PUBLIC NOTICE – NOTICE TO ANY PERSON WHO DISPOSED CHARGEABLE ASSETS TO FILE CAPITAL GAINS TAX (CGT) RETURNS
CLARIFICATION ON PAYMENT IN INSTALMENTS BY SELF
ASSESSMENT FILERS AS PROVIDED BY THE FINANCE ACT, 2019
CLARIFICATION ON PAYMENT IN INSTALMENTS BY SELF
ASSESSMENT FILERS AS PROVIDED BY THE FINANCE ACT, 2019
The Board and Management of the Federal Inland Revenue Service (FIRS) hereby notifies the general public of the activities of fraudsters extorting unsuspecting job seekers under the pretense of getting them jobs in the Service.
Already, these criminally-minded persons have defrauded many innocent Nigerians of their hard-earned money through this illegal scheme. Although some of the perpetrators of this illegal job racketeering have been arrested, the Service wishes to dissociate itself from this recruitment scam.
The Service also wishes to reiterate that whenever it decides to carry out recruitment, adverts and notices would be placed in the appropriate channels, and due process would be followed. This way, no candidate would be required to pay anything to be employed into the Service.
The general public is therefore advised to be wary of carrying out any cash transactions with anybody or group of persons for the purpose of job placements in the Service, and should also report such to the appropriate authorities.
Please be guided.
The Federal Government has been advised to explore data and intelligence in order to ease tax collection and improve its revenue base.
Tax experts, speakers, panelists and government functionaries gave the advice at the recently held First Annual National Tax Dialogue,in Abuja, organized by the Federal Inland Revenue Service (FIRS), with the theme “Taxation in a Post-Covid Economy”.
In his Keynote Address at the event, President, African Development Bank, Dr. Akinwunmi Adesina, highlighted the pandemic’s impact on Africa’s economy and the various interventions by the bank and national governments. According to him, Nigeria’s economy shrank “by 3% in 2020 on account of falling oil prices and the effects of the lockdowns on economic activities,” adding that “with shrinkage in oil revenues, debt service payments pose the greatest risk to Nigeria.”
He stressed further that for Nigeria to overcome the pandemic, “taxes must form a significant percentage of government revenue. Digitalization of tax collection and tax administration is critical to ensure greater transparency of the tax system, widening of the tax base, while mitigating compliance risks and encouraging voluntary tax compliance.”
Ekiti State Governor, Dr. Kayode Fayemi, who was chairman of the Dialogue, lauded the FIRS “for its performance in the 2020 fiscal year, despite operating in the most challenging period many of us have experienced. The Service not only collected N4.9 trillion in taxes, achieving 98% of its target; only 30.6% of this was attributed to Petroleum Profits Tax, from what used to be over 50%”.
However, Governor Fayemi urged participants at the event to “interrogate how Nigeria can further deepen the use of technology to improve tax compliance nationally and across subnationals.” He stressed that this was important because “a significant proportion of our population will soon come into the workforce” which is “a golden opportunity to introduce first-time taxpayers to their civic responsibility, by adopting technology.”
Similarly, Executive Secretary, African Tax Administration Forum (ATAF), Mr. Logan Wort, harped on the place of technology in generating revenue for the country in a post-Covid economy. Mr. Wort, who joined the Dialogue virtually from South Africa, stated that “Domestic Resource Mobilisation (DRM) is expected to contribute at least 75% to 90% on average per country” in the post-Covid era, adding that Nigeria and other African countries should note that “improved tax revenue will have to take prime position” in the scheme of things.
Mr. Wort urged Nigeria to pay serious attention to e-commerce and the digital economy sector where big, trans-national digital conglomerates like Google, Netflix and Uber operate and make huge, tax-free profits as a possible way of increasing tax revenue generation. He said Nigeria should borrow a leaf from Ghana in e-commerce taxation, which is projected to fetch Ghana $450 million in tax revenue.
In his recap of the keynote address as Chairman of the first panel session, Lagos State Governor, Mr. Babajide Sanwo-Olu, urged the AfDB president to support Lagos State as it grappled with the challenges of being the former capital city of Nigeria as well as the issues foisted upon it by the pandemic.
