation’s tax system with global standards.

    He quoted the Executive Chairman, FIRS, Mr Muhammad Nami as calling on reporting financial institutions under the Income Tax (Common Reporting Standard) Regulations 2019 to enroll on the portal.

    “The Automatic Exchange of Information-Common Reporting Standard (AEOI-CRS) system portal is currently live, open and active.

    “Consequently, all Reporting Financial Institutions (Commercial Banks, Merchant Banks, Discount Houses, Mortgage and Development Banks, Insurance and Life Assurance Companies, Investment Advisers, Trustees, Asset Management Companies, Issuing Houses, Brokers/Dealers, etc) are invited to enroll on the AEOI-CRS portal,” he said.

    He explained that each Reporting Financial Institution (FI) was required to designate an appropriate officer as Primary User (PU).

    According to him, the PU is the custodian of the FI’s login details on the portal.

    He said a letter signed by the Chief Executive Officer of the FI introducing the PU to the FIRS was also required as part of the enrolment process.

    “In order to enroll as a PU of an FI and have access to related AEOI-CRS documents, please visit the FIRS website at www.firs.gov.ng and navigate the menu tab on Automatic Exchange of Information.

    “Please do this only if relevant contact details have been forwarded to the FIRS. FIs are to further take notice that CRS reports for 2019 are due not later than 30th September 2020.

    “For further information, send enquiries to aeoi.enquiries@firs.gov.ng or sanya.gbonjubola@firs.gov.ng,” he said.

  • We generate ₦3bn weekly from Stamp Duty collection – FIRS

    We generate ₦3bn weekly from Stamp Duty collection – FIRS

    The Federal Inland Revenue Service (FIRS) says it generates N3 billion revenue weekly from stamp duty collection.

    This stamp duty revenue is generated weekly from May 2020 to date from Deposit Money Banks (DMBs).

    Executive Chairman of the FIRS, Muhammad Nami told the House of Representatives Committee on finance on Tuesday in Abuja.

    The purpose of the meeting with the legislators was to resolve the face-off between the FIRS and the Nigeria Postal Service (NIPOST) over stamp duty collection, and the fate of the N58 billion revenue generated from February 2016 to April, 2020.

    The Session which was chaired by the Chairman Finance Committee of the House of Representatives, Hon. James Abiodun Faleke include other members of the committee, Post- Master General of the Federation Dr. Ismail Adebanjo Adewusi, NIPOST board Chairman Barr. Maimuna Yaya Abubarkar and other top officials of the postal agency and FIRS officials.

    Nami said the FIRS was able to generate this much revenue from a single stream of stamp duty collection from DMBs because the Service had deployed a new technology to track and capture such revenue straight into the federation account.

    The technology deployed by the FIRS Nami said is the Application Programming Interface (API) technology solution, an – online real time technology that makes collection of Stamp Duties easier.

    Nami said when he assumed office in December 2019, the FIRS discovered over N30 billion in the NIPOST Stamp duty Account with the Central Bank of Nigeria (CBN). The account was opened in 2016 specifically to warehouse revenue from stamp duty collection.

    However, by April 2020, the balance in the account had grown to N58 billion because of the deployment of the API by the FIRS. Money in the stamp duty account by May 2020 was transferred to the federation account following instructions given to the CBN by the FIRS to do so.

    Since then, both the FIRS and the NIPOST have been at daggers drawn over who controls stamp duty collection and invariably the money which accrues from the collection.

    Nami said payment of Stamp Duties collection in Nigeria dates back 94 years ago, stressing that stamp duty had always been part of the revenue schedule of tax authority.

    He regretted that the differences in who controls stamp duty collection between both NIPOST and FIRS had degenerated a public spat to between the two agencies describing the development as “unnecessary and unhelpful”.

    According to him, “the FIRS regrets that as agency of the government, FIRS and NIPOST allow a simple situation to degenerate to media exposure”.

