FIRS warns ministries, departments and agencies against contracting tax collection and enforcement with consultants

The Federal Internal Revenue Service (FIRS) has warned ministries, government departments and agencies (MDAs) not to hire advisors or franchisees to collect taxes owed to the federal government or any of its agencies.

This was stated in a statement issued by FIRS CEO, Mohamed Naomi, based on the NAN report.

Nami expressed concern that some departmental and departmental agencies are involved in assessment, collection, accounting, and tax and fee enforcement in their agreements with franchisees and consultants.

What FIRS says

stated in the statement, “FIRS has been advised that certain MDAs appoint franchisees or consultants to assess, collect, account for, or enforce taxes and fees owed to the Federal Government or any of its agencies.

“Some departments, departments, and departments include such functions in their agreements with franchisors or consultants.”

The news continues after this announcement




Nami said that Section 68(2) of the FIRS Establishment Act highlights this. “The primary agency responsible for the administration, assessment, collection, accounting and enforcement of taxes and fees owed to the Federal Government or any of its agencies is FIRS.

“This is except as may be authorized by the Minister responsible for Finance under regulations to be passed by the National Assembly.”

According to him, while Section 12(4) of the FIRS says that the service may engage consultants, accountants, or other agents to perform certain functions on its behalf, the law has expressly prohibited the assessment and collection of taxes by consultants.

The news continues after this announcement



What you should know

  • Nairametrics reports that FIRS plans to begin enforcing and recovering unpaid tax deductions due to some Nigerian states and local governments.
  • The Federal Internal Revenue Service (FIRS) has also stated that it will begin the process of enforcing and recovering the non-deductible tax deductions owed by some state and local governments in Nigeria.
  • Due to the failure of troubled states and local governments to convert, FIRS has advised the federal government and the Secretary of the Treasury to refuse approval of any request to issue government bonds or other securities in the capital market, as well as requests for external borrowing and approval of domestic loans from commercial banks or other financial institutions by Any of the state and local governments.
  • The Federal Internal Revenue Service (FIRS) has also announced that it will begin a compliance exercise on value-added tax (VAT) and withholding tax in July 2022.

(Visited 5 times, 1 visits today)

Related posts

Leave a Comment