Minister for Communications and Digital Economy, Dr. Ali Isa Pantami, who chaired the second panel session, stressed that taxpayers should be treated as kings and canvassed better funding of the FIRS.
Nigeria’s first female professor of taxation, Prof.(Mrs) Teju Somorin; President, Association of National Accountants of Nigeria (ANAN), Prof. Muhammad Mainoma, Member; FIRS Board, Mrs. Adetola Ehile-Aigbangbee; Group Managing Director (GMD), Nigerian National Petroleum Corporation (NNPC) Mr. Mele Kyari; Executive Secretary, African Tax Administration Forum (ATAF), Mr. Logan Wort; Mr. Yomi Olugbenro of Deloitte Nigeria, Taiwo Oyedele, Principal Partner, PWC; and Mr. Tajudeen Akande of PKF served as discussants on the panels of discussion at the Dialogue.
Among others, both panels of discussion unanimously agreed and resolved that tax administration should leverage on technology across the entire taxpayer identification, registration and filing process to ease compliance and administration. Also, discussants made a strong case to link the National Identification Number (NIN) with the taxation processes.
The panelists observed that the funding threshold established for the FIRS in 2007 was no longer adequate for the Service to discharge its functions optimally. Consequently, they urged the Federal Government to increase funding support for the FIRS so that the Service can complete work on its 17-Storey Revenue House Headquarters in Abuja where it planned to establish a data centre based on proprietary technology.
While delivering the vote of thanks, Minister of State, Finance, Budget and National Planning, Prince Clement Agba, noted that the theme of the Dialogue “is most appropriate, timely and apt”, stressing that “this national dialogue has understandably witnessed a torrent of ideas, information, statistics, interpretation and vision on how best we can improve on solving the current revenue challenges of the government”.
He added: “The role of the media in strategically communicating our thoughts to the people cannot be over-empasised. It is therefore very important that the views expressed here today are disseminated to the wider readership and audience and clearly this task has been in the very capable hands of the men and women of the Fourth Estate of the Realm to whom we owe our gratitude.”
Abdullahi Ismaila Ahmad
Director Communications and Liaison
Federal Inland Revenue Service
i. All meetings with taxpayers are limited to no more than ten (10) people at a time.
ii. All FIRS offices are being equipped with infrared temperature measuring devices. Staff, taxpayers and all visitors entering our premises will be screened with a temperature scanner at all entry points. Persons with temperatures higher than 37.5°C may be denied access to the facility. Please note that the screening will be conducted by trained personnel and without physical contact.
iii. All FIRS offices have been equipped with hand sanitizers, and we expect taxpayers to make use of these ahead of engaging with our staff. We also have hand washing liquids and soaps in our restrooms.
iv. Additional procedures have been put in place and will be utilized to ensure that all our offices and work surfaces are regularly cleaned and sanitized, using appropriate disinfectants recommended by the NCDC and the World Health Organization.
v. Our staff have also been provided with additional protective gear such as gloves and face masks where required.
The Federal Government and the Central Bank of Nigeria have also issued various palliatives to cushion the effect of COVID-19 on the economy. The FIRS will require full cooperation and support from all our taxpayers in order to collect revenue that Government will utilise to continue to provide infrastructure, health services and other palliatives to all Nigerians.
On our part, we will continue to work with relevant agencies of Government to provide necessary reliefs to taxpayers to lessen the impact of this pandemic on businesses and other economic activities by taxpayers. To this end, we are offering the following palliatives to our taxpayers:
1 The FIRS is extending the timeline for filing of value added tax and withholding tax to the last working day of the month, following the month of deduction.
