The Federal Inland Revenue Service (FIRS) has announced that it will begin a compliance exercise on Value Added Tax (VAT) and Withholding Tax 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 organisations, according to the notification.
What the FlRS is saying
Mr Johannes Wojuola, Special Assistant to the Chairman, FIRS on Media and Communication, said the action was in response to an earlier notice to begin the recovery of unpaid taxes owed to the Federation by state and local governments.
Teams of FIRS officers would visit chosen taxpayers and taxable persons to evaluate their VAT and WHT records, according to Wojuola.
“The exercise will cover 2016 to 2020 accounting years for taxable persons whose records have been audited by the service up to 2015 accounting year.
“For taxpayers whose records have not been audited by the service up to 2015, the exercise will be extended to include the prior years that have not been tax audited,” added Wojuola.
He explained that those who would be visited during the monitoring exercise would be notified and informed of the required documents for review beforehand.
“We, therefore, call on all taxable persons and tax agents to immediately remit deductions of VAT and Withholding Tax they have made,“ he said.
What you should know
- Nairametrics reported that the FIRS plans to begin enforcing and recovering unpaid tax deductions owed by some Nigerian states and local governments.
- Due to the failure of defaulting States and Local Governments to remit, the FIRS has advised the Federal Government and the Minister of Finance to decline approval of any request for the issuance of state bonds or other securities in the capital market, as well as requests for external borrowing and approval of domestic loans from commercial banks or other financial institutions by any of the State and Local Governments.