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Fowler goes after billionaire tax defaulters We look at all businesses, partnerships, corporate accounts that have a minimum turnover of N1 billion per annum for the past three years…From the 23 banks, we have analyses, we have 31,395 records, 6772 of them don’t pay any form of tax. If you take out the minimum of N3 billion multiply by that figure, you know how much that gives you and they are operating within our society and economy and do not remit or pay any tax. If you have had the opportunity to make your wealth in this economy, in this society, the least you can do is to pay your tax. I plead with the banks to support us. In supporting us, you are supporting Nigeria. In supporting Nigerians and those who have chosen Nigeria as home. And most of all, you are supporting a future that we can leave behind for the upcoming youth of Nigeria. , , Finance Minister Zainab Ahmed asks Fowler to maintain tempo as FIRS rakes in N13 billion from billionaire tax defaulters IMF/FIRS collaborate on capacity building A Quarterly Publication of the Federal Inland Revenue Service July - September, 2018 ISSN: 2006-9677

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Fowler goes after

billionaire tax defaulters

We look at all businesses, partnerships, corporate accounts that have a minimum turnover of N1 billion per annum for the past three years…From the 23 banks, we have analyses, we have 31,395 records, 6772 of them don’t pay any form of tax. If you take out the minimum of N3 billion multiply by that figure, you know how much that gives you and they are operating within our society and economy and do not remit or pay any tax. If you have had the opportunity to make your wealth in this economy, in this society, the least you can do is to pay your tax. I plead with the banks to support us. In supporting us, you are supporting Nigeria. In supporting Nigerians and those who have chosen Nigeria as home. And most of all, you are supporting a future that we can leave behind for the upcoming youth of Nigeria.

,,Finance Minister Zainab Ahmed asks Fowler to maintain tempoas FIRS rakes in N13 billion from billionaire tax defaulters

IMF/FIRS collaborate on capacity building

A Quarterly Publication of the Federal Inland Revenue Service

July - September, 2018 ISSN: 2006-9677

COVERNEWS

02 A Quarterly Publication of the Federal Inland Revenue Service April - June, 2018

ess than a month after it

Lcommenced the substitution of accounts of recalcitrant billionaire

taxpayers, the Federal Inland Revenue Service (FIRS) has collected N12.66 billion in tax revenue therefrom.

The Executive Chairman, Federal Inland Revenue Service (FIRS), Tunde Fowler, disclosed this when he received the new Minister of Finance, Hajiya Zainab Ahmed during her maiden visit to Revenue House, FIRS headquarters in Abuja.

Ahmed, the new Minister of Finance commended the agency for shoring-up non-oil revenue: “The Ministry of Finance will continue to work collaboratively with FIRS to support all the efforts that you are doing. And as much as possible, we should interface frequently. For us, the directive I have is to increase the tax

revenue and that is the most important task ahead of all of us. You have done well. And the reward for good work is more work,” she said.

Hajiya Ahmed urged the FIRS to maintain the tempo because literarily, the country depends on the work that FIRS does to shore-up the revenue collection to support the government.

She encouraged government agencies to work together to fish out all corrupt persons in the country, stating that this is President Muhammadu Buhari's directive.

She said “The FIRS is a very important agency of government. I wanted to underscore this importance. FIRS is one of the first agencies in the Ministry of Finance that I am meeting. The Federal Government Medium Term Plan is hinged on diversifying the economy away from oil revenue to the non-oil sector. And the report that the Executive Chairman of FIRS has

presented indicates that the diversification effort is working. This is reflected in the upturn of the contribution of non-oil revenues over the last three years.”

While commending the service, she said “I am happy that we have a team in FIRS that is not only expanding the revenue base but also significantly improving tax collection and taking tax offices closer to the people and making it easier for the people to pay their taxes and conduct other tax transactions online. And I am sure that, from what I have heard today, you would continue with all these processes.

I am also glad that you are increasing cooperation with several agencies like the Economic and Financial Crimes Commission, the Independent Corrupt Practices and Other Related Offences Commission and the Nigeria Customs Service. This

The Executive Chairman, FIRS, Tunde Fowler and the Hon. Minister of Finance, Hajiya Zainab Ahmed

Finance Minister Zainab Ahmed asks Fowler to maintain tempoas FIRS rakes in N13 billion from billionaire tax defaulters

By Kelechukwu Okoronkwo

NEWS

03April - June, 2018 A Quarterly Publication of the Federal Inland Revenue Service

is important because the directive from the President for anti-corruption involves cooperation within yourselves as well as with anti-corruption agencies.

It makes a lot of sense to prioritise tax collection to larger categories: from the big ones to other ones. The efforts you are doing in Abuja, Lagos and Osun – (on payment of taxes on property using their turnover as basis for assessment) - is a commendable one and I encourage you to maintain the tempo in generating tax revenues,” she noted.

She said the country needs to continue with the efforts to strengthen the non-oil sector, stating that the part that FIRS should play is to continue with its efforts so that the non-oil sector would generate a larger part of the tax revenue on a sustainable basis.

About a month ago, FIRS commenced substitution of the bank accounts of high net worth billionaire tax defaulters. Fowler told the Minister that the initiative has pooled about N12. 66 billion into government coffers.

The Executive Chairman stated that “FIRS wrote to all commercial banks in May 2018, requesting for a list of companies, partnerships, and enterprises with a banking turnover of

N1 billion and above. This activity is aimed at ascertaining those companies that are compliant with the tax laws and those that are not compliant. So far, non-compliant organisations have paid about N12.66 billion.

“The FIRS will continue to implement initiatives that will drive compliance and generate revenue by continuous taxpayer enlightenment, implementation of the Auto VAT Collect in other sectors of the economy, simplification of the tax processes, especially for small taxpayers, strengthening collaborations with other agencies such as the Corporate Affairs Commission, State Boards of Internal Revenue, the Ministry of Trade and Investment, and the Nigeria Customs Service,” Fowler said.

The Executive Chairman also told the Minister that the Service realised the sum of N2.983 billion from payment on demand notices on property owners who are being assessed based on their turnover and that 653 of 2,672 of such non-filers have starting filing now.

From enforcement, Fowler said FIRS has collected a total of N47.5 billion from 2016 to date and $32.8 million, £5.9 million, netted N225 billion from audit and has collected

more than N1 trillion above its January to August collection last year.

He said that FIRS' collection of N4.03 trillion in 2017 had 62.25 per cent as non-oil collection while oil collection was just 37.75 per cent. In 2016 it was 64.99 per cent in favour of non-oil and 35.01 per cent for oil collections. In 2018, the FIRS has so far collected 54.56 per cent for non-oil and 45.44 per cent for oil.

Fowler added that Value Added Tax (VAT) receipts have been on a steady increase. “So far in 2018, FIRS has collected N773.49 billion in eight months. This amount has already surpassed that of 2015 (N767.33 billion), and is set to surpass that of 2016 (N828.19 billion) and 2017 (N972.30 billion) with four more collection months left in the year.

“Stamp Duties collection is also on a steady increase. So far in 2018, FIRS has collected N10.10 billion in eight months. This amount has already surpassed that of 2017 (N10.9 billion), 2016 (N5.6 billion), and 2015 (N7.1 billion)”, Fowler said.

Three weeks ago, the Executive Chairman explained at a stakeholders meeting in Lagos that substitution is allowed in the nation's laws and empowers FIRS to appoint banks as collection agents for tax.

The Hon. Minister of Finance, Hajiya Zainab Ahmed; the Executive Chairman, FIRS, Tunde Fowler and senior staff of the Service

COVERNEWS

02 A Quarterly Publication of the Federal Inland Revenue Service April - June, 2018

ess than a month after it

Lcommenced the substitution of accounts of recalcitrant billionaire

taxpayers, the Federal Inland Revenue Service (FIRS) has collected N12.66 billion in tax revenue therefrom.

The Executive Chairman, Federal Inland Revenue Service (FIRS), Tunde Fowler, disclosed this when he received the new Minister of Finance, Hajiya Zainab Ahmed during her maiden visit to Revenue House, FIRS headquarters in Abuja.

Ahmed, the new Minister of Finance commended the agency for shoring-up non-oil revenue: “The Ministry of Finance will continue to work collaboratively with FIRS to support all the efforts that you are doing. And as much as possible, we should interface frequently. For us, the directive I have is to increase the tax

revenue and that is the most important task ahead of all of us. You have done well. And the reward for good work is more work,” she said.

Hajiya Ahmed urged the FIRS to maintain the tempo because literarily, the country depends on the work that FIRS does to shore-up the revenue collection to support the government.

She encouraged government agencies to work together to fish out all corrupt persons in the country, stating that this is President Muhammadu Buhari's directive.

She said “The FIRS is a very important agency of government. I wanted to underscore this importance. FIRS is one of the first agencies in the Ministry of Finance that I am meeting. The Federal Government Medium Term Plan is hinged on diversifying the economy away from oil revenue to the non-oil sector. And the report that the Executive Chairman of FIRS has

presented indicates that the diversification effort is working. This is reflected in the upturn of the contribution of non-oil revenues over the last three years.”

While commending the service, she said “I am happy that we have a team in FIRS that is not only expanding the revenue base but also significantly improving tax collection and taking tax offices closer to the people and making it easier for the people to pay their taxes and conduct other tax transactions online. And I am sure that, from what I have heard today, you would continue with all these processes.

I am also glad that you are increasing cooperation with several agencies like the Economic and Financial Crimes Commission, the Independent Corrupt Practices and Other Related Offences Commission and the Nigeria Customs Service. This

The Executive Chairman, FIRS, Tunde Fowler and the Hon. Minister of Finance, Hajiya Zainab Ahmed

Finance Minister Zainab Ahmed asks Fowler to maintain tempoas FIRS rakes in N13 billion from billionaire tax defaulters

By Kelechukwu Okoronkwo

NEWS

03April - June, 2018 A Quarterly Publication of the Federal Inland Revenue Service

is important because the directive from the President for anti-corruption involves cooperation within yourselves as well as with anti-corruption agencies.

It makes a lot of sense to prioritise tax collection to larger categories: from the big ones to other ones. The efforts you are doing in Abuja, Lagos and Osun – (on payment of taxes on property using their turnover as basis for assessment) - is a commendable one and I encourage you to maintain the tempo in generating tax revenues,” she noted.

She said the country needs to continue with the efforts to strengthen the non-oil sector, stating that the part that FIRS should play is to continue with its efforts so that the non-oil sector would generate a larger part of the tax revenue on a sustainable basis.

About a month ago, FIRS commenced substitution of the bank accounts of high net worth billionaire tax defaulters. Fowler told the Minister that the initiative has pooled about N12. 66 billion into government coffers.

The Executive Chairman stated that “FIRS wrote to all commercial banks in May 2018, requesting for a list of companies, partnerships, and enterprises with a banking turnover of

N1 billion and above. This activity is aimed at ascertaining those companies that are compliant with the tax laws and those that are not compliant. So far, non-compliant organisations have paid about N12.66 billion.

“The FIRS will continue to implement initiatives that will drive compliance and generate revenue by continuous taxpayer enlightenment, implementation of the Auto VAT Collect in other sectors of the economy, simplification of the tax processes, especially for small taxpayers, strengthening collaborations with other agencies such as the Corporate Affairs Commission, State Boards of Internal Revenue, the Ministry of Trade and Investment, and the Nigeria Customs Service,” Fowler said.

The Executive Chairman also told the Minister that the Service realised the sum of N2.983 billion from payment on demand notices on property owners who are being assessed based on their turnover and that 653 of 2,672 of such non-filers have starting filing now.

From enforcement, Fowler said FIRS has collected a total of N47.5 billion from 2016 to date and $32.8 million, £5.9 million, netted N225 billion from audit and has collected

more than N1 trillion above its January to August collection last year.

He said that FIRS' collection of N4.03 trillion in 2017 had 62.25 per cent as non-oil collection while oil collection was just 37.75 per cent. In 2016 it was 64.99 per cent in favour of non-oil and 35.01 per cent for oil collections. In 2018, the FIRS has so far collected 54.56 per cent for non-oil and 45.44 per cent for oil.

Fowler added that Value Added Tax (VAT) receipts have been on a steady increase. “So far in 2018, FIRS has collected N773.49 billion in eight months. This amount has already surpassed that of 2015 (N767.33 billion), and is set to surpass that of 2016 (N828.19 billion) and 2017 (N972.30 billion) with four more collection months left in the year.

“Stamp Duties collection is also on a steady increase. So far in 2018, FIRS has collected N10.10 billion in eight months. This amount has already surpassed that of 2017 (N10.9 billion), 2016 (N5.6 billion), and 2015 (N7.1 billion)”, Fowler said.

Three weeks ago, the Executive Chairman explained at a stakeholders meeting in Lagos that substitution is allowed in the nation's laws and empowers FIRS to appoint banks as collection agents for tax.

The Hon. Minister of Finance, Hajiya Zainab Ahmed; the Executive Chairman, FIRS, Tunde Fowler and senior staff of the Service

ecently, the federal Inland

RRevenue Service, (FIRS) held a meeting in Lagos with key

stakeholders in the tax system to rub minds on how to achieve optimum revenue to meet the growing needs of our country.

We decided that it was important to have that discussion due to the various reactions that came after the first round of substitution of bank accounts of billionaire tax defaulters.

The meeting gave us the opportunity to appraise everyone of where the FIRS stands in terms of its operations, the innovations we have introduced and the changes going on in the Service.

We felt that it was necessary to address the concerns of our stakeholders on our mandate. We are also desirous to obtain feedback, first hand, on our services, listen to their counsel and concerns on how we can improve our operations.

The Federal Government has been making enormous strides in improving the infrastructure of the nation. Huge amounts of money have been spent on constructing and rehabilitating our road and rail networks, power supply, boosting agriculture, socio-economic interventions to lift the poor of the poor out of poverty and promote financial inclusion and strengthen our economy.

However, no matter the good intention of the government is, little, almost nothing can be achieved unless adequate revenue is available to fund the developmental aspirations of government for its people. As citizens of this nation, each of us must do our part for the Nigeria of our dreams to become a reality. This means that we have to pay our taxes, willingly and on time for economic and social growth and position Nigeria for its manifest destiny. Every black man, we are told is a Nigerian.

It is not fair for a person who is living in this country and who either has an income or makes profit in their business not to pay taxes. We should come together to do the right thing if we want to bequeath to the generations yet unborn a nation that they can be proud of. The right and proper thing is for all responsible citizens to contribute their share in order to enhance the well-being of Nigerians.

As we go into the last quarter of the year we will not relent in our efforts to make taxation the pivot of national development. I call on everyone to fulfil their tax obligations as and when due. I call on our staff to remain dedicated so that Nigeria can become that country that we all yearn to see.

lTunde Fowler

FROM THE

EXECUTIVE CHAIRMAN

Support us tosupport Nigeria

hen the new Honourable Minister of

WFinance, Hajia Zainab Ahmed was appointed, the first parastatal she

visited under her purview was the Federal Inland Revenue Service (FIRS). This signalled the fact that revenue generation is dear to the authorities.

During the visit the Hon Minister expressed her satisfaction with the efforts of the Service, but urged that more should be done in order to fund the developmental aspirations of the Government.

One of the major leakages of revenue, not only from Nigeria but from Africa and the developing as a whole, has been the perennial scourge of Illicit Financial Flows (IFF). As part of efforts to combat this menace, the second International Conference on Combating IFF and Enhancing Asset Recovery for Sustainable

thDevelopment was held in Abuja on the 11 and th12 of September, 2018. On the heels of this, the African Union High

Level Panel (AUHLP) on IFF, convened in Abuja to brainstorm with a view to proffering remedies to the scourge of IFF. The two-day engagement was presided by the Chairman of the AUHLP and former South African President, Mr. Thabo Mbeki alongside other panel members, including the Executive Chairman, FIRS, Tunde Fowler.

The engagement gave the opportunity for stakeholders to discuss strategies to eradicate IFFs and exchange ideas on how various jurisdictions are addressing the IFF menace.

This edition also has articles on the continued collaboration with major stakeholders on improving the revenue profile of the country and some of the major events that have taken place on various aspects of taxation.

EDITOR'S NOTE

A Quarterly Publication of the Federal Inland Revenue Service April - June, 2018

From the Editor

Thabo Mbeki on IFF

Kelechukwu Okoronkwo

Ayorinde Aghede

Maureen Ugwa

Faiza Muhammad Farouq

Silas Onwe Elenyi

Oladapo Soaga-Awolowo

05April - June, 2018 A Quarterly Publication of the Federal Inland Revenue Service 04 A Quarterly Publication of the Federal Inland Revenue Service April - June, 2018

ecently, the federal Inland

RRevenue Service, (FIRS) held a meeting in Lagos with key

stakeholders in the tax system to rub minds on how to achieve optimum revenue to meet the growing needs of our country.

We decided that it was important to have that discussion due to the various reactions that came after the first round of substitution of bank accounts of billionaire tax defaulters.

The meeting gave us the opportunity to appraise everyone of where the FIRS stands in terms of its operations, the innovations we have introduced and the changes going on in the Service.

We felt that it was necessary to address the concerns of our stakeholders on our mandate. We are also desirous to obtain feedback, first hand, on our services, listen to their counsel and concerns on how we can improve our operations.

The Federal Government has been making enormous strides in improving the infrastructure of the nation. Huge amounts of money have been spent on constructing and rehabilitating our road and rail networks, power supply, boosting agriculture, socio-economic interventions to lift the poor of the poor out of poverty and promote financial inclusion and strengthen our economy.

However, no matter the good intention of the government is, little, almost nothing can be achieved unless adequate revenue is available to fund the developmental aspirations of government for its people. As citizens of this nation, each of us must do our part for the Nigeria of our dreams to become a reality. This means that we have to pay our taxes, willingly and on time for economic and social growth and position Nigeria for its manifest destiny. Every black man, we are told is a Nigerian.

It is not fair for a person who is living in this country and who either has an income or makes profit in their business not to pay taxes. We should come together to do the right thing if we want to bequeath to the generations yet unborn a nation that they can be proud of. The right and proper thing is for all responsible citizens to contribute their share in order to enhance the well-being of Nigerians.

As we go into the last quarter of the year we will not relent in our efforts to make taxation the pivot of national development. I call on everyone to fulfil their tax obligations as and when due. I call on our staff to remain dedicated so that Nigeria can become that country that we all yearn to see.

lTunde Fowler

FROM THE

EXECUTIVE CHAIRMAN

Support us tosupport Nigeria

hen the new Honourable Minister of

WFinance, Hajia Zainab Ahmed was appointed, the first parastatal she

visited under her purview was the Federal Inland Revenue Service (FIRS). This signalled the fact that revenue generation is dear to the authorities.

During the visit the Hon Minister expressed her satisfaction with the efforts of the Service, but urged that more should be done in order to fund the developmental aspirations of the Government.

One of the major leakages of revenue, not only from Nigeria but from Africa and the developing as a whole, has been the perennial scourge of Illicit Financial Flows (IFF). As part of efforts to combat this menace, the second International Conference on Combating IFF and Enhancing Asset Recovery for Sustainable

thDevelopment was held in Abuja on the 11 and th12 of September, 2018. On the heels of this, the African Union High

Level Panel (AUHLP) on IFF, convened in Abuja to brainstorm with a view to proffering remedies to the scourge of IFF. The two-day engagement was presided by the Chairman of the AUHLP and former South African President, Mr. Thabo Mbeki alongside other panel members, including the Executive Chairman, FIRS, Tunde Fowler.

The engagement gave the opportunity for stakeholders to discuss strategies to eradicate IFFs and exchange ideas on how various jurisdictions are addressing the IFF menace.

This edition also has articles on the continued collaboration with major stakeholders on improving the revenue profile of the country and some of the major events that have taken place on various aspects of taxation.

