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Tag: Tax

  • FIRS targets 85,000 millionaire tax defaulters

    The Federal Inland Revenue Service (FIRS) in collaboration with other stakeholders such as the Nigeria Police Force, will continue to go after wealthy tax defaulters in 2019, the Service Executive Chairman, Tunde Fowler, has said.

    He said this yesterday in Abuja when the Acting Inspector-General of Police, Mohammed Abubakar Adamu paid a courtesy visit to the Revenue House. He also disclosed that the Service had realized the sum of N23 billion for its closer look at the books of over 45, 000 tax defaulters, each of which had over N100 million as turnover in their accounts.

    The Service, he said is going after another set of 40, 000 millionaire tax defaulters in 2019. He requested the Nigeria Police to help the Service bring the tax defaulters to pay their taxes. Earlier at the Management retreat at Eko hotels in Lagos, last month, Fowler spoke of FIRS’s plan to identify and tax bank account holders with over 100 million as turnover but with no evidence of tax payment: “We looked at businesses, partnerships of any activity that has banking turnover between N100 million and N999 million. We have done the review of this group of businesses. We have about seven more banks that we are still waiting for return from and to review their information. So far, we have 45,361 that have TIN and are making payments.

    “We have 40,611 that have TIN, that made tax payment and, and we have 44,504 that have no TIN and no pay. So, when you look at it from a glance, we have close to 75,000 in this group that are still not taxpayers and we have said the payment of tax is not only for the civil servants. It’s for all Nigerians. So, the millionaires and the billionaires will pay tax on behalf of what is due to the national coffers”, Fowler said. Yesterday, he added that FIRS had identified 45, 000 millionaire tax evaders last year, 2018 and recovered the sum of N23 billion through substitution of their bank accounts.

    Fowler thanked the Nigerian Police Force for its support and collaboration over the years, which he said had helped FIRS to achieve its target and requested for more support to enable it recover due taxes from more 40, 000 rich tax evaders in 2019.

    “Let me put on record that the Nigeria Police Force has been extremely helpful to FIRS. Without the Police, I doubt that the Service would have been able to achieve what we have achieved. 2018 was a successful year. The FIRS collected a total of N5.320 trillion of tax revenue. This is the highest revenue collection in the history of FIRS”, he said. This is significant given that this collection was when oil prices oscillated between $50 and $70 per barrel. Oil price was at an average of $100 to $120 per barrel between 2012 when FIRS collected N5.07 trillion. Oil component of the N5.320 trillion is N2.467 trillion (46.38 percent), while non-oil element of the collection is N2.852 trillion (53.62 per cent).

  • Ronaldo expected in Madrid for tax fraud trial

    Juventus forward Cristiano Ronaldo is expected back in Madrid on Tuesday, to attend a trial for tax evasion in which Spanish prosecutors are asking for a 23-month prison sentence and a fine.

    The Portuguese striker, who left Real Madrid for Juventus last July, is expected to plead guilty after he agreed a settlement worth 18.8 million Euros with Spanish tax authorities last summer.

    However, he is unlikely to serve any time in prison as Spanish law states a sentence of under two years for a first offence can be served on probation.

    The prosecutor’s office said it was seeking a fine of 5.7 million euros (6.5 million dollars), which it said Ronaldo had already paid, as well as interest of about one million Euros.

    That fine, expected to be confirmed on Tuesday, is part of the total agreed in the earlier settlement, judicial sources said.

    Ronaldo, 33, who has helped take Juventus to the top of Italian football’s Serie A, will have to travel to Madrid immediately after playing for Juve against Chievo on Monday.

    The trial was initially expected to take place on Monday, but the prosecutor’s office said the date was now set for Tuesday.

    It is expected to be concluded on the same day and be short, with officials saying the hearing will only require Ronaldo to confirm he accepts the deal.

  • FIRS generates N4.3trn tax revenue from Jan to Oct – Fowler

    The Federal Inland Revenue Service (FIRS) on Friday said it generated N4.3 trillion as tax revenue between January and October this year.

    FIRS Executive Chairman, Babatunde Fowler, disclosed this during the “Federal Inland Revenue Service Special Day” at the ongoing Lagos International Trade Fair held at Tafawa Balewa Square.

    Represented by Mrs Angel Fadahunsi, FIRS South West Head, Federal Engagement and Enlightenment Tax Team, Fowler expressed optimism that the service would meet up with its 2018 revenue target before the end of the year.

    “I am pleased to inform you today that the FIRS has recorded remarkable performance in terms of revenue collection this year.

