FIRS

Category: Press Release

FIRS Offers New Tax Regime To Further Compliance

FIRS Offers New Tax Regime To Further Compliance

The Federal Inland Revenue Service (FIRS), has taken a major step to help reduce tax liabilities arising from penalty and interest on taxpayers from 2013 to 2015.

The measure is part of the Service efforts to promote voluntary compliance and shield taxpayers from the burden of carrying forward old tax liabilities as regards to interest and penalty.

FIRS announced in a public notice signed by its Executive Chairman, Mr. Tunde Fowler, that taxpayers in default should come forward to declare their indebtedness within stipulated 45 days while the waiver lasted.

It also required that such defaulted taxpayers must present a payment plan on the outstanding Principal Tax Liability acceptable to the Federal Board of Inland Revenue. 

The special window which commenced on October 5, will end on November 24, 2016, and is expected to address accumulated penalty and interest, and not principal tax due.

Fowler, said that the waiver would allow part payment as well as full payment of undisputed tax liabilities which must be paid, while the balance would be paid instalmentally.

He advised taxpayers who have not fulfil their tax obligations to take advantage of the special window to pay a reasonable amount of not less than 25 percent of the principal tax liabilities.

“By this public notice, FIRS invites taxpayers who have not been fulfilling their statutory tax obligations, to take advantage of this special window, failing which all legal means at the disposal of the FIRS will be deployed including criminal prosecution of the Board and Management of the defaulting organisation,” he said.

The Service is relying on the provision of the Companies Income Tax Act CAP C21, LFN 2007 and Federal Inland Revenue Service Establishment Act (FIRSEA) 2007, to offer the special window.

The combined sections stated that: “the FIRS in exercise its powers under Section 85 (3) of the Companies Income Tax Act CAP C21 LFN 2007 (as amended) (and replicated in Section 32 (3) of the Federal Inland Revenue Service Establishment Act (FIRSEA 2007) hereby invites all principal officers, especially Chairmen, Managing Directors, Chief Executive Officers, Executive and Non-Executive Directors, Chief Financial Officers and all company owners or their representatives, to take advantage of the special window to avoid payment of penalty and interest on tax due between 2013 to 2015.”

In a related development, the Service has urged taxpayers to file their Companies Income Tax (CIT), Value Added Tax (VAT) and Withholding Tax (WHT) returns at the FIRS office nearest to their place of business or choice of location.

Taxpayers are advised to apply to the Tax Controller indicating the tax office of their choice and request for the transfer of their file and Taxpayer Identification Number (TIN).

This measure is also expected to ease processes of tax administration, reduce cost for taxpayers and enhance voluntary tax compliance as well as service delivery to the tax paying public.

Signed
Wahab Gbadamosi
Head, Communication and SERVICOM Department​

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How Autonomy Could Help Tax Administration In Africa, By Tunde Fowler

How Autonomy Could Help Tax Administration In Africa, By Tunde Fowler

The Executive Chairman, Federal Inland Revenue Service (FIRS), Mr. Tunde Fowler, has painted a bright future of tax administration in Africa, stating that the continent holds much more revenue generation prospects.
Speaking to Chief Executives of African Tax Authorities at the African Tax Administration Forum and International Monetary Fund (ATAF-IMF) high-level seminar in Cape Town, South Africa over the weekend, Fowler urged African leaders to set their eyes on granting autonomy to their Revenue Authorities as that will strengthen the tax institutions and prime them to generate more revenue for their countries.

Fowler said: “Clearly, Revenue Authorities across Africa have the potential to generate funding for their respective governments and they will perform better if they are: allowed to fully be in charge of their day to day operations and empowered to hire staff, pay competitive salaries and provide regular training for staff”

The FIRS Chairman added that Nigeria’s experience is worthwhile: “The compelling evidence from Nigeria’s experience is that wherever Revenue Authorities have been granted operational, administrative and financial autonomy and allowed to operate with minimal civil service bureaucratic encumbrances, revenue administration has been enhanced and tax collection performance have gone up significantly. Autonomous Revenue Authorities with independent Boards have proven to be beneficial for the actualization of their mandate to generate funding that government require for projects and programmes”, Fowler said.

