FIRS steps up plan to prevent tax evasion by firms

All shipping companies operating within Nigeria’s territorial waters have been given December 31st, 2023 deadline by the Federal Inland Revenue Service (FIRS) to settle any outstanding tax returns.
The deadline was contained in a public statement issued yesterday and signed by Executive Chairman, Federal Inland Revenue Service (FIRS), Muhammad Nami. The order came after two previous statements issued by the FIRS in June and December 2021

The two earlier directives outlined the basis of taxation for international shipping lines and urged them to sort out their tax responsibilities within three months.

Read Also: FIRS issues strong warning to shipping companies defaulting on taxes
FIRS stated that if any shipping companies fail to comply with the deadline, the agency will work with relevant security agencies to prosecute defaulters

Analysts said the latest move by the FIRS was aimed at improving revenue generation for the country by ensuring that all international shipping companies operating within Nigerian waters comply with tax regulations.

The directive comes amidst efforts by the Nigerian government to improve its tax revenue generation, as well as clamp down on companies who evade tax payments.

Analysts said the move by FIRS was expected to improve tax compliance among shipping companies operating in Nigeria’s territorial waters, thus increasing the country’s revenue generation.

Analysts also said the deadline sent a message to other companies to comply with tax regulations or face legal consequences.

<<The Nation>>