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Tag: Tax

  • FG gets global support against tax evasion

    The Federal Government has secured a global commitment to fight tax evasion through having access to the financial accounts of Nigerians outside the country.

    Head, Organisation for Economic Cooperation and Development (OECD) Global Forum on Exchange of Information, Ms Monica Bhatia, stated this following a meeting with Nigeria’s Minister of Finance Kemi Adeosun.

    The meeting held on the sideline of the Platform for Collaboration on Tax Conference at the UN Headquarters, New York where Adeosun was on a panel that discussed ‘Revenue Leakages: Illicit Financial Flows’.

    Bharia told the Correspondent of the News Agency of Nigeria (NAN) that Nigeria when operational, Nigeria could exchange information with other countries on tax information.

    “The meeting was about exploring how even more closely can Nigeria work with the Global Forum on Tax Transparency to implement the goal of fighting tax evasion through automatic exchange of information.

    “Nigeria has decided to do Automatic Exchange of Tax Information and use exchange of information to investigate cases and fight tax evasion.

    “So the discussion today is how the global Forum can support Nigeria’s efforts in achieving the goals and in fighting tax evasion.

    “I found the minister very committed and very determined to do all it takes to send a strong message to tax evaders.

    “That the government will not sit back but they will fight tax evasion and we are trying to support those efforts.

    “The information that Nigeria can exchange with other countries around the world that is related to anything that their investigation needs firstly.

    “And secondly, on an automatic basis on financial accounts of Nigerians abroad,” Bhatia said.

    According to her, however, it will take efforts over the next couple of years and we hope that after a couple of years, they will start getting that information.

    She said already 102 countries are exchanging information by September this year adding, Nigeria is not yet in the 102 because the country committed later.

    “The 102 countries committed in 2014 and Nigeria is a developing country; it doesn’t have a financial centre so it was not sort of forced to commit, it was voluntary.

    “Among the developing countries, Nigeria is one of the first few that have come forward and said we would like to do this.

    “We are prepared to do what it takes to do this because we are going to benefit from getting information,” she said.

    Adeosun had, during the meeting alongside Chairman, Federal Inland Revenue Service, Mr Tunde Fowler, expressed the Federal Government’s commitment to collaborate with international organisations to track down Nigerians operating in tax havens.

    NAN reports that Adeosun was earlier among panelists that discussed the impact of the illicit financial flows, particularly those caused by tax evasion and corruption on sustainable development.

    The panel of discussants also discussed measures, both at the national and international level, which might help to reduce the menace and identify opportunities to increase cooperation among a range of actors tackling it.

     

  • FIRS seals 2 companies over N8bn tax debt in Delta, Edo state

    Officials of the Federal Inland Revenue Service (FIRS) on Wednesday sealed two companies in Delta and Edo over N8 billion tax debt.

    The Leader of the enforcement team, Mrs Anita Erinne, said the companies were sealed over failure to remit over N8 billion taxes payable to the Federal Government.

    She said that one of the affected companies (name withheld), located in Uvwie Local Government Area of Delta, was indebted to the tune of N121 million.

    She also revealed that the other defaulting company in Edo owed the government N8.1 billion.

    The team leader tendered separate “Warrant of Distraints’’ signed by the FIRS Chairman, Mr Tunde Fowler, to the companies to justify the exercise.

    According to her, Section 3 of FIRS (Establishment) Act, No.13 of 2007 and Section 44(2) of the Constitution of the Federal Republic of Nigeria 1999 empowers the FIRS to close any defaulting company.

    “No member of staff or anybody should remove the FIRS seals until the companies paid their debts.

    “Any attempt to do that, the company will be liable to a tune of N200,000 as a fine to the government,’’ she warned.

    Erinne, however, advised companies to comply with the tax laws and remit their taxes promptly to avoid being sealed.

    The News Agency of Nigeria (NAN) reported that the FIRS in 2017 netted N3.2 trillion in 10 months, an amount that represented 79.35 per cent of its target for the year.

    The Chairman of the Service, Mr Babatunde Fowler, then expressed readiness of his personnel to help Federal Government in blocking revenue leakages and increase collection of taxes payable to the government.