EDITOR'S NOTE

A Quarterly Publication of the Federal Inland Revenue Service April - June, 2018

From the Editor

Thabo Mbeki on IFF

Kelechukwu Okoronkwo

Ayorinde Aghede

Maureen Ugwa

Faiza Muhammad Farouq

Silas Onwe Elenyi

Oladapo Soaga-Awolowo

05April - June, 2018 A Quarterly Publication of the Federal Inland Revenue Service 04 A Quarterly Publication of the Federal Inland Revenue Service April - June, 2018

co

nte

nts

36 FIRS partners BSIT for mutual development

The editor hereby invites staff of FIRS and stakeholders to

The Editor, Gauge Magazine, 20 Sokode Crescent Zone 5, Wuse P.M.B. 133 Garki, Abuja

Day Mbeki rallied Nigerian ministers against IFFs

IMF to collaborate with FIRS on capacity building

African voices against Illicit Financial Flows

28

33

30

Norwegian tax authority parleys FIRS on tax cooperation

32

.

[email protected]

Contact us:[email protected], 09074444441, 09072111111, 09074444442

FIRS, 37 million MSMEs and tax

ICAN partners FIRS to eradicate non-compliance

34

Fowler tasks FIT on high performance35

37 FIRS partners Bauchi Internal Revenue Board to boost revenue collection

38 EFCC credit N1 billion tax recovery to mutual efforts

39 NCSU holds seminar in Minna

39 FCT/IRS partners with FIRS on optimal performance

40 FIRS sports master crowns victory on Management’s support

41 Beware! Fowler cautions Gambia on crude deposit

43 NCMM canvass support for sustainable cultural development

a n items

Day taxpayers took on Fowler16

19

Why we are going after billionaire tax defaulters by Tunde Fowler

7

Finance Minister Zainab Ahmedasks Fowler to maintain tempo

2

Thabo Mbeki on IFF5

Support us to support Nigeria4

In a rare, conversational encounter, Executive Chairman, Federal Inland Revenue Service (FIRS), TUNDE FOWLER, spoke to tax consultants, tax auditors, compliance

officers of banks and key stakeholders in the tax sector on FIRS' plans to substitute the accounts of defaulting billionaire taxpayers.

He explained why the Service is assessing companies owning big but idle property in Abuja, Lagos, Ogun and Kaduna based on their turnover, why Nigeria must leave a

legacy for young Nigerians so that this will not be a wasted generation –(like Professor Wole Soyinka, once warned). Fowler also spoke on FIRS' 6 e-Solutions, its enforcement

and audit forays. He was unsparing of knocks for the Service as he celebrated its successes. Umar Yusuf Usman, captured the event held at Oriental Hotel in Lagos.

The Executive Chairman, Tunde Fowler addressing participants at the stakeholder meeting

COVER

Why we are going after billionaire tax defaulters, by Tunde Fowler

07April - June, 2018 A Quarterly Publication of the Federal Inland Revenue Service 06 A Quarterly Publication of the Federal Inland Revenue Service April - June, 2018

co

nte

nts

36 FIRS partners BSIT for mutual development

The editor hereby invites staff of FIRS and stakeholders to

The Editor, Gauge Magazine, 20 Sokode Crescent Zone 5, Wuse P.M.B. 133 Garki, Abuja

Day Mbeki rallied Nigerian ministers against IFFs

IMF to collaborate with FIRS on capacity building

African voices against Illicit Financial Flows

28

33

30

Norwegian tax authority parleys FIRS on tax cooperation

32

.

[email protected]

Contact us:[email protected], 09074444441, 09072111111, 09074444442

FIRS, 37 million MSMEs and tax

ICAN partners FIRS to eradicate non-compliance

34

Fowler tasks FIT on high performance35

37 FIRS partners Bauchi Internal Revenue Board to boost revenue collection

38 EFCC credit N1 billion tax recovery to mutual efforts

39 NCSU holds seminar in Minna

39 FCT/IRS partners with FIRS on optimal performance

40 FIRS sports master crowns victory on Management’s support

41 Beware! Fowler cautions Gambia on crude deposit

43 NCMM canvass support for sustainable cultural development

a n items

Day taxpayers took on Fowler16

19

Why we are going after billionaire tax defaulters by Tunde Fowler

7

Finance Minister Zainab Ahmedasks Fowler to maintain tempo

2

Thabo Mbeki on IFF5

Support us to support Nigeria4

In a rare, conversational encounter, Executive Chairman, Federal Inland Revenue Service (FIRS), TUNDE FOWLER, spoke to tax consultants, tax auditors, compliance

officers of banks and key stakeholders in the tax sector on FIRS' plans to substitute the accounts of defaulting billionaire taxpayers.

He explained why the Service is assessing companies owning big but idle property in Abuja, Lagos, Ogun and Kaduna based on their turnover, why Nigeria must leave a

legacy for young Nigerians so that this will not be a wasted generation –(like Professor Wole Soyinka, once warned). Fowler also spoke on FIRS' 6 e-Solutions, its enforcement

and audit forays. He was unsparing of knocks for the Service as he celebrated its successes. Umar Yusuf Usman, captured the event held at Oriental Hotel in Lagos.

The Executive Chairman, Tunde Fowler addressing participants at the stakeholder meeting

COVER

Why we are going after billionaire tax defaulters, by Tunde Fowler

07April - June, 2018 A Quarterly Publication of the Federal Inland Revenue Service 06 A Quarterly Publication of the Federal Inland Revenue Service April - June, 2018

hank you very much and Good

Tmorning. I would like to acknowledge all stakeholders

here today: the representative from MAN (Manufacturers Association of Nigeria), the representative from National Economic Consultative Association (NECA), the Labour Union's representative, the representatives of accounting and audit firms, distinguished ladies and gentlemen, members of the press.

I will like to thank you for honouring this invitation, first to discuss issues of tax administration and national revenue. We believe it is key that we have this discussion at this point in time so we can actually tell you what we have been involved in, where we are and the assistance that we require from all stakeholders to ensure that our country, Nigeria, moves forward.

GDP to Tax RatioSome of you might have heard or

known this: Nigeria still has one of the lowest tax revenues-to-GDP (Gross Domestic Products) in the world. All the experts from the World Bank, United Nations (UN) Organisation for Economic Cooperation and

Development (OECD), came up with the position that if a country's tax revenue-to-GDP is less than 15%, it is not likely that that country will be able to fund social or economic infrastructure they require.

“Everyone here is a major stakeholder in the economy. We are tax administrators. But also part of this society and this economy. We are in the last quarter of the year. There is what goes to the total Federation

Why we are going after billionaire tax defaulters, by Tunde Fowler,,I met some secondary school students who came

on a tour to FIRS. Each time we had discussions we asked them what they are doing for their summer holidays. Out of all the schools that came only one school said they prefer to tour Nigeria. All other students spoke about going to Dubai, America and London. It saddens my heart that the future generation that we are leaving Nigeria for, if all they are thinking about is going abroad to spend our little foreign exchange or their desire is to be abroad and not at home, the question I would ask you and I is: “What kind of country are we leaving behind?” So, the actions that we take today or we decide today I think to a large degree will answer that question.

Participants at the stakeholders’ meeting

COVER

Account: Petroleum Profits Tax, PPT, Companies Income Tax, Capital Gains Tax, Stamp Duty. This is what is shared within the three tiers of government. In 2015 we were able to do 89% of the budget, in 2016 we did 92%, and in 2017 we achieved 99.5% of the budget.

Tax PlanningThese figures may look impressive

based on the budgets. But we are going to tell ourselves some home truths. And the home truth is that in line with budgets it (the collection) looks okay. But in terms of the potentials which this country has, it is not okay.

The second layer is about non-oil taxes, if you look at the performance. In 2015 it was 79% of the budget, in 2016 was 57%, and in 2017 63% of the budget. Because the budgets are increasing, the percentages were going down. In terms of revenue, in 2016 it was N2.1 trillion and in 2017 it was N2.5 trillion, meaning we were not able to achieve target.

If you look at 2018 revenue to

date, between January and August, we have done N3.5 trillion, which is N1 trillion over 2017. But the main point I want to make is that majority of taxpayers that accounted for this revenue have not changed. The laws

have not changed. And to a great extent, the consultants to these companies have not changed. If you look at 2017, there is an increase of close to N800 billion over the 2016 collection.

Why we are going after billionaire tax defaulters, by Tunde Fowler,,And when any government has less to spend,

certainly you can't expect massive infrastructure, good healthcare and good education. All these things cost money and we have to realise and understand that without money a good leader, any leader who has a vision, that vision will remain a dream. We have to fund our leaders clearly, I am not a politician. But from what I have found out, in the business of tax administration in developing countries, you have to be a politician, a business man and a psychologist; you have to be all these tied into one to get the desired results

COVER

The Executive Chairman, FIRS, Tunde Fowler responding to a question at the stakeholders’ meeting in Lagos

09April - June, 2018 A Quarterly Publication of the Federal Inland Revenue Service 08 A Quarterly Publication of the Federal Inland Revenue Service April - June, 2018

hank you very much and Good

Tmorning. I would like to acknowledge all stakeholders

here today: the representative from MAN (Manufacturers Association of Nigeria), the representative from National Economic Consultative Association (NECA), the Labour Union's representative, the representatives of accounting and audit firms, distinguished ladies and gentlemen, members of the press.

I will like to thank you for honouring this invitation, first to discuss issues of tax administration and national revenue. We believe it is key that we have this discussion at this point in time so we can actually tell you what we have been involved in, where we are and the assistance that we require from all stakeholders to ensure that our country, Nigeria, moves forward.

GDP to Tax RatioSome of you might have heard or

known this: Nigeria still has one of the lowest tax revenues-to-GDP (Gross Domestic Products) in the world. All the experts from the World Bank, United Nations (UN) Organisation for Economic Cooperation and

Development (OECD), came up with the position that if a country's tax revenue-to-GDP is less than 15%, it is not likely that that country will be able to fund social or economic infrastructure they require.

“Everyone here is a major stakeholder in the economy. We are tax administrators. But also part of this society and this economy. We are in the last quarter of the year. There is what goes to the total Federation

Why we are going after billionaire tax defaulters, by Tunde Fowler,,I met some secondary school students who came

on a tour to FIRS. Each time we had discussions we asked them what they are doing for their summer holidays. Out of all the schools that came only one school said they prefer to tour Nigeria. All other students spoke about going to Dubai, America and London. It saddens my heart that the future generation that we are leaving Nigeria for, if all they are thinking about is going abroad to spend our little foreign exchange or their desire is to be abroad and not at home, the question I would ask you and I is: “What kind of country are we leaving behind?” So, the actions that we take today or we decide today I think to a large degree will answer that question.

Participants at the stakeholders’ meeting

COVER

Account: Petroleum Profits Tax, PPT, Companies Income Tax, Capital Gains Tax, Stamp Duty. This is what is shared within the three tiers of government. In 2015 we were able to do 89% of the budget, in 2016 we did 92%, and in 2017 we achieved 99.5% of the budget.

Tax PlanningThese figures may look impressive

based on the budgets. But we are going to tell ourselves some home truths. And the home truth is that in line with budgets it (the collection) looks okay. But in terms of the potentials which this country has, it is not okay.

The second layer is about non-oil taxes, if you look at the performance. In 2015 it was 79% of the budget, in 2016 was 57%, and in 2017 63% of the budget. Because the budgets are increasing, the percentages were going down. In terms of revenue, in 2016 it was N2.1 trillion and in 2017 it was N2.5 trillion, meaning we were not able to achieve target.

If you look at 2018 revenue to

date, between January and August, we have done N3.5 trillion, which is N1 trillion over 2017. But the main point I want to make is that majority of taxpayers that accounted for this revenue have not changed. The laws

have not changed. And to a great extent, the consultants to these companies have not changed. If you look at 2017, there is an increase of close to N800 billion over the 2016 collection.

Why we are going after billionaire tax defaulters, by Tunde Fowler,,And when any government has less to spend,

certainly you can't expect massive infrastructure, good healthcare and good education. All these things cost money and we have to realise and understand that without money a good leader, any leader who has a vision, that vision will remain a dream. We have to fund our leaders clearly, I am not a politician. But from what I have found out, in the business of tax administration in developing countries, you have to be a politician, a business man and a psychologist; you have to be all these tied into one to get the desired results

COVER

The Executive Chairman, FIRS, Tunde Fowler responding to a question at the stakeholders’ meeting in Lagos

09April - June, 2018 A Quarterly Publication of the Federal Inland Revenue Service 08 A Quarterly Publication of the Federal Inland Revenue Service April - June, 2018

10 A Quarterly Publication of the Federal Inland Revenue Service April - June, 2018

COVER

The increase in 2018 so far showed N1 trillion. If the same consultants reviewed the accounts of the majority of the taxpayers, one would wonder why such large increases occurred. It is either that the taxpayers did not disclose fully their financials to the consultants or the consultants were involved in tax planning.

Either way, it is not to the well-being of our nation, Nigeria

We also looked at our weaknesses in FIRS. This is a meeting of all stakeholders. We are not pointing fingers. We are having a discussion. We will also tell you about our weaknesses. Our services maybe are not as efficient as they should be. Our staff maybe are not as committed as they should be. We have spent the last two and a half to three years trying to correct that and what we have done from the point of FIRS is that we have had extensive training sessions. We have opened up positions that our staff can compete for based on interest and capacity.

The Tax Controller's position, for example, was open to all staff at certain levels. They were interviewed so we put our best foot forward. Audit staff were tested so those that could

not pass were moved out of the audit process.

Stamp Duties.We were able to acquire 100 brand

new Stamp Duty machines and staff who were to man this responsibility were also interviewed before giving them that assignment. We know that we also have lots to do to improve. At the same time we need your cooperation. When I am talking about certain aspects, please do not take it personal because we also are in the

position of trying to improve our own service delivery.

Tax Collection & VATI will like to talk about oil and non-

oil revenue. We can clearly see that even at current prices the oil revenue tax cannot fund our nation. If we all agree, the only way is for us to have a high level of tax compliance and focus on the non-oil. A major component of the non-oil happens to be VAT. We have found out that a number of businesses, collect VAT that they do

Why we are going after billionaire tax defaulters, by Tunde Fowler

,,Gone are the time or days we ask what has government done for me. We should ask what are doing for ourselves and the nation first. We should obey the law, pay our taxes, empower our governments at various levels then sit back and see the end results. If we see the amount of the budget that has gone into capital expenditure under this present government, not only gone into the budget but being expensed, it is at least three times more when the revenues were even higher.

The Executive Chairman, FIRS addressing the stakeholders’ meeting in Lagos

11April - June, 2018 A Quarterly Publication of the Federal Inland Revenue Service

COVER

not remit to government.So we are going back the old

school way. I would just like to publicly display the new VAT certificate, which would be given to all taxpayers. We expect them to display it in their places of business because we also found out that a number of businesses were not even registered taxpayers and were collecting VAT. Without having a tax ID as an agent or a collector of VAT there is no way you can remit that VAT to government. So, in short, they just were collecting and adding it to their income and spending it.

Other Nations & Nigerian Compliance Culture

I would also look at what I would call the ''compliance culture''. When we look at the developed societies we find that a lot of their citizens comply and they simply comply for two reasons.

1. One, because they love their nation and they want to see development.

2. Two, there are consequences for non-compliance.

We should take a leaf from these countries to do what is.

Students & the Next Generation

I met some secondary school students who came on a tour to FIRS. Each time we had discussions we asked them what they are doing for their summer holidays. Out of all the schools that came only one school said they prefer to tour Nigeria. All other students spoke about going to Dubai, America and London. It saddens my heart that the future generation that we are leaving Nigeria for, all they are thinking about is going abroad to spend our little foreign exchange or their desire is to be abroad and not at home. The question I would ask you is: “What kind of country are we leaving behind?” So, the actions that we take today or what we decide today, I think to a large degree, will answer that question.

Youth, Tax & PatriotismMembers of the Joint Tax Board

(JTB) are also here because I'm talking about tax in general from the federal position, the Federation Account is divided between the federal, state and local governments. Any month that tax revenue for the Federation Account is

short that means the state governments, local governments and the federal government will have less to spend and that is the reality.

And when any government has less to spend, certainly you can't expect massive infrastructure, good healthcare and good education. All these things cost money and we have to realise and understand that without money a good leader, any leader who has a vision, that vision will remain a dream. We have to fund our leaders clearly, I am not a politician. But from what I have found out, in the business of tax administration in developing countries, you have to be a politician, a business man and a psychologist; you have to be all these tied into one to get the desired results.

Gone are the days when we ask what has government done for us. We should ask what are we doing for ourselves and the nation first. We should obey the law, pay our taxes, empower our governments at various levels then sit back and see the end results.

If we see the amount of the budget that has gone into capital expenditure under this present government, not only gone into the budget but being expensed, it is at least three times more than when the revenues were even higher.

Let's see if we are on the same page because you may be non-tax complaint, you may not obey the law. How many Nigerians would we charge to court? How many businesses would we shut down? It has to be a collective effort with the same vision that can change our financial profile.

We say we are the leaders of Africa. Yes, they look at us when we go abroad, when we go to Ghana, when we go to other countries and they say Big Brother. But if we are not showing the correct examples in following the law and building our own nation that title would soon be taken away from us.

VAIDSWhat have we done as a

government to help improve compliance? We did a tax amnesty in 2016, where we received over 3000 applications and we were able to have about N96 billion in terms of declared liabilities and have collected so far about N68 billion under VAIDS. Under FIRS, we received over 5000

,,Apart from that, we also have technology. Taxpayers do not have to come to any FIRS office to do any return . It is called ''the 6-e solutions''. With these solutions it also brings into play accountability and transparency. All you require is to give valid email address and phone number to any FIRS office that maintains your account and anytime a payment is made on your tax ID you get an alert. You can download and print your receipt immediately and also confirm it to ensure that it has been paid to the right account. With this e-solutions you can pay online. You don't have to leave your office or home. You have a phone or computer, you can pay your taxes online. You don't have to go to a 3rd party to help you and not be sure it gets to the government. You can pay anywhere in the world: London, Dubai, New York, pay your taxes online and download your receipt immediately.

Why we are going after billionaire tax defaulters, by Tunde Fowler

10 A Quarterly Publication of the Federal Inland Revenue Service April - June, 2018

COVER

The increase in 2018 so far showed N1 trillion. If the same consultants reviewed the accounts of the majority of the taxpayers, one would wonder why such large increases occurred. It is either that the taxpayers did not disclose fully their financials to the consultants or the consultants were involved in tax planning.

Either way, it is not to the well-being of our nation, Nigeria

We also looked at our weaknesses in FIRS. This is a meeting of all stakeholders. We are not pointing fingers. We are having a discussion. We will also tell you about our weaknesses. Our services maybe are not as efficient as they should be. Our staff maybe are not as committed as they should be. We have spent the last two and a half to three years trying to correct that and what we have done from the point of FIRS is that we have had extensive training sessions. We have opened up positions that our staff can compete for based on interest and capacity.

The Tax Controller's position, for example, was open to all staff at certain levels. They were interviewed so we put our best foot forward. Audit staff were tested so those that could

not pass were moved out of the audit process.

Stamp Duties.We were able to acquire 100 brand

new Stamp Duty machines and staff who were to man this responsibility were also interviewed before giving them that assignment. We know that we also have lots to do to improve. At the same time we need your cooperation. When I am talking about certain aspects, please do not take it personal because we also are in the

position of trying to improve our own service delivery.