    In his submission, Postmaster General/Chief Executive Officer of NIPOST, Dr. Ismail Adebanjo Adewusi described the feud between FIRS and his agency as needless.

    According to him, “as prelude, it’s important to make this remark. NIPOST is not a tax collecting agency. We are not in the business of collecting taxes, that’s not our mandate. But our role in stamp duty is clearly stated in the law.

    “The issue is, the Finance Act, 2019 did not in any way stop NIPOST from its mandate. In spite of amendment to finance Act, it has not affected the responsibility of NIPOST. There is no fight between NIPOST and FIRS over tax collection”, he said.

    He however insisted that, the responsibility of procuring stamp rests with NIPOST but appealed that, the agency is entitled to its share of the stamp duty proceeds it collected and domiciled in the CBN from 2016 to 2020.

    He told the Finance committee that “all the monies that accrued to the account include proceeds of stamp sales. In the spirit of peace, we want FIRS to look at the issue. We deserve in sharing cost of collection. At the initial meeting, FIRS said they will give us 30 percent and take 70 percent, we said no”.

    Earlier in his opening remarks by Chairman, Finance Committee of the House of Representatives Hon. Abiodun Faleke said the committee was embarrassed by the open engagement of the two government agencies in addressing the issue.

    According to him, “as a committee responsible for overseeing finance agencies, we decided to call for this dialogue to see if the agencies are doing the bidding of the law”.

    He said having heard presentations by both sides; it would be fool hardy for the committee to just take a decision. “We will go back, look at all legal issues raised and reconvene.”

  • FIRS plans stamp duty palliatives for tenants

    FIRS plans stamp duty palliatives for tenants

    The Federal Inland Revenue Service (FIRS) says it is working on a stamp duty palliative package for tenants in view of the current economic realities occasioned by COVID-19.

    Mr Abdullahi Ahmad, Director, Communications and Liaison Department of the service made this known in a statement in Abuja on Monday.

    Ahmad said the the FIRS Executive Chairman Mr. Muhammad Nami, disclosed it on Monday during a live appearance on the popular morning show, “Your View”, on TV Continental (TVC) via video link.

    He said as part of the palliatives, Nami hinted that stamp duty would not be collected in arrears from tenants.

    He quoted the executive chairman as saying “there is never a time when taxation is convenient for everybody to pay but I enjoin Nigerians to embrace tax payment as a patriotic duty to our dear country, Nigeria”.

    Nami stated that the FIRS was aware that many taxable Nigerians and businesses in the country were going through difficulties imposed on all of by COVID-19.

    He said FIRS had consistently rolled out tax-related palliatives to relieve them of their tax liabilities since the pandemic shut down the Nigerian and global economy.

    The executive chairman said that contrary to some false claims in certain quarters, stamp duty was not a creation of the current administration of President Muhammadu Buhari or the current leadership of the FIRS.

    “Stamp Duty dates back to colonial times in Nigeria. It has been a form of tax in Nigeria as far back as 1939 when you and I were not yet born.

    “It was codified in our laws in 1953, that is before independence. It was consolidated in 2002, published in 2006 and further reworked into the Stamp Duty Act 2004.

    “The Joint Tax Board (JTB) where states are represented consider it necessary to bring the stamp duty Act to the attention of Nigerians following the recent launch of the Inter-Ministerial Committee on Audit and Recovery of Back Years Stamp Duties where the new FIRS Adhesive Stamp Duty was unveiled.

    “As chairman of the JTB, the FIRS was mandated to enlighten Nigerians on stamp duty. That’s why the FIRS published a clarification notice on the stamp duty and we shall continue to educate the public on it.

    “Again, for purpose of clarity, the 6 per cent stamp duty rate is not chargeable across board. It is only chargeable on rent or lease agreement of above 21 years.

    “If your rent or lease is between 7 and 21 years, the stamp duty rate is three per cent. And if you pay your rent monthly or yearly, that is less than 7 years, your stamp duty rate is 0.78 per cent.

