KEHINDE AKINTOLA
Ongoing efforts to boost revenue generation by Federal Government
gained a boost as Federal Inland Revenue Service (FIRS) unveiled plans
to generate N750 billion from erring Accounting firms and others with
N1 billion turnover and above.
Babatunde Fowler, FIRS Chairman who disclosed this during the budget
defence of key revenue generating agencies held at the instance of
House Committee on Finance chaired by Ibrahim Babangida, explained
that the Service achieved 78.86% or N5.320 trillion out of its revenue
target of N6.747 trillion for the 2018 fiscal year.
The Service’s initiative tagged: ‘Bank Accounts substitution
exercise’, was aimed at using banking information of non-compliant tax
payers with N1 billion and above turnover into the tax net.
So far, the sum of N23.25 billion has been recovered by the Service
from undisclosed firms, while efforts are being intensified to cover
those with turnover of N100 million and above.
Our Correspondent further gathered that Economic and Financial Crimes
Commission (EFCC) has also hunting for some law firms which have
failed to comply with extant financial regulations.
According to the report obtained from FIRS, the joint task set up to
actualize the recovery: FIRS/EFCC Joint Task Force, was introduced in
2018 to enhance the fight against tax related fraud. As at December
2018, a total of N6.94 billion and $278,430 had been recovered by the
JTF.
This and other such initiatives are continuous and will be
continuous going forward.
In his presentation, Fowler disclosed that additional sums of N28.51
billion and $77.83 million has been recovered through regular
enforcement from various tax offices, tax audit and investigation
assessments.
Through the recently introduced Voluntary Assets and Income
Declaration Scheme (VAIDS), the Service through the implementation of
Executive Order 004, recovered the sum of N53.04 billion at federal
level out of N92.7 billion liability declared as at December 2018,
adding that the agency is vigorously pursuing the balance of N39.68
billion from indebted tax payers.
Similarly, FIRS has recovered revenue worth N4.3 billion accruing from
property owners in Abuja and Lagos state, just as it unveiled plans to
extend the initiatve to other parts of the country.
“In this regard, Oyo and Kaduna states have commenced. It is important
to note that this is not a property tax but rather the use of the
provisions of the law to bring into the tax net, companies that own
properties but failed to file necessary tax returns and pay
appropriate taxes due.
Through its Strategic Revenue Growth Initiative (SRGI) for the year
2018 aimed at securing some quick wins for short and medium terms
period, FIRS realized the sum of N212.79 billion through National Tax
Audit and Pioneer Audit, sequel to improvements to the audit process
and resultant increased efficiency.
According to the FIRS, following the expiration of the Pioneer Audit
granted several companies, we have identified 190 companies in this
category and have commenced post Pioneer Audit of 129 out of the
identified companies. We expect to conclude the process efore the end
of 2019, the FIRS chairman told the lawmakers.
In its quest to improve of the collection process through the
deployment of technology, FIRS is expected to go live in 2019 with
hospitality, branded superstores, eCommerce, professional service and
maritime sectors, to complement the achievements recorded in Banking
and Cable TV sectors which have gone live in 2018.
Through the State Offices of Accountants General Platform (SAG) which
is an automated system for the deduction at source and remittance of
Value Added Tax (VAT) and Withholding Tax (WHT) from State
Governments’ contract payments, 23 states remitted total sum of N14.99
billion as at December 2018, and expected of bringing on board other
states in 2019.
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