Suspicious Payments: Presidential Tax Committee Received N5bn From FIRS -Chairman

The Chairman, Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele has confirmed that the committee got the sum of N5 billion from the Federal Inland Revenue Service (FIRS). In a statement on his official X handle, the Chairman, Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele said the statement became necessary due to a report by the Cable Newspaper that the immediate past FIRS Chairman, Muhammad Nami, approved the sum of N11 billion after he left office. But in a statement Thursday, Nami explained that the Cable report was out to tarnish his hard-earned reputation. In the statement, Nami took time to explain the approvals he carried out before he left the revenue agency. “The N5 billion paid to the Joint Tax Board was paid to fund the activities of the Presidential Committee on Tax and Fiscal Policy Reforms two months before I left office. It was paid after we received a letter to that effect from the office of Mr. President signed by Zacch Adedeji himself.  “The report maliciously attempts to portray a picture that I hurriedly left the country on September 16th after these so-called “suspicious approvals” were made. Again, nothing can be further from the truth. If I traveled out of the country on the 16th of September, how then did I attend the handover ceremony with Mr. Zacch on the afternoon of Monday 18th September 2023? That handover ceremony was covered by the media, and can be cross-checked.  “It is disappointing to see the Cable, a revered online newspaper attempt to sensationalise events that took place in the ordinary course of work in office, making them seem as if they were done in bad faith,” Nami said. Oyedele said, “We are aware of a recent story regarding some funds transferred by the FIRS to the Joint Tax Board (JTB) for the Presidential Fiscal Policy and Tax Reforms Committee.   “The Committee’s budget includes provisions for a national “Data for Tax” project which the JTB has been championing for over 2 years. The project was presented to the National Economic Council in 2022 and was meant to be funded by the federal government and the 36 states. However, it stalled due to lack of funds. Given the importance of the project to the effective reform of our tax system, it was included in the Committee’s budget.  “Other expenses included in the Committee’s budget, which has the approval of the National Assembly, include setting up of offices for the Committee in Lagos and Abuja, payment of salaries for the full time staff engaged by the Committee, travels and other logistics for over 70 members representing more than 40 institutions and stakeholder groups mapped to 6 different Subcommittees, more than 30 Secretariat personnel and over 40 students across the country. In addition, the budget covers planned stakeholder engagements with various sectors and interest groups, as well as international engagements and understudy of some leading tax regimes around the world, and so on. The budget covers a period of one year being the lifespan of the Committee. “It should be noted that the Committee was not set up simply to produce reports and recommendations, we are also charged with the implementation of recommended and approved proposals which need to be funded.  “The Committee’s mandate includes ensuring prudence and accountability in the management of our national resources. It will therefore be a contradiction for the same Committee to be wasteful or reckless in its own affairs. Members of the Committee work on a volunteering basis and are only paid reasonable allowances to cover their out-of-pocket expenses as we cannot afford to pay the commercial value for their time, skills and experience. As the Chairman of the Committee, despite working full time on the assignment, I do not receive a salary. “All the expenses of the Committee are properly documented and available for audit. We collect receipts for fuel, stationeries, and virtually every Naira that we spend to the extent possible. Over N4 billion of the said funds transferred by the FIRS to the JTB for the Committee’s work is yet to be spent and very much intact in the JTB account.” He assured that the Committee will be responsible, prudent and accountable with every Naira of public funds that it will be entrusted with. 

Regularise your tax positions or face sanctions, FIRS warns shippers

The Federal Inland Revenue Service (FIRS) has mandated all shipping companies operating in Nigeria’s territorial waters to regularize their outstanding tax return before 31st December 2023. The service disclosed this in a public statement made available to the public and signed by its Executive Chairman, Muhammad Nami. FIRS noted the order is the sequel to two previous seculars of June and December 2021 wherein it provided the basis of taxation of international shipping lines and also called on them to regularize their tax affairs with the service within three months. The circular also stated that the FIRS had observed that many international shipping lines operating in the country had not been complying with the nation’s extant tax laws. “The circular provides the basis of taxation for all international shipping lines in Nigeria and the public notice requested all international shipping lines to regularise their tax affairs with the Federal Inland Revenue Service (FIRS) within three months of the date of that publication” “Consequently, the Service hereby requests all international shipping companies operating in Nigerian territorial waters in whatever capacity (containerized, bulk cargo, fishing trawlers, crude oil and natural gas lifting vessels, dredging, survey, floating, production, storage, and offloading, etc.) to immediately regularise their tax positions.” The service noted that it is collaborating with relevant security agencies to prosecute defaulting shipping agencies after December 2023. The statement reads, “The Service is collaborating with relevant government regulatory and security agencies in the maritime sector to commence enforcement action on defaulting shipping companies after the expiration of the grace period of December 31, 2023”

Q1 2023: Nigeria’s Company Tax stands at N469.01bn- NBS

The nation’s aggregate Company Income Tax (CIT) for Q1 2023, is reported to be N469.01 billion, the National Bureau of Statistics (NBS) has said. The figure is contained in the NBS Company Income Tax (CIT) Q1 2023 Report released in Abuja on Wednesday. According to the report, the figure shows a growth rate of -37.79% on a quarter-on-quarter basis from N753.88 billion recorded in Q4 2022. The report said local payments received were N300.78 billion, while foreign CIT payment contributed N168.23 billion in Q1 2023. It said on a quarter-on-quarter basis, the financial and insurance activities recorded the highest growth rate at 50.42 per cent, followed by construction at 42.32 percent. “On the other hand, water supply, sewerages, waste management and remediation activities had the lowest growth rate at 69.38 percent, followed by other service activities at -60.13 percent.” In terms of sectorial contributions, the report showed that the top three largest shares in Q1 2023 were financial and insurance activities with 22.94 per cent. “This was followed by manufacturing with 20.91 percent and information and communication with 11.89 per cent.” It said on the other hand, the activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.01 per cent. “This was followed by water supply, sewerage, waste management, and remediation activities with 0.04 per cent and activities of extraterritorial organisations and bodies with 0.12 per cent.” The report, however, said, on a year-on-year basis, CIT collections in Q1 2023 decreased by 14.96 per cent from Q1 2022.