Tax Collection & VATI will like to talk about oil and non-

oil revenue. We can clearly see that even at current prices the oil revenue tax cannot fund our nation. If we all agree, the only way is for us to have a high level of tax compliance and focus on the non-oil. A major component of the non-oil happens to be VAT. We have found out that a number of businesses, collect VAT that they do

Why we are going after billionaire tax defaulters, by Tunde Fowler

,,Gone are the time or days we ask what has government done for me. We should ask what are doing for ourselves and the nation first. We should obey the law, pay our taxes, empower our governments at various levels then sit back and see the end results. If we see the amount of the budget that has gone into capital expenditure under this present government, not only gone into the budget but being expensed, it is at least three times more when the revenues were even higher.

The Executive Chairman, FIRS addressing the stakeholders’ meeting in Lagos

11April - June, 2018 A Quarterly Publication of the Federal Inland Revenue Service

COVER

not remit to government.So we are going back the old

school way. I would just like to publicly display the new VAT certificate, which would be given to all taxpayers. We expect them to display it in their places of business because we also found out that a number of businesses were not even registered taxpayers and were collecting VAT. Without having a tax ID as an agent or a collector of VAT there is no way you can remit that VAT to government. So, in short, they just were collecting and adding it to their income and spending it.

Other Nations & Nigerian Compliance Culture

I would also look at what I would call the ''compliance culture''. When we look at the developed societies we find that a lot of their citizens comply and they simply comply for two reasons.

1. One, because they love their nation and they want to see development.

2. Two, there are consequences for non-compliance.

We should take a leaf from these countries to do what is.

Students & the Next Generation

I met some secondary school students who came on a tour to FIRS. Each time we had discussions we asked them what they are doing for their summer holidays. Out of all the schools that came only one school said they prefer to tour Nigeria. All other students spoke about going to Dubai, America and London. It saddens my heart that the future generation that we are leaving Nigeria for, all they are thinking about is going abroad to spend our little foreign exchange or their desire is to be abroad and not at home. The question I would ask you is: “What kind of country are we leaving behind?” So, the actions that we take today or what we decide today, I think to a large degree, will answer that question.

Youth, Tax & PatriotismMembers of the Joint Tax Board

(JTB) are also here because I'm talking about tax in general from the federal position, the Federation Account is divided between the federal, state and local governments. Any month that tax revenue for the Federation Account is

short that means the state governments, local governments and the federal government will have less to spend and that is the reality.

And when any government has less to spend, certainly you can't expect massive infrastructure, good healthcare and good education. All these things cost money and we have to realise and understand that without money a good leader, any leader who has a vision, that vision will remain a dream. We have to fund our leaders clearly, I am not a politician. But from what I have found out, in the business of tax administration in developing countries, you have to be a politician, a business man and a psychologist; you have to be all these tied into one to get the desired results.

Gone are the days when we ask what has government done for us. We should ask what are we doing for ourselves and the nation first. We should obey the law, pay our taxes, empower our governments at various levels then sit back and see the end results.

If we see the amount of the budget that has gone into capital expenditure under this present government, not only gone into the budget but being expensed, it is at least three times more than when the revenues were even higher.

Let's see if we are on the same page because you may be non-tax complaint, you may not obey the law. How many Nigerians would we charge to court? How many businesses would we shut down? It has to be a collective effort with the same vision that can change our financial profile.

We say we are the leaders of Africa. Yes, they look at us when we go abroad, when we go to Ghana, when we go to other countries and they say Big Brother. But if we are not showing the correct examples in following the law and building our own nation that title would soon be taken away from us.

VAIDSWhat have we done as a

government to help improve compliance? We did a tax amnesty in 2016, where we received over 3000 applications and we were able to have about N96 billion in terms of declared liabilities and have collected so far about N68 billion under VAIDS. Under FIRS, we received over 5000

,,Apart from that, we also have technology. Taxpayers do not have to come to any FIRS office to do any return . It is called ''the 6-e solutions''. With these solutions it also brings into play accountability and transparency. All you require is to give valid email address and phone number to any FIRS office that maintains your account and anytime a payment is made on your tax ID you get an alert. You can download and print your receipt immediately and also confirm it to ensure that it has been paid to the right account. With this e-solutions you can pay online. You don't have to leave your office or home. You have a phone or computer, you can pay your taxes online. You don't have to go to a 3rd party to help you and not be sure it gets to the government. You can pay anywhere in the world: London, Dubai, New York, pay your taxes online and download your receipt immediately.

Why we are going after billionaire tax defaulters, by Tunde Fowler

12 A Quarterly Publication of the Federal Inland Revenue Service April - June, 2018

COVER

declarations and the amount was also similar for N92 billion, out of which N37 billion has been paid so far.

In terms of promoting local contents as a government agency and in line with government's directive, we have been told to support local businesses. As an agency of government, the majority of our vehicles are bought from Peugeot Automobiles Nigeria (PAN) to ensure that we have employment for those staff who work there.

Corporate Social ResponsibilityWe continue to support educational

institutions not only in the area of tax but we give out free exercise books, comic books and we also try to bring a new awareness for the growing youths.

Audit ExercisesIn terms of our audit exercise we

have started a comprehensive audit exercise that involves both national and regional audits… because we got to a position where we found out that majority of the major organizations that were allowed to do self-assessment, do not truthfully declare or pay the taxes that were due. To date we have raised assessment of over

N805 billion from 1324 national audits out of which 499 (taxpayers) have paid N219 billion. I won't talk about the smaller ones.

When we look at the impact of what they have paid: N219 billion, it can do a lot of things. It can provide certainly a lot more infrastructure, healthcare and educational facilities. These monies that are supposed to go into the Federation Account are shared between federal, local and state governments. So, every state can get an additional N1 billion from such monies.

6 e-SolutionsWe also made tax transactions

more convenient. You now have the flexibility of choosing your tax office. Prior to now your tax office can be an hour away from your office. Taxpayers can now choose where their file resides.

Apart from that, we also have technology. Taxpayers do not have to come to any FIRS office to do any return and I think that is in you pack. It is called ''the 6-e solutions''. With these solutions it also brings into play accountability and transparency. All you require is to give a valid email address

and phone number to any FIRS office that maintains your account and anytime a payment is made in your tax ID you get an alert. You can download and print your receipt immediately and also confirm it to ensure that it has been paid to the right account. With these e-solution you can pay online. You don't have to leave your office or home. It you have a phone or computer, you can pay your taxes online. You don't have to go to a third party to help you and not be sure whether it gets to the government. You can pay from anywhere in the world: London, Dubai and New York. You pay your taxes online and download your receipt immediately.

Now we have issues of Withholding Tax Credit receipts. We have now uploaded this system up to 2012… meaning that if you have a Withholding Tax Credit that you have not utilized and you are on this system, you can print it out yourself and use it to offset future tax liabilities. All these things have been made available. In short, you can carry out all your tax functions without visiting a tax officer.

And this is a very touchy point with my staff. I use to tell them we are not sacking anybody because as it is right

Why we are going after billionaire tax defaulters, by Tunde Fowler

Participants at the stakeholder meeting

13April - June, 2018 A Quarterly Publication of the Federal Inland Revenue Service

COVER

now you don't really need us to carry out any tax function.

We also looked at some tax laws that were not in favour of taxpayers. Currently, we have a draft amendment bill for VAT and Stamp Duties. There is also the Petroleum Industry Bill (PIB) that is still under consideration. So, we are not just looking at it from one point of view, we are also looking at it from the point of view the taxpayer.

I have welcomed everyone. Let me, in particular, welcome the institutional board members of FIRS; the Acting Registrar-General of the Corporate Affairs Commission (CAC) the representative for the Minister of Justice, the representative for the Nigeria Customs Service is here, the representative of the Nigerian National Petroleum Company (NNPC) is here, as well as the representative of the Minister of Finance and the representative of the Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMMA).

So these are the issues that we have discussed at the board level. But at the same time, those are the issues that affect all of us. We have the e-registration, e-payment, e-filing, e-receipt, e-TCC and e-Stamp Duty solutions. Our Stamp Duty solution actually won the best Innovation in Africa Award in 2017. So other countries are adopting what we have.

JTB, Tax Laws & ResignationIn the communique from the last

meeting of the JTB the decisions that we took were that:

1. All State Boards of Internal Revenue (SBIRs) require political will and support to carry out their functions effectively. This will assist SBIRs to meet the revenue target for their states.

2. State governors are urged to display adequate political will to support the process of tax administration.

3. On the part of JTB, any State Chairman who does not deliver on their target would be willing to resign their appointment if the above conditions have not been met. This also involves me. If I have the political will given to me by my bosses: The President, The Vice President, The Minister of Finance, if I do not meet the target I'm also willing to step down and that is the position we have taken as tax

administrators.We also want you to join us as

partners. We have got laws on our books and I am going to discuss about a few of those laws. They are not new laws. They are laws that have always been there for the past few years that have not been put into action. I also invited the Compliance Officers from banks to join us.

Part of the job of the tax administrator is to know your taxpayers. And we have taken time to know our taxpayers and to know those who are not our taxpayers.

Turnover & Tax PaymentWe are not here to be judgmental

because it says before you are judgmental you should look at yourself. So, FIRS still has a lot of room for improvement. We are just here to discuss. We looked at all businesses, partnerships, corporate accounts that have a minimum turnover of N1 billion per annum for the past three years. First of all, the law states clearly that before you open a corporate account, part of the opening documentation is the tax ID.

From the 23 banks we have analysed so far we have 31,395 records, out of which effectively, minus duplications, we had 18,602. We broke those into three categories:

Those that have a Taxpayer Identification Number (TIN) and have paid, those that have no TIN and were not paying, and those that have a TIN but had not paid anything.

So on a minimum, every company or business included here over the last three years have had a banking turnover of N3 billion and above. Some of them have had banking turnover of over N5 billion and have not paid one kobo in taxes. The total number of

those with a TIN but who were not paying was 6,772.

Now let me also explain to those who are not tax administrators but anyone here should have an idea of what I am trying to explain. First of all banking turnover does not mean that is the turnover of your business it simply means the money that has gone in and out of your account. But what the tax law says is that if you do not file your returns and you are in constant default we use turnover as a basis of estimating your tax liability.

For example if your turnover is N100 million we assume that 20% of that is profit and we can tax that at 30%.

Tax on Empty/Idle Property Before I continue, I want to tell you

about an exercise which we carried out about a year ago that had to do with properties. We started in the Federal Capital Territory. We established over 2,000 plus properties that were built and developed in the names of corporate companies that have not filed any tax returns. The value of these taxes were in excess of N2 trillion and have never been paid before. We contacted them, sent them our assessments and now a number of them are paying.

Some of them claim not to own the property. The list of these properties was sent to government. The Presidency is to decide what would happen to these properties that have no owners. To those that have owners and have not paid they would be prosecuted. We are also in the process of going to court to get the approval of the court to sell those properties. We are not only doing that in Abuja. We've concluded in Lagos. We are currently doing it in Osun, Oyo and Kaduna

Why we are going after billionaire tax defaulters, by Tunde Fowler,,Substitution, which is in our laws, empowers us to

appoint the banks as our collecting agents for tax. All the 6,772 have had their accounts frozen and put under notice of substitution pending when they come forward. They refused to come forward in 2016, they refused to come forward under VAIDS and they are still operating without paying. So, we are putting them on notice that it is their civic responsibility to pay tax and file on these accounts.

12 A Quarterly Publication of the Federal Inland Revenue Service April - June, 2018

COVER

declarations and the amount was also similar for N92 billion, out of which N37 billion has been paid so far.

In terms of promoting local contents as a government agency and in line with government's directive, we have been told to support local businesses. As an agency of government, the majority of our vehicles are bought from Peugeot Automobiles Nigeria (PAN) to ensure that we have employment for those staff who work there.

Corporate Social ResponsibilityWe continue to support educational

institutions not only in the area of tax but we give out free exercise books, comic books and we also try to bring a new awareness for the growing youths.

Audit ExercisesIn terms of our audit exercise we

have started a comprehensive audit exercise that involves both national and regional audits… because we got to a position where we found out that majority of the major organizations that were allowed to do self-assessment, do not truthfully declare or pay the taxes that were due. To date we have raised assessment of over

N805 billion from 1324 national audits out of which 499 (taxpayers) have paid N219 billion. I won't talk about the smaller ones.

When we look at the impact of what they have paid: N219 billion, it can do a lot of things. It can provide certainly a lot more infrastructure, healthcare and educational facilities. These monies that are supposed to go into the Federation Account are shared between federal, local and state governments. So, every state can get an additional N1 billion from such monies.

6 e-SolutionsWe also made tax transactions

more convenient. You now have the flexibility of choosing your tax office. Prior to now your tax office can be an hour away from your office. Taxpayers can now choose where their file resides.

Apart from that, we also have technology. Taxpayers do not have to come to any FIRS office to do any return and I think that is in you pack. It is called ''the 6-e solutions''. With these solutions it also brings into play accountability and transparency. All you require is to give a valid email address

and phone number to any FIRS office that maintains your account and anytime a payment is made in your tax ID you get an alert. You can download and print your receipt immediately and also confirm it to ensure that it has been paid to the right account. With these e-solution you can pay online. You don't have to leave your office or home. It you have a phone or computer, you can pay your taxes online. You don't have to go to a third party to help you and not be sure whether it gets to the government. You can pay from anywhere in the world: London, Dubai and New York. You pay your taxes online and download your receipt immediately.

Now we have issues of Withholding Tax Credit receipts. We have now uploaded this system up to 2012… meaning that if you have a Withholding Tax Credit that you have not utilized and you are on this system, you can print it out yourself and use it to offset future tax liabilities. All these things have been made available. In short, you can carry out all your tax functions without visiting a tax officer.

And this is a very touchy point with my staff. I use to tell them we are not sacking anybody because as it is right

Why we are going after billionaire tax defaulters, by Tunde Fowler

Participants at the stakeholder meeting

13April - June, 2018 A Quarterly Publication of the Federal Inland Revenue Service

COVER

now you don't really need us to carry out any tax function.

We also looked at some tax laws that were not in favour of taxpayers. Currently, we have a draft amendment bill for VAT and Stamp Duties. There is also the Petroleum Industry Bill (PIB) that is still under consideration. So, we are not just looking at it from one point of view, we are also looking at it from the point of view the taxpayer.

I have welcomed everyone. Let me, in particular, welcome the institutional board members of FIRS; the Acting Registrar-General of the Corporate Affairs Commission (CAC) the representative for the Minister of Justice, the representative for the Nigeria Customs Service is here, the representative of the Nigerian National Petroleum Company (NNPC) is here, as well as the representative of the Minister of Finance and the representative of the Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMMA).

So these are the issues that we have discussed at the board level. But at the same time, those are the issues that affect all of us. We have the e-registration, e-payment, e-filing, e-receipt, e-TCC and e-Stamp Duty solutions. Our Stamp Duty solution actually won the best Innovation in Africa Award in 2017. So other countries are adopting what we have.

JTB, Tax Laws & ResignationIn the communique from the last

meeting of the JTB the decisions that we took were that:

1. All State Boards of Internal Revenue (SBIRs) require political will and support to carry out their functions effectively. This will assist SBIRs to meet the revenue target for their states.

2. State governors are urged to display adequate political will to support the process of tax administration.

3. On the part of JTB, any State Chairman who does not deliver on their target would be willing to resign their appointment if the above conditions have not been met. This also involves me. If I have the political will given to me by my bosses: The President, The Vice President, The Minister of Finance, if I do not meet the target I'm also willing to step down and that is the position we have taken as tax

administrators.We also want you to join us as

partners. We have got laws on our books and I am going to discuss about a few of those laws. They are not new laws. They are laws that have always been there for the past few years that have not been put into action. I also invited the Compliance Officers from banks to join us.

Part of the job of the tax administrator is to know your taxpayers. And we have taken time to know our taxpayers and to know those who are not our taxpayers.

Turnover & Tax PaymentWe are not here to be judgmental

because it says before you are judgmental you should look at yourself. So, FIRS still has a lot of room for improvement. We are just here to discuss. We looked at all businesses, partnerships, corporate accounts that have a minimum turnover of N1 billion per annum for the past three years. First of all, the law states clearly that before you open a corporate account, part of the opening documentation is the tax ID.

From the 23 banks we have analysed so far we have 31,395 records, out of which effectively, minus duplications, we had 18,602. We broke those into three categories:

Those that have a Taxpayer Identification Number (TIN) and have paid, those that have no TIN and were not paying, and those that have a TIN but had not paid anything.

So on a minimum, every company or business included here over the last three years have had a banking turnover of N3 billion and above. Some of them have had banking turnover of over N5 billion and have not paid one kobo in taxes. The total number of

those with a TIN but who were not paying was 6,772.

Now let me also explain to those who are not tax administrators but anyone here should have an idea of what I am trying to explain. First of all banking turnover does not mean that is the turnover of your business it simply means the money that has gone in and out of your account. But what the tax law says is that if you do not file your returns and you are in constant default we use turnover as a basis of estimating your tax liability.

For example if your turnover is N100 million we assume that 20% of that is profit and we can tax that at 30%.

Tax on Empty/Idle Property Before I continue, I want to tell you

about an exercise which we carried out about a year ago that had to do with properties. We started in the Federal Capital Territory. We established over 2,000 plus properties that were built and developed in the names of corporate companies that have not filed any tax returns. The value of these taxes were in excess of N2 trillion and have never been paid before. We contacted them, sent them our assessments and now a number of them are paying.

Some of them claim not to own the property. The list of these properties was sent to government. The Presidency is to decide what would happen to these properties that have no owners. To those that have owners and have not paid they would be prosecuted. We are also in the process of going to court to get the approval of the court to sell those properties. We are not only doing that in Abuja. We've concluded in Lagos. We are currently doing it in Osun, Oyo and Kaduna

Why we are going after billionaire tax defaulters, by Tunde Fowler,,Substitution, which is in our laws, empowers us to

appoint the banks as our collecting agents for tax. All the 6,772 have had their accounts frozen and put under notice of substitution pending when they come forward. They refused to come forward in 2016, they refused to come forward under VAIDS and they are still operating without paying. So, we are putting them on notice that it is their civic responsibility to pay tax and file on these accounts.

COVER

Why we are going after billionaire tax defaulters, by Tunde Fowlerstates and eventually we would cover the whole federation. The idea here is simple; if you have had the opportunity to make your wealth in this economy, in this society, the least you can do is pay your tax.

So, initially some people thought we were doing property tax. No, it was not property tax. We are looking at turnovers and we thought that would be fair in that we take the value of the property and assume that was the turnover that went through the account. That is one method. For those who said that they built the property five years ago when the exchange rate was lower we dialogued with them and reduced it. But what we are saying is that everyone has to be accountable.

Now this report is not a property report but account turnover related. NGOs, churches, parastatals, pension and salary accounts are not included. We have not included any group who by law are not meant to pay tax. So far, we have sent out 2980 letters and we believe that before the end of September we would get most of them out.

Substitution, which is in our laws, empowers us to appoint the banks as our collecting agents for tax. All the 6,772 have had their accounts frozen and put under notice of substitution pending when they come forward. They refused to come forward in 2016, they refused to come forward under VAIDS and they are still operating without paying. So, we are putting them on notice that it is their civic responsibility to pay tax and file on these accounts.

I would also like to announce that we now have a consolidated database for all taxpayers in Nigeria under the JTB, we just concluded it and before the end of September it would be made available to all SBIRS and to agencies like Immigration and Customs so they can all use it. So, regardless of the TIN that you have, it is available for the purposes of tax administration.

Banks come & support usI plead with the banks to support

us, in supporting us, you are supporting Nigeria. In supporting Nigeria, you are supporting all Nigerians and those who have chosen

Nigeria as home. Most of all, you are supporting a future that we can leave behind for the upcoming youth in Nigeria.

I remember when we were growing up there was a statement made by Wole Soyinka that our generation is a wasted generation. This has remained in my mind for many years. Wole Soyinka is still alive. His generation are in their 80s and above. Let us not look back and say also our generation has not left any value behind. I think it is time for us to change.