2 The due date for filing Companies Income Tax returns is hereby extended by one month.
3 Tax payers already registered on e-filing platform are at liberty to submit all returns via efiling.firs.gov.ng, alternatively please submit your returns to: For:
a) Large taxpayers – oil & gas (Upstream) = email@example.com
b) Large taxpayers – oil & gas (Downstream) = firstname.lastname@example.org
c) Large taxpayers – oil & gas (Servicing) = email@example.com
d) Large taxpayers – non oil (financial) = firstname.lastname@example.org
e) Large taxpayers – non oil (Manufacturing) = email@example.com
f) Large taxpayers – Abuja= firstname.lastname@example.org
g) Large taxpayers – Kano= email@example.com
h) large taxpayers – Ibadan= firstname.lastname@example.org
i) Large taxpayers – Port Harcourt= email@example.com
j) All Medium taxpayers = firstname.lastname@example.org
k) All Small and Micro taxpayers = email@example.com
l) All Government Business taxpayers = firstname.lastname@example.org
j) All Stamp Duty taxpayers = email@example.com
4 Taxpayers who wish to file their returns with the FIRS without an audited account can file same, provided that the relevant audited accounts are submitted unfailingly within two months after the revised due date of filing.
5 The FIRS also intend to publish on its website, information requests for desk reviews and tax audits, and create a portal where such information can be uploaded to our database for online access review.
The Management and Board of the FIRS will continue to monitor the situation and abide by the federal, state and local authorities’ instructions on COVID-19. Be rest assured that we will constantly update you on developments, that may affect your businesses, well-being and the Service. In addition, where the need arises, appropriate action would be taken by Management if the situation portends immediate threat to you, our staff and visitors to our offices.
The humankind has surmounted various challenges throughout history, and we believe that COVID-19 is not an exception. As we draw strength and hope from each other, let us continue to pray for the safety of all Health Workers, Doctors and Scientists, trying to develop a vaccine for this virus. The Management and Board of the FIRS is confident that we will emerge stronger as a Race from this experience.
I pray for your safety and that of your loved ones, and trust that you will be vigilant and keep yourself, family members and friends safe.
Thank you all
Mr. Muhammad Nami, Executive Chairman
Federal Inland Revenue Service
His Excellency, the President of the Federal Republic of Nigeria, ably represented by the Secretary to the Government of the Federation
His Excellency, the President of the Senate
His Excellency, Speaker, House of Representatives
The Honourable Attorney General of the Federation & Minister of Justice
The Honourable Minister of Finance, Budget and National Planning
Members of the National Assembly
Board Members, Federal Inland Revenue Service
Ladies and Gentlemen
It is my honour and privilege to make this presentation at this auspicious occasion, which brings together important stakeholders in the public and private sectors to deliberate on the audit and recovery of stamp duties and launch of the Federal Inland Revenue Service (FIRS) adhesive stamps.
I sincerely thank all our stakeholders and partners for being a part of this epoch making event.
The existence of Stamp Duty in Nigeria predates independence going by the 1st commencement date of 1st April 1939. (i.e. Ordinance 41 of 1939 and subsequent amendments).
Stamp Duties administration is governed by the Stamp Duties Act, CAP S8, LFN 2004 (as amended).
As the manner of business transactions continues to evolve and change pattern, so also the law on Stamp Duties. The Stamp Duties Act has therefore undergone several amendments over the years up to the Finance Act of 2019. The most recent amendment recognizes technology, economic realities, e-commerce and cross border transactions.
Stamp Duty is essentially a duty chargeable on both physical and electronic instruments. The Stamp Duties Act defines duty to mean “any stamp duty for the time being chargeable under any other Act and also includes any fee chargeable hereunder“.
The stamp is used to denote a dutiable instrument either electronically, use of an adhesive stamp or inked with a block die in acknowledgement for duty paid.
Section 2 of the Stamp Duties Act defined “stamp” as “an impressed pattern or mark by means of an engraved or inked block die as an adhesive stamp or an electronic stamp or an electronic acknowledgement for denoting any duty or fee“.
Furthermore, as the world becomes more global, COVID 19 has further limited physical interactions, electronic payments acknowledgement of duties at a time like this is a must.
