Yemisi Izuora
The Federal Inland Revenue Service, FIRS, has said that it generated the sum of N4,178 trillion in revenue for the Federal Government.
The money was generated between January to October 2020.
In his remarks at the opening of the 2020 Lagos International Trade Fair, Executive Chairman of the agency, Muhammad Mamman Nami said though the target for the period was N4.23 trillion and the amount generated represents 99 per cent of the target for the period.
Nani said the target for the whole year is N5.76 trillion, and commended the cooperation of taxpayers for the feat so far achieved.
Nani also disclosed that the agency has made the payment of taxes easy for taxpayers by introducing e-services such as e-receipt, e-TCC, e-filing, e-stamp duty and e-tax payment.
He said Tax Identification Numbers (TINs) are automatically generated for newly incorporated companies by Corporate Affairs Commission and the TIN is displayed on the registration certificate.
He said the agency also understands the plights of taxpayers due to the COVID-19 pandemic which prompted it to introduce some palliatives to cushion the effect of the pandemic.
He listed some of the palliatives to include, additional window of penalty and interest waiver for the business that pay up in full, the principal portion of their outstanding liabilities between 4th November, 2020 and 31st December, 2020.
Provided the outstanding arrears resulted from (a) self-assessment (b) government assessment arising from desk audit, field audit or investigation and extension of monthly WHT and VAT Returns filing to end of the month.
He used the forum to remind stakeholders that the window of opportunity for “waivers of penalties and interest on outstanding taxes arising from desk examinations, audit exercises, investigations or all other forms of tax assessment” will close on December 31, 2020.
“Consequently, all concerned taxpayers are to note that after the expiration date of 31st December, 2020, the Service shall recover all outstanding debt with penalties and interest, in accordance with the provisions of the extant tax laws such as “the power of substitution” conferred on it by Section 31 of the Federal Inland Revenue Service (Establishment) Act 2007.”” he added.
Nani also noted that the Finance Act 2019 also provided some incentives to companies which include, Small Companies Tax Rate and Concession.
He said Section 40 of CITA categorises a company that records an annual turnover of less than N25,000,000 as small company and its tax rate is zero.
“With the Finance Act 2019 small companies are given concession as follows:Section 23 (1) of CITA amended to include profits accruing to small companies, Small business now exempted from Income Tax. However, small companies are not precluded from preparing audited financial statements, register and file tax returns as and when due, while Small companies become subject to Income tax upon crossing the threshold of N25,000,000.
Furthermore he said, the Finance Act 2019 amended the minimum tax rate in Section 33 of CITA to a fixed rate of 0.5 per cent gross turnover less franked investment income.
•Gross turnover is described as the gross inflow of economic benefits such as cash and receivables which arise from the operating activities of a company. Such activities include the supply of services, sale of goods and receipt of interest, rent, royalty or dividend.
•Minimum tax rates not to apply to a company:
•With less than N25,000,000 turnover (small companies)
•In its first four years of business
•Engaged in agricultural trade or business.
He therefore solicited the cooperation and support of all taxpayers and stakeholders in the task of increasing the nation’s non-oil revenue by keying into the various e-services deployed by FIRS and also take advantage of the palliatives provided by the Service.