    “For instance, as at October 31st, our collection was N4.3 trillion and we believe we have the potential to meet our assigned target at the end of the year.

    “We realised that this performance would not have been possible but for the present administration’s policy of expanding the nation’s tax base and blocking revenue leakages,” he said.

    Fowler said that the agency focused its attention on businesses with over a billion naira in annual turnover without any record of commensurate payment of tax obligations to boost its revenue performance.

    He noted that about 6000 of such companies had been identified and contacted by the service leveraging on various data sources.

    ” We will continue to focus on recovering all such revenues due to the Federal Government and the people of Nigeria.

    ” We encourage the business community and all well-meaning citizens to continue to partner with us to ensure that defaulters are traced and face the consequences while compliant businesses receive all the support they require,” he said.

    Fowler said the agency was working assiduously in ensuring that it aligned with all efforts to grow national revenue from taxation while easing the inherent administrative burdens.

    “We place emphasis on human resources as one of several tools to achieve our aim of expanding the tax net.

    ” This is why we recently recruited young Nigerians to support our bid to effectively provide adequate services to all the nooks and crannies of the country,” Fowler said.

    The FIRS boss said the service had undertaken some actions to further reduce the burden of taxation, including the review and approval of National Tax Policy by the Federal Executive Council.

    “This provides strategic direction on tax administration and national focus.

    “Another thing is working under the auspices of the Joint Tax Board, we continue to advocate for the simplification, harmonization and streamlining of processes, levies and taxes at the state and local government levels,” he said.

    Earlier, Babatunde Ruwase, President, Lagos Chamber of Commerce and Industry (LCCI), urged FIRS to expedite action to address issues of multiple taxes toward easing the business environment.

    The News Agency of Nigeria (NAN) reports that the Lagos International Trade Fair, organised by LCCI, started on Nov.2 and will end on Nov 11.

    NAN

  • Buhari signs new Executive Order 008 on Tax, Money laundering rules

    President Muhammadu Buhari has signed into law the new Executive Order 008 to further tighten tax and money laundering rules within and outside the country.
    Malam Garba Shehu, the President’s Senior Special Assistant on Media and Publicity, confirmed this development in a statement in Abuja on Wednesday.
    According to the presidential aide, the new Executive Order 008 tagged ‘Voluntary Offshore Assets Regularization Scheme’ (VOARS) takes effect from Oct. 8 the day it was signed by the President.
    He said that with the release of the new Executive Order, the Buhari administration had stepped up the regulations on money laundering and tax evasion.
    “By this order, Nigerian taxpayers who hold offshore assets and incomes are expected to, within a period of 12 months, declare voluntary those assets and pay taxes on them.
    “When they do this, they should expect to derive certain specified benefits,’’ he said.
    He added that, “any taxpayer who truthfully and voluntarily complies with the conditions of the scheme, pays a one-time levy of 35 per cent on the total offshore assets or pays all outstanding taxes, penalties and interest after forensic audit of their offshore assets and income shall obtain immunity from prosecution for tax offences and offences related to offshore assets, among others.
    “Equally, failure of any defaulting taxpayer to take advantage of this scheme shall, at the expiration of the scheme result in investigation and enforcement procedures concerning offshore assets anywhere in the world pursuant to information now readily available through automatic exchange of information between Nigeria and foreign countries.’’
    In accordance with the new order, Shehu said the office of the Attorney-General of the Federation and Minister of Justice would set up a VOARS in Switzerland for all categories of taxpayers who had defaulted in the declaration of their offshore assets, payment of taxes due and collectible.
    He, however, stated that this would be subject to the fulfilment of the terms and conditions as stipulated in the order, or any other subsequent complementary regulations that follow.
    He added that to avoid the abuse of this process, “the federal government makes clear that the scheme is open to all persons, entities, and their intermediaries holding offshore assets and are in default of their tax obligations in any way.’’
    Shehu stated that this included “those who are not already under investigation by law enforcement agencies in Nigeria or any other country and have not been charged with any crimes including theft of public funds or obtaining offshore assets through corrupt practices.”
    In signing the order, Buhari noted that under the Nigerian law, every citizen has the duty to declare his or her income and assets and pay taxes on them but regretted that this, in most instances, had not been the case.
    “The sad reality is that efforts to recover these taxes from defaulters through litigation are often frustrated by the complications caused by the change in the character and nature of such assets, insufficient financial intelligence, long delays in courts, among several other reasons,” the President said.
    Buhari expressed the hope that the new scheme would help to facilitate the expedient regularization of offshore assets connected to Nigeria.
    He also believed that it would lead to “a new expanded tax base for the Federal Government, and also fund the Nigeria Infrastructure Fund in Switzerland.’’