  • Over 56m Nigerians evade tax – Adeosun

    Over 56m Nigerians evade tax – Adeosun

    …Says wealthy Nigerians can longer evade tax

    The Minister of Finance, Mrs. Kemi Adeosun has said it will be difficult for the rich to avoid paying taxes given the plans by the government to widen the tax net and capture all those who should be paying.

    She expressed regret that no fewer than 56 million Nigerians, who should be paying taxes, are not paying.

    Mrs Adeosun spoke in Enugu during a sensitisation programme on the Voluntary Assets and Income Declaration Scheme (VAIDS). It was hosted by the Enugu State Government.

    The minister said huge sums of money had been moved out of Nigeria without the owners paying any tax. She said such people would be fished out.

    ”The good news for government, which is bad news for the tax evaders, is that globally, nations have agreed to share data under the Automatic Exchange of Information. This means that sitting at our desks in Abuja, we are getting information about assets that the owners thought were well hidden from the tax authorities.

    “As you know, Nigerians are entitled to keep their wealth anywhere in the world, including under their mattress, but what the law requires is that they pay tax on their income as they earn it,” Mrs Adeosun said.

    The event was attended by Enugu State Governor Ifeanyi Ugwuanyi; Deputy Governor Cecilia Ezeilo; Speaker. Edward Uchenna Ubosi; Commissioner for Finance Eucharia Uche Offor, members of the State Executive Council, members of the House of Assembly and traditional rulers, among others.

    The minister said: “Payment of taxes is a fundamental requirement for our growth story. Nigeria has a very poor scorecard in tax payment. When oil came, we abandoned the old system of tax collection that provided most of our infrastructure since colonial days.

    ”Currently, we have just 14 million tax payers out of 70 million who are economically active. So, many people who should be paying are not paying anything. It is the development of taxes that will help the states and the Federal Government to achieve their true potentials.”

    She explained that payment of taxes had become imperative to avoid the recent collapse in oil prices and the resultant recession.

    Mrs. Adeosun recalled that after years of neglect, the Federal Government has revived some road projects, including the 9th Mile – Ngwo – Milken Hill – New Market.

    “Indeed, the President Muhammadu Buhari Administration has completely transformed road expenditure. In 2015, the figure was N19 billion for the whole nation; in 2016, we increased it to N220 billion and we plan to do much more.

    “This government has recognised that infrastructure is the key to creating jobs, growth and wealth. We have already released N1.2 trillion in capital so far for the 2017 Budget, which commenced in June 2017 and most of this was applied to roads, bridges, rail, power, our airports and other key infrastructural projects.

    “How will this capital investment translate to jobs? Not only do we get the direct jobs with construction companies and others but there is indirect opportunity for suppliers of building materials and aggregates.

    “In the longer-term, efficient infrastructure reduces the costs of doing business and makes many ventures viable and profitable. We are seeing young entrepreneurs springing up to replace imported items with locally made goods of the highest standards. We are seeing export of foods and finished goods into international markets,” Mrs. Adeosun said.

    On VAIDS, the minister said the scheme was initiated to provide an opportunity for tax payers to regularise their tax status relating to previous tax periods.

    She maintained that tax defaulters who failed to take advantage of the programme would be subjected to tax investigations as well as made to face criminal prosecution for tax offences.

    Ugwuanyi lauded Buhari and the minister for their “resourcefulness and dynamism” in the establishment of VAIDS.

    He enjoined all tax payers to take advantage of VAIDS to regularise their tax liability.

    The governor urged the President and the minister to prevail on federal agencies in the state to pay their taxes.

    He said the state government was committed to growing its Internally Generated Revenue (IGR), which had increased from N14 billion in 2016 to N22 billion in 2017.

     

  • Rich can longer escape tax in Nigeria – Adeosun

    Rich can longer escape tax in Nigeria – Adeosun

    It will be difficult for the rich to avoid paying taxes given the plans by the government to widen the tax net and capture all those who should be paying, Finance Minister Kemi Adeosun said yesterday in Enugu.

    She expressed regret that no fewer than 56 million Nigerians, who should be paying taxes, are not paying.