As a result, Fowler pointed out that tax revenue grew from N1.846 trillion in 2007 when FIRS was granted autonomy to N5.01 trillion in 2012; N4.805 trillion in 2013, N4.746trillion in 2014. In the LIRS too, tax revenue grew from N50 billion in 2007 to 300 billion in 2014.

In the Nigeria’s experience, the falling revenues from Oil in the 1990s, prompted Government to focus more on tax revenue generation, by adopting series of tax reforms initiatives, Fowler added.

He noted that owing to years of neglect due to government’s focus on revenues from Oil, the apparatus of tax administration operated at less than optimal levels.

He also recalled that the Revenue Authority was faced with several challenges such as: operating under the Ministry of Finance with the attendant bureaucratic encumbrances, absence of financial and administrative autonomy, existence of leakages in the revenue collection due to lack of transparency and corrupt practices by tax officials and taxpayers; low staff morale as a result of poor remuneration and poor working conditions of tax officials; prevalence of manual means of tax operations and low usage of Information and Communication Technology (ICT); neglect of tax payer education and absence of quality service delivery and inadequate human resources and skills set as a result of inadequate training.

The FIRS Chairman recalled various Study Groups and Working Groups reports that have shaped tax administration in Nigeria. “The recommendations of the Study and Working Groups culminated in the establishment in 2007 of an autonomous FIRS with its own independent Board, and the promulgation of the Federal Inland Revenue Service (Establishment) Act, No. 13, 2007)”, he said.

It was the second time a tax agency will enjoy autonomy in Nigeria with an Act of Parliament; the first being the enactment of the Lagos State Internal Revenue Service Law in 2006 by the Lagos State House of Assembly.

The FIRS Chief Executive explained that the FIRS, with an oversight by an independent Board, has been able to initiate and implement various revenue collection enhancement projects and programmes such as:

  • Tax office modernization – upgrade of existing offices, construction and equipping of new model Tax offices  and conducive working environment for Tax officials, a ‘welcoming atmosphere’ for taxpayers as well as operations vehicles to optimise official performance;

 

  • Taxpayer Service education and enlightenment activities – regular use of the mass media to enlighten taxpayers on their rights and obligations , which is aimed at promoting  voluntary compliance as a key attribute of a modern and vibrant tax system and effective collaboration with taxpayers;

 

  • VAT Auto-Collect project – recently deployed system, aimed at on-line, real time deduction and remittance of VAT at source from key sectors such as Airlines, Telecommunications and Banking and Financial institutions;

 

  • Integrated Tax Administration System (ITAS) project – aims at automating all core tax administration processes (registration, filing, audit etc.), provision of multiple tax payment channels, such as e-tax pay, Remita, GIFMIS, etc., aimed at making compliance/payment of taxes easier for Taxpayers and for improved revenue collection;

 

  • National Taxpayer Identification Number (TIN) project – in collaboration with States Internal Revenue Services an internet-based system (SIGTAS) has been deployed to register and uniquely identify taxpayers across Nigeria, including the capture of taxpayer biometrics;

 

  • Massive Taxpayers Registration activities – which has led to significant widening of the tax base, with the registration over of 700,000 new corporate taxpayers within the past 12 months;

 

  • i-SHARE Project – a Project initiated to ensure effective communication and collaboration within the Service and with other stakeholders.

 

  • Self-Assessment Project – aimed at assisting taxpayers file tax returns as and when due, calculate their income, expenditure and tax liabilities hence improve taxpayer service and voluntary compliance

The FIRS Chairman saidwhile there is no ‘one size fits all’ way to do this, a good way to start is to put in place the legal and administrative framework to ensure that the Revenue Authority can function with less public service bottlenecks and have access to the resources required to deliver on their mandates for domestic resource mobilization and funding for governments across Africa.

He noted too, that political support from the topmost level by political office holders and general policy direction from the supervisory Ministries of Finance, will be critical to the success of Revenue Authorities.