2019 Amendments to the Stamp Duties Act
The Finance Act 2019 (Sections 52-56) amendment to the Stamp Duties Act has clearly defined responsibilities for the administration of Stamp duties in Nigeria and jurisdiction of participating taxing authorities. The FA 2019 Act has laid to rest;
The Schedule to the Stamp Duties Act contains a list of dutiable and exempted items. The dutiable items have been expanded under the FA 2019 to include electronic receipt or electronic transfer for money deposited in any bank; It further makes an upward review of duty from N4.00 to N50.00 on receipts or transfer between MDBs customers relating to N10,000 and above per transaction.
|Fixed Duty Instruments:||Ad-Valorem Instruments:|
Stamp duties is basically charged in two forms, either ad valorem; where duty payable is a percentage of the consideration on an instrument or a fixed sum irrespective of the consideration on dutiable instrument or document.
The Stamp Duty Commissioner is appointed by the relevant tax authority (either Federal or State) as prescribed by jurisdictional authority to administer the Act.
His/her functions are to administer the provision of the Act and to supervise the Stamp Duties office; adjudicating/assessment, stamping, imposition of penalties where necessary, ensuring the security of stamped instruments, and accounting for duties collected.
Relevant Taxing Authority
The Federal Inland Revenue Service, by section 4(1) of the Stamp Duties Act, is the only competent authority to impose, charge and collect Stamp Duties upon instruments specified in the Schedule of the Stamp duties Act where such duties relate to matters between a company and an individual, group or body of individuals.
The relevant tax authority in a State, by section 4(2) of the Stamp Duties Act, is empowered to collect Stamp duties on instruments executed by individuals at such rate as may be determined by the Act.
Previously, the FIRS collected Stamp duties on instruments executed by an individual resident in the Federal Capital Territory. However, this has ceased upon the creation of the FCT-Internal Revenue Service.
Review of Stamp Duties Collection Performance
|Stamp duties remitted by Money Deposit Banks (MDBs)||20.00bn|
|Stamp duties revenue from stamping of instruments||7.90bn|
|Stamp duties revenue from stamping of instruments||39.00bn|
|Total stamp duty remitted into Federation Account from January, 2020 – May, 2020||66.00bn|
On behalf of the Board, Management and staff of the FIRS, I register my sincere appreciation to the leadership of the National Assembly for their support and encouragement to the Service.
My special thanks goes to the Honourable Minister of Finance, Budget and National Planning for always being there for the Service.
The FIRS is open to engagement with all stakeholders for the purposes of repositioning the tax system for the benefit of our dear country.
We therefore invite all and sundry to come join hands with us in the task of building a virile tax system that will be a pride of all.
Let me leave with us, the words of a former American President, Benjamin Franklin who said, and I quote “In this world nothing can be said to be certain except death and taxes”
Always remember that “it pays to pay your tax”.
Federal Inland Revenue Service (FIRS) has launched an AEOI-CRS (automatic exchange of information-common reporting standard) portal for the use of financial institutions in the country.
Executive Chairman, FIRS, Muhammad Nami called on reporting financial institutions under the Income Tax (Common Reporting Standard) Regulations 2019 to enroll on the portal:
“The Automatic Exchange of Information-Common Reporting Standard (AEOI-CRS) system portal is currently live, open and active. Consequently, all Reporting Financial Institutions (Commercial Banks, Merchant Banks, Discount Houses, Mortgage and Development Banks, Insurance and Life Assurance Companies, Investment Advisers, Trustees, Asset Management Companies, Issuing Houses, Brokers/Dealers, etc.) are invited to enroll on the AEOI-CRS portal.
“Each reporting Financial Institution (FI) is required to designate an appropriate officer as Primary User (PU).
“The PU is the custodian of the FI’s login details on the portal. A letter signed by the Chief Executive Officer of the FI introducing the PU to the FIRS is required as part of the enrolment process.
“In order to enroll as a PU of an FI and have access to related AEOI-CRS documents, please visit the FIRS website and navigate the menu tab on Automatic Exchange of Information.
“Please do this only if relevant contact details have been forwarded to the FIRS. FIs are to further take notice that CRS reports for 2019 are due not later than 30th September 2020,
“For further information, send enquiries to firstname.lastname@example.org or email@example.com.”
The Federal Inland Revenue Service (FIRS) has further extended the closing date of its waiver of penalty and interest window on tax debts owed by individuals and businesses from June 30, 2020 to August 31st, 2020.
July 8, 2020