    Mrs Adeosun spoke in Enugu during a sensitisation programme on the Voluntary Assets and Income Declaration Scheme (VAIDS). It was hosted by the Enugu State Government.

    The minister said huge sums of money had been moved out of Nigeria without the owners paying any tax. She said such people would be fished out.

    ”The good news for government, which is bad news for the tax evaders, is that globally, nations have agreed to share data under the Automatic Exchange of Information. This means that sitting at our desks in Abuja, we are getting information about assets that the owners thought were well hidden from the tax authorities.

    “As you know, Nigerians are entitled to keep their wealth anywhere in the world, including under their mattress, but what the law requires is that they pay tax on their income as they earn it,” Mrs Adeosun said.

    The event was attended by Enugu State Governor Ifeanyi Ugwuanyi; Deputy Governor Cecilia Ezeilo; Speaker. Edward Uchenna Ubosi; Commissioner for Finance Eucharia Uche Offor, members of the State Executive Council, members of the House of Assembly and traditional rulers, among others.

    The minister said: “Payment of taxes is a fundamental requirement for our growth story. Nigeria has a very poor scorecard in tax payment. When oil came, we abandoned the old system of tax collection that provided most of our infrastructure since colonial days.

    ”Currently, we have just 14 million tax payers out of 70 million who are economically active. So, many people who should be paying are not paying anything. It is the development of taxes that will help the states and the Federal Government to achieve their true potentials.”

    She explained that payment of taxes had become imperative to avoid the recent collapse in oil prices and the resultant recession.

  • Delta Govt takes measures to boost revenue from taxes

    Delta Govt takes measures to boost revenue from taxes

    Chief David Edevbie, the Delta Commissioner for Finance, says the state’s decision to harmonise taxes and reduce tax consultants is to improve accountability and boost revenue from taxes.

    Edevbie made this known in an interview with the News Agency of Nigeria in Asaba on Tuesday.

    He said that the adoption of Electronic Treasury Receipt was helpful in eliminating time lags and minimising leakages of funds in revenue collection process.

    Edevbie said that the state government was beginning to focus on the informal sector/unregulated economy, especially the micro informal sector.

    According to him, with the introduction of presumption tax more than 500,000 people have been captured into the tax net from the informal sector.

    “In addition, there was tremendous improvement in revenue from land charges which increased in excess of 600 per cent in 2017.

    “Once all these reforms are institutionalised and sustained, there should be significant growth in the state’s aggregate tax collections,“he said.

    Edevbie was optimistic that the 2018 budget would be better implemented.

    “The funding challenges that were faced in the 2017 budget have reduced as monthly statutory allocations are on the rise, “ he said.

     

  • Tax: VAIDS writes defaulting wealthy Nigerians, warns of March 31 deadline

    The Voluntary Assets and Income Declaration Scheme (VAIDS) office in the Federal Ministry of Finance has identified thousands of tax defaulters across the country and has written to them, requesting compliance before the expiration of the declaration period on March 31.

    According to the VAIDS office, the defaulters, mostly high net-worth individuals (HNIs), were identified through transaction, income and assets data obtained from a variety of sources. Following the identification process, the VAIDS office communicated with them via nudge letters to draw attention to their defective tax status.

    The letters, revealed the VAIDS office, has elicited positive responses from recipients, with many of them visiting or phoning the VAIDS office to request for more information on declaration and compliance.

    More letters are currently being sent out to other identified defaulters based on transaction data obtained from the Corporate Affairs, Federal Inland Revenue Service (FIRS), Central Bank of Nigeria, Nigerian Communications Commission (NCC), state governments, Nigerian Customs Service, land registries, as well as payment platforms such as Government Integrated Financial and Management Information System and Remita in the case of tax-defaulting companies.

     

  • [BREAKING] Fraud: FG investigates over 200 whistleblowing tips, suspends two senior tax officials

    [BREAKING] Fraud: FG investigates over 200 whistleblowing tips, suspends two senior tax officials

    The Federal Government has begun investigation into over 200 whistleblowing tips on tax officials and taxpayers which involves under declaration of taxes as well as demand by taxpayers and receipt of gratifications by tax officials.

