FIRS to audit companies

In from Ali Smart …
In its quest to boost the revenue profile of the Federal Inland Revenue Service (FIRS), the Acting Executive Chairman (FIRS), Mr. Babatunde Fowler, has hinted of plans to enlist the support of audit firms, tax consultants, chartered accountants among other professionals to commence tax-audit of firms operating in the country.
This is to apprehend companies that have been short-changing the government by avoiding paying tax.
Statistics provided by the FIRS showed that only 125,000 companies, representing 27.7 per cent of the 450,000 firms operating in the country, paid any form of tax. The remaining 325,000 have been evading taxation.
The FIRS boss has since met with the stakeholders, who have promised to lend their support towards actualising the FIRS objectives.
In a statement from the FIRS signed by Mr. Emmanuel Obeta, Director, Communications and SERVICOM Department, the collaboration between the professional 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.
At the interface and discussion in Abuja, it was gathered that the meeting “focused on the need to harmonise exchange of information across all the revenue authorities as well as ensuring a synchronised auditing of all the various companies in the country.”
At the end of their deliberations they 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,” Obeta stated.
Justifying the need for collaboration, Fowler 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.
He 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.

Read also: EFCC ‘duped’ FIRS of N1.7bn -Petitioner

According to Fowler, “irrespective of the fact that we have a duty to advice taxpayers, we equally have obligation to government in ensuring increase in revenue collection. It’s 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.”
The FIRS boss admitted that the service does not “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.”
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 organising the meeting and stressed the need for information sharing, observation of the ethical code among stakeholders across levels.

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