  • Rivers tax agency pickets NDDC office

    The Niger Delta Development Commission (NDDC) on Tuesday expressed dismay over picketing of its office complex by the Rivers State Internal Revenue Service (RIRS).

    Mr Nsima Ekere, Managing Director of NDDC expressed his displeasure in a statement issued in Port Harcourt by the commission’s Director of Corporate Affairs, Dr Ibitoye Abosede.

    The NDDC headquarters was on Tuesday shut by enforcement team of RIRS over alleged non-payment of ‘Witholding Tax’.

    Ekere, who spoke through his Special Assistant on Media, Chijioke Amu-Nnadi, said he was surprised with the actions of the state tax office.

    “We are surprised with the action taken because NDDC had already begun paying RIRS the arrears owed to them.

    “We started the payment two weeks ago, when the commission met with the tax enforcement team and started negotiations to resolve all outstanding issues.

    “But it is important for us to state that the commission – as a responsible corporate organisation – had begun to attend to all obligations as agreed,” he said.

    Ekere said that NDDC paid the first tranche of the tax arrears a fortnight ago and assured the commission’s commitment to conclude the payment.

    The statement did not mention the exact amount involved in the said tax arrears.

    “The current NDDC Board inherited the arrears dating back to 2013. However, over the past two years, we have paid all the commission’s tax obligations as and when due.

    “This is a sign of goodwill and commitment to meet these obligations. The blockage of NDDC premises is unnecessary embarrassment and does not match the commission’s goodwill,” he said.

    Ekere assured RIRS of the commission’s willingness to offset the outstanding arrears owed the state government.

     

  • Social media tax in Uganda to stay in spite of protests – Minister

    Social media tax in Uganda to stay in spite of protests – Minister

    The Ugandan government on Tuesday said it will not scrap the recently introduced taxes on social media use and mobile money transfers in spite of public protest.

    Frank Tumwebaze, Uganda’s minister of information, told newsmen that Cabinet on Monday decided that the daily rate of 200 shillings (0.05 U.S. dollars) charged on the usage of social media would stay.

    He also said that the mobile money tax will be reduced from one per cent to 0.5 per cent.

    The tax will only apply on withdrawals made.

    The taxes triggered protests led by activists, media practitioners and parliamentarians resulting in further consultations between parliament and the government.

    Tumwebaze clarified that those who use their mobile phones to pay utility bills and schools fees would not be charged any tax. He also said the Over The Top (OTT) tax, dubbed “social media” tax does not apply to other internet services such as sending emails.

    David Bahati, minister of state for finance, planning and economic development who also attended the briefing, said the government is targeting to collect about 32 million U.S. dollars from the 10 million social users in the country annually.

    “We want to get more options so that you can pay the social media tax quarterly or annually instead of the daily, weekly and monthly subscriptions,” Bahati said.

    Telecommunication companies on July 1 started enforcing the excise duty charge on OTT and the levy on mobile money transactions.

    Xinhua/NAN

  • Nigerians will reap benefits of prompt tax payment – Fowler assures

    The Chairman of the Federal Inland Revenue Service (FIRS), Mr Babtunde Fowler, says with the tax policies put in place by the Federal Government, citizens will soon reap the benefits of paying tax.

    Fowler, gave the assurance when he addressed State House correspondents after he briefed the Federal Executive Council (FEC) on activities of FIRS on Wednesday at the presidential villa, Abuja.

    According to him, the benefits accruing from payment of taxes by the citizens will encourage them to pay their taxes to relevant authorities, promptly.

    The FIRS boss dismissed the assertion that there were cases of multiple taxations in the country.

    “The Federal government, through the Vice President and the Ministry of Information, has been talking about the different projects that have been financed with tax revenue and I think as Nigerians begin to see those dividends of democracy as they say, but I say of very good spending, people will be encouraged to pay more taxes.

    “I would like to state once again as I have done before, that we do not really have a situation of double or multiple taxation in this country.

    “You only have that when you pay the same tax to two tiers of government.

    “What we had found out is that a lot of people categorise every payment to government as tax.

    “For example if you receive a fine or penalty, they call it tax, if you pay for a parking space, they call it tax but those are things that a referred to as user charges, not taxes,” he explained.

    Commenting on the Voluntary Assets Declaration Scheme of government, Fowler said the window of opportunity given to defaulters expired on June 30, and henceforth, defaulters would be prosecuted.