    The Government through the Federal Ministry of Finance has also commenced the process of sanitising the tax administration and revenue collection system of dishonest operatives.

    The Honourable Minister of Finance, Mrs. Kemi Adeosun, disclosed this on Sunday in Abuja while presiding over the meeting of the Whistleblower Unit in the Federal Ministry of Finance and the Presidential Initiative on Continuous Audit (PICA).

    Adeosun said that the sanitization of the tax administration and revenue collection system was part of the government’s efforts at enhancing the willingness of citizens to pay their taxes.

    She confirmed that the Federal Ministry of Finance had requested and secured the suspension of two senior Tax Officials in Delta and Benue States based on verified tips from Whistle-blowers.

    The Minister said, “The Ministry is currently analysing over 200 additional whistleblowing tips including recordings between tax officials and potential taxpayers in which various practices, designed to reduce tax payable, were detailed.

    “These practices include demands for personal gratification by tax officers, promises to procure backdated tax clearance certificates, and offers to conspire to reduce taxes payable.”

    In order to deal with the influx of the whistleblowing tips, the Minister has directed the reorganization of the Whistleblower Unit to fast track reports relating to those in the revenue generating agencies.

    “Encouraging our citizens to pay taxes is a matter of law but it is also a matter of trust. Those who work in our tax offices must therefore demonstrate the highest level of integrity.

    “The Administration of President Muhammadu Buhari understands that to reduce our reliance on oil means every citizen must pay their taxes as and when due.

    “However, people will not be encouraged to pay if they believe that those involved in the assessment are not transparent or are dishonest. We will continue to sanitise the system and also improve our controls,” the Minister stated.

    She assured that the Ministry would continue to root out fraudsters from compromising the integrity of the tax administration and revenue collection system.

    She lauded members of the public for volunteering valuable information including voice recordings and other evidence to the Whistleblower Unit in the Ministry.

    The Minister further enjoined members of the public to desist from the procurement of tax certificates that were not consistent their true income.

    She warned against relying on such documents and therefore advised those who might have procured such tax certificates in the past to take advantage of the Voluntary Assets and Income Declaration Scheme (VAIDS) to regularise their tax profile.

    She added, “We have cases of procurement of tax clearance certificates with no corresponding records or assessments in the tax offices. In such cases, although payments have been made but there are no underlying assessment. So automatically, we will flag such companies for investigation.

    “The data analysis being undertaken within the Federal Ministry of Finance is readily exposing those who have obtained tax clearance certificates that are either forged or are not consistent with their true income levels.”

  • FIRS recorded N4 trillion tax revenue collection in 2017- Fowler

    The Chairman of Federal Inland Revenue Service (FIRS), Babatunde Fowler, on Monday said that the agency achieved N4 trillion as tax revenue collection in 2017.

    Mr. Fowler said this at the FIRS 2018 Management and Stakeholders in Lagos with theme, “Optimizing Tax Administration with Parliamentary Synergy”.

    The agency recorded N3.3 trillion as revenue collection in 2016.

    The chairman said he was hopeful that the country would be further moved forward through taxation.

    “By putting our hands together in contribution on to our set goal, I am confident that we will surpass our past result and we will be on our way to the future we hope to achieve.

    “It is clear that taxation is the most sustainable of all government revenue sources,” Mr. Fowler said.

    According to him, there has been sustained decline in global price of oil in second half of 2014, making the revenue generated from it to stand at N2.45 trillion.

    He also said that in 2015, 2016 and 2017, the nation’s revenue from oil stood at N1.29 trillion, N1.16 trillion and N1.52, respectively.

    Mr. Fowler said the trend had adverse effects on the ability of oil dependent countries to meet their development objectives.

    “For us in Nigeria, a decline in receipts from oil revenue and decline in accruals to states from the federal account has placed many states in a financial quandary, to the extent where basic obligation such as the payment of employee wage has become a perennial challenge,” he said.

    Mr. Fowler also said what the retreat hoped to achieve was part of efforts to ensure that the country must act differently by looking beyond oil as the mainstay of the economy.

    “Therefore, there cannot be any serious discussion on diversification of the nation’s revenue generation without reviewing the country’s tax regime for optimal performance.

    “Between the resource persons, we have invited our own staff and our stakeholders.

    “We hope to draw from a wide spectrum of perspectives on how best to move forward.

    “If the way forward requires a review of existing legal framework or legislative reform, there is no doubt in my mind that we have willing and able partners in National Assembly, FIRS Board and the Joint Tax Board”.

    He commended the National Assembly and traditional institution for their involvement in deepening tax collection in the country.

    Earlier, Oba of Lagos, Rilwan Akiolu, who received the FIRS Chairman at his palace, thanked the National Assembly for its contribution and support to tax revenue generation in the country.

    Mr. Akiolu said that the country needed good government, governance and leadership while urging them to be patient with the president in moving the country forward.

    He said that Lagos State had been contributing its quota in ensuring more tax revenue generation for the country.

    Also, at the courtesy visit were the Chairman, Senate Committee on Finance, John Owan-Enoh, the Chairman, House Committee on Finance, Babangida Ibrahim, members of the senate and house committees on finance.

     

  • Bayelsa revenue board seals NDDC’s office in Yenagoa over N168m tax liability

    The Bayelsa Board of Internal Revenue (BIR) on Monday sealed off the office of the Niger Delta Development Commission (NDDC) in Yenagoa over alleged non-remittance of N168 million Pay As You Earn (PAYE) tax liability.

    The building was earlier sealed off in June 2017 when the liability was N336 million, with the NDDC paying half of the sum leaving the balance unpaid.

    The Director of Compliance, Mr Robert Lokoson, who led the enforcement team, said the government was compelled to act following the failure of the NDDC to keep to the agreement to offset the debt in two instalments.

    “Sometime in June 2017, the board was forced to levy a warrant of distrain ( Order of court to compel payment) on NDDC in view of a tax debt for 2008-2014 totalling N336 million.

    “Following the intervention by stakeholders and a meeting between the board and the NDDC, we graciously suspended destrain with provision that the liability will be cleared in two tranches of N168 million within two months.

    “Sadly after the first tranche was paid in July 2017, the NDDC has refused to clear the last tranche of N168 million five months later.

    “It is this intransigent attitude that has compelled the board to re-levy the distrain and recover the outstanding N168 million,” Lokoson said.

    Meanwhile, staff of the NDDC who were forced out of their offices, wondered why the commission could not remit the taxes deducted from their salaries.

    The Bayelsa representative on the NDDC board, Prof. Nelson Brambaifa, was not available when the team visited for the tax drive.

     

  • Tax evasion: EFCC recovers N27.7b from six banks

    The Economic and Financial Crimes Commission (EFCC) has recovered over N27.7billion from six banks being unremitted withholding tax on dividends.

    Also, about seven more banks were said to be on the radar of the anti-graft agency for similar infractions.

    According to a fact-sheet obtained by The Nation, the EFCC is expecting recovery of more withholding tax.

    The document reads: “The Economic and Financial Crimes Commission (EFCC) has recovered a staggering sum of N27, 712,334,455.06 as withholding tax on dividends payment by six Nigerian banks.”

    “The recovery by the Bank Fraud Section of the Lagos office of the Commission was made through direct intervention by the Commission and indirectly through the assistance of the Federal Inland Revenue Service (FIRS), the Internal Revenue Service (IRS) of some states as well as the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC).

    One bank allegedly accounted for more than 80 percent of the amount as N26, 468,223,358.24 was recovered from the bank between November and first week of December, 2017.

    “Of the sum, the EFCC directly recovered N4, 207,235,701.06 from the bank, while N22, 260,987,657.24 came through the intervention of FIRS, the Lagos State Internal Revenue Service, the Internal Revenue Service of other states and the RMAFC.

    “The balance of N1, 244,111,097.43 was recovered from the other five banks. The investigation is still on going.

    “Seven other banks are currently under the Commission’s radar with respect to withholding tax on dividends.

    “We are certain to record more recovery by the time the investigation is completed”.

    However, none of the banks could be reached for comments at the time of filing this report.