• Monday, May 27, 2024
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BusinessDay

Amid Q2 feat, FIRS to take action against tax defaulters

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Despite that the Federal Inland Revenue Service (FIRS) surpassed its tax revenue target in the second-quarter (Q2) of 2014 at N1.455 trillion, the federal revenue agency has disclosed its readiness to commence enforcement activities against corporate bodies and individuals who have not filed their tax returns and failed to voluntarily fulfill their tax obligations by due dates.

The Tax Law requires companies, with December 31 as their end of year accounting date, to file their tax returns on or before the end of June of every year.

A statement from the FIRS, however, noted that it gave a window-extension of time – up till August 31, 2014, to enable some companies meet up with the requirements of the International Financial Reporting Standard (IFRS).

In Q2 2014, Federal Government quarterly target set for the FIRS was N1.021 trillion but the agency collected N1.455 trillion as tax revenue. Details show that N481.88 billion target was set for Petroleum Profit Tax (PPT), while N539.629 billion was meant to come from non-oil taxes.

For the PPT, FIRS collected N639.268 billion, while for non-oil taxes it collected N815.902 billion.

Kabir Mashi, acting executive chairman, FIRS, said in Ibadan at FIRS South-West Regional Enlarged Management meeting that the Service would be compelled to invoke relevant laws against recalcitrant taxpayers.

He also challenged taxpayers across the country to report unwholesome practices by any FIRS official, especially in processing Tax Clearance Certificates (TCC) and Taxpayer Identification Number (TIN).

He said the issuance of TCC was expected to take two weeks after a taxpayer had fulfilled all tax obligations, adding that: “To obtain TIN is free of charge and taxpayers must be ready to speak up when there is a demand from tax officials to facilitate the issuance of TIN and TCC.”

Iheanyi Nwachukwu