    “The 0.78 per cent is the rate for most tenants like you and I who live in Suleja or Minna. If your rent is N100,000 like you said, you only pay 0.78 per cent, which is marginal.

    “Those who live in Maitama who pay N10 million as rent will pay more at the same 0.78 per cent because their rent is higher than our own in other parts of Abuja.” he said.

  • FIRS takes action over COVID-19 scare at Its headquarters, 10 state offices

    FIRS takes action over COVID-19 scare at Its headquarters, 10 state offices

    The Federal Inland Revenue Services (FIRS) has commenced the disinfection of its headquarters and 10 other offices around the country to stem the spread of coronavirus.

    Recall that TheNewsGuru.com TNG had on Friday reported that about three staff members of the agency tested positive for the virus.

    This disinfection it was learnt was being done through the installation of locally made disinfectant tunnels and hand blowers.

    The disinfectant tunnel, which was produced by the National Agency for Science and Engineering Infrastructure (NASENI), is also fitted with a temperature censor that lets out a siren when a person’s temperature is above normal.

    Executive Chairman of FIRS, Mohammad Nami, said the lives and safety of its staff is key to the management, which is why they are trying to protect them from the virus.

    He added that FIRS is very important to the nation since it contributes over 70% of the resources shared every month by the Federation Account Allocation Committee (FAAC), which is the reason why the management is making the effort to protect its staff.

    Nami, who spoke in Abuja while receiving the device from NASENI, said: “The essence of our patronising them is to encourage agency to agency collaboration.

    “We have people that produce this. Some are imported but we felt that we should patronise our sister agency who we feel can do better than what is being marketed to us.

    “Secondly, the lives and safety of our staff is key, because as you will deduce from our monthly FACC allocation committee reports, FIRS today contributes over 70% of what is being shared at FAAC on a monthly basis, so the need for us as a team in management to protect the lives of our staff has become a priority to the current management.

    “We have chosen about 10 locations in Lagos, Port Harcourt, Kano, Kaduna and some other offices that we feel there is a lot of traffic, so that the staff and taxpayers are both protected from the virus.”

    The Executive Vice Chairman NASENI, Prof Mohammed Haruna, explained that although the disinfectant tunnels will not cure the virus, it will prevent individuals from bringing it into the premises.

    He said: “The safety tunnel disinfects individuals as they enter your premises. With the disinfection and with the virological result that we have, you can be sure nobody is bringing in virus to your premises.

    “We are not saying that an infected person will be cured when he goes through the tunnel, but he will be disinfected so that he will not carry any life virus into your premises.

    “Also the purpose of the hand blowers is to disinfect people. The chemical in it is suitable for the environment. These are tested, certified and approved chemicals that are safe for human beings.”

  • FIRS directs landlords, agents to charge six percent Stamp Duty on all tenancy, lease agreements

    FIRS directs landlords, agents to charge six percent Stamp Duty on all tenancy, lease agreements

    The Federal Inland Revenue Service (FIRS) has directed landlords and property agents to charge six percent Stamp Duty on all tenancy and lease agreements.

    The landlords/ property agents are to remit such collections to FIRS “so that they do not run foul of the Stamp Duty Act.”

    The tax agency gave the directive through a statement on Wednesday by Director, Communications and Liaison Department Abdullahi Ahmad.

    He said: “Property-related transactions like tenancy or lease agreement fall under the Ad Valorem category of the stamp duty which attracts six per cent duty payable in percentage of the total value or sum of the tenancy or lease,” Ahmad explained in the statement.

    According to him, the burden of payment of the six per cent “lies on the beneficiary of the tenancy or lease agreement, whom the Stamp Duty Act identified as the tenant or renter.”

    He added that “the responsibility of collection and remittance fall on the landlord or agent in charge of the property for lease or rent. The party making the payment shall have the obligation to account for the applicable stamp duties.”

