‘Pay your taxes’, FIRS appeals as it launches nationwide tax compliance campaign

The Federal Inland Revenue Service (FIRS) has announced that it will begin a Value Added Tax (VAT) and withholding tax compliance exercise in July 2022.

The announcement was made in a public notification signed by Muhammad Nami, the executive chairman of the FIRS.

The FIRS team will visit MDAs, NGOs and other corporate organizations, according to the notification.

What the FLRS says

Mr. Johannes Wojuola, Special Assistant to the President, FIRS on Media and Communications, said the action was in response to an earlier notice to begin collection of unpaid taxes owed to the Federation by state and local governments.

Teams of FIRS officers would visit selected taxpayers and taxable persons to assess their VAT and WHT records, according to Wojuola.

“The exercise will cover the accounting years 2016 to 2020 for taxable persons whose files have been audited by the service up to the 2015 accounting year.

“For taxpayers whose files have not been checked by the service until 2015, the exercise will be extended to previous years which have not been subject to a tax audit,added Wojuola.

He explained that those who would be visited during the monitoring exercise would be notified and informed in advance of the documents required for examination.

“We therefore call on all taxable persons and tax agents to immediately remit the VAT and withholding tax deductions they have made”, he said.

What you should know

  • Nairametrics reported that the FIRS is planning to start applying and recovering unpaid tax deductions owed by some Nigerian states and local governments.
  • Due to defaulting states and local governments in default, FIRS has advised the Federal Government and the Minister of Finance to withhold approval of any application to issue government bonds or other securities on the capital market, as well as requests for external borrowings and approval of internal loans from commercial banks or other financial institutions by any of the state and local governments.

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