Tax Defaulters To Pay 50 percent Of Disputed Amount Ahead Of Hearing – FIRS

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The Federal Inland Revenue Service (FIRS) has stated that henceforth, tax violators who head to the judiciary against the service will pay 50 percent of the assessed amount in dispute into an interest-yielding account of the Federal High court ahead of its hearing.

The Executive Chairman of the FIRS, Muhammad Nami, made the disclosure on Friday at a public hearing by the House of Representatives committee on public accounts investigating revenue leakages arising from tax waivers and incentives to foreign companies granted pioneer status.

According to Nami, the new rule is contained in a recent practice direction, which was issued by the Chief Judge of the Federal High Court, Abuja, Justice John Terhemba Tsoho, under Order 57 rule 3 of the court (civil procedure) rules, 2019.

The FIRS chief noted that the practice direction commenced from May 31, 2021.

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He further stated that the management “had initiated a process for a memorandum of understanding (MoU) with critical stakeholders as far as information sharing and amendments to the relevant laws are concerned.

“We have gotten several amendments to our tax laws which require companies operating in the free trade zones to file tax returns on their operations to the FIRS,” he said.

“These amendments aim to check the activities of taxpayers currently taking advantage of some gaps in our tax laws and fiscal policy by establishing businesses in the nation’s tax-free zones.”

About Author

Victor Okeh is a graduate of Economics from Lagos State University. He is versatile in reporting business and economy, politics and finance, and entrepreneurship articles. He can be reached via – [email protected]

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