    Some other Stamp Duty types and their rates, according to the statement , are; Appraisement or Valuation of Property , .5 per cent; Certificate of Occupancy and Partnership, N1,000 flat rate; Gift of Land, 1.5 per cent and Legal Mortgage, 0.375 per cent.

    Others are Legal Mortgage (Upstamping), 0.375 per cent; Deed of Conveyance or Transfer on Sale of Property, 1.5 per cent; Memorandum of Understanding (Related to Land, Sales, Joint Venture, Surrender, Subdivision Agreements, 1.5 per cent; Power of Attorney (Irrevocable/Land Related), 1.5 per cent and Sales Agreement, 1.5 per cent.

    Stamp Duties payment is enabled by the Stamp Duties Act (SDA) 1939, as amended by numerous Acts and various resolutions contained in the Laws of the Federation of Nigeria. The SDA also provides a list of documents in its schedule and the duty payable on each.

    The Finance Act 2019 states that: “the Federal Inland Revenue Service shall be the only competent authority to impose, charge and collect duties upon instruments specified in the Schedule to this Act if such instrument relates to matters executed between a company and an individual, group or body of individuals.”

    The total Stamp Duty collection for 2019 was N18 billion.

  • NIPOST workers reject FIRS customized stamp, threatens industrial action

    NIPOST workers reject FIRS customized stamp, threatens industrial action

    Workers of the Nigerian Postal Service (NIPOST) have protested against the printing of stamps by the Federal Inland Revenue Service, saying it is a usurpation of their duties.

    The workers under the umbrella body of Senior Staff of Statutory Corporations and Government Owned Companies issued a 21-days ultimatum within within which the Federal Government should facilitate an urgent meeting of stakeholders in order to arrive at an amicable resolution or risk nationwide strike.

    Recall that the FIRS had on June 30, 2020 produced and launched its owned brand of adhesive stamp.

    The workers noted that the continuous issuance of adhesive stamps by the FIRS will put not less than 15,000 workers out of job.

    General Secretary of SSASCGOC, Dr. Ayo Olorunfemi, during a press conference, said many Nigerians have stopped purchasing adhesive stamps from NIPOST.

    He said the union would not hesitate to report Nigeria to the International Postal Union, saying “as we can no longer tolerate lip service at the expense of good governance which is the bedrock of development.”

    Olorunfemi said: “To this end we are calling on the federal government to facilitate an urgent meeting between NIPOST, FIRS, SSASCGOC and other stakeholders in order to arrive at an amicable resolution. Failure to do this within 21 days from Thursday July 9 2020, we shall have no other option than to direct all our members in NIPOST to withdraw their services.

    “It is very painful that while other nations are protecting and developing their postal services and making maximum use of the services for advancement, Nigeria is busy doing things that will kill its own.”

    While expressing shock at what he described as high level of government’s insensitivity to the plight of NIPOST and its staff, Olorunfemi said that despite appeal by SSASCGOC, the administration of President, Muhammadu Buhari, should not kill the NIPOST, all efforts are being made to throw the organisation into oblivion.

    According to him, although SSASCGOC recognised the power conferred on FIRS to collect stamp duties, it is illegal for FIRS to produce stamp to denote duties when it could be procured from NIPOST.

    He said: “We have not thrown out seeking redress in court to challenge the illegality; we have to exhaust all avenues before seeking redress in court. Some people are trying to play mischief and feeding the President with wrong information. We will not lose less than 15,000 workers and we will not allow that to happen, but we will protect the interest of our members.

    “It should be noted that both NIPOST and FIRS are statutory corporations for which this union has jurisdiction to organize their staff. Therefore, our position must always be balanced according to the laws of the land. That is why we are insisting that both organizations must develop a synergy that will enhance higher productivity in the area of stamp matter.

    “We recognise the power conferred on FIRS to collect stamp duties just as that of the NIPOST power to produce and issue stamps. These must be acknowledged and recognized in implementing the Finance Act.