Signed
Wahab Gbadamosi
Head, Communications and SERVICOM Department​

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N5, 000 Tax Enough To Save A Child From Dying From Malaria, Says Tunde Fowler

N5, 000 Tax Enough To Save A Child From Dying From Malaria, Says Tunde Fowler

CHARTERED INSTITUTE OF TAXATION, GHANA HONOURS FIRS CHAIRMAN

Five thousand Naira, (N5, 000) may seem too little to do a buffet at the Transcorp Hilton Hotel, Abuja or at Eko Hotels and Suites in Lagos. 

But a tax of N5,000 is enough to save the life of a child who has malaria from death, Executive Chairman, Federal Inland Revenue Service, FIRS, Mr. Tunde Fowler, has said. 

Fowler observed thus in Accra on Wednesday  as he stated that every kobo contributed by a taxpayer – even as little as N5,000-is enough to stop the death of a child from malaria. 

It was at the Annual Tax Conference of the Chartered Institute of Taxation, Ghana, (CITG) where Fowler was also given an award as an Honorary Fellow of CITG for his contributions to the tax institute. 

Fowler, who delivered the lead paper at the Conference” Strategies For Revenue Mobilisation, in Contemporary Times: Challenges in Tax Legislation” said his success in establishing a connect between tax contribution of as little as N5000 and the life of a child who may die from malaria, touched the hearts of some taxpayers in Lagos who turned a new leaf and became compliant taxpayers. 

He told tax practitioners and administrators, from Ghana, Sierra Leone, Nigeria, Cote D’ivoire and other parts of the West African sub-region, that beyond deploying the law, enforcement, technology and mobilization, tax administrators must deploy a medley of psychology, persuasion and being firm to convince their fellow countrymen  to pay tax  and fund their country’s development. 

Said the FIRS Executive Chairman: “When you ask people to pay tax, they ask you: “Why? But when you tell them that a tax of N5000 is enough to safe a child from dying from malaria, their attitude about tax begin to change gradually. As a tax administrator, you have to become a teacher to save the life of a child. 

“The point is that as tax administrators, we must see the work that we do, not just as another job, but as nation building. Tax collection is nation building. It is serving your nation. It is serving God. When you convince a taxpayer that the tax he/she pays could save the life of a child who has malaria from death, you could begin to touch the taxpayer’s heart. 

“We can still do a lot with the laws we have now. Before the law changes, tax administrators, need to wear the hat of a teacher, a psychologist, a friendly person and a firm upholder of the law. 

“I urge all of us stakeholders to be conscious of our roles in ensuring that Africa catches up with the rest of the world in moving away from dependence on resource revenue towards dependence on taxation as the primary source of funding for our development. 

The FIRS Executive Chairman noted that in 2015, South Africa collected $57 billion USD. Nigeria with its oil wealth and population of over 140 million people and about 60 million taxable citizens, collected $27 billion dollars. 

The FIRS chairman noted that it was curious that no member of the Organisation of Petroleum Exporting Countries, OPEC—- with all their wealth-is in the league of developed countries. Today, he noted, Venezuellans queue for food. “It can be argued that the extent to which an economyis able to grow sustainably and develops depends to a large extent on its ability to generate tax revenue to finance its expenditure and the efficiency if its tax system. 

Even in Nigeria, Oil, Gas and Mining sector (6.48) is not the biggest contributor to the Gross Domestic Product of $422.59 billion dollars. The sector, he noted, takes the third place after Trade (19.15) and Agriculture (19.0). 

Fowler, who stated that governments fund budget either by levying taxes or borrowing, noted that whatever taxmen do must still be within the ambit of the law. He observed that though it is tasking, itis still possible to collect taxes with existing laws. He, however, still reckoned that obsolete laws and challenging law amendment processes were some of the challenges to tax legislation in Africa. 

He said the situation is not bleak as tax administrators must be innovative, purposeful, dedicated and result oriented. With their conduct, tax administrators could convince legislators and elected office holders of the direction that tax legislation should go. 

Once this is clear and lawmakers and power holders are convinced that tax administrators are pushing for those changes for collective good, changes in tax legislation will not be difficult to advocate. 