    He said: “The window expired on June 30 and anyone who has not come forth by now we shall use legal means to make sure that we bring them to book and make sure they pay the appropriate tax, with interest and penalty.’’

    Fowler said he was in the State House to brief the FEC on the exchange of information programme between Nigeria and other countries that will help reap more revenue for government.

    “We are ratifying the automatic exchange of information, which basically means Nigeria as a country will be able to exchange financial information with other countries, which hopefully should improve our revenue and also ensure that all Nigerians that have investments, businesses or income abroad pay their taxes as and when due,’’ he added.

  • Users groan as Govt. imposes new tax on Facebook, WhatsApp, IG, others

    A tax on the use of social media in Uganda has come into effect with many users complaining that it is costly and will also limit their freedoms.

    Telecommunication companies on July 1 started enforcing the excise duty charge on Over-The-Top services dubbed ‘social media tax’.

    The tax affects social media platforms such as Facebook, WhatsApp, LinkedIn, Instagram, Viber, and Skype among other.

    For one to access the platforms, they have to pay a daily fee of 200 shillings (0.05 U.S. dollars).

    Government argued that the move is aimed at raising domestic revenue instead of depending on the increasing cost of foreign financing.

    Frank Tumwebaze, minister of information, communication and technology, described the fee as a ‘small tax’ that will contribute to national development.

    The coming into effect of the tax has however caused concerns with some describing it as an unfair tax since they pay many other taxes to government.

    Daraus Bahikire, a Uganda’s social media activist, told Xinhua that while it is an obligation to pay the tax, the government must also ensure that the revenue collected is not embezzled.

    “My concern is on the utilization of this big tax revenue. What hurts us is to hear billions of money lost in embezzlement, fraud and other forms of revenue misuse,” Bahikire said.

    “I urge all Ugandans to be vigilant on the quality of services in their areas and ensure that our money is not misused by selfish human beings,” he added.

    Martha Chemutai, a public relations practitioner, argued that as the telecommunication companies enforce the tax, they must also improve on the service they offer.

    She argued that most times the connectivity is unreliable.

    Livingstone Sewanyana, the executive director of Foundation for Human Rights Initiative, told Xinhua in a recent interview that the tax is unwarranted and unnecessary on tax payers.

    “It is a restriction on people’s individual freedom to express themselves and communicate freely since it makes access costly and prohibitive,” said Sewanyana.

    “It is a double tax since we pay for airtime. Such a tax should be rejected,” noting that the law on social media taxation would be subjected to litigation to determine its constitutionality,” he said.

    Some social media users have resorted to installing Virtual Private Networks (VPN) applications in a bid to evade the tax.

    People with VPN unblocked their social media sites without paying the tax.

    Godfrey Mutabazi, the executive director of Uganda Communications Commission, the state regulator of telecommunications companies, said government has all the technology to block the VPN services.

    MTN, one of the telecommunication companies in a statement on its website, said operators will block access to VPNs that are used to evade the social media tax.

    Beside the social media tax, government on June 21 announced that it will also closely monitor social media to arrest people who use it for illegal purposes.

    A Finscope Uganda 2018 report released last week showed that out of Uganda’s population of 40 million people, only 9.7 million people have mobile phones; of these only 1.9 million people have access to the internet.

     

  • Nigerians now tax conscious – Osinbajo

    …says tax compliance index increased to 19 million in 2018 from 14 million recorded in 2017

    Vice President, Prof. Yemi Osinbajo on Wednesday declared open the 2018 edition of the Chartered Institute of Taxation of Nigeria (CITN) conference with a revelation that the nation had increased its tax net from 14 million in May 2017 to 19 million this year.

    Osinbajo, who was the Special Guest of honour at the event, stated that as at Dec. 2017, only 943 Nigerians paid self-assessed taxes of less than N1 million.

    “Earlier, I noted that as of May 2017, only 14 million economically active Nigerians pay taxes.

    “I am pleased to note that the number is now in excess of 19 million and still growing.

    “This means that efforts led by the federal Inland Revenue Service in collaboration with many of the states inland revenue services have already added more than five million new tax payers to the tax base.

    “But there is still a lot of work ahead of us; as Nigeria races to catch up with the rest of the world in terms of tax compliance we all have a role to play in this.’’

    The Vice President noted that tax issues were not exciting to anyone but added that it was an argument on whether one should pay taxes or enjoy dividend of governance.

    According to him, in reality it should not be debated as compliance and good governance should exist side by side as the head and tail of a social contract that binds citizens and government.

    He said it was difficult to explain the cynicism displayed by Nigerians about governance and about fulfilling their tax responsibilities.

