VAT non-remittance: Swift, Pan Ocean Oil, others sealed by FIRS

ITRealms:

Swift Networks, an internet provider, and Pan Ocean Oil Corporation Nigeria Limited belonging to Mr. Jimoh Ibrahim, had their offices sealed yesterday by the Federal Inland Revenue Service (FIRS) along with other companies in Lagos, Abuja, Kaduna and Owerri for failure to remit huge amounts of money in Value Added Tax (VAT), ITRealms reports.

Swift Networks, which has its office on 31, Saka Tinubu Street, Victoria Island, Lagos,  failed to remit N702 million to the government had its office sealed by FIRS officials led by the Director of Enforcement, Emeka Obiagwu .

Reacting to the FIRS claims, the Chief Operating Officer of Swift Networks, Chuma Okoye, pleaded against the shutdown order, but was told by Obiagwu that his company should have complied with the laws governing business in the country, insisting “Several notices have been served on the companies and I believe several moves were also made to compel the companies to remit their taxes. But most of these companies turn deaf ears; that is why we usually give them long rope.”

However, a subtle drama ensued at the office of Pan Ocean Oil Corporation, as the company’s security-men attempting to prevent FIRS officials from carrying out their duties, which took the intervention of some members of the company to proceed with enforcement.

Efforts to get FIRS officials to give another period of grace were futile. The management of the firm was told to send representatives to the FIRS office to discuss how to remit the $29.2 owed in VAT.

Okoli Vincent/Leadership/GEE

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FCC investigates FIRS over secret recruitment

ITRealms:

The Federal Character Commission (FCC) has commenced investigations of the Federal Inland Revenue Service (FIRS) over secret recruitment of five directors, reports ITRealms.

Reacting to reports of the secret recruitment, the acting executive chairman of FCC, Shettima Bukar-Abba, confirmed, saying his office is investigating the alleged secret recruitment of senior staff in director levels.

“I am investigating FIRS. I have never seen anything from FIRS since I came in two months ago. But I also learnt they are recruiting,” he was quoted as revealing to newsmen.

He also pointed out that FIRS has been summoned by the National Assembly because of the same 'complaints from the people.'

Bukar-Abba further said that FCC as part of the investigation is putting up a committee to specifically handle this allegation.

“I am just trying to put in place a committee so that they will carry out the investigation,” Bukar-Abba reassured.

ITRealms notes that part of policy shift, FCC recently said it will now searchlight recruitments in federal institutions and its affiliates.

ITRealms recalls that since inception in 1996, the Federal Character Commission (FCC) saddled itself with observing recruitment exercise to allow MDAs willingly apply the approved guidelines and formulae in the staff distribution amongst the States of the Federation.

This observer status, ITRealms, has to a large extent prevented officials of the Commission to interfere in the proceeding of the exercise even when the wrong things were observed to be done ab initio.

“It is in the realisation of this fact, that the Plenary of the Commission at its 231st session held on Wednesday 13th August, 2014 overwhelmingly endorsed a reversal of the policy to the effect that hencefoth, officials of the Commission at any recruitment exercise will monitor the exercise and ensure that the processes leading to, the recruitment exercise itself, the eventual selection of successful candidates substantially comply with the approved guidelines and formulae for Recruitment duty shall be addressed as Monitors and they shall have all the the rights and priviledges to monitor recruitment exercises within the context of the approved guidelines," FCC said.

Similarly, ITRealms reports, the plenary also accepted the presidential directive conveyed by the SGF on the 22nd of July, 2014 that (a) No Public service recruitment should be contracted out to consulting firm; and (b) No applicant should be requested/made to pay any fee for any employment. 

This is in addition to enforcing the Federal Character principles aimed at ensuring fair and equitable distribution of posts and socio-economic amenities, infrastructural facilities amongst the federating units nationwide.

 +ITRealms DSA 

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Why Buhari named Fowler FIRS chairman, Yahaya DG Budget Office

ITRealms:

Reasons have emerged on why President Muhammadu Buhari appointed Dr. William Babatunde Fowler as the Executive Chairman of the Federal Inland Revenue Service (FIRS) in replacement of Mr. Sunday Ogungbesan, ITRealms reports.

Also, ITRealms gathered that Dr. Fowler who was the Chief Executive Officer/Executive Chairman of the Lagos State Board of Internal Revenue from 2005 to 2014, is expected to replicate the Lagos success at FIRS.

Special Adviser to the President on Media & Publicity, Mr. Femi Adesina told ITRealms that Fowler who had his higher education in the United States where he obtained a Bachelor's degree in Economics from the University of Wisconsin and a Master of Business Administration degree from the California State University.
 
Before joining the service of the Lagos State Government, Dr. Fowler worked in the banking sector for about 20 years with long stints at Credit Lyonnais Nigeria Limited and Chartered Bank.
 
Under his leadership, the Lagos State Board of Internal Revenue reportedly achieved a sharp increase in internally generated revenue from an average of N3.6. billion per month in January 2006, to an average of about N20.5 billion per month in 2013.
 
Fowler, who holds an Honorary Doctorate Degree of the Irish International University, is a Fellow of the Chartered Institute of Taxation of Nigeria and the Business Management Association of the United Kingdom.
 
He will serve as Acting Executive Chairman of FIRS until his appointment is confirmed by the Senate.
President Buhari has also appointed Mr. Aliyu Yahaya Gusau as Director-General, Budget Office of the Federation.
 
Mr. Gusau's appointment is with effect from August 18, 2015 and is for a term of four years, renewable for another four years, unless he attains the retirement age of 60 years or completes 35 years of pensionable service.