Other routes to overcoming tax collection challenges Fowler noted include, collaboration with stakeholders, robust taxpayer education, simplifying tax laws, review of waivers and exemptions, discouragement of impunity and flouting of tax laws. 

“One issue that is clear is that there can be no successful revenue mobilization without a sound tax law regime as a platform for implementing the strategy. Strategies which are implemented without a sound legal footing usually fail or do not stand the test of time”. 

In bestowing Mr Fowler with the Honorary fellow of the Chartered Institute of Tax Administrators, Ghana, CITG’s President NiiAyii  Aryeetey and Secretary, Fred Teeteh, described the FIRS Chairman as having been of “tremendous help to the CITG” in the past years both at FIRS and as Executive Chairman, Lagos Inland Revenue Service, LIRS, for having  “consistently mobilized Nigerian tax expertsâ€Ķ who have contributed actively to paper presentations and discussions and helped to enrich our conferences. 

“Those expert opinions on various tax issues” the CITG President noted, have impacted positively on communiques issued after each tax conference. This has gone a long way to shape some tax policies of our country and improved revenue mobilization”. 

“The Governing Council of the CITG is very proud to be closely associated with you. Sir in recognition of your signal service to the Institute, the Governing Council confers on you, Mr. William Babatunde Fowler, Executive Chairman FIRS, and Chairman of the Joint Tax Board, JTB, Nigeria an HONORARY FELLOW of the Chartered Institute of taxation of Ghana. 

Fowler thanked the CITG for honouring him: “We may be separated by borders but Nigerians and Ghanaians are brothers. I thank you for this honour, which I accept on behalf of all Nigerian taxpayers”. 

Signed 
Wahab Gbadamosi 
Head, Communications & Servicom Department​

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FIRS Appoints New Coordinators, Redeploys 5 Directors, 21 Deputy Directors

FIRS Appoints New Coordinators, Redeploys 5 Directors, 21 Deputy Directors

The Executive Chairman of the Federal Inland Revenue Service (FIRS), Babatunde Fowler has approved restructuring of the top echelon of the Service.

The latest redeployment which was announced on Monday, January 25th, 2016 affected Five Directors and 21 Deputy Directors. 

The newly appointed State Coordinators are: Andrew Ayabam is Acting State Coordinator, Benue, Kaduna and Niger States; Salihu Baba Alkali, Acting State Coordinator, FCT, Kogi and Nasarawa States; Jimoh I.T.T, Acting State Coordinator, Lagos East, Lagos CGT and Stamp Duty and Sola Akingbade, Acting State Coordinator, Kwara, Ekiti and Ondo States. Bimpe Badmus has been appointed for Special Duty (Financial, Oil and Gas, Multinational and Telecommunication)

The FIRS Chairman said the latest restructuring is aimed at maximizing staff potential by deploying right officers at right places.

In the new structure, the Director of FCT and North Region, Faniyi Olufemi, now heads Tax Policy and Advisory Department. Ohagwa Innocent, who was the Director, South-South and South-East Directorate Department is now Acting State Coordinator, AkwaIbom, Bayelsa and Cross River States. OshigaGbolaga  Olarenwaju who was Director, Lagos Mainland (East and West Directorate) Department moves to Acting State Coordinator, Ogun, Oyo and Osun States. Magam Umaru Mohammed who was the Director, North-West and North-East Regions Directorate Department becomes the Acting State Coordinator, Kebbi, Sokoto and Zamfara States while Adeniran Olufunlola Olaitan who was Director, Oil and Gas Department, Lagos moves to the Office of the Coordinating Director, Domestic Tax Group.

