FIRS gives coys June 30 deadline to remit taxes as pressure mounts

The Federal Inland Revenue Service (FIRS), which is now practically under pressure to increase tax revenue, has given companies till June 30 to file their tax returns or face sanctions.
Kabir Mashi, the acting executive chairman of FIRS, handed down this ultimatum at the taxpayers’ sensitisation workshop in Lagos, where he told companies that with December 31, 2013 as their accounting year-end that they have up to June 30, 2014, to comply with their tax obligations.
Represented by Peter Olayemi, the director, medium tax department, Mashi appreciated the role banks play in the tax collection process but appealed to them to cultivate the culture of not just collecting taxes but remitting same promptly to the proper accounts.
With the rebased GDP which now elevates Nigeria’s economic size to $510 billion, the tax to GDP ratio has dropped significantly to 12 percent, putting government and in fact the FIRS under pressure to now expand the nation’s tax net.
“Permit me to use this opportunity to further appeal to our bankers to cultivate the habit of promptly remitting the taxes collected on behalf of the service. This clarion call for prompt remittance is germane to achieving the aims and objectives of tax collection in particular and realisation of the transformation agenda of the Federal Republic of Nigeria in general,” Mashi told participants at the meeting.
Mashi further urged other tax professionals to help the service on this tax drive by helping to educate the public.
“You are at the middle of the affairs, that is between FIRS and the taxpayers. Your timely advice in reminding your clients (taxpayers) of their obligations and letting them know the implications of non-compliance is key to the development of our tax system.
“We sincerely believe that as partners in progress, we can collectively work together to galvanise the economy by optimising the non-oil tax revenue through mutual understanding and collaboration,” he urged them.
Salami Moshood, tax controller, medium tax office (MTO), Lagos Mainland, who spoke on taxpayers’ rights and obligations, noted some of the taxpayers’ rights which, according to him, must be observed by the FIRS for effective compliance.
He listed such to right tax information, right of confidentiality, secrecy and privacy; right to be treated with respect and dignity; right to self assessment; right to choose and appoint tax representatives or tax consultants and right to be granted refund for excess payment of taxes by taxpayers.
Other taxpayers’ rights, Moshood said include the right to objection and appeal to tax assessment; right to be issued tax clearance certificate (TCC).
On the obligations of the taxpayers, the tax controller said honesty to the tax authorities with respect to filing of returns and payment of taxes; keeping accounting books and records of business; registration as taxpayers and getting the Taxpayer Identification Number (TIN); filing of tax returns and payment of taxes; timely response to tax query and cooperating with tax audit and tax investigation team must also be observed by the taxpayers.