+Remmy Nweke (ITRealms)  
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FIRS, mitigating drop in oil revenue with ITAS – Ogungbesan

ITRealms:

The Acting Executive Chairman, Federal Inland Revenue Service (FIRS), Mr. Sunday S. Ogungbesan has said that the agency is mitigating drop in oil revenue with its Integrated Tax Administration System (ITAS).

He revealed this to ITRealms at a media roundtable in Lagos, last weekend, saying that FIRS is implementing various initiatives aimed at mitigating the drop in government revenue occasioned by fall in global oil prices.

These initiatives, Ogungbesan said, have been structured along the broad areas of automation, process improvement and capacity building.

As such, he said, the initiatives include automation of the system through the introduction of the Integrated Tax Administration System (ITAS). 

“ITAS automates core tax administration processes and enables online interface between FIRS and taxpayers,” he said.

According to him, automation of taxpayer registration resulted in issuance of Tax Identification Number (TIN) to about 1,189,722 corporate and individual taxpayers as at July, 2015.

On the Value Added Tax (VAT) collection system, the acting chairman told ITRealms that the automation system faciliates tracking and remittance of Value Added Tax from key sectors.

E-tax payment platform, he said, is online electronic system of tax payment, which enables online payment and monitoring in real-time.

Ogungbesan also said that the electronic filing (E-filing) system now in place allows electronic filing of tax returns and accompanying documentations.

FIRS, he said, therefore seeks collaboration with the Office of the Accountant General of the Federation to ensure source deduction and remittance of taxes from government contracts and of employees emoluments through the Government Integrated Financial Management Information System (GIFMIS) and Intergrated Personnel & Payroll Information System (IPPIS).

In addition, he said the automation paves the way for the statutory reporting process from banks to FIRS.

+Remmy Nweke (ITRealms) @FIRS

 

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FIRS banks on ITAS to improve tax collection in Nigeria

ITRealms:

The Federal Inland Revenue Service (FIRS) has explained the essence of automating its processes, just as the agency banks on Integrated Tax Administration System (ITAS), reports ITRealms.

Speaking in Lagos on Friday, Acting Executive Chairman, Federal Inland Revenue Service, Mr. Sunday S. Ogungbesan explained why they invested on the Integrated Tax Administration System (ITAS).

“ITAS automates core tax administration processes and enables online interface between FIRS and taxpayers,” he said.

He cited for instance the Value Added Tax (VAT) Collect system, saying FIRS has unveiled the automated system for tracking and remittance of Value Added Tax from key sectors.

“E-tax pay platform, online electronic system of tax payment, which enables online payment and monitoring in real-time,” he said, just as E-filing system, which allows electronic filing of tax returns and accompanying documentation has since been introduced.

FIRS, he said, would collaborate with Office of the Accountant General of the Federation to ensure source deduction and remittance of taxes from government contracts and of employees emoluments through GIFMIS and IPPIS.

“The automation of the statutory reporting process from banks to FIRS,” he said, is not left out.

In order to improve processes, he said, FIRS would engage with Central Bank of Nigeria (CBN), Office of the Accountant General of the Federation and other relevant agencies to improve collaboration

The imperativeness of organizational restructuring, he said, led to the promotion of professionalism and effective linkage between core tax and support functions. 

“This has included strengthening of audit functions nationwide through regionalization and deployment of core tax professionals to oversee and it functions strengthening of taxpayer service and enforcement functions to bring tax administration closer to taxpayers and also improve voluntary compliance

Stressing that ongoing collaboration with the Federal Ministry of Finance and Nigerian Investment Promotion Commission would be streamlined to tax incentives and eliminate misuse

FIRS boss further said that review of tax legislation and tax rulings along with issuance of regulations to provide clarity on interpretation and application of tax laws - Withholding Tax Regulations, Amendment of Schedule to Taxes and Levies based on approved list for collection Act.

+Remmy Nweke (ITRealms)
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FIRS focuses on improving automated revenue collection

DigitalSENSE Business News@ITRealms:

The Federal Inland Revenue Service (FIRS) has said its focus is on how to improve structures by automating core functions that support tax revenue collection in the country, reports DigitalSENSE Business News.

Acting Executive Chairman, Federal Inland Revenue Service, Mr. Sunday S. Ogungbesan made this known to DigitalSENSE Business News at a media roundtable in Lagos.

He also said that FIRS is focused on improving structures, strengthening processes in this regard, just as the agency has over the years implemented various initiatives to ensure taxation replaces oil as major revenue source for government.

Current management of FIRS, Ogungbesan said is also requires support of government at all levels and partner all stakeholders to enable the agency drive the reforms that will provide needed revenue to government from taxation

Equally, Ogungbesan highlighted the fact that FIRS mandate emanated from its Establishment Act of 2007 with the broad mandate to assess, collect and account for all taxes accruable to the Federation.

FIRS, he said, has a group structure for efficient management of  its activities and currently has five groups, namely domestic taxes, compliance, enforcement, support services and modernization groups respectively.

Ogungbesan pointed out that FIRS mandate is implemented on a tripod of tax policy, legislation and administration.

“The successful interaction of the three is essential to the success of the FIRS and effective administration of its mandate, which is to meet and surpass Government tax revenue targets,” he said.

On reform, Mr. Ogungbesan told DigitalSENSE Business News that FIRS is implementing various initiatives aimed at mitigating the drop in government revenue occasioned by fall in global oil prices.

These initiatives, he said, are structured along the broad areas of automation, process improvement and capacity building.

+Remmy Nweke (ITRealms)  

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