Deputy Directors who have been redeployed are: Onu Ikechukwu Nwakama moves to Acting State Coordinator, Ebonyi, Enugu and Abia States; Salami Moshood Adekunle becomes Acting State Coordinator, Lagos Mainland West; Okonkwo Anthony Ikechukwu becomes Acting State Coordinator, Delta, Imo and Anambra States. Ogunjemilusi Gabriel Olaide takes over Acting State Coordinator, Lagos Island; Pam Davou becomes Acting State Coordinator Jigawa, Kano and Katsina States while Alhassan  Yahaya Ahmed is now the Acting State Coordinator, Taraba, Gombe and Adamawa States. Darmasaude Ahmed Madugu becomes the Acting State Coordinator, Yobe, Bachi and Borno States; Obri Francis Ogar moves to the Office of the Coordinating Director, Domestic Tax Group.
Deputy Directors Garba Yusuf and Irri Ode have been deployed to the FIRS Training School in KatsinaCenter while Galadima Saleh Al-Durawa and Adeleye Samuel Taiwo move to the FIRS Training School, Abuja Center. Husaini Zakari Isa and Sambo Yebeya Binuga move to FIRS Training School, Bauchi Centre; Anuya Oghenegueke Friday and Igweh Chukwuemezie Peter move to FIRS Training School, Enugu Centre.

In the same vein, Adewuyi Josiah Afolabi and Ajose Rasak Adebola have been deployed to FIRS Training School Ibadan Centre while Agu Bennett Maduka, Orebajo Temitayo Adeniyi and Fagbemi Emmanuel Ojo have been moved to FIRS Training School, Lagos Centre.

Signed 
Wahab Gbadamosi
Head, Communications & Servicom Department​

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Fowler Pledges Partnership To Shore-Up Tax Revenue

Fowler Pledges Partnership To Shore-Up Tax Revenue

The Acting Executive Chairman, Federal Inland Revenue Service, Mr. Babatunde Fowler, pledged partnership with the relevant stakeholders to shore-up the tax revenue and improve on the country’s tax administration.

Fowler made this known when he took over the mantle of leadership from the out-going Acting Executive Chairman of FIRS, Mr. Sunday Ogungbesan at the Revenue House Abuja.

According to him, the new change of leadership at FIRS is predicated on the resolve of the Presidency to ensure maximum increase in tax revenue as the era of absolute dependency on oil proceeds was over.

Fowler said that the FIRS must take the lead in the tax revenue collection and must be ready to share information and ideas with the States Board of Internal Revenue (SBIR) in order to take tax administration in the country to another level. 

“My vision and mission is neither to alter the existing management organogram structure in FIRS nor lay-off management staff from their duty posts, but to take FIRS as well as the nation’s tax system to an enviable height. 

This we cannot achieve all alone without a robust partnership and collaboration of all stakeholders within and outside the system. We must build a synergy for a healthy exchange of information between FIRS and SBIR.

This synergy will produce the best form of revenue generation in the FIRS and the states in general as well as ensuring that over dependency on oil revenue becomes a thing of the past,” Fowler explained. 

He said that the antidote to the economic mire was for the Service to raise revenue accruing from tax collection to “records high” so that government programme would be well funded. 

Ogungbesan had solicited for more cooperation as FIRS share a similar vision with Fowler saying, “the Chairman needs the support of all staff to succeed in the business of raising revenue and we must not loss sight to satisfy the government.”

Signed 
Nneka Ifekwuna
Assistant Director, Communications & Servicom Department​

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Fowler Consults Audit Firms For Increase Revenue

Fowler Consults Audit Firms For Increase Revenue

The newly appointed Acting Executive Chairman, Federal Inland Revenue Service (FIRS), Mr. Babatunde Fowler, has embarked on a landmark collaboration with Audit Firms, Charted Accountants, Tax Consultants and other professional Service providers in order to ensure increase in revenue collection.

In the meeting held in Abuja recently, Fowler pointed out that the collaboration between the profession service providers, States Board of Internal Revenue (SBIR) and FIRS will mark a turning point for taxation as well as reduce the reliance on oil for Nigeria.

The meeting focused on the need to harmonise exchange of information across all the revenue authorities as well as ensuring a synchronized auditing of all the various companies in the country.

At the end of their deliberations meeting agreed to share information with members of National Assembly, particularly on tax laws in collaboration with other professional bodies as well as relevant stakeholders.   

They also resolved that FIRS, State Revenue Boards and the various audit firms will carry out joint audits of the various companies to ensure accuracy of the exercise, enhance transparency and drive compliance. These audits will be completed within 30 days and will take cognisance of the various year ends and peak points of activities of the various companies. 

