Executive Chairman of Federal Inland Revenue Service (FIRS), Muhammad Nami, says foreign companies that have lifted cargoes – including crude oil – but failed to regularise their tax positions will “find the taste very unsavoury” if they wait for FIRS’ audit before doing so.
Nami issued the warning in Lagos on Thursday in his remarks at the Pedabo Thought Leadership Breakfast Session, which focused on tax issues and the impact on development in the maritime and aviation industry.
The FIRS boss said as important as the maritime and aviation industries are to the economic development of the country, they were not yielding the expected revenue to the Federation’s purse. He, therefore, blamed the poor revenue turn out on many factors, one of which he said was the failure of foreign companies lifting cargoes – particularly crude oil – to pay tax.
“This is contrary to the provisions of the extant tax laws. The revenue leakage from these non-compliant companies is very huge,” Nami said.
“Tax authorities are unable to police these foreign companies because the transportation contracts are executed outside Nigeria and the tax authorities do not have the lifting schedules of the vessels ahead of their arrival in Nigeria.
“The FIRS will soon launch a tax audit exercise on operators in the maritime and aviation industries. Back-end pre-audit activities, in collaboration with regulatory authorities in the industries, are at advanced stages.”
He said governments’ existence and socio-economic development across the world is defined by tax; adding that taxation has gone beyond a mere tool for raising revenue or a mere civil obligation of citizens.