    “Governments generally have the nonchalance of fulfilling their own part of the social contract.

    “But it is also a fact that when people pay taxes, they are more inclined to hold their governments to account.’’

    He noted that it was almost 300 years since “no taxation without representation’’ became the rallying cry for the U.S. covenant and one of the main triggers of their revolution that earned U.S. colonies at the time independence from Great Britain.

    Osinbajo noted that Nigeria had experienced the Aba and Abeokuta tax riots incidentally both championed by women.

    “The moral is a simple one that when citizens pay their full share of taxes they take more than a passing interest in how they are governed and how public funds are utilized and accounted for,’’ he stated.

    Osinbajo said that government had relied more in the past on oil revenues than on taxation adding that a decline in taxation depicted a decline in government’s accountability and ability to deal with the needs of the people.

    He said that poor tax management was one of the issues that increased corruption in the system adding that the fact remained that the tax payer was less tolerant of corruption than another who failed to pay.

    He stated that because what government spent was oil money and taxes of few persons a lot of people saw government’s money as belonging to no one.

    Osinbajo stated that the present administration was determined to change the state of affairs and also determined to restore the social contract between the government and the citizens by ensuring prudence in public expenditure.

    “We have aggressively expanded the implementation of the TSA and IPPIS both designed to ensure that public funds are transparently managed and spent.

    “In the process we have succeeded in proving that process reforms are only as good and effective as their implementation.

    “The TSA’s unified system of bank account domiciled in the CBN has proved to be far more transparent and cost effective than the old scenario where government agencies maintained thousands of accounts across many commercial banks because of the TSA the federal government realizes monthly saving of at least N4billion which could have gone on commercial bank charges alone.

    “The Presidential Initiative on Continuous Audit (PICA) has also tightened controls on federal payrolls and pension systems elimination tens of thousands of ghost workers and saving us more than N200 billion that would have gone to these ghost workers,’’ he added.

    Osinbajo stated that such savings were instrumental to the huge government expenditure on infrastructure and human capital development than any previous government in spite of the recession and dwindling earnings.

    The Vice President referred to the tax innovation of late Chief Obafemi Awolowo as Premier of the old Western region which enabled the administration to raise money for huge infrastructure, agriculture and free education.

    He, however, noted with dismay that the states in the western region besides Lagos did not earn enough taxes to pay salaries and any other major development effort.

    “Without federal allocation, most states cannot survive; Lagos state alone takes in as much Internally Generated Revenue as 31 states combined; it tells you how little the other states manage to bring in in IGR,’’ he noted.

    Osinbajo stated that the country’s tax-to- GDP ratio was at six per cent but with the reforms in the tax system might rise to 15 per cent in 2020.

    He said the administration had taken steps to curtail tax evasion by multi-national companies as well as prevent citizens from hiding their assets abroad.

     

  • Obaseki advocates non-punitive tax regime for local companies

    Obaseki advocates non-punitive tax regime for local companies

    The Edo State Governor, Mr. Godwin Obaseki, has made a strong case for more incentives for local companies, including a non-punitive tax regime to encourage more investments and boost the nation’s economic growth.

    Obaseki made the case while playing host to the management team of Guinness Nigeria Plc., led by the Chairman, Babatunde Savage, who paid a courtesy visit to the governor, at the Government House in Benin City, the Edo State capital.

    According to the governor, local investors who choose to contribute to the economic growth of the country must be encouraged with a tax regime that will serve as an incentive for their businesses.

    He said the state government will continue to encourage local investors, noting that “such measure will attract other investors to locate their businesses in the state.”

    He emphasised that “Without strong local investors, we cannot attract international investors,” and assured that he would take the campaign for a non-punitive tax regime to the federal government to attract more companies that will create jobs for the nation’s teeming unemployed youths.

    Obaseki commended Guinness Nigeria Plc for expanding its investment in the state with the unveiling of the company’s new product, Royal Kingdom Premium Lager Beer, noting that it is the beer for Edo people.

    He lauded the company for complementing the drive by the state government to create employment opportunities, “We commend Guinness for the direct and indirect jobs it has continued to create in the state. Local companies like Guinness Nigeria Plc. have continued to contribute to the overall development of the state.”

    Earlier, Chairman, Guinness Nigeria Plc, Mr. Babatunde Savage, expressed his company’s appreciation to the governor for supporting their operations in the state, noting, “Through the support of the state government, the company has been able to expand its business in the state.

    Savage said “The company’s new product: Royal Kingdom Premium Lager Beer, has its materials sourced locally. This was a deliberate choice to empower people in the state.”