EnforcementLet us take a look at our

enforcement activities. Before we start enforcement activities usually it takes close to one year. We have even added things that are not in our laws in order not to engage in outright enforcement. For example, we have a Notice of Non-Compliance which is not required of us by our laws. We stick it on businesses that are non-compliant before we enforce. We have posted 15,000 stickers in order to cause the taxpayer embarrassment – out of that embarrassment we were able to

The CD,DTG and SA, ECFIRS addressing articipants at the stakeholder meeting

COVER

generate N15 billion. Most Nigerian business men abroad follow the tax laws. Please let us do the same here.

We started enforcement on a smaller level in 2016 which yielded us N10.9 billion. In 2017 we got N10.5 billion, and in 2018, between January and August, we got N10.8 billion. It seems like with enforcement we are getting more revenue.

The process should not be like that. As Nigerians, we should not wait to do the right thing. That is part of what I'm appealing to all stakeholders here today. We are also here to hear from you on how to improve our services. We are not just talking about law now. Hopefully we will be in the position to help build the Nigeria of our dreams.

I just invited stakeholders to clarify certain issues because this last step that we took, “substitution on accounts”, has seen a lot being written in certain papers. Let's discuss the facts. If we have got over 6,000 taxpayers providing services and making money within this economy and society, but who are not registered for tax payment, I don't think it's fair.

I went to Ghana and we were talking about compliance about two years ago and I told them about an experience that I had here. Then I was in the Lagos State Internal Revenue Service and we went on a tour to the Lagos State University Teaching Hospital

and the nurse there was talking about the high mortality rate of infants under five years from malaria. We asked her a simple question, “How come you can't save them?” The nurse said by the time they get to the hospital, it is too late because the parents could not afford N2,000 to buy malaria medicine.

That is the impact it has. If Nigeria has one of the highest infant mortality rates in the world from malaria, imagine what billions of naira could do in healthcare and in infrastructure. Let's be mindful that we are talking about tax. Tax is paid on profit. If you make no profit there is no tax. Tax is paid on income. If you are unemployed there would be no tax. So the fact that you have the opportunity and the privilege to be blessed to make a profit and to earn an income, the least you can do is to pay tax to support the society in which you reside.

I have also invited the unions here because the unions, to my mind, are our friends. They look after the well-being and the welfare of all workers. But I also want to request them to join us in this issue of tax. When I was the Chairman in LIRS we were trying to improve the tax compliance, especially with Pay As You Earn (PAYE). For two years consecutively we found under payment of close to N20 billion mainly on PAYE

tax, meaning your salary tax. The unions collects dues based from staff salaries. But when a company is audited and the payment is made for paying the tax there are no membership dues.

VAT collection has been steadily increasing for some years but we have not reached the full potential of what this tax type can yield. VAT is the fastest growing tax in the world. Even the United Arab Emirates has decided to introduce VAT. This is a country that does not believe in tax yet it introduced VAT. And here we have people charging VAT and not remitting it.

We are asking all Nigerians who pay VAT to assist us. We will make it more interesting – if you can give us the names of 25 businesses where you have paid VAT but the businesses cannot show that they are remitting, we will give you a corporate gift. The gift can be anything from a power bank, a phone, a phone charger or a biro. But let us look at it as a call to service to build the Nigeria of our dreams.

I think I have laid some foundations and we are just here to ask for your cooperation. Let us not be left with the only option of enforcement. It is not required. Let us all pay our taxes, even we as tax collectors don't like to pay but we do. Thank you and God bless.

Why we are going after billionaire tax defaulters, by Tunde Fowler

Andrew Jaro Rufunji, Deputy Director and State Coordinator Yobe, Borno and Plateau, Mohammed Lawal Abubakar, Coordinating SecretaryTax Appeal Tribunal and Simon Kato, Deputy Director and Special Assistance to the Executive Chairman Participants at the stakeholder meeting

15April - June, 2018 A Quarterly Publication of the Federal Inland Revenue Service 14 A Quarterly Publication of the Federal Inland Revenue Service April - June, 2018

COVER

Why we are going after billionaire tax defaulters, by Tunde Fowlerstates and eventually we would cover the whole federation. The idea here is simple; if you have had the opportunity to make your wealth in this economy, in this society, the least you can do is pay your tax.

So, initially some people thought we were doing property tax. No, it was not property tax. We are looking at turnovers and we thought that would be fair in that we take the value of the property and assume that was the turnover that went through the account. That is one method. For those who said that they built the property five years ago when the exchange rate was lower we dialogued with them and reduced it. But what we are saying is that everyone has to be accountable.

Now this report is not a property report but account turnover related. NGOs, churches, parastatals, pension and salary accounts are not included. We have not included any group who by law are not meant to pay tax. So far, we have sent out 2980 letters and we believe that before the end of September we would get most of them out.

Substitution, which is in our laws, empowers us to appoint the banks as our collecting agents for tax. All the 6,772 have had their accounts frozen and put under notice of substitution pending when they come forward. They refused to come forward in 2016, they refused to come forward under VAIDS and they are still operating without paying. So, we are putting them on notice that it is their civic responsibility to pay tax and file on these accounts.

I would also like to announce that we now have a consolidated database for all taxpayers in Nigeria under the JTB, we just concluded it and before the end of September it would be made available to all SBIRS and to agencies like Immigration and Customs so they can all use it. So, regardless of the TIN that you have, it is available for the purposes of tax administration.

Banks come & support usI plead with the banks to support

us, in supporting us, you are supporting Nigeria. In supporting Nigeria, you are supporting all Nigerians and those who have chosen

Nigeria as home. Most of all, you are supporting a future that we can leave behind for the upcoming youth in Nigeria.

I remember when we were growing up there was a statement made by Wole Soyinka that our generation is a wasted generation. This has remained in my mind for many years. Wole Soyinka is still alive. His generation are in their 80s and above. Let us not look back and say also our generation has not left any value behind. I think it is time for us to change.

EnforcementLet us take a look at our

enforcement activities. Before we start enforcement activities usually it takes close to one year. We have even added things that are not in our laws in order not to engage in outright enforcement. For example, we have a Notice of Non-Compliance which is not required of us by our laws. We stick it on businesses that are non-compliant before we enforce. We have posted 15,000 stickers in order to cause the taxpayer embarrassment – out of that embarrassment we were able to

The CD,DTG and SA, ECFIRS addressing articipants at the stakeholder meeting

COVER

generate N15 billion. Most Nigerian business men abroad follow the tax laws. Please let us do the same here.

We started enforcement on a smaller level in 2016 which yielded us N10.9 billion. In 2017 we got N10.5 billion, and in 2018, between January and August, we got N10.8 billion. It seems like with enforcement we are getting more revenue.

The process should not be like that. As Nigerians, we should not wait to do the right thing. That is part of what I'm appealing to all stakeholders here today. We are also here to hear from you on how to improve our services. We are not just talking about law now. Hopefully we will be in the position to help build the Nigeria of our dreams.

I just invited stakeholders to clarify certain issues because this last step that we took, “substitution on accounts”, has seen a lot being written in certain papers. Let's discuss the facts. If we have got over 6,000 taxpayers providing services and making money within this economy and society, but who are not registered for tax payment, I don't think it's fair.

I went to Ghana and we were talking about compliance about two years ago and I told them about an experience that I had here. Then I was in the Lagos State Internal Revenue Service and we went on a tour to the Lagos State University Teaching Hospital

and the nurse there was talking about the high mortality rate of infants under five years from malaria. We asked her a simple question, “How come you can't save them?” The nurse said by the time they get to the hospital, it is too late because the parents could not afford N2,000 to buy malaria medicine.

That is the impact it has. If Nigeria has one of the highest infant mortality rates in the world from malaria, imagine what billions of naira could do in healthcare and in infrastructure. Let's be mindful that we are talking about tax. Tax is paid on profit. If you make no profit there is no tax. Tax is paid on income. If you are unemployed there would be no tax. So the fact that you have the opportunity and the privilege to be blessed to make a profit and to earn an income, the least you can do is to pay tax to support the society in which you reside.

I have also invited the unions here because the unions, to my mind, are our friends. They look after the well-being and the welfare of all workers. But I also want to request them to join us in this issue of tax. When I was the Chairman in LIRS we were trying to improve the tax compliance, especially with Pay As You Earn (PAYE). For two years consecutively we found under payment of close to N20 billion mainly on PAYE

tax, meaning your salary tax. The unions collects dues based from staff salaries. But when a company is audited and the payment is made for paying the tax there are no membership dues.

VAT collection has been steadily increasing for some years but we have not reached the full potential of what this tax type can yield. VAT is the fastest growing tax in the world. Even the United Arab Emirates has decided to introduce VAT. This is a country that does not believe in tax yet it introduced VAT. And here we have people charging VAT and not remitting it.

We are asking all Nigerians who pay VAT to assist us. We will make it more interesting – if you can give us the names of 25 businesses where you have paid VAT but the businesses cannot show that they are remitting, we will give you a corporate gift. The gift can be anything from a power bank, a phone, a phone charger or a biro. But let us look at it as a call to service to build the Nigeria of our dreams.

I think I have laid some foundations and we are just here to ask for your cooperation. Let us not be left with the only option of enforcement. It is not required. Let us all pay our taxes, even we as tax collectors don't like to pay but we do. Thank you and God bless.

Why we are going after billionaire tax defaulters, by Tunde Fowler

Andrew Jaro Rufunji, Deputy Director and State Coordinator Yobe, Borno and Plateau, Mohammed Lawal Abubakar, Coordinating SecretaryTax Appeal Tribunal and Simon Kato, Deputy Director and Special Assistance to the Executive Chairman Participants at the stakeholder meeting

15April - June, 2018 A Quarterly Publication of the Federal Inland Revenue Service 14 A Quarterly Publication of the Federal Inland Revenue Service April - June, 2018

16 A Quarterly Publication of the Federal Inland Revenue Service April - June, 2018

COVER

Flora Takim Ndifor - NACCIMAIn the foreword to the National Tax

Policy (NTP) in 2016, the former Hon. Minister of Finance, stated that the current administration is committed to diversifying the sources of government revenue by significantly increasing tax-to-GDP ratio, among other things. The policy document also goes on to list the current challenges to meeting this objective which include a low tax-to-GDP ratio, a huge unregistered informal sector, a low level of awareness of business, legal and tax regulations.

In recognition of the need for a more efficient tax system and as a veritable partner to the government in ensuring an enabling business environment through policy advocacy and promoting the growth and competitiveness of business, NACCIMA in March 2018, organised a tax conference with the theme,

'Understanding Tax and its Effects on the Nigerian Business'. This is with the objective of raising awareness of the NTP and the incredible opportunity offered by VAIDS.

NACCIMA is an umbrella body of all the Chambers of Commerce and Industry in the country. It covers both big and small companies. We pay particular attention to the small enterprises because they cannot defend themselves like the big organisations can. It is on that note that NACCIMA organised the tax conference for the benefit mainly of the small enterprises. When we are talking about those that have not been captured, we are talking mostly about the informal sector.

During this conference and based on the research conducted afterwards, the following were established: People are more reluctant to pay tax because of the poor infrastructure. But FIRS, despite all

these challenges, collected around N4 trillion in taxes in 2017 and the target for 2018 is higher.

The measures that have been put in place include the 6 e-Solutions. But how many people understand this and how many small businesses can do this? I would appeal to the Executive Chairman to partner with NACCIMA and other agencies to be able to do more advocacy for small businesses to understand all the avenues available to ease the issue of tax payment.

Poor tax compliance is still a major problem. With a population of 180 million, only 14 million pay tax. NACCIMA would want to partner with tax authorities and continue to be able to advocate the relevance of tax, the benefit of tax and the need to be able to pay tax. NACCIMA would want to collaborate with FIRS to ensure that every business in Nigeria is in the tax net.

Executive Chairman's responseWe will continue to support

NACCIMA. In terms of local content, 60 per cent of our purchases are from small-scale businesses. I want to request that you ask all your members to get a tax ID and start paying taxes regardless of how small the taxes may be. For you to get government patronage you have to have a Tax Clearance Certificate (TCC). Please let your members know that if they want to provide services to the Federal or State Governments and indeed other people they need to obtain a TCC.

Wale Aboyomi – Tax Practitioner

All the initiatives going on in FIRS show that there is dynamism within the system. We should maintain the momentum in that regard. As far as I am concerned, I think our tax laws are spent. There is little room for growth in revenue collection relative to GDP if we are still administering those outdated laws. We need tax reforms and this has to be on a consistent and continuous

Q & AQ & AAfter the Executive Chairman's presentation, there was a robust comments, question and answer session that gave stakeholders the opportunity to proffer advice on how FIRS can improve its processes and further clarification on pressing issues on any aspects of taxation. Umar Yusuf reports Excerpts…

Flora TakimNdifor - NACCIMA

17April - June, 2018 A Quarterly Publication of the Federal Inland Revenue Service

COVER

basis. It cannot be that the last time we reformed tax laws in this country was ten years ago. Why can't tax law reform be an annual event like it used to be? This is the standard in other countries. Every year we can have a financial bill that launches new initiatives.

Other countries around the world are looking for ways to tax the digital economy but we are leaving that open in this country. We are not paying attention to it. In South Africa they tweaked their tax regulations so that those in the digital economy would have to pay tax. I believe that Nigeria should also find a way to do that.

Where there is a credibility crisis between the government and the taxpayer, we cannot expect to increase voluntary compliance. Also, in an environment where there is no sanction for tax evasion, there is no disincentive to continue that bad practice. You need to send the right message to tax evaders. You can select a few offenders and make an example out of them. You would need the political will to do that both at the state level and the federal level.

This is the third month after the end of VAIDS. Tax evaders need to be prosecuted so that those who are paying tax do not feel short-changed.

Multiplicity of taxes is still a problem and now we see multiplicity of tax regulators and collectors. Taxpayers are confused and they are traumatised by the harassment they face from these various agencies. Government has to be coordinated. Is FIRS the tax agency of the Federal Government or not? If it is, then let all the powers in tax administration conferred on it by the law

be respected and acknowledged. We can't be facing a situation

whereby one day we are at RMAFC and another day we are at the Auditor-General's office and each one of them will issue an assessment, asking taxpayers to pay tax to an account which is not an FIRS account. We really need this to be resolved.

Tax authorities also need to respect the laws that they are meant to administer. When VAIDS was launched government said it had waived penalties and interest for those who took advantage of it. Yet some state governments were not respecting that waiver. We want the JTB to wade into this issue and ensure that those who came forward under VAIDS should have their right to waiver of interest and penalties respected.

Executive Chairman's responseThe government has agreed in

principle that when submitting a budget any tax law amendment or new laws will be incorporated in the budget.

In terms of what you called multiple tax collectors, let me just say this: RMAFC has the duty to ensure that all taxes collected are remitted, especially from the banking sector. There was a situation where taxes were not remitted to the tune of N28 billion from the banking sector alone. It leaves questions.

We have written to RMAFC to urge them to be careful, but when they sent consultants to the banks and were able to find N28 billion I had to keep quiet. But going forward, and based on this meeting, the moment that other agencies of government see higher

levels of compliance, it will be easier for us to stop the so-called harassment.

In terms of assessments, only FIRS or SBIRs can give assessments according to the law.

Taiwo Oyedele – PricewaterhouseCoopers

It is important that if we have laws they would have to be enforced. I am glad to see that we are activating provisions of the law that we have always had. We have to be able to identify when the laws are no longer fit for purpose and they have to be amended or repealed altogether.

Over time, the amount that we collect from tax audit will start going down. I would like to encourage FIRS and the state tax authorities to please, as much as possible, stick with due process in whatever they do. We have instances when people's accounts were frozen and people were asked to respond within seven days. We know that within the law it is not seven days; one has up to 30 days to respond.

I am glad that you have confirmed that we can carry forward our Credits Notes indefinitely. I have received complaints from some people who can no longer use their Credit Notes for one reason or the other. With regards to TCC, once you do certain things required based on the Companies Income Tax Act (CITA), not all the other laws combined, you can get your TCC. We should not introduce changes to the law through the back door or through other means that are not recognised constitutionally.

I struggle to see the relationship between property and the turnover that you deem adequate. Section 30 of CITA talks about a fair percentage of turnover. Now, if you apply six per cent to everyone that is an indication that it is not fair. Equity does not mean everyone equally, it is treating equal people equally. It is very unlikely that every sector of the economy will make the same margin of turnover. So, please have a second look at that.

The FIRS has introduced the new VAT certificate. What happens when I have so many branches all over the place? Am I supposed to make copies and paste it in all my branches? What exactly is the essence of that new certificate?

I would also encourage us to look at intelligence. I was speaking to the Commissioner of the tax authority for the State of Massachusetts in the US last week and he said that their compliance rate was very high. How did they get there? – they used intelligence. They don't beg or appeal to people. They just confront taxpayers with irrefutable data.

I know we collected a lot of data from VAIDS. What are we doing with it? Let us connect the dots so that we can stop talking about tax-to-GDP ratio; its

Wale Aboyomi – Tax Practitioner

Day taxpayers took on Fowler

16 A Quarterly Publication of the Federal Inland Revenue Service April - June, 2018

COVER

Flora Takim Ndifor - NACCIMAIn the foreword to the National Tax

Policy (NTP) in 2016, the former Hon. Minister of Finance, stated that the current administration is committed to diversifying the sources of government revenue by significantly increasing tax-to-GDP ratio, among other things. The policy document also goes on to list the current challenges to meeting this objective which include a low tax-to-GDP ratio, a huge unregistered informal sector, a low level of awareness of business, legal and tax regulations.

In recognition of the need for a more efficient tax system and as a veritable partner to the government in ensuring an enabling business environment through policy advocacy and promoting the growth and competitiveness of business, NACCIMA in March 2018, organised a tax conference with the theme,

'Understanding Tax and its Effects on the Nigerian Business'. This is with the objective of raising awareness of the NTP and the incredible opportunity offered by VAIDS.

NACCIMA is an umbrella body of all the Chambers of Commerce and Industry in the country. It covers both big and small companies. We pay particular attention to the small enterprises because they cannot defend themselves like the big organisations can. It is on that note that NACCIMA organised the tax conference for the benefit mainly of the small enterprises. When we are talking about those that have not been captured, we are talking mostly about the informal sector.

During this conference and based on the research conducted afterwards, the following were established: People are more reluctant to pay tax because of the poor infrastructure. But FIRS, despite all

these challenges, collected around N4 trillion in taxes in 2017 and the target for 2018 is higher.

The measures that have been put in place include the 6 e-Solutions. But how many people understand this and how many small businesses can do this? I would appeal to the Executive Chairman to partner with NACCIMA and other agencies to be able to do more advocacy for small businesses to understand all the avenues available to ease the issue of tax payment.

Poor tax compliance is still a major problem. With a population of 180 million, only 14 million pay tax. NACCIMA would want to partner with tax authorities and continue to be able to advocate the relevance of tax, the benefit of tax and the need to be able to pay tax. NACCIMA would want to collaborate with FIRS to ensure that every business in Nigeria is in the tax net.

Executive Chairman's responseWe will continue to support

NACCIMA. In terms of local content, 60 per cent of our purchases are from small-scale businesses. I want to request that you ask all your members to get a tax ID and start paying taxes regardless of how small the taxes may be. For you to get government patronage you have to have a Tax Clearance Certificate (TCC). Please let your members know that if they want to provide services to the Federal or State Governments and indeed other people they need to obtain a TCC.

