In a renewed bid to bring tax defaulters to book in the country, the Federal Inland Revenue Service (FIRS) will commence nationwide tax enforcement on Wednesday, 18th December 2019.
The latest move by the FIRS was confirmed by Wahab Gbadamosi Head, Communications and Servicom Department. According to Gbadamosi, the FIRS has issued a notice to commence nationwide tax enforcement with a view to prosecuting defaulters.
The details: In a notification sent to taxpayers on Tuesday, signed by the Acting Executive Chairman of FIRS, Abiodun Aina, the FIRS disclosed plans have been concluded to begin tax enforcement against tax defaulters as they continue to fail in fulfilling their tax obligations.
The FIRS acting Chairman also advised defaulting taxpayers to “settle their tax liabilities within Seven days of the publication to avoid any inconveniences or interruptions in their operations.
The notice read:
“The FIRS hereby informs all taxpayers (individuals, partnerships, Enterprises, Corporate organizations, Ministries, Departments and Agencies) who are in default of payment of taxes arising from self-assessment, tax audit, tax investigation, transfer pricing audit, demand notices, and any other liabilities, that the Service will commence a NATIONWIDE TAX ENFORCEMENT EXERCISE from 18th December 2019 with a view to prosecuting defaulters and recovering all outstanding tax liabilities,
“The taxes referred to are as follows: 1. Petroleum Profits Tax; 2. Companies Income Tax; 3. Value Added Tax; 4. Withholding Tax; 5. Tertiary Education Tax; 6. NITDA Levy; 7. Stamp Duty; 8. Capital Gains Tax.”
Aina advised tax defaulters, who fail to take advantage of programmes like the Tax Amnesty and the Voluntary Assets Income and Assets Declaration (VAIDS) programmes to off-set their tax liabilities, risks having the rough end of the stick.
What it means: The FIRS has frequently communicated its commitment to recovering unpaid taxes from defaulters in order to boost the government’s revenues. As the federal government currently faces revenue strain, revenue-generating agencies like FIRS and Customs have been the last resort for the government to close the revenue shortfall.
The FIRS had earlier given companies a 30-day ultimatum to regularise their tax status and pay the tax due.
This was in line with the decision of FIRS to publish a list of over 19,000 corporate tax defaulters with the names of their bankers. Also, the tax regulator had already stated that in the event of non-compliance within the stipulated period, it would recover the tax liabilities from directors, managers, secretaries and other management staff of such companies.
Source: Nairametrics
