FIRS to boost revenue collection as it launch new TIN system
Babatunde Fowler, Executive Chairman of Nigeria's Federal Inland Revenue Service (FIRS),

The Federal Inland Revenue Service (FIRS) has sealed some companies for failure to pay their taxes.

According to Vanguard, the enforcement team of FIRS sealed Giandan Nigeria Limited over tax debts amounting to N47.779 million. It also sealed Justeen International Limited over N24.779 million tax debt.

Speaking on the sealed companies, Assistant Manager, Legal, FIRS, Ruth Mandeun, noted that the two companies clearly defaulted in paying their taxes and they are fully aware of the repercussions and assured that they will be reopened after they clear their debts.

Recall that 19 firms were recently sealed by the tax agency over failure to fulfil their tax obligation.

Government desire to shore up its revenue base

With the dwindling revenue from crude oil, the government has restated its desire to generate more non-oil revenue to finance the capital projects in the budget.

In its bid to increase the revenue-base and also bring more people into the tax-system the Federal Government had at last year launched the Voluntary Assets and Income Declaration Scheme (VAIDS).

The amnesty window which originally lasted for 9 months and expired on March 31, 2018, has been extended until June 30, 2018.

The scheme seeks to provide a time-limited opportunity for tax-payers to regularize their tax status relating to previous tax periods and pay taxes due.

In exchange for fully and honestly declaring previously undisclosed assets and income, taxpayers will benefit from forgiveness of overdue interests and penalties, and also an assurance they do not face criminal prosecution for tax-related offences and tax investigation.

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It also seeks to improve the low tax to Gross Domestic Product (GDP) ratio currently about 6% to about 15% by 2020, broadening the Federal and State tax brackets.

According to the Chairman of FIRS, Babatunde Fowler, over $50million has been remitted since the commencement of the program. However, the target is to raise at least $1 billion from this ‘amnesty period’.

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