Wale Aboyomi – Tax Practitioner

All the initiatives going on in FIRS show that there is dynamism within the system. We should maintain the momentum in that regard. As far as I am concerned, I think our tax laws are spent. There is little room for growth in revenue collection relative to GDP if we are still administering those outdated laws. We need tax reforms and this has to be on a consistent and continuous

Q & AQ & AAfter the Executive Chairman's presentation, there was a robust comments, question and answer session that gave stakeholders the opportunity to proffer advice on how FIRS can improve its processes and further clarification on pressing issues on any aspects of taxation. Umar Yusuf reports Excerpts…

Flora TakimNdifor - NACCIMA

17April - June, 2018 A Quarterly Publication of the Federal Inland Revenue Service

COVER

basis. It cannot be that the last time we reformed tax laws in this country was ten years ago. Why can't tax law reform be an annual event like it used to be? This is the standard in other countries. Every year we can have a financial bill that launches new initiatives.

Other countries around the world are looking for ways to tax the digital economy but we are leaving that open in this country. We are not paying attention to it. In South Africa they tweaked their tax regulations so that those in the digital economy would have to pay tax. I believe that Nigeria should also find a way to do that.

Where there is a credibility crisis between the government and the taxpayer, we cannot expect to increase voluntary compliance. Also, in an environment where there is no sanction for tax evasion, there is no disincentive to continue that bad practice. You need to send the right message to tax evaders. You can select a few offenders and make an example out of them. You would need the political will to do that both at the state level and the federal level.

This is the third month after the end of VAIDS. Tax evaders need to be prosecuted so that those who are paying tax do not feel short-changed.

Multiplicity of taxes is still a problem and now we see multiplicity of tax regulators and collectors. Taxpayers are confused and they are traumatised by the harassment they face from these various agencies. Government has to be coordinated. Is FIRS the tax agency of the Federal Government or not? If it is, then let all the powers in tax administration conferred on it by the law

be respected and acknowledged. We can't be facing a situation

whereby one day we are at RMAFC and another day we are at the Auditor-General's office and each one of them will issue an assessment, asking taxpayers to pay tax to an account which is not an FIRS account. We really need this to be resolved.

Tax authorities also need to respect the laws that they are meant to administer. When VAIDS was launched government said it had waived penalties and interest for those who took advantage of it. Yet some state governments were not respecting that waiver. We want the JTB to wade into this issue and ensure that those who came forward under VAIDS should have their right to waiver of interest and penalties respected.

Executive Chairman's responseThe government has agreed in

principle that when submitting a budget any tax law amendment or new laws will be incorporated in the budget.

In terms of what you called multiple tax collectors, let me just say this: RMAFC has the duty to ensure that all taxes collected are remitted, especially from the banking sector. There was a situation where taxes were not remitted to the tune of N28 billion from the banking sector alone. It leaves questions.

We have written to RMAFC to urge them to be careful, but when they sent consultants to the banks and were able to find N28 billion I had to keep quiet. But going forward, and based on this meeting, the moment that other agencies of government see higher

levels of compliance, it will be easier for us to stop the so-called harassment.

In terms of assessments, only FIRS or SBIRs can give assessments according to the law.

Taiwo Oyedele – PricewaterhouseCoopers

It is important that if we have laws they would have to be enforced. I am glad to see that we are activating provisions of the law that we have always had. We have to be able to identify when the laws are no longer fit for purpose and they have to be amended or repealed altogether.

Over time, the amount that we collect from tax audit will start going down. I would like to encourage FIRS and the state tax authorities to please, as much as possible, stick with due process in whatever they do. We have instances when people's accounts were frozen and people were asked to respond within seven days. We know that within the law it is not seven days; one has up to 30 days to respond.

I am glad that you have confirmed that we can carry forward our Credits Notes indefinitely. I have received complaints from some people who can no longer use their Credit Notes for one reason or the other. With regards to TCC, once you do certain things required based on the Companies Income Tax Act (CITA), not all the other laws combined, you can get your TCC. We should not introduce changes to the law through the back door or through other means that are not recognised constitutionally.

I struggle to see the relationship between property and the turnover that you deem adequate. Section 30 of CITA talks about a fair percentage of turnover. Now, if you apply six per cent to everyone that is an indication that it is not fair. Equity does not mean everyone equally, it is treating equal people equally. It is very unlikely that every sector of the economy will make the same margin of turnover. So, please have a second look at that.

The FIRS has introduced the new VAT certificate. What happens when I have so many branches all over the place? Am I supposed to make copies and paste it in all my branches? What exactly is the essence of that new certificate?

I would also encourage us to look at intelligence. I was speaking to the Commissioner of the tax authority for the State of Massachusetts in the US last week and he said that their compliance rate was very high. How did they get there? – they used intelligence. They don't beg or appeal to people. They just confront taxpayers with irrefutable data.

I know we collected a lot of data from VAIDS. What are we doing with it? Let us connect the dots so that we can stop talking about tax-to-GDP ratio; its

Wale Aboyomi – Tax Practitioner

Day taxpayers took on Fowler

18 A Quarterly Publication of the Federal Inland Revenue Service April - June, 2018

COVER

embarrassing. Massachusetts has less than 7 million people but they make $45 billion in taxes every year – that is more than the revenue of the federal, state and local governments combined.

I feel cool with the fact that there will now be consequences for not paying the right amount of tax. I have been paying my taxes for so long and some people are not paying. All of us have to be paying, and paying the right amount of tax and at the right time.

But the question is this: If there are going to be consequences for taxpayers, what consequences will there be for FIRS? When FIRS fails to perform its duty under the law like not issuing TCC on time, not granting refunds on time, when accounts are frozen because FIRS made a mistake, can the taxpayer get anything other than a letter of apology?

Executive Chairman's responseIt is not property evaluation. We

have the right to be subjective and use deemed income. But with that, in trying to get the actual turnover, we will look at the value of an asset. If we leave it to our officers to be subjective, then you are opening the door to corruption. So that is why we try to use the same measure for everyone. It could be so much easier if people could just do the right thing and file the correct returns. So that is why we use the value of the asset to determine the tax.

Everyone is entitled to a VAT certificate the same way everyone is entitled to a TCC. If you have multiple outlets you can make a photocopy of the original and hang it up. The reason for that is that we do not want people operating businesses to steal your money, to steal your wealth. It is not fair

for a business to charge you VAT and not remit it.

What can you get from FIRS if we make a mistake? Just take it that we are saying sorry from the heart. Like I said before, I have written five letters of apology. But out of 6,000, if I have written only five letters of apology, that rate of error is not too bad. In the interest of the whole country, if we have to write apologies to a hundred people out of 6000 I am sure you can forgive us.

Andersen TaxOne of your biggest challenges is

building long standing trust between you as tax administrator and the taxpayers. Of course, this forum is one of those efforts to build trust, to make sure that you understand the taxpayers and they understand you.

Right now, there is no clear difference between the treatment of companies that are compliant and those that are not. It is difficult for a taxpayer to pay taxes and go home and sleep at night and say, 'I have paid my taxes'. There is a lot of uncertainty surrounding tax audits, investigations and other issues that come up.

If a company overpays, then FIRS should refund the overpayment without waiting for the taxpayer to apply for a refund. Timely payment of tax refunds can help to build trust in the system.

There should not be audit targets for tax officers. The target should be for voluntary tax compliance. How do we encourage people to voluntary comply even before we come for audit? When you audit a company and it is found to have paid all tax liabilities, FIRS should congratulate the company for having no

more liabilities. The way it is now, FIRS must look

for something to hold the company responsible for one violation or the other. We should move to a situation where companies are happy to pay up front and know that they have paid their taxes.

A bigger portion of the economy is informal. We know about the challenges of taxing the informal sector. But it is not impossible to tax it. We should not only look at tax-to-GDP but we should look at each sector's tax-to-GDP ratio. This way we can see the sectors that are not really contributing enough.

The law gives you power to do presumptive taxes. With engagement, with proper hand-holding between the FIRS and the informal sector we can come up with a clear guideline for presumptive taxation so that the trader in the market does not have to have audited accounts. If we can have a clear guideline for small businesses that do not necessarily have audited accounts or all the necessary documentation, they can come to FIRS to pay without fear.

On using property as turnover, there are instances where people built their property using bank loans. It will be difficult to relate tax to the building as a measure of turnover.

Executive Chairman's responseWe met with the Minister of Finance

and to date we get N2 billion from FAAC monthly for tax refund. I can clearly state, based on the records we have, every person who requested for a tax refund, apart from the ones for this year, has been paid.

“If you go to the police station, nine times out of ten, you are guilty. People will say “I didn't do it!” The first two hundred audits that we did, not one of them was tax compliant. So why won't we think that there is something? In keeping something back, you are only making it worse. Let us come and look and find nothing. After not finding anything for a year or two, then we will tend to believe you. But if we come every year and we keep on finding something, then we must believe that every time we come we must find something.

We do not set targets for our officers to find something. If you are not happy with any of our services you can contact the Director, Efficiency and inform him. We also have our State Coordinators here. We are quite aware that in some cases TCCs are not issued efficiently enough. We will move any State Coordinator who does not provide efficient service to you. If I do not perform I will resign. But I need you to partner with me.

Presumptive Tax exists and the SBIRs use it. We do not insist on audited accounts for small businesses.

Taiwo Oyedele of PricewaterhouseCoopers

19April - June, 2018 A Quarterly Publication of the Federal Inland Revenue Service

NEWS

vailable statistics from a recent

Asurvey by the National Bureau of Statistics (NBS) in partnership with

the Small and Medium Scale Enterprises Deve lopment Agency of N iger ia (SMEDAN) indicate that there are over 37 million MSMEs operating in the country as follows: micro (36,994,578) small (68,168) medium (4,670): tota l 37,067,419.

Currently, the NBS statistics said that over 59 million Nigerians are employed by MSMEs and it accounts for over 84% of the total national labour force. MSMEs contribution to national Gross Domestic Product (GDP) as at 2016 stood at 48.5% with a 7.3% contribution to total national exports.

There is a correlation between the growth of economic activities and

increased tax revenue in any economy. When the former is lacking, the later will be affected negatively.

This is the underpinning of the current efforts by Tunde Fowler, the Executive Chairman of the Federal Inland Revenue Service (FIRS) to sensitise micro, small and medium business owners across the country. FIRS, sometimes in collaboration with other institutions of government is touring round the country, organising workshops and teaching business owners how to grow their bus inesses, do their businesses profitably and pay the correct taxes from their income.

FIRS' assertion is that if the MSMEs are properly sensitised and harnessed, their yield into the economy could multiply a thousand-fold and the result will be a burgeoning Nigerian economy.

This has informed FIRS' touring of

many states across the country to sensitise the MSMEs. Fowler believes that it is not enough to go after taxpayers without 'wetting the ground' to enable business owners do profitable businesses and earn income. Of course, it is from their incomes that they would pay taxes.

At one of the MSME events in Kano recently Fowler said, “We believe that the micro, small and medium enterprises have the capacity to grow the economy and provide jobs for the teeming population. That is the reason for all FIRS and Federal Government's interventions in the form of taxpayers' education and workshops.”

In cer ta in comments on the e c o n o m y , s t a k e h o l d e r s h a d recommended that 'there would be no taxation without businesses. In other wo r d s , t h e y c on t e nd t h a t t h e government needed to provide the

FIRS, 37 million MSMEs and tax

By Kings Uba

The Executive Governor of Enugu State, Ifeanyi Ugwuanyi and the Vice President, Prof Yemi Osinbajo waving to well-wishers at an MSME event in Enugu

18 A Quarterly Publication of the Federal Inland Revenue Service April - June, 2018

COVER

embarrassing. Massachusetts has less than 7 million people but they make $45 billion in taxes every year – that is more than the revenue of the federal, state and local governments combined.

I feel cool with the fact that there will now be consequences for not paying the right amount of tax. I have been paying my taxes for so long and some people are not paying. All of us have to be paying, and paying the right amount of tax and at the right time.

But the question is this: If there are going to be consequences for taxpayers, what consequences will there be for FIRS? When FIRS fails to perform its duty under the law like not issuing TCC on time, not granting refunds on time, when accounts are frozen because FIRS made a mistake, can the taxpayer get anything other than a letter of apology?

Executive Chairman's responseIt is not property evaluation. We

have the right to be subjective and use deemed income. But with that, in trying to get the actual turnover, we will look at the value of an asset. If we leave it to our officers to be subjective, then you are opening the door to corruption. So that is why we try to use the same measure for everyone. It could be so much easier if people could just do the right thing and file the correct returns. So that is why we use the value of the asset to determine the tax.

Everyone is entitled to a VAT certificate the same way everyone is entitled to a TCC. If you have multiple outlets you can make a photocopy of the original and hang it up. The reason for that is that we do not want people operating businesses to steal your money, to steal your wealth. It is not fair

for a business to charge you VAT and not remit it.

What can you get from FIRS if we make a mistake? Just take it that we are saying sorry from the heart. Like I said before, I have written five letters of apology. But out of 6,000, if I have written only five letters of apology, that rate of error is not too bad. In the interest of the whole country, if we have to write apologies to a hundred people out of 6000 I am sure you can forgive us.

Andersen TaxOne of your biggest challenges is

building long standing trust between you as tax administrator and the taxpayers. Of course, this forum is one of those efforts to build trust, to make sure that you understand the taxpayers and they understand you.

Right now, there is no clear difference between the treatment of companies that are compliant and those that are not. It is difficult for a taxpayer to pay taxes and go home and sleep at night and say, 'I have paid my taxes'. There is a lot of uncertainty surrounding tax audits, investigations and other issues that come up.

If a company overpays, then FIRS should refund the overpayment without waiting for the taxpayer to apply for a refund. Timely payment of tax refunds can help to build trust in the system.

There should not be audit targets for tax officers. The target should be for voluntary tax compliance. How do we encourage people to voluntary comply even before we come for audit? When you audit a company and it is found to have paid all tax liabilities, FIRS should congratulate the company for having no

more liabilities. The way it is now, FIRS must look

for something to hold the company responsible for one violation or the other. We should move to a situation where companies are happy to pay up front and know that they have paid their taxes.

A bigger portion of the economy is informal. We know about the challenges of taxing the informal sector. But it is not impossible to tax it. We should not only look at tax-to-GDP but we should look at each sector's tax-to-GDP ratio. This way we can see the sectors that are not really contributing enough.

The law gives you power to do presumptive taxes. With engagement, with proper hand-holding between the FIRS and the informal sector we can come up with a clear guideline for presumptive taxation so that the trader in the market does not have to have audited accounts. If we can have a clear guideline for small businesses that do not necessarily have audited accounts or all the necessary documentation, they can come to FIRS to pay without fear.

On using property as turnover, there are instances where people built their property using bank loans. It will be difficult to relate tax to the building as a measure of turnover.

Executive Chairman's responseWe met with the Minister of Finance

and to date we get N2 billion from FAAC monthly for tax refund. I can clearly state, based on the records we have, every person who requested for a tax refund, apart from the ones for this year, has been paid.

“If you go to the police station, nine times out of ten, you are guilty. People will say “I didn't do it!” The first two hundred audits that we did, not one of them was tax compliant. So why won't we think that there is something? In keeping something back, you are only making it worse. Let us come and look and find nothing. After not finding anything for a year or two, then we will tend to believe you. But if we come every year and we keep on finding something, then we must believe that every time we come we must find something.

We do not set targets for our officers to find something. If you are not happy with any of our services you can contact the Director, Efficiency and inform him. We also have our State Coordinators here. We are quite aware that in some cases TCCs are not issued efficiently enough. We will move any State Coordinator who does not provide efficient service to you. If I do not perform I will resign. But I need you to partner with me.

Presumptive Tax exists and the SBIRs use it. We do not insist on audited accounts for small businesses.

Taiwo Oyedele of PricewaterhouseCoopers

19April - June, 2018 A Quarterly Publication of the Federal Inland Revenue Service

NEWS

vailable statistics from a recent

Asurvey by the National Bureau of Statistics (NBS) in partnership with

the Small and Medium Scale Enterprises Deve lopment Agency of N iger ia (SMEDAN) indicate that there are over 37 million MSMEs operating in the country as follows: micro (36,994,578) small (68,168) medium (4,670): tota l 37,067,419.

Currently, the NBS statistics said that over 59 million Nigerians are employed by MSMEs and it accounts for over 84% of the total national labour force. MSMEs contribution to national Gross Domestic Product (GDP) as at 2016 stood at 48.5% with a 7.3% contribution to total national exports.

There is a correlation between the growth of economic activities and

increased tax revenue in any economy. When the former is lacking, the later will be affected negatively.

This is the underpinning of the current efforts by Tunde Fowler, the Executive Chairman of the Federal Inland Revenue Service (FIRS) to sensitise micro, small and medium business owners across the country. FIRS, sometimes in collaboration with other institutions of government is touring round the country, organising workshops and teaching business owners how to grow their bus inesses, do their businesses profitably and pay the correct taxes from their income.

FIRS' assertion is that if the MSMEs are properly sensitised and harnessed, their yield into the economy could multiply a thousand-fold and the result will be a burgeoning Nigerian economy.

This has informed FIRS' touring of

many states across the country to sensitise the MSMEs. Fowler believes that it is not enough to go after taxpayers without 'wetting the ground' to enable business owners do profitable businesses and earn income. Of course, it is from their incomes that they would pay taxes.

At one of the MSME events in Kano recently Fowler said, “We believe that the micro, small and medium enterprises have the capacity to grow the economy and provide jobs for the teeming population. That is the reason for all FIRS and Federal Government's interventions in the form of taxpayers' education and workshops.”

In cer ta in comments on the e c o n o m y , s t a k e h o l d e r s h a d recommended that 'there would be no taxation without businesses. In other wo r d s , t h e y c on t e nd t h a t t h e government needed to provide the

FIRS, 37 million MSMEs and tax

By Kings Uba

The Executive Governor of Enugu State, Ifeanyi Ugwuanyi and the Vice President, Prof Yemi Osinbajo waving to well-wishers at an MSME event in Enugu

enabling environment to encourage businesses to thrive. That is the call the government has answered.

Fo l l ow ing i t s re l evance and successes already achieved, other institutions of government and private bodies, like the bankers' unions and state governments are keying into MSMEs sensitisationprogrammes.

The FIRS, under the watch of Fowler, has toured various states of the country organising workshops - 'clinics' which are aimed at stimulating the economy.

The FIRS believe that when properly harnessed, the MSMEs sub-sector of the Nigerian economy, which is currently over 37 million in number, will be the springboard for Nigeria's economic growth.

During a recent programme in Kano, the FIRS, in collaboration with SMEDAN and the Joint Tax Board (JTB) carried out an awareness campaign and sensitization for small and medium enterprises on the importance and procedure for payment of taxes.

Fowler said that the sensitisation is just a part of the programmes rolled out by FIRS, JTB and SMEDAN to harness the micro, smal l and medium sca le enterprises and make them viable.

JTB Secretary, Oseni SalaweElamah, who represented Fowler, at the Kano event said that all over the world, MSMEs are seen as the medium for accelerating the attainment of broad socio-economic

objectives, especially for emerging economies. These, he said include pover ty reduc t ion , emp loyment generation, wealth creation, income redistr ibution, trade equi l ibr ium, entrepreneurial diversity, and revenue generation, among others.

During a similar event in Lagos, Fowler said that the FIRS has taken various steps to support the MSMEs such as supporting the revision of the National Tax Policy to reflect the realities of the economy; making tax payment easier as

taxpayers can now pay their taxes online or at the FIRS office closest to them and creating the Federal Engagement and Enlightenment Tax Teams (FEETT) of FIRS.

Fowler told the stakeholders that MSMEs are the engine of economic growth, stating that the Nigerian economy needs the wellbeing and improvement of the MSMEs to grow, hence the need for the sensitisation.

