Rivers to clampdown on revenue touts, says tax evasion high

The Rivers State Internal Revenue Service (RIRS) says it’s set to clampdown on persons and factors promoting multiple taxation or engaging in tax evasion in the state.

Israel Egbunefu, Executive Chairman, RIRS, stated this during a meeting with business owners on Thursday in Port Harcourt.

Egbunefu disclosed that tax evasion is on the high side in the State, hence, the decision to plug revenue leakages.

He spoke during the breakfast meeting RIRS organised in collaboration with BusinessDay Media on the theme: “Leveraging Nigeria’s Tax Laws To Enhance Profitability.”

The event was aimed at exploring issues surrounding Nigeria’s tax laws in order to boost the profitability of entrepreneurs in Rivers State and the South-South geopolitical zone.

The organised private sector in Rivers State led by the Port Harcourt Chamber of Commerce, Industry, Mines and Agriculture (PHCCIMA), the Rivers State Chapter of the Manufacturers Association of Nigeria (MAN) and the Yenagoa Chamber of Commerce, Industry, Mines and Agriculture (YECCIMA) were present at the event.

Egbunefu, who linked effective tax administration to business growth and profitability, noted that as part of measures to tackle tax evasion, RIRS would approach the payment of PAYE through the use of employers as tax agents.

He said the Agency “does not collect tax from companies, rather payees. The companies are tax agents. They deduct tax from their employees and they remit. And that forms the core of our collection.

“Well, the employees that earn 800,000 and below are exempted. But, the other angle is, individuals now are to file their tax returns.

“In fact, next week we are bringing out an e-form that all staff of companies will fill, declaring their assets and income from all sources, so that we know whether that 700 or 500 thousand (exempted) has exonerated you from other areas.

“But we need to be sincere to ourselves. I’m talking about compliance. Are we really doing what we are supposed to do. We are all guilty about this.

“I have been an assessment officer for many years. And some people that have come one-on-one with me, they declare an amount that they spend in a nightclub, one night, as their income,” he said.

Egbunefu further noted the heavy indictment of revenue touts from local government councils over issues of multiple taxation, and the physical force often attached to demands for payment.

He said, “I get calls from outside the state from people whose trucks are being held on the road and some local government areas are collecting up to 20 to 30 items on the list.”

Egbunefu said RIRS does not encourage the public to reject such demand notices. “But, we have brought our lines that when these people (touts) come, talk to us, call our lines, or you can call me. When they hear our voice, they run away.”

He said the agency has taken steps to streamline the tax payment process, which includes digitalisation, exemption of those earning below N800, 000 among others.

He said, tax demand notices written with pen or mutilated, and payment into personal accounts, are no longer part of tax administration in Rivers State.

Egbunefu described the collaboration with BusinessDay as a step in the right direction and suited for promoting tax education and efficient tax administration.

“I wish to commend BusinessDay for this sustained leadership in promoting economic literacy, responsible policy discourse, and constructive engagement, between government institutions and the business community.

“This initiative reflects a sheer commitment to strengthening Nigeria’s fiscal governance and improving the business environment.

Egbunefu said the RIRS and BusinessDay collaboration is strategic and is “aligned directly with our institutional vision to build a tax system that is transparent, efficient, equitable, and responsive to stakeholder needs.”