    “Therefore it is illegal for FIRS to produce stamp to denote duties when it can be procured from NIPOST. It should be noted that stamp is a product of NIPOST as given to it by law. The Finance Act did not give any power to FIRS to produce stamp. In other word to utilize stamp for duties FIRS must get it from NIPOST.”

  • FG clarifies ‘new’ tax on house rents

    FG clarifies ‘new’ tax on house rents

    The Director-General of the Budget Office of the Federation, Mr Ben Akabueze, says tax on rents, Certificate of Occupancy (C of O) and others is not a new law to the system.

    Akabueze made the clarification while fielding questions from participants at a virtual presentation of 2021-2023 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF&FSP) in Abuja on Friday.

    He said the law that permited payment of tax on rents and others was an existing one but had not been observed for a very long time.

    “It is not new, it is just N50 to be paid and the law has always been there. I recall in early 80s when I started work, the receipt my landlord used to give me, he would paste a physical postage stamp on that receipt.

    “Overtime, because the culture of postage has dropped off and that was not been implemented, what FIRS has done now is to make that into electronic stamp that you can still use to comply with the existing law,” he explained.

    Recall that Federal Inland Revenue Service (FIRS) had last week announced that henceforth, there would be stamp duty paid on house rent and C of O in the service new adhesive duty.

    FIRS urged Nigerians and other residents in the country to make sure that documents pertaining to rent or lease agreements for their homes or offices, C of O as well as a list of other common business-related transaction instruments were subject to authentication with the new FIRS Adhesive Stamp duty.

    It stated that it was necessary in order to give these instruments the force of law and make them legally bidding on all parties involved in such transactions.

    According to the service, the new FIRS Adhesive Stamp Duty was inaugurated in Abuja at the official inauguration of the Inter-Ministerial Committee on Audit and Recovery of Back Years Stamp Duties recently.

  • FIRS extends, announces new deadline for tax debt payments

    FIRS extends, announces new deadline for tax debt payments

    The Federal Inland Revenue Service (FIRS) has extended the closing date of its waiver of penalty and interest window on tax debts owned by individuals and businesses from June 30, 2020 to August 31st, 2020.

    Executive Chairman, FIRS, Mr. Muhammad Nami, disclosed this in a statement on Wednesday by Director, Communications and Liaison Department, FIRS, Abdullahi Ismaila Ahmad.

    Nami stated that the extension was a follow up to a number of palliative measures devised by the FIRS to cushion the effects of the COVID-19 pandemic on the Nigerian economy in order to support tax-paying individuals and business entities in the country.

    According to him, the latest extension applies to “Tax Audit, Tax Investigation and Desk review assessments, Approved instalment payment plans under Voluntary Assets and Income Declaration Scheme (VAIDS) yet to be fully liquidated.”

    He added: “Taxpayers are advised to note that there will be no further extension of this palliative measure.

    “Tax debtors have been advised “to liquidate their outstanding tax liabilities on or before 31st August, 2020 in order to enjoy waiver of accumulated penalties and interests.”

    He also advised all concerned individuals and businesses to contact their respective “Tax Controller or the nearest FIRS Regional Debt Management Office in case of further enquiries”, stressing that “a list of all our offices is available on our website: www.firs.gov.ng”.

  • Applications for new companies must have FIRS TIN-CAC

    Fresh applicants for registration of companies must have Tax Identification Number, TIN from Federal Inland Revenue Services, FIRS attached before incorporation.

    This was contained in a notice issued on Monday and signed by the management of Corporate Affairs Commission, CAC.

    In the notice the commission said” this is to inform our esteemed customers that as part of the Ease of Doing Business Initiative, Certificates of Incorporation of Companies registered under Part A of CAMA will henceforth carry Tax Identification Numbers issued by the Federal Inland Revenue Service (FIRS).

    “This has dispensed with the need for companies to apply for the issuance of Tax Identification Numbers from the FIRS after incorporation.