Represented by the Director, FEETT, Mr. Kunle Oseni, Fowler said: “The

FIRS, 37 million MSMEs and tax,,JTB Secretary, Oseni Salawe Elamah, who represented Fowler, at the Kano event said that all over the world, MSMEs are seen as the medium for accelerating the attainment of broad socio-economic objectives, especially for emerging economies. These, he said include poverty reduction, employment generation, wealth creation, income redistribution, trade equilibrium, entrepreneurial diversity, and revenue generation, among others

The DG, VON, Osita Okechukwu and the Executive Chairman, FIRS, Tunde Fowler at an MSME event in Enugu

NEWS

FIRS, 37 million MSMEs and taxMSMEs are recognised as the engine of economic growth and development in the developing economies with the capacity to effect wealth and income distribution as well as creating jobs even in stagnant economies.

“The essence of this programme is to ensure that the process of tax payment is made less onerous,” he said.

The meeting which took place at the Lagos Chamber of Commerce and Industry, Conference and Exhibition Centre in Ikeja attracted key players in the MSME sub-sector who urged the FIRS, JTB and SMEDAN to do more of the workshops a t the var ious loca l governments of the country.

T h e M S M E s a r e l a r g e l y unincorporated entities operating as enterprises with registered business names existing within the ambit of the informal sector. They play critical and significant roles via several economic pathways that go well beyond job creation and support growth that contribute significantly to improved living standards and act as catalysts in promoting local capital formation.

The workshops were also meant to help the MSMEs access their rights from the government. Though there are numerous incentives and support facilities available to MSMEs in Nigeria, (eg: Federal Government Special Intervention Fund for the MSMEs, Bank of Industry and Central Bank of Nigeria Intervention Fund, etc), access by MSMEs to such incentives and facilities have been hampe red by s ome bottlenecks.

This sensitization programme was aimed at sensitizing the MSMEs on the officially approved taxes and procedures for paying them. Fortunately, the FIRS and the JTB have stream-lined the procedures and enhanced the ease of payment of these taxes.

The MSMEs, when harnessed, will play a role in job creation and serve as tools for economic development.

Fowler said the impact that MSMEs have on the economy of Nigeria is better appreciated when we look at some of the contributions they make to the national economy.

Small and medium enterprises require education and enlightenment on extant tax laws, especially those directly related to their operations, such as Personal Income Tax, Value Added Tax and Withholding Tax. Operators also require accurate information in relation to changes and emerging trends in the application and administration of various tax laws.

Fowler said: “This is especially more

so given the fact that the country's tax administration system is currently on the threshold of a paradigm change in synergy with global best practice and emerging trends in information and communications technology.

With the consolidation of the nation's taxpayer database and expected commencement of the Automatic Exchange of Information with other countries of the world, it is essential that operators in this sector adapt to these trends if they are to become serious players in the global market place and to avoid being caught in a paradigm paralysis,” he said.

The MSMEs clinics have attracted the attention of key players in the economy, i n c l ud ing V i ce P res i den t , P ro f. YemiOsinbajo who has launched the idea in various states of the country. In Kano, O s i n b a j o r e i t e r a t e d F e d e r a l Government's plan to support small businesses and noted that the MSMEs clinics are to facilitate easy interactions between small businesses and regulatory agencies.

At a similar gathering of small scale businesses, industry and stakeholders across the public and private sectors involved in developing micro, small and medium scale in Katsina recently, Osinbajo said the government is ready to work with business owners.

Osinbajo said that the MSMEs clinics that are now going round major cities in

the country was designed to give small businesses the opportunity to meet with the industry regulators, to talk to them and to hear their problems. He added that he was so excited to see not only business men but women who are focused and serious about their businesses.

The Vice President explained that the idea of the MSMEs clinics, which he has being personally attending, are part of the efforts of the Buhari administration to close the gap between MSMEs and relevant Federal Government regulatory agencies like NAFDAC, CAC, SON, BOI, FIRS and others and ensure that those agenc ies become fac i l i ta tors o f businesses, not obstacles to business development.

Meanwhile, Special Adviser to Vice President Osinbajo on Micro, Small and Medium Enterprises (MSMEs), Mr. Tola Johnson, said the Federal Government has started implementing plans to empower 360,000 MSMEs annually. Johnson, who is also a member of the recently inaugurated National MSMEs Council, made the remark in Abuja. “The target of the MSMEs clinics is to try and affect positively, the lives of 360,000 MSMEs in a year. People keep saying it is a very tall order, but it is achievable,” he said.

The Vice President speaking at an MSME event in Benin, Edo State

21April - June, 2018 A Quarterly Publication of the Federal Inland Revenue Service 20 A Quarterly Publication of the Federal Inland Revenue Service April - June, 2018

Culled from www.discovernewsafrica.com

enabling environment to encourage businesses to thrive. That is the call the government has answered.

Fo l l ow ing i t s re l evance and successes already achieved, other institutions of government and private bodies, like the bankers' unions and state governments are keying into MSMEs sensitisationprogrammes.

The FIRS, under the watch of Fowler, has toured various states of the country organising workshops - 'clinics' which are aimed at stimulating the economy.

The FIRS believe that when properly harnessed, the MSMEs sub-sector of the Nigerian economy, which is currently over 37 million in number, will be the springboard for Nigeria's economic growth.

During a recent programme in Kano, the FIRS, in collaboration with SMEDAN and the Joint Tax Board (JTB) carried out an awareness campaign and sensitization for small and medium enterprises on the importance and procedure for payment of taxes.

Fowler said that the sensitisation is just a part of the programmes rolled out by FIRS, JTB and SMEDAN to harness the micro, smal l and medium sca le enterprises and make them viable.

JTB Secretary, Oseni SalaweElamah, who represented Fowler, at the Kano event said that all over the world, MSMEs are seen as the medium for accelerating the attainment of broad socio-economic

objectives, especially for emerging economies. These, he said include pover ty reduc t ion , emp loyment generation, wealth creation, income redistr ibution, trade equi l ibr ium, entrepreneurial diversity, and revenue generation, among others.

During a similar event in Lagos, Fowler said that the FIRS has taken various steps to support the MSMEs such as supporting the revision of the National Tax Policy to reflect the realities of the economy; making tax payment easier as

taxpayers can now pay their taxes online or at the FIRS office closest to them and creating the Federal Engagement and Enlightenment Tax Teams (FEETT) of FIRS.

Fowler told the stakeholders that MSMEs are the engine of economic growth, stating that the Nigerian economy needs the wellbeing and improvement of the MSMEs to grow, hence the need for the sensitisation.

Represented by the Director, FEETT, Mr. Kunle Oseni, Fowler said: “The

FIRS, 37 million MSMEs and tax,,JTB Secretary, Oseni Salawe Elamah, who represented Fowler, at the Kano event said that all over the world, MSMEs are seen as the medium for accelerating the attainment of broad socio-economic objectives, especially for emerging economies. These, he said include poverty reduction, employment generation, wealth creation, income redistribution, trade equilibrium, entrepreneurial diversity, and revenue generation, among others

The DG, VON, Osita Okechukwu and the Executive Chairman, FIRS, Tunde Fowler at an MSME event in Enugu

NEWS

FIRS, 37 million MSMEs and taxMSMEs are recognised as the engine of economic growth and development in the developing economies with the capacity to effect wealth and income distribution as well as creating jobs even in stagnant economies.

“The essence of this programme is to ensure that the process of tax payment is made less onerous,” he said.

The meeting which took place at the Lagos Chamber of Commerce and Industry, Conference and Exhibition Centre in Ikeja attracted key players in the MSME sub-sector who urged the FIRS, JTB and SMEDAN to do more of the workshops a t the var ious loca l governments of the country.

T h e M S M E s a r e l a r g e l y unincorporated entities operating as enterprises with registered business names existing within the ambit of the informal sector. They play critical and significant roles via several economic pathways that go well beyond job creation and support growth that contribute significantly to improved living standards and act as catalysts in promoting local capital formation.

The workshops were also meant to help the MSMEs access their rights from the government. Though there are numerous incentives and support facilities available to MSMEs in Nigeria, (eg: Federal Government Special Intervention Fund for the MSMEs, Bank of Industry and Central Bank of Nigeria Intervention Fund, etc), access by MSMEs to such incentives and facilities have been hampe red by s ome bottlenecks.

This sensitization programme was aimed at sensitizing the MSMEs on the officially approved taxes and procedures for paying them. Fortunately, the FIRS and the JTB have stream-lined the procedures and enhanced the ease of payment of these taxes.

The MSMEs, when harnessed, will play a role in job creation and serve as tools for economic development.

Fowler said the impact that MSMEs have on the economy of Nigeria is better appreciated when we look at some of the contributions they make to the national economy.

Small and medium enterprises require education and enlightenment on extant tax laws, especially those directly related to their operations, such as Personal Income Tax, Value Added Tax and Withholding Tax. Operators also require accurate information in relation to changes and emerging trends in the application and administration of various tax laws.

Fowler said: “This is especially more

so given the fact that the country's tax administration system is currently on the threshold of a paradigm change in synergy with global best practice and emerging trends in information and communications technology.

With the consolidation of the nation's taxpayer database and expected commencement of the Automatic Exchange of Information with other countries of the world, it is essential that operators in this sector adapt to these trends if they are to become serious players in the global market place and to avoid being caught in a paradigm paralysis,” he said.

The MSMEs clinics have attracted the attention of key players in the economy, i n c l ud ing V i ce P res i den t , P ro f. YemiOsinbajo who has launched the idea in various states of the country. In Kano, O s i n b a j o r e i t e r a t e d F e d e r a l Government's plan to support small businesses and noted that the MSMEs clinics are to facilitate easy interactions between small businesses and regulatory agencies.

At a similar gathering of small scale businesses, industry and stakeholders across the public and private sectors involved in developing micro, small and medium scale in Katsina recently, Osinbajo said the government is ready to work with business owners.

Osinbajo said that the MSMEs clinics that are now going round major cities in

the country was designed to give small businesses the opportunity to meet with the industry regulators, to talk to them and to hear their problems. He added that he was so excited to see not only business men but women who are focused and serious about their businesses.

The Vice President explained that the idea of the MSMEs clinics, which he has being personally attending, are part of the efforts of the Buhari administration to close the gap between MSMEs and relevant Federal Government regulatory agencies like NAFDAC, CAC, SON, BOI, FIRS and others and ensure that those agenc ies become fac i l i ta tors o f businesses, not obstacles to business development.

Meanwhile, Special Adviser to Vice President Osinbajo on Micro, Small and Medium Enterprises (MSMEs), Mr. Tola Johnson, said the Federal Government has started implementing plans to empower 360,000 MSMEs annually. Johnson, who is also a member of the recently inaugurated National MSMEs Council, made the remark in Abuja. “The target of the MSMEs clinics is to try and affect positively, the lives of 360,000 MSMEs in a year. People keep saying it is a very tall order, but it is achievable,” he said.

The Vice President speaking at an MSME event in Benin, Edo State

21April - June, 2018 A Quarterly Publication of the Federal Inland Revenue Service 20 A Quarterly Publication of the Federal Inland Revenue Service April - June, 2018

Culled from www.discovernewsafrica.com

PHOTO SPLASH

Newly recruited staff at the induction programme

Newly recruited staff at the induction programmeNewly recruited staff at the induction programme

Newly recruited staff at the induction programme

Newly recruited staff at the induction programme

22 A Quarterly Publication of the Federal Inland Revenue Service April - June, 2018

PHOTO SPLASH

Newly recruited staff at the induction programme

Newly recruited staff at the induction programmeNewly recruited staff at the induction programme

Newly recruited staff at the induction programme

Newly recruited staff at the induction programme

23April - June, 2018 A Quarterly Publication of the Federal Inland Revenue Service

PHOTO SPLASH

Newly recruited staff at the induction programme

Newly recruited staff at the induction programmeNewly recruited staff at the induction programme

Newly recruited staff at the induction programme

Newly recruited staff at the induction programme

22 A Quarterly Publication of the Federal Inland Revenue Service April - June, 2018

PHOTO SPLASH

Newly recruited staff at the induction programme

Newly recruited staff at the induction programmeNewly recruited staff at the induction programme

Newly recruited staff at the induction programme

Newly recruited staff at the induction programme

23April - June, 2018 A Quarterly Publication of the Federal Inland Revenue Service

PHOTO SPLASH

Newly recruited staff at the 2nd batch induction programme

Participants at the NCSU FIRS Unit seminarNewly recruited staff at the induction programme

Participants at the NCSU FIRS Unit seminar

Participants at the NCSU FIRS Unit seminar

24 A Quarterly Publication of the Federal Inland Revenue Service April - June, 2018

PHOTO SPLASH

Participants at the NCSU FIRS Unit seminar

Participants at the NCSU FIRS Unit seminarParticipants at the NCSU FIRS Unit seminar

The CD,SSG, Peter Hena; the Executive Chairman, FIRS, Tunde Fowler and the CD, DTG and SA/ECFIRS, Abiodun Aina stand for the national anthem at the 2nd batch induction programme

Participants at the NCSU FIRS Unit seminar

25April - June, 2018 A Quarterly Publication of the Federal Inland Revenue Service

PHOTO SPLASH

Newly recruited staff at the 2nd batch induction programme

Participants at the NCSU FIRS Unit seminarNewly recruited staff at the induction programme

Participants at the NCSU FIRS Unit seminar

Participants at the NCSU FIRS Unit seminar

24 A Quarterly Publication of the Federal Inland Revenue Service April - June, 2018

PHOTO SPLASH

Participants at the NCSU FIRS Unit seminar

Participants at the NCSU FIRS Unit seminarParticipants at the NCSU FIRS Unit seminar

The CD,SSG, Peter Hena; the Executive Chairman, FIRS, Tunde Fowler and the CD, DTG and SA/ECFIRS, Abiodun Aina stand for the national anthem at the 2nd batch induction programme

Participants at the NCSU FIRS Unit seminar

25April - June, 2018 A Quarterly Publication of the Federal Inland Revenue Service

PHOTO SPLASH

26 A Quarterly Publication of the Federal Inland Revenue Service April - June, 2018

The Executive Chairman, FIRS, Tunde Fowler pinning the FIRS lapel logo and lapel flag on Michael Odumuh during the 2nd

batch of the induction programme

The Executive Chaiman, FIRS, Tunde Fowler and the Executive Governor of Bayelsa State, Seriake Dickson

The Executive Chairman, FIRS, Tunde Fowler and the Chairman, Federal Capital Territory Internal Revenue Service

Abubakar Dalhatu, Yobe State Change Manager & Commissioner, Stamp Duties with his bride on their wedding day

Group photograph of participants at the NRTN conference

PHOTO SPLASH

Particpants listening attentively during the induction programme

Participants at the second batch induction programmeFaramade Ogunsanya, Director, Efficiency and other participants at the induction programme

Deputy Director, Facility Security and Safety Management Department, Ayodele Oyetunji, Seun, P.A to EC., Alhaji Tunji Oseni, National Coordinator Federal Engagement and Enlightenment Tax Teams (FEETT) and

Director, Human Capital Management, Victor Ekundayo at the induction programme

From L to R: Dr Umar Ahmed, DD, Career & Skills Development; Mrs Junila Takon, Director, Career & Skills Development; Mrs Olukemi Odusanya, Director, Facility, Security

& Safety Management; Mrs Abimbola Opejin, Director, Taxpayer Services; Mr Ezra Zubairu, Director, Policies and Programmes Monitoring; and Gabriel Ogunjemilusi, Director

Tax Policy & Advisory standing for the nation anthem during the induction programme

27April - June, 2018 A Quarterly Publication of the Federal Inland Revenue Service

PHOTO SPLASH

26 A Quarterly Publication of the Federal Inland Revenue Service April - June, 2018

The Executive Chairman, FIRS, Tunde Fowler pinning the FIRS lapel logo and lapel flag on Michael Odumuh during the 2nd

batch of the induction programme

The Executive Chaiman, FIRS, Tunde Fowler and the Executive Governor of Bayelsa State, Seriake Dickson

The Executive Chairman, FIRS, Tunde Fowler and the Chairman, Federal Capital Territory Internal Revenue Service

Abubakar Dalhatu, Yobe State Change Manager & Commissioner, Stamp Duties with his bride on their wedding day

Group photograph of participants at the NRTN conference

PHOTO SPLASH

Particpants listening attentively during the induction programme

Participants at the second batch induction programmeFaramade Ogunsanya, Director, Efficiency and other participants at the induction programme

Deputy Director, Facility Security and Safety Management Department, Ayodele Oyetunji, Seun, P.A to EC., Alhaji Tunji Oseni, National Coordinator Federal Engagement and Enlightenment Tax Teams (FEETT) and

Director, Human Capital Management, Victor Ekundayo at the induction programme

From L to R: Dr Umar Ahmed, DD, Career & Skills Development; Mrs Junila Takon, Director, Career & Skills Development; Mrs Olukemi Odusanya, Director, Facility, Security

& Safety Management; Mrs Abimbola Opejin, Director, Taxpayer Services; Mr Ezra Zubairu, Director, Policies and Programmes Monitoring; and Gabriel Ogunjemilusi, Director

Tax Policy & Advisory standing for the nation anthem during the induction programme

27April - June, 2018 A Quarterly Publication of the Federal Inland Revenue Service

NEWS

hambo Mbeki, the former South

TAfrican President, was almost swallowed in the midst of

ministers and Nigerian technocrats who sat on the high table. He is probably the oldest. But his voice and the content of his message rang out, everyone was compelled to listen.

This is a man who sat over Africa's most industrial country for four years. Today, he is leading a continental onslaught against Illicit Financial Flows (IFF) through which multinational corporations, (MNCs) are fleecing the continent with the collusion of Africans though.

He waxed eloquent on why Africa, on its own terms, must find think and ACT its way out of the quagmire.

It was a part of concerted global efforts to improve domestic resource mobilization in Africa, that the African Union High Level Panel (AUHLP) on Illicit Financial Flows (IFF), convened in Abuja. It was to brainstorm and proffer remedies to the scourge of IFFs that is bedeviling the developing world in general and the African continent in particular.

The meeting came on the heels of the International Conference on Combating IFF and Enhancing Asset Recovery for Sustainable Development

that was also held in Abuja on the 11th and 12th of September, 2018.

The two-day engagement was presided by the Chairman of the AUHLP and former South African President, Mr. Thabo Mbeki alongside other panel members.

At the meeting held at the Transcorp Hilton, Abuja on the 4th and 5th October 2018, high government functionaries across the world were accorded the platform to discuss the extent with which Africa was affected from IFF and identify recommendations to curb it.

Mbeki, in his opening remarks, said that fighting corruption frontally is a must as it is a fundamental element for reviving Nigeria's economy.

He commended Nigeria's vigorous response on the progress made in the anti-corruption war which he described as a good example to other African countries and the world. In addition, he said during the last General Assembly (GA) of the United Nations (UN) which took place in September, 2018, Nigeria and Norway convened a special workshop on the matter of IFF, with focus on the need to generate resources for the continent in order to address its developmental challenges of poverty, underdevelopment and poor

infrastructure, amongst others.Mbeki added that the specific

objectives of the High-Level Panel (HLP) as derived from the GA Resolution was to address the following:

a. Determine the nature and patterns of Illicit Financial Outflows;

b. Establish the level of Illicit financial outflows from Africa;

c. Access the complex and long-term implications of Illicit Financial Flows on development;

d. Sensitize African governments, citizens and international development partners on the scale, and effects of financial outflows on development; and

e. Mobilize support for putting rules and regulations in place at all levels to tackle Illicit Financial Flows from Africa.

In trying to ascertain the scale of the problem, Mbeki said that the continent loses at least $80 billion to IFF. Mbeki also urged African countries to put in place adequate measures in order to retain the continent's resources so as to tackle the challenges of development faced in Africa effectively.

Specifically, he reiterated the AU's solutions in combating IFF which include strengthening institutional and regulatory capacity, improved revenue

Day Mbeki rallied Nigerian ministers against IFFs

By Ayorinde Aghede

Day Mbeki rallied Nigerian ministers against IFFs

NEWS

services, establishing financial intelligence centers, developing legislation to deal with money laundering, promoting institutional collaboration, maintaining proper processes of coordination within governments and promoting adequate capacity building.

