FIRS introduces automated system to block tax leakages

Isola Moses | ConsumerConnect

The Federal Inland Revenue Service (FIRS) has unveiled a new electronic and automated platform for taxpayers in order to enable them to file transfer pricing declaration and disclosures aimed at blocking leakages in tax collection, especially Stamp Duty collected by the Nigerian banks.

ThisDay reports Mr. Muhammad Nami, Executive Chairman, FIRS, while introducing the fresh electronic solution platform to banks’ executives and other stakeholders in the tax sector Tuesday, March 19, in Lagos, stated that the Service is deploying the automated platforms to ensure 100 percent compliance.

On the new electronic and automated platform, Mr. Nami has tasked the banks to “get fully prepared for the adoption of the new compliance programme as failure to comply is not an option.”

Abdullahi Ismaila Ahmad, Director, Communications and Liaison Department at FIRS, in a statement, said as the COVID-19 pandemic cripples the global economic system with dire consequences for fiscal planning by all countries of the world, FIRS has also moved to alleviate the effects of this unforeseen global challenge on the Nigerian economy.

Nami in the statement said: “The need for total compliance and aggressive revenue drive is imperative now in view of the recent crash of oil price from $50 to $29 which will definitely affect our collection from the Petroleum Profit Tax (PPT).

“Similarly, the outbreak of the Coronavirus has occasioned a global economic meltdown with serious consequences to our economy.

“You will recall that recently, about 50 Nigerian oil-bearing trucks could not discharge crude oil to buyers because of this Coronavirus pandemic.

This has the combined effect of reducing government’s revenue target and, subsequently, the provision of infrastructure and social amenities.”

The FIRS Executive Chairman stressed “we earnestly need to shore up against the looming economic meltdown.

“It is on this note that I solicit your cooperation and understanding in the drive to use automation to rev up our revenue, so that the government of President Muhammadu Buhari will be able to deliver on its mandate.”

The FIRS held a one-day ‘Stakeholders’ Engagement for the Review of Draft Information Circulars on the 2019 Finance Act in Lagos.

The technical session was reported to have been attended by stakeholders from a broad spectrum of the economy carry out a “joint review of six (6) draft Information Circulars developed by the Service on the implementation of the 2019 Finance Act, to ensure quality of the circulars and proper collaboration for implementation of the Finance Act.”

Earlier in his address, Nami said the information circulars “are very important tools for clarifying various provisions of the tax law in line with Section 8(1)(t) of the FIRS (Establishment) Act 2007.”

According to him, the final circulars envisaged from the stakeholders’ input “will assist in achieving the objectives of the 2019 Finance Act to raise revenues to fund public goods and services; promote fiscal equity; reform domestic tax laws to align them with global best practices; introduce productive tax incentives; support micro, small and medium businesses; and to actualise the Ease-of-Doing Business Reforms” in Nigeria.