Nigeria does not grant tax waivers to investors, says FIRS

*The Federal Inland Revenue Service clarifies the Service does not grant any tax waivers to any local or foreign investors as the FIRS Act does not empower it to grant such tax breaks in the country

Isola Moses | ConsumerConnect

In connection with tax waivers the agency allegedly granted to some foreign firms operating in Nigeria, Muhammad Nami, Executive Chairman of the Federal Inland Revenue Service (FIRS), has explained the Service did not grant any tax waivers to any local or foreign investors in the country.

Nami disclosed this recently in Abuja, FCT, when he appeared before the House of Representatives’ Public Accounts Committee investigating purported tax waivers granted to three foreign firms operating in the country.

ConsumerConnect gathered the Executive Chairman of the Service stressed that the FIRS Act does not empower it to grant such tax breaks to investors.

The cited firms are Indorama Petrochemical, Indorama Fertilizer and Petrochemical Limited and OIS Indorama Eleme, in Port-Harcourt, Rivers State capital.

“The FIRS does not have the power or responsibility of facilitating or implementing incentives for local investors or investors coming through the Foreign Direct Investment platform, which is the sole prerogative of the Nigerian Investment Promotion Commission (NIPC),” said Nami.

He also noted that “the investigation of the three foreign firms, Indorama Petrochemical, Indorama Fertilizer and Petrochemical Ltd and OIS Indorama Eleme Port-Harcourt, started way back in 2015.

“The committee in charge of the investigation has consistently been furnished with all required documents by the FIRS.”

According to him, the companies under consideration “have been variously granted pioneer status between December 15th, 1997 to 2016 for the Indorama Petrochemical Limited and between 2017 and 2020 for the Indorama Fertilizer and Chemicals Limited respectively.”

Nami further said that “upon expiration of the pioneer period and conclusion of post pioneer Audit, the Indorama Petrochemical Limited company’s tax file was returned to the Large Tax Office (LTO) Port Harcourt.

“Thus far, the company has filed its annual returns up to 31st December 2019 with relevant Self-Assessment and paid its attendant liabilities.”

The FIRS Executive Chairman reiterated that “the mandate of the FIRS is to assess, collect and account for tax revenue” in the country’s economy.

This mandate, he stressed, “is clear and unambiguous,” he declared

FIRS launches online portal for Tax Clearance Certificates verification

As part of measures to check the activities of fraudsters who specialise in producing and selling fake Tax Clearance Certificates (TCC), the Federal Inland Revenue Service has unveiled a state-of-the-art, user-friendly online portal that detects any TCC not duly issued by the FIRS.

It was learnt Nami stated this at the Revenue House Headquarters of the Service in Abuja while receiving the Management of the Federal Capital Territory (FCTA) Land Administration.

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