By Prince Okafor

The management of Federal Inland Revenue Services, FIRS, has said it would deploy all legal means at its disposal, including criminal prosecution of board and management, to penalise organisations that fail to pay their tax.

Speaking at a KPMG Tax Breakfast meeting in Lagos, FIRS Executive Chairman, Mr Babatunde Fowler, urged taxpayers to file Companies Income Tax (CIT), Value Added Tax (VAT) and Withholding Tax (WHT) returns at any of its nearby location.

Fowler noted that taxpayers will be required to apply in writing to the tax controller of their current tax office of choice and request for transfer of their file and Taxpayer Identification Number (TIN) in accordance with its policy.

From left: Mr Wale Ajayi, Partner, Tax, KPMG, Mr Tola Adeyemi, Partner and Head, Audit Services and Mr Babatunde Fowler, Executive Chairman, Federal Inland Revenue Service during the KPMG Tax breakfast Meeting held in Lagos. 

According to him, waiver granted to payers who do not owe personal property taxes in the financial year relate only to accumulated penalty and interest, and not the principal tax due.

“Based on this waiver, part payment/full payment of undisputed tax liabilities should be paid, while the balance can be paid in instalment. While a reasonable amount of not less than 25 percent, should be paid on account. Taxpayers are expected to provide evidence of payment of the principal undisputed tax liabilities and a payment plan for the outstanding sum,” he explained.

Partner and Head Tax Regulatory and People Services of KPMG, Mr Wole Obayomi, on his part, stated that, “FIRS should invest more effort in the tracking of the informal sector as well, which can be as big as the formal sector when they are made to comply.”

He recommended FIRS to ensure that right policies are put in place to enhance effective compliance, as well as improve tax tribunal.