The Minister of Finance, Hajiya Zainab Ahmed, represented by the Permanent Secretary, Finance, Mr. Mahmoud Isa-Dutse, thanked the HLP Committee for the efforts in the fight against the plague of IFF. She noted that IFF robbed Africa of the wealth that was needed to invest in infrastructure, education, healthcare, power supply and many of the other necessities for sustainable and increased economic development.

Ahmed explained that the quest for Africa's economic development will be accelerated if funds illegally acquired, stolen and taken abroad by IFF perpetrators were repatriated. This will promote development on the continent and will no doubt receive a leap if multinational corporations desist from illicit activities of aggressive transfer pricing, base erosion, profit shifting and trade misinvoicing.

To this end, she said that the challenge of combating IFF was particularly pronounced in countries such as Nigeria due to the plethora of extractive industries in the economy. This is why the inputs of the Nigeria Extractive Industries Transparency Initiative (NEITI) and the Federal Inland Revenue Service (FIRS) are significant to this objective.

Critical to this, the Nigerian Financial Intelligence Unit Bill, signed by President Muhammadu Buhari, empowers the autonomous and investigation independent agency to conduct cross-border financial flows with a view to identifying the intensity of suspicious transfers as well as fighting criminal activities, money laundering and terrorism through the international financial system.

Other strategies identified to redress IFF concerns include signed agreements on the Multilateral Competent Authority on Common Reporting Standards for the exchange of financial accounts information and operational legal framework, collaboration with anti-corruption agencies, information sharing in

collaboration with the Federal Government and various entities to access tax information offshore in collaboration with other nations.

Accordingly, Nigeria will benefit from the European Union Country-by-Country reporting, transparency by foreign companies that are of a particular size or operating in certain industries to publish operational cash data for each country wherein they conduct businesses. Such companies are also to check the incidences of tax planning and risk-based tax audit. This is to persuade large recalcitrant corporations to voluntarily reduce the magnitude of tax avoidance.

Executive Chairman, FIRS, Tunde Fowler canvassed for stiffer laws and regulations in order to deter future IFF actions and offenders as Africa required finances to deliver its promises to the citizens.

In his presentation, Fowler said the African continent had thirty percent of the world's resources, yet remains the poorest continent in the world. In addition to this, an estimated $50 billions is lost annually which could have been invested to transform the continent's social and

economic development.Fowler advised that evaluation of

property investment be explored on a state-by-state level as it could raise additional tax revenues, regularize the tax status of citizens and bring concealed tax assets into the national tax base.

He also thanked Mbeki for the commitment and doggedness towards eliminating the IFF scourge from Africa and pledged to improvise laws that will boost collaboration and partnership assistance.

Attorney General of the Federation (AGF), Abubakar Malami stated that international collaboration was urgently needed to restrict the movement of corrupt elements involved in IFF by denying them travel visas as well as restricting them from investing their proceeds of crime anywhere in the world.

He said the country had considered major multi-dimensional decisions in relation to institutions, legislation, accommodation of technological development both in administrative and governance style, policy decisions in the fight against corruption and minimization of IFF.

,,In trying to ascertain the scale of the problem, he said that the continent loses at least $80 billion to IFF. Mbeki also urged African countries to put in place adequate measures in order to retain the continent's resources so as to tackle the challenges of development faced in Africa effectively. Specifically, he reiterated the AU's solutions in combating IFF which include strengthening institutional and regulatory capacity, improved revenue services, establishing financial intelligence centers, developing legislation to deal with money laundering, promoting institutional collaboration, maintaining proper processes of coordination within governments and promoting adequate capacity building.

29April - June, 2018 A Quarterly Publication of the Federal Inland Revenue Service 28 A Quarterly Publication of the Federal Inland Revenue Service April - June, 2018

The former President of South Africa and head of the High Level Panel on IFF, Thabo Mbeki and the Executive Chairman, FIRS, Tunde Fowler

NEWS

hambo Mbeki, the former South

TAfrican President, was almost swallowed in the midst of

ministers and Nigerian technocrats who sat on the high table. He is probably the oldest. But his voice and the content of his message rang out, everyone was compelled to listen.

This is a man who sat over Africa's most industrial country for four years. Today, he is leading a continental onslaught against Illicit Financial Flows (IFF) through which multinational corporations, (MNCs) are fleecing the continent with the collusion of Africans though.

He waxed eloquent on why Africa, on its own terms, must find think and ACT its way out of the quagmire.

It was a part of concerted global efforts to improve domestic resource mobilization in Africa, that the African Union High Level Panel (AUHLP) on Illicit Financial Flows (IFF), convened in Abuja. It was to brainstorm and proffer remedies to the scourge of IFFs that is bedeviling the developing world in general and the African continent in particular.

The meeting came on the heels of the International Conference on Combating IFF and Enhancing Asset Recovery for Sustainable Development

that was also held in Abuja on the 11th and 12th of September, 2018.

The two-day engagement was presided by the Chairman of the AUHLP and former South African President, Mr. Thabo Mbeki alongside other panel members.

At the meeting held at the Transcorp Hilton, Abuja on the 4th and 5th October 2018, high government functionaries across the world were accorded the platform to discuss the extent with which Africa was affected from IFF and identify recommendations to curb it.

Mbeki, in his opening remarks, said that fighting corruption frontally is a must as it is a fundamental element for reviving Nigeria's economy.

He commended Nigeria's vigorous response on the progress made in the anti-corruption war which he described as a good example to other African countries and the world. In addition, he said during the last General Assembly (GA) of the United Nations (UN) which took place in September, 2018, Nigeria and Norway convened a special workshop on the matter of IFF, with focus on the need to generate resources for the continent in order to address its developmental challenges of poverty, underdevelopment and poor

infrastructure, amongst others.Mbeki added that the specific

objectives of the High-Level Panel (HLP) as derived from the GA Resolution was to address the following:

a. Determine the nature and patterns of Illicit Financial Outflows;

b. Establish the level of Illicit financial outflows from Africa;

c. Access the complex and long-term implications of Illicit Financial Flows on development;

d. Sensitize African governments, citizens and international development partners on the scale, and effects of financial outflows on development; and

e. Mobilize support for putting rules and regulations in place at all levels to tackle Illicit Financial Flows from Africa.

In trying to ascertain the scale of the problem, Mbeki said that the continent loses at least $80 billion to IFF. Mbeki also urged African countries to put in place adequate measures in order to retain the continent's resources so as to tackle the challenges of development faced in Africa effectively.

Specifically, he reiterated the AU's solutions in combating IFF which include strengthening institutional and regulatory capacity, improved revenue

Day Mbeki rallied Nigerian ministers against IFFs

By Ayorinde Aghede

Day Mbeki rallied Nigerian ministers against IFFs

NEWS

services, establishing financial intelligence centers, developing legislation to deal with money laundering, promoting institutional collaboration, maintaining proper processes of coordination within governments and promoting adequate capacity building.

The Minister of Finance, Hajiya Zainab Ahmed, represented by the Permanent Secretary, Finance, Mr. Mahmoud Isa-Dutse, thanked the HLP Committee for the efforts in the fight against the plague of IFF. She noted that IFF robbed Africa of the wealth that was needed to invest in infrastructure, education, healthcare, power supply and many of the other necessities for sustainable and increased economic development.

Ahmed explained that the quest for Africa's economic development will be accelerated if funds illegally acquired, stolen and taken abroad by IFF perpetrators were repatriated. This will promote development on the continent and will no doubt receive a leap if multinational corporations desist from illicit activities of aggressive transfer pricing, base erosion, profit shifting and trade misinvoicing.

To this end, she said that the challenge of combating IFF was particularly pronounced in countries such as Nigeria due to the plethora of extractive industries in the economy. This is why the inputs of the Nigeria Extractive Industries Transparency Initiative (NEITI) and the Federal Inland Revenue Service (FIRS) are significant to this objective.

Critical to this, the Nigerian Financial Intelligence Unit Bill, signed by President Muhammadu Buhari, empowers the autonomous and investigation independent agency to conduct cross-border financial flows with a view to identifying the intensity of suspicious transfers as well as fighting criminal activities, money laundering and terrorism through the international financial system.

Other strategies identified to redress IFF concerns include signed agreements on the Multilateral Competent Authority on Common Reporting Standards for the exchange of financial accounts information and operational legal framework, collaboration with anti-corruption agencies, information sharing in

collaboration with the Federal Government and various entities to access tax information offshore in collaboration with other nations.

Accordingly, Nigeria will benefit from the European Union Country-by-Country reporting, transparency by foreign companies that are of a particular size or operating in certain industries to publish operational cash data for each country wherein they conduct businesses. Such companies are also to check the incidences of tax planning and risk-based tax audit. This is to persuade large recalcitrant corporations to voluntarily reduce the magnitude of tax avoidance.

Executive Chairman, FIRS, Tunde Fowler canvassed for stiffer laws and regulations in order to deter future IFF actions and offenders as Africa required finances to deliver its promises to the citizens.

In his presentation, Fowler said the African continent had thirty percent of the world's resources, yet remains the poorest continent in the world. In addition to this, an estimated $50 billions is lost annually which could have been invested to transform the continent's social and

economic development.Fowler advised that evaluation of

property investment be explored on a state-by-state level as it could raise additional tax revenues, regularize the tax status of citizens and bring concealed tax assets into the national tax base.

He also thanked Mbeki for the commitment and doggedness towards eliminating the IFF scourge from Africa and pledged to improvise laws that will boost collaboration and partnership assistance.

Attorney General of the Federation (AGF), Abubakar Malami stated that international collaboration was urgently needed to restrict the movement of corrupt elements involved in IFF by denying them travel visas as well as restricting them from investing their proceeds of crime anywhere in the world.

He said the country had considered major multi-dimensional decisions in relation to institutions, legislation, accommodation of technological development both in administrative and governance style, policy decisions in the fight against corruption and minimization of IFF.

,,In trying to ascertain the scale of the problem, he said that the continent loses at least $80 billion to IFF. Mbeki also urged African countries to put in place adequate measures in order to retain the continent's resources so as to tackle the challenges of development faced in Africa effectively. Specifically, he reiterated the AU's solutions in combating IFF which include strengthening institutional and regulatory capacity, improved revenue services, establishing financial intelligence centers, developing legislation to deal with money laundering, promoting institutional collaboration, maintaining proper processes of coordination within governments and promoting adequate capacity building.

29April - June, 2018 A Quarterly Publication of the Federal Inland Revenue Service 28 A Quarterly Publication of the Federal Inland Revenue Service April - June, 2018

The former President of South Africa and head of the High Level Panel on IFF, Thabo Mbeki and the Executive Chairman, FIRS, Tunde Fowler

30 A Quarterly Publication of the Federal Inland Revenue Service April - June, 2018

NEWS

he second International Conference

Ton Combating Illicit Financial Flows and Enhancing Asset Recovery for

Sustainable Development was held in Abuja in September. The conference was organised by the African Union (AU), the Federal Ministry Justice, Federal Ministry of Foreign Affairs, the Presidential Advisory Committee Against Corruption (PACAC), and the Federal Inland Revenue Service (FIRS).

The first conference held a year earlier. It focused on policy measures, tools and strategies to effectively tackle Illicit Financial Flows (IFF) and strengthen asset recovery, with emphasis on propelling the implementation of the recommendat ions of the Afr i can Un ion /Un i t ed Na t i ons Economic Commission for Africa High Level Panel on IFF to foster the achievement of the Sustainable Development Goals.

The conference resulted in the Declaration on Promoting and Combating Illicit Financial Flows and Enhancing Asset Recove ry t o Fos te r Sus ta i nab l e Development 2017, also known as the Abuja Declaration 2017. It is believed it contributed to the selection of President Muhammadu Buhari by his peers within the AU as the Anti-Corruption Champion 2018.

The Vice President, Prof. Yemi Osinbajo, who was represented by the Special Adviser to the President on Economic Matters, Dr. Adeyemi Dipeolu said that there should be an outrage against IFF as much as the outrage against drug trafficking, human trafficking and terrorist financing. He commended

the recovery of $321 million back to Nigeria that was stolen and hidden in Switzerland, saying that it was a good example of what could be achieved through international cooperation. Osinbajo went on to admonish that resources acquired from blocking IFF must be used for the interest and welfare of the people.

He continued, “Our efforts to stem financial flows will depend on our domestic capacity to prevent and repatriate Illicit Financial Flows as well as for African countries to establish the relevant architecture. This includes establishment and strengthening of the revenue authorities, such as Customs, financial institutions, transfer pricing units, anti-corruption agencies.”

The task of combating IFF will also require provision of accurate data, up to date information, effective regulatory, and legislative institutional frameworks. He also said there was the need to acquire and engage in training of highly skilled p e r s onne l who unde r s t a nd t h e

complexities of IFF.Osinbajo assured the attendees that

Nigeria is doing its utmost to eradicate IFF. “We reaffirm our commitment to taking the necessary measures in this regard, including by working in cooperation and collaboration with regional bodies such as the African Union and our international partners as well,” he said.

Osinbajo explained that the Thabo Mbeki High Level Panel on Illicit Financial Flows in Africa had established that the processes through which IFF takes place undermines governance because their intent is to escape the obligations of being a responsible citizen, abuse public trust and break the law. According to him, the role of prevention cannot be overstated in the fight against corruption as it is important that those who engage in acts of corruption and IFF are adequately sanctioned.

To ensure world stability and safety, the Executive Chairman, FIRS, Tunde Fowler disclosed that countries should be more concerned about the tax status of

African voices against Illicit Financial Flows

By Umar Yusuf Usman and Ayorinde Aghede

The Executive Chairman, FIRS, Tunde Fowler a the 2nd IFF conference

The Hon Minister of Foreign Affairs, Geoffrey Onyeama speaking at the conference

NEWS

31April - June, 2018 A Quarterly Publication of the Federal Inland Revenue Service

illegally generated funds, their transfer or use.

According to him, the issue of corruption is often only viewed as a situation where some individuals or corporate organizations find means to loot funds without necessarily paying taxes on the funds.

“As a tax administrator I still believe that if any income is not adequately taxed in the area where it is generated, then it is no longer tax planning, it is corruption,” he said.

Fowler stated that the role of the tax administrator basically is to ensure adequate funding of government budgets. However, budgets could not be funded if a great amount of funds are stolen.

He said that based on the African Union Agenda 2063, African states are expected to be able to fund their respective budgets by that period mainly through taxation so as to accelerate the implementation of the Sustainable Development Goals.

“If a minimum of $50billion is lost by developing countries annually, especially on the African continent, if this money were to be made available to these countries, they would be in a better position to provide the much required infrastructure and amenities for their citizens,” he said.

He, however, urged government officials to rise quickly to address the scourge of IFF from Africa.

The Executive Chairman also assured the attendees that tackling IFF and utilizing the funds for the good of the residents and citizens will help in addressing Africa's socio-economic challenges.

“Africa is said to have the highest rate of infant mortality. The question is, is that what we desire? Is it our desire for our nationals to try and cross the Sahara Desert to seek greener pastures? If one looks at the impact, I think it is cheaper and morally right to ensure that these funds are kept where they are generated,” Fowler remarked.

The Minister of Foreign Affairs, Geoffrey Onyeama said that according to a recent study by the Global Financial Integrity, it has been revealed that by 2014, Il l icit Financial Flows from developing and emerging economies peeked at almost $1 trillion. The report went on to report that illicit financial back-flows from sub-Saharan Africa alone ranged from 5.3% to 9.9% of total trade in 2014, a ratio higher than any other geographic region.

The Minister likewise maintained that enormous resources siphoned from the poorest region of the world has been responsible for Africa's suffocating development. He further emphasized that the sub-Sahara region still remains the poorest region in the world. Without a shadow of doubt, the negative impact of

international IFF on developing countries cannot be overemphasized, with evidence showing that enormous resources siphoned from Africa are responsible for the crippled basic infrastructure, quality education and adequate health services, amongst many others. He said the present administration, however, is making assiduous efforts to tackle the menace of IFF.

“Our unwavering commitment to address this hydra-headed monster has been widely acknowledged on the international stage. Nigeria must therefore continue to work to honour her obligations under the open government fund issue, promote fiscal transparency in the conduct of government business, which includes open contracting and reverse oversight of our extractive industries,” he said.

He urged government to strengthen the relevant legislations on asset recovery, i n c l u d i ng non - c onv i c t i o n - ba s ed confiscation powers and introduction of unexplained wealth orders.

On the second day of the conference, the Coordinating Director, Domestic Taxes Group, Abiodun Aina took part in a panel to d iscuss ' Improv ing Internat iona l Cooperation and Exchange of Information'.

According to him, if one were to take into consideration the last 30 years, one would see that IFF have cost Africa close to $1.2 to $1.5 trillion. This left Africa with less foreign exchange, less tax revenue and it makes Africa a net exporter of capital. He said that when IFF is broken down, the elephant in the room is international trade. Aina also pointed out that profits were shifted to entities that enjoyed pioneer status thus forgoing the need to pay any tax.

“We cannot solve these problems alone. We need to co-operate as Africans and with the wider world. Now, we have transfer pricing, or rather, mis-pricing with the connivance of the developed world. We have been dismissing IFF for awhile. The figure keeps on growing. We need to look at the challenges we face in order to provide solutions. There are tools to fight IFF but to domesticate them is a problem. In an African Tax Administration Forum report, transfer pricing guidelines were drafted in an African country but it took four years to pass them into law” Aina emphasised.

He further explained that “Our parliamentarians are not focusing on revenue generation. The focus is on the expenditure. We do not have a legislative committee on taxation. We still parade inefficient tax administration systems with mostly manual operations. We have poorly negotiated treaties of which some are subject to abuse.There are national carriers that fly into Nigeria but we do not have any carriers going there. Someone said that we should leave some of our natural resources under the ground until a generation comes that can negotiate equitable treaties. We need to develop our own capacity and fight our own battles.”

Aina advocated for the exchange of information mechanisms to be domiciled in every revenue agency. He also urged that harmful tax practices should be resisted. “We are competing against ourselves in a race to the bottom. There should be certainty in the tax system. There should be certainty of trained manpower. Africa should set its own agenda. If not, it will be set for us,” he warned.

,,“Africa is said to have the highest rate of infant mortality. The question is, is that what we desire? Is it our desire for our nationals to try and cross the Sahara Desert to seek greener pastures? If one looks at the impact, I think it is cheaper and morally right to ensure that these funds are kept where they are generated,” Fowler remarked.

30 A Quarterly Publication of the Federal Inland Revenue Service April - June, 2018

NEWS

he second International Conference

Ton Combating Illicit Financial Flows and Enhancing Asset Recovery for

Sustainable Development was held in Abuja in September. The conference was organised by the African Union (AU), the Federal Ministry Justice, Federal Ministry of Foreign Affairs, the Presidential Advisory Committee Against Corruption (PACAC), and the Federal Inland Revenue Service (FIRS).

The first conference held a year earlier. It focused on policy measures, tools and strategies to effectively tackle Illicit Financial Flows (IFF) and strengthen asset recovery, with emphasis on propelling the implementation of the recommendat ions of the Afr i can Un ion /Un i t ed Na t i ons Economic Commission for Africa High Level Panel on IFF to foster the achievement of the Sustainable Development Goals.

The conference resulted in the Declaration on Promoting and Combating Illicit Financial Flows and Enhancing Asset Recove ry t o Fos te r Sus ta i nab l e Development 2017, also known as the Abuja Declaration 2017. It is believed it contributed to the selection of President Muhammadu Buhari by his peers within the AU as the Anti-Corruption Champion 2018.

The Vice President, Prof. Yemi Osinbajo, who was represented by the Special Adviser to the President on Economic Matters, Dr. Adeyemi Dipeolu said that there should be an outrage against IFF as much as the outrage against drug trafficking, human trafficking and terrorist financing. He commended

the recovery of $321 million back to Nigeria that was stolen and hidden in Switzerland, saying that it was a good example of what could be achieved through international cooperation. Osinbajo went on to admonish that resources acquired from blocking IFF must be used for the interest and welfare of the people.

He continued, “Our efforts to stem financial flows will depend on our domestic capacity to prevent and repatriate Illicit Financial Flows as well as for African countries to establish the relevant architecture. This includes establishment and strengthening of the revenue authorities, such as Customs, financial institutions, transfer pricing units, anti-corruption agencies.”

The task of combating IFF will also require provision of accurate data, up to date information, effective regulatory, and legislative institutional frameworks. He also said there was the need to acquire and engage in training of highly skilled p e r s onne l who unde r s t a nd t h e

complexities of IFF.Osinbajo assured the attendees that

Nigeria is doing its utmost to eradicate IFF. “We reaffirm our commitment to taking the necessary measures in this regard, including by working in cooperation and collaboration with regional bodies such as the African Union and our international partners as well,” he said.

Osinbajo explained that the Thabo Mbeki High Level Panel on Illicit Financial Flows in Africa had established that the processes through which IFF takes place undermines governance because their intent is to escape the obligations of being a responsible citizen, abuse public trust and break the law. According to him, the role of prevention cannot be overstated in the fight against corruption as it is important that those who engage in acts of corruption and IFF are adequately sanctioned.

To ensure world stability and safety, the Executive Chairman, FIRS, Tunde Fowler disclosed that countries should be more concerned about the tax status of

African voices against Illicit Financial Flows

By Umar Yusuf Usman and Ayorinde Aghede

The Executive Chairman, FIRS, Tunde Fowler a the 2nd IFF conference

The Hon Minister of Foreign Affairs, Geoffrey Onyeama speaking at the conference

NEWS

31April - June, 2018 A Quarterly Publication of the Federal Inland Revenue Service

illegally generated funds, their transfer or use.

According to him, the issue of corruption is often only viewed as a situation where some individuals or corporate organizations find means to loot funds without necessarily paying taxes on the funds.

“As a tax administrator I still believe that if any income is not adequately taxed in the area where it is generated, then it is no longer tax planning, it is corruption,” he said.

Fowler stated that the role of the tax administrator basically is to ensure adequate funding of government budgets. However, budgets could not be funded if a great amount of funds are stolen.

He said that based on the African Union Agenda 2063, African states are expected to be able to fund their respective budgets by that period mainly through taxation so as to accelerate the implementation of the Sustainable Development Goals.

“If a minimum of $50billion is lost by developing countries annually, especially on the African continent, if this money were to be made available to these countries, they would be in a better position to provide the much required infrastructure and amenities for their citizens,” he said.

He, however, urged government officials to rise quickly to address the scourge of IFF from Africa.

The Executive Chairman also assured the attendees that tackling IFF and utilizing the funds for the good of the residents and citizens will help in addressing Africa's socio-economic challenges.

“Africa is said to have the highest rate of infant mortality. The question is, is that what we desire? Is it our desire for our nationals to try and cross the Sahara Desert to seek greener pastures? If one looks at the impact, I think it is cheaper and morally right to ensure that these funds are kept where they are generated,” Fowler remarked.

The Minister of Foreign Affairs, Geoffrey Onyeama said that according to a recent study by the Global Financial Integrity, it has been revealed that by 2014, Il l icit Financial Flows from developing and emerging economies peeked at almost $1 trillion. The report went on to report that illicit financial back-flows from sub-Saharan Africa alone ranged from 5.3% to 9.9% of total trade in 2014, a ratio higher than any other geographic region.

The Minister likewise maintained that enormous resources siphoned from the poorest region of the world has been responsible for Africa's suffocating development. He further emphasized that the sub-Sahara region still remains the poorest region in the world. Without a shadow of doubt, the negative impact of

international IFF on developing countries cannot be overemphasized, with evidence showing that enormous resources siphoned from Africa are responsible for the crippled basic infrastructure, quality education and adequate health services, amongst many others. He said the present administration, however, is making assiduous efforts to tackle the menace of IFF.

“Our unwavering commitment to address this hydra-headed monster has been widely acknowledged on the international stage. Nigeria must therefore continue to work to honour her obligations under the open government fund issue, promote fiscal transparency in the conduct of government business, which includes open contracting and reverse oversight of our extractive industries,” he said.

He urged government to strengthen the relevant legislations on asset recovery, i n c l u d i ng non - c onv i c t i o n - ba s ed confiscation powers and introduction of unexplained wealth orders.

On the second day of the conference, the Coordinating Director, Domestic Taxes Group, Abiodun Aina took part in a panel to d iscuss ' Improv ing Internat iona l Cooperation and Exchange of Information'.

According to him, if one were to take into consideration the last 30 years, one would see that IFF have cost Africa close to $1.2 to $1.5 trillion. This left Africa with less foreign exchange, less tax revenue and it makes Africa a net exporter of capital. He said that when IFF is broken down, the elephant in the room is international trade. Aina also pointed out that profits were shifted to entities that enjoyed pioneer status thus forgoing the need to pay any tax.

“We cannot solve these problems alone. We need to co-operate as Africans and with the wider world. Now, we have transfer pricing, or rather, mis-pricing with the connivance of the developed world. We have been dismissing IFF for awhile. The figure keeps on growing. We need to look at the challenges we face in order to provide solutions. There are tools to fight IFF but to domesticate them is a problem. In an African Tax Administration Forum report, transfer pricing guidelines were drafted in an African country but it took four years to pass them into law” Aina emphasised.

He further explained that “Our parliamentarians are not focusing on revenue generation. The focus is on the expenditure. We do not have a legislative committee on taxation. We still parade inefficient tax administration systems with mostly manual operations. We have poorly negotiated treaties of which some are subject to abuse.There are national carriers that fly into Nigeria but we do not have any carriers going there. Someone said that we should leave some of our natural resources under the ground until a generation comes that can negotiate equitable treaties. We need to develop our own capacity and fight our own battles.”

Aina advocated for the exchange of information mechanisms to be domiciled in every revenue agency. He also urged that harmful tax practices should be resisted. “We are competing against ourselves in a race to the bottom. There should be certainty in the tax system. There should be certainty of trained manpower. Africa should set its own agenda. If not, it will be set for us,” he warned.

,,“Africa is said to have the highest rate of infant mortality. The question is, is that what we desire? Is it our desire for our nationals to try and cross the Sahara Desert to seek greener pastures? If one looks at the impact, I think it is cheaper and morally right to ensure that these funds are kept where they are generated,” Fowler remarked.

NEWS

he Executive Chairman, Federal

TInland Revenue Service (FIRS), Tunde Fowler and the

Norwegian Tax Administration (NTA) have agreed to partner towards fostering an efficient tax administration system.

The Executive Chairman, while addressing the Norwegian delegation at Revenue House in Abuja recently said FIRS, being the major tax collector for the federation, always seeks ways to expand the tax net in order to capture more taxpayers.

He said the revenue collected by the Service is shared between the three tiers of government namely: federal, state and local governments while the Joint Tax Board (JTB) and FIRS operate a cohesive effort in tax administration across the country.

Fowler, noted that the visit, he hope, will discuss measures through which Illicit Financial Flows in the economy can be addressed.

“We are committed to ensuring that we bring all taxpayers into the tax net, however, our focus is more on businesses with banking turnover in excess of N1 billion and we will ensure that taxpayers pay as and when due in compliance with the relevant laws,” he said.

Ingrid Skjølaas, Chargē D'Affaires, Royal Norwegian Embassy, Abuja, said the relationship between FIRS and the Norwegian Embassy will help to provide more tax assistance and expertise that is required to curb Illicit Financial Flows from the country.

Skjølaas, reiterated the importance of promoting capacity development in tax administration as it is critical to the achievement of domestic resource mobilization and economic development for the good of citizens.

The Senior Policy Director on Tax and Capital Flight, Olav Lundstøl added that the need to establish sustainable tax development goals cannot be overemphasized.

He said the institution is open to business, particularly in the area of

tax development and therefore seeks to offer a unique type of assistance based on peer-to-peer learning and improvements of FIRS tax processes and practices.

Lundstøl, stated that the NTA also offers capacity building in areas such as taxpayer registration and returns filling, compliance verification and tax audit, taxpayer service and education, payment and collections enforcement, international taxation and exchange of information, amongst others.

According to him, considerable international initiatives such as capacity building networks and platforms for collaboration on tax have been established to make bilateral and multilateral capacity building activities in the area of tax more effective.

“Our various histories show that most countries depend on their own resources to fund their own developments. We are willing to share our policy, legislation and regulation approach experiences to help improve your institution's revenue growth trajectory,” he added.

The Executive Chairman, FIRS, Tunde Fowler presenting the book, on President Mohammadu Buhari 'Taxpayers are King' to Ingrid Skjølaas, while Olav Lundstøl looks on

Norwegian tax authority parleys FIRS on tax cooperation

By Ayorinde Aghede

IMF to collaborate with FIRS on capacity building

By Oladapo Soaga-Awolowo

NEWS

n International Monetary Fund

A(IMF) team, is to collaborate with the Federal Inland Revenue

Service (FIRS) on capacity building. The IMF team, headed by Mr.

Thomas Baunsgaard, Deputy Chief, Tax Policy Division, IMF disclosed this during a courtesy call to the Executive Chairman, FIRS Tunde Fowler. This is their third visit to Nigeria.

Baunsgaard said that their mission was a combination of providing policy advice, capacity building and training which will focus mainly on tax modelling, petroleum fiscal modelling and fiscal policy analysis. He spoke on a five day training program and workshop which is also a follow up of a training held in November of 2017 . Some FIRS staff working on the administration of Petroleum Profits Tax (PPT), attended the event.

The IMF Deputy Chief, also disclosed that the mission was partly to take stock of where the process

position was in terms of reforming the fiscal regime for the petroleum sector, the PPT and to provide some recommendations at the end of their mission.

The Fund also considered how it could strengthen its collaboration with FIRS, particularly in terms of modelling, data analysis and management of the sector.

He stated that the focus of the mission is capacity building, unlike their previous visits which were more policy oriented where they provided independent reviews and expert opinions of the various processes of government on petroleum taxation.

He encouraged government to make use of the training provided on modelling of petroleum fiscal tax machines and how it can be embedded into the decision-making process of the government. He further stated that “to effectively model the petroleum sector requires good collaboration across ministries and agencies like Ministry of Finance, the

Nigerian National Petroleum Company (NNPC) and others.”

The Executive Chairman explained that the downward trend in oil prices that started in 2008 had made it imperative for the country to enhance and maximize non-oil revenue. The country was able to meet up with the shortfall because of the funds available in the excess crude account. Between 2015 and 2018, oil revenue collection dropped to about 39% while non-oil collections accounted for 61%.

Fowler stressed the need for more support from the IMF in terms of skilled manpower development and expressed his interest in taking advantage of the training provided as this will expose the staff of the Service to the various fiscal policy models available across the world.

He noted that FIRS has a good working relationship and mutual cooperation with the NNPC and enjoys the full support of the Presidency and the Ministry of Finance.

33April - June, 2018 A Quarterly Publication of the Federal Inland Revenue Service 32 A Quarterly Publication of the Federal Inland Revenue Service April - June, 2018

Executive Chairman, FIRS, Tunde Fowler IMF Managing Director, Christine Lagarde

NEWS

he Executive Chairman, Federal

TInland Revenue Service (FIRS), Tunde Fowler and the

Norwegian Tax Administration (NTA) have agreed to partner towards fostering an efficient tax administration system.

The Executive Chairman, while addressing the Norwegian delegation at Revenue House in Abuja recently said FIRS, being the major tax collector for the federation, always seeks ways to expand the tax net in order to capture more taxpayers.

He said the revenue collected by the Service is shared between the three tiers of government namely: federal, state and local governments while the Joint Tax Board (JTB) and FIRS operate a cohesive effort in tax administration across the country.

Fowler, noted that the visit, he hope, will discuss measures through which Illicit Financial Flows in the economy can be addressed.

“We are committed to ensuring that we bring all taxpayers into the tax net, however, our focus is more on businesses with banking turnover in excess of N1 billion and we will ensure that taxpayers pay as and when due in compliance with the relevant laws,” he said.

Ingrid Skjølaas, Chargē D'Affaires, Royal Norwegian Embassy, Abuja, said the relationship between FIRS and the Norwegian Embassy will help to provide more tax assistance and expertise that is required to curb Illicit Financial Flows from the country.

Skjølaas, reiterated the importance of promoting capacity development in tax administration as it is critical to the achievement of domestic resource mobilization and economic development for the good of citizens.

The Senior Policy Director on Tax and Capital Flight, Olav Lundstøl added that the need to establish sustainable tax development goals cannot be overemphasized.

He said the institution is open to business, particularly in the area of

tax development and therefore seeks to offer a unique type of assistance based on peer-to-peer learning and improvements of FIRS tax processes and practices.

Lundstøl, stated that the NTA also offers capacity building in areas such as taxpayer registration and returns filling, compliance verification and tax audit, taxpayer service and education, payment and collections enforcement, international taxation and exchange of information, amongst others.

According to him, considerable international initiatives such as capacity building networks and platforms for collaboration on tax have been established to make bilateral and multilateral capacity building activities in the area of tax more effective.

“Our various histories show that most countries depend on their own resources to fund their own developments. We are willing to share our policy, legislation and regulation approach experiences to help improve your institution's revenue growth trajectory,” he added.

The Executive Chairman, FIRS, Tunde Fowler presenting the book, on President Mohammadu Buhari 'Taxpayers are King' to Ingrid Skjølaas, while Olav Lundstøl looks on

Norwegian tax authority parleys FIRS on tax cooperation

By Ayorinde Aghede

IMF to collaborate with FIRS on capacity building

By Oladapo Soaga-Awolowo

NEWS

n International Monetary Fund

A(IMF) team, is to collaborate with the Federal Inland Revenue

Service (FIRS) on capacity building. The IMF team, headed by Mr.

Thomas Baunsgaard, Deputy Chief, Tax Policy Division, IMF disclosed this during a courtesy call to the Executive Chairman, FIRS Tunde Fowler. This is their third visit to Nigeria.

Baunsgaard said that their mission was a combination of providing policy advice, capacity building and training which will focus mainly on tax modelling, petroleum fiscal modelling and fiscal policy analysis. He spoke on a five day training program and workshop which is also a follow up of a training held in November of 2017 . Some FIRS staff working on the administration of Petroleum Profits Tax (PPT), attended the event.

The IMF Deputy Chief, also disclosed that the mission was partly to take stock of where the process

position was in terms of reforming the fiscal regime for the petroleum sector, the PPT and to provide some recommendations at the end of their mission.

The Fund also considered how it could strengthen its collaboration with FIRS, particularly in terms of modelling, data analysis and management of the sector.

He stated that the focus of the mission is capacity building, unlike their previous visits which were more policy oriented where they provided independent reviews and expert opinions of the various processes of government on petroleum taxation.

He encouraged government to make use of the training provided on modelling of petroleum fiscal tax machines and how it can be embedded into the decision-making process of the government. He further stated that “to effectively model the petroleum sector requires good collaboration across ministries and agencies like Ministry of Finance, the

Nigerian National Petroleum Company (NNPC) and others.”

The Executive Chairman explained that the downward trend in oil prices that started in 2008 had made it imperative for the country to enhance and maximize non-oil revenue. The country was able to meet up with the shortfall because of the funds available in the excess crude account. Between 2015 and 2018, oil revenue collection dropped to about 39% while non-oil collections accounted for 61%.

Fowler stressed the need for more support from the IMF in terms of skilled manpower development and expressed his interest in taking advantage of the training provided as this will expose the staff of the Service to the various fiscal policy models available across the world.

He noted that FIRS has a good working relationship and mutual cooperation with the NNPC and enjoys the full support of the Presidency and the Ministry of Finance.

33April - June, 2018 A Quarterly Publication of the Federal Inland Revenue Service 32 A Quarterly Publication of the Federal Inland Revenue Service April - June, 2018

Executive Chairman, FIRS, Tunde Fowler IMF Managing Director, Christine Lagarde

34 A Quarterly Publication of the Federal Inland Revenue Service April - June, 2018

s part of strategies to

Aenhance compliance levels in tax practice, the Institute of

Chartered Accountants of Nigeria (ICAN), has promised to promote compliance through capacity building, improved tax administration and fiscal policies regulations.

Razak Jaiyeola, President of ICAN, during a courtesy visit to the Executive Chairman, Federal Inland Revenue Service (FIRS), Tunde Fowler, said that following the adoption of the Non-Compliance with Laws and Regulations initiative (NOCLAR) by ICAN, there will be accurate tax provisions and compliance with relation to tax auditing.

“Our members are obliged to blow the whistle on any non-compliance activity and to deal with proven cases of professional misconduct,” he remarked.

The Executive Chairman, while highlighting the swift growth recorded in revenue generation in

recent times, credited ICAN for its contributions to FIRS.

“We are aware of the importance of taxation to our development and for quite a number of years, taxation was on the back burner in the Nigerian economy and society and we also know that every naira collected improves the standard of living for citizens. To date, we are N1 trillion above our collection compared to the same time last year and believe that with the understanding and cooperation ICAN, we will be able to change the financial profile of Nigeria,” he stated.

He said the introduction of technology into tax administration in Nigeria has helped to improve both online payment of taxes and transparency in tax practice.

“When we started the reforms, our focus was to identify our weaknesses and renew the FIRS to help provide stable non-oil tax revenue that will be sufficient to fund both federal and state budgets as the need may arise. Currently,

ICAN partners FIRS toeradicate non-complianceBy Ayorinde Aghede our non-oil tax revenue accounts for

over sixty percent and we believe that in the next twelve to eighteen months it should account for at least eighty percent of the tax revenue to enable government at all tiers discharge their financial obligations and responsibilities.”

In identifying other area of partnership, the Executive Chairman informed the institute on the MOU agreement between FIRS and State Boards of Internal Revenue to improve customer service relations at the federal and state levels.

Fowler, however, admonished Jaiyeola to provide clients with the necessary guidance and support in delivering their professional responsibilities as it relates to tax matters.

Jaiyeola, thanked the Executive Chairman for a robust partnership which he said impacted the institute's achievement positively.

He said the institute is obliged to support FIRS on any non-compliance incident and sanction erring members accordingly.

NEWS

The CD,SSG; the CD,DTG and SA, ECFIRS; the Executive Chairman, FIRS and the President, CITN

35April - June, 2018 A Quarterly Publication of the Federal Inland Revenue Service

NEWS

he Executive Chairman, Federal

TInland Revenue Service (FIRS), Tunde Fowler has called on soon

to be top management staff to demonstrate performance in order to uphold the Service's key job positioning.

Fowler, while addressing the 2018 batch Final Inspectors of Taxes (FIT) participants at the FIRS Boardroom, said that the Service required competent and skilled personnel to fill available positions.

In terms of availability of vacancies, he explained that there were still quite a number of functional vacancies which the Service lacked staff to fill.

“Management is appreciative of your visit. We cannot say that we have a good tax practice at the federal level and must therefore continue to ensure improved taxation at all levels. We are impressed at your laudable contributions through the communique to improve tax yield. I hope that a few of you will be lucky to participate in the upcoming Commonwealth Association of Tax Administrators and African Tax Administration Forum international tax

conferences which are foreign exposures to provide added insight about other tax jurisdictions. However, staff selection will be strictly measured by individual ability and performance,” he remarked.

Fowler reiterated the need to develop capacity building in key knowledge areas in the Service in the progress of an officer's career.

The class governor, Patricia Ikpeazu recognized the importance of the course to the Service and thanked the Executive Chairman and