He noted that audit and tax consultants were major stakeholders and that their input into tax administration and revenue generation was crucial in moving the nation away from over reliance on oil revenue.
Fowler also said that the input from the stakeholders was necessary for the expansion of the tax net, information dissemination, building capacity of tax administration as well as sharing information that would help to promote voluntary compliance.

“I appeal to you, irrespective of the fact that we have a duty to advice taxpayers, we equally have obligation to government in ensuring increase in revenue collection. Its time to stop all forms of unwholesome practices in tax related issues because Nigerians need us at this critical time to reposition the country for more resources.

We don’t have all the answers, we need you from both sides to reposition the entire process. All we are asking for is your cooperation to move the nation’s tax system to another level through your support and other stakeholders” he said.

Fowler said that FIRS through partnership and consultations with the relevant stakeholders will shore-up the tax revenue and improve on the country’s tax administration.

Most practitioners who spoke commended FIRS for taking the lead in organizing this meeting and stressed the need for information sharing, observation of the ethical code among stakeholders across levels.

The Former Accountant-General of the Federation and former Chairman Board of Internal Revenue, Mr. Kayode Naiyeju, said that there was the need for continuous consultation and team work because of the complex nature of tax administration.

The Partner Tax Regulatory and People Services of KPMG, Mr. AjibolaOlomola, also appealed to FIRS to grant some form of tax amnesty to deserving taxpayers so as to enhance voluntary compliance and bring potential taxpayers into the tax net.


Signed
Emmanuel Obeta
Director, Communications and SERVICOM Department​

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BREAKING: FIRS Directs Banks To Lift Lien On Tax Defaulters’ Accounts

BREAKING: FIRS Directs Banks To Lift Lien On Tax Defaulters' Accounts

The Federal Inland Revenue Service (FIRS) has written to banks, directing them to lift the lien on tax defaulters’ bank accounts for 30 days.

The directive, which takes immediate effect, was contained in a letter from the Chairman, FIRS, to bank Managing Directors.

The FIRS explained that it issued the directive because of the large number of taxpayers, who have besieged itself offices in their bid to regularize their tax positions and the inconveniences they are going through.

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FIRS, Efcc Partner To Track Tax Defaulters As Vaids Ends

FIRS, Efcc Partner To Track Tax Defaulters As Vaids Ends

Recover N29billion from Withholding Tax/VAT in 5 months
The Management teams of the Federal Inland Revenue Service (FIRS) and the Economic and Financial Crimes Commission (EFCC) are to deepen and strengthen their collaboration to track both individuals and organisations who refuse to pay the right taxes.

The partnership will beam searchlights on defaulting taxpayers who also refused to rely on the Federal Government’s tax amnesty programme: Voluntary Assets and Income Declaration Scheme (VAIDS) to offset their tax liabilities.

Already, the FIRS-EFCC partnership has led to the recovery of the sum N29 billion Withholding Tax from banks and other financial institutions in the country only between November 2017 and March 2018.

At a meeting today at the EFCC headquarters in Abuja, the Executive Chairman of FIRS, Tunde Fowler said Nigeria, just like other countries across the world, is looking inwards to raise the economic base and would not tolerate tax defaulters. The FIRS Executive Chairman was at the EFCC headquarters on a courtesy visit.

Said Fowler: “There are some issues of non-remittance of Withholding Tax, Value Added Tax and Personal Income Tax. The EFCC has shown support before. When tax defaulters are invited to your office (EFCC), we see result. I don’t know how you do it but we see result. Recently, two banks came forward to comply on their own. I think that they must have heard words. We want joint assistance with the EFCC, especially now that VAIDS is over, to make sure that all tax defaulters get the lawful treatment. 

“I want to let every taxable person in Nigeria know that we are ready to deploy all powers within our disposal to ensure that every tax defaulter is punished according to the law”.

The Acting Chairman of the EFCC, Ibrahim Magu, said the EFCC is ready to do more to bring culprits to book.

Magu said: “People are in a hurry to collect taxes but are reluctant to remit them. It is very distressing. We may put a team together to ensure that whatever taxes collected by anybody is remitted and on time. I also want to congratulate you (FIRS) because of the change in the narrative. There is no doubt that there is a real improvement in our tax system. We will collaborate. We had done this in the past when we had a joint training in Kaduna. We will make sure that we do anything you ask us to do as far as it is lawful “, he said.

The EFCC boss urged every Nigerian to join in the fight against corruption, saying everyone has a role to play.

“Everyone has the responsibility to fight corruption. You may not do it the way Magu does his own. the best approach is for us to agree that corruption is bad. I appeal to everyone to fight corruption even at home. Tell the children that corruption is bad”, he said.

Signed
Wahab Gbadamosi
Head, Communications and Servicom Department
Federal Inland Revenue Service​

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We Are Ready To Share Experience

We Are Ready To Share Experience

The Executive Chairman, Federal Inland Revenue Service (FIR) and Chairman of the African Tax Administration Forum (ATAF), Mr. Tunde Fowler has said Nigeria is ready to share experience on taxation with other tax authorities in the West African sub-region.

Fowler made this remark today in Abuja at the 13th General Assembly meeting of the West African Tax Administration Forum (WATAF), where the regional tax body was launched.

The FIRS Chairman noted that the launch of WATAF presented another opportunity for tax authorities in West Africa to forge alliance, re-strategise and work together to raise the West African economy.

“It is poignant to note that we have once again an opportunity to forge alliances and chart a course for our collective good as heads of tax administration in West Africa. This opportunity we must utilise to the best of our abilities”, Fowler said.

He noted that Nigeria has, in the past two years taken the route of increasing the use of Information and Communication Technology (ICT) in facilitating taxpayers’ compliance and has introduced initiatives to improve inter-agency collaboration, all with view to enhancing tax administration and reduce tax revenue leakages. 

“Our efforts in this regard has made an impact and contributed to an increase in the taxpayers roll by an additional 4 million taxpayers (companies and individuals) and an increase of over 700 billion naira (equivalent of 2 Billion US Dollars) in Tax revenues in 2017, above the taxes collected in 2016.

Be assured that Nigeria is willing to share our experience and support any country in the sub-region in implementing any of such e-taxpayers’ service initiatives”, Fowler said.

Fowler said the launch of WATAF was a historical event as WATAF makes its formal entry in to the ranks of similar organisations focused on international collaboration in Tax matters, having attained the statutory requirements spelt out in the WATAF Agreement providing for at least five (5) countries’ ratifications for the Agreement to come in to force and in line with the requirements of the Vienna Convention. 

“This marks a new dawn in the consolidation of our collective aspiration to improve the standard of living of our people through effective mobilisation of available domestic tax revenue. Not only that, now West Africa has a platform for countries to collaborate in tax matters solidly supported by our governments and a Forum to articulate and project the West African perspective in tax administration, in the global tax arena”, Fowler said.

The Commissioner-General of Liberia Revenue Authority, Elfreda Tamba, who until this morning, was the Chairman of WATAF thanked Nigeria for hosting the General Assembly meeting noting that Nigeria had always “stepped in and being the big brother” in WATAF programmes. 

Tamba handed over the chairmanship of WATAF to the Commissioner, Domestic Taxes, Togo, Adoyi Ahmed ESSU-Wavana.

The Executive Secretary of WATAF, Tunde Oladapo said the launch of WATAF represented the coming of age of the organisation and said WATAF will pursue revenue mobilisation in the sub-region as well as peer learning and information and data date sharing among member-countries.

WATAF was created in 2011 and has been committed to the development of the tax administration in West Africa. the theme for the 13th General Assembly is ‘Enhancing the Revenue Potential of West Africa’, a topic created to address taxation in West Africa with the advent of e-commerce, hybrid financial instruments coupled with increased sophistication and ingenuity of the army of tax advisors.

Signed
Wahab Gbadamosi
Head, Communications and Servicom Department​

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Fowler To Ahmed- ‘Tell Your Colleagues To Give Authonomy To State Tax Authorities’

Fowler To Ahmed- 'Tell Your Colleagues To Give Authonomy To State Tax Authorities'

Kwara-IRS increases IGR to N1.5BN monthly, N17 billion in 2016

Chairman of the Joint Tax Board (JTB), Mr. Tunde Fowler yesterday placed a call to the Kwara State Governor, Dr. AbdulFatah Ahmed: ask your colleagues to empower their State Internal Revenue Services (SIRSs) by giving them autonomy.

Autonomy, Fowler said, is the key to professionalism and generation of more revenue. Said Fowler:”The good work that you are doing is evident in the performance of the Kwara State Internal Revenue Service, KWIRS. It is good enough for others to follow. We commend the work that KWIRS is doing and agreed amongst ourselves to adopt is as a model. Like I often tell my colleagues, we members of JTB must not disappoint Nigerians.

“I like you to call on other governors, your colleagues in other states who have not taken the bold step to please do and give autonomy to State Internal Revenue Services. Please help us to convey this to them as an ambassador and tell other governors.

“While calling on the members of the JTB to intensify efforts towards meeting our revenue targets, I enjoin the various State Governments to enhance funding of the tax authorities so as to achieve the desired objectives to ask his colleagues to do the same. You may have a vision. But if you don’t have the revenue to drive that vision, it is mere dream.

” I like to commend the efforts of the Executive Governor in transforming the Kwara State Internal Revenue Service. It is on record that the State annual IGR grew from N7.1bn in 2015 to N17.2bn in 2016. I therefore, urge the service not to relent in their efforts and continue to work hard to justify the encouragement received by the State Government.

Fowler, who is also the Executive Chairman, Federal Inland Revenue Service, (FIRS) spoke in Ilorin yesterday, at the opening ceremony 137th Meeting of the JTB, with the theme: “Collaboration amongst tax Authorities: Its Impact on Revenue Generation and Service Delivery to Taxpayers.

Governor Ahmed who declared the meeting open told the 36 Chairmen of the State Internal Revenue Service that KWIRS’ ability to grow Kwara’s annual Internally Generated Revenue from N7.1bn in 2015 to N17.2bn in 2016 is predicated on three key planks: People, Processes and Technology.

He noted that Kwara s IGR moved from N600 million in 2015 prior to autonomy to N1.5 billion monthly, with increase of about N17.4 billion in 2016. “As you are aware the Kwara State government signed the Kwara State Revenue Administration Law No. 6 of 2015 on the 22nd of June, 2015. Ever since the face of revenue administration has witnessed significant changes that started with the complete change of the people, process and technology for the administration of taxes.

The governor who noted that the State has floated the Kwara State Infrastructure Bond (IF-K) into which a percentage of the State’s  IGR will be paid, said that the state wants to ensure that contractors are no longer owed in Kwara State as banks will not fret to give loans to contractors.

But it is no longer business as usual, Governor Ahmed warned. “While we thank all stakeholders for their contribution to the achievements, taxpayers need note that tax payment is a civic responsibility for the development of the state.

He noted that government cannot provide the goods of democracy without citizens playing their part.

To earn continued support of taxpayers, government must demonstrate transparency and dhow what taxes being collected are being used for. It can no longer be business as usual.

“In Kwara State, our government is committed to the support of Kwara State Internal Revenue Service in the pursuit of revenue mobilisation for the strategic development of Kwara State.

“This positive result has encouraged us to go ahead with our plan to plough the revenue back into the development of infrastructure through the introduction of improve provision of social amenities to the people.  I welcome you to the 137th meeting of the JTB in this 50th year of the creation of Kwara State.

The governor noted that tax authorities across the country could benefit from synergy and cross-fertilisation of ideas adding that: “In the 26 years of the operation of the JTB, Kwara State is hosting the meeting for the first time. It is worthy that Kwara State is hosting the meeting at a time when our major reforms of tax collection and management has yielded significant results”.

He said the tax payment was civic responsibilities of the citizenry that must be held but that the government would ensure judicious uses of the collection to improve the welfare of the people.

Singed 

WAHAB GBADAMOSI

Head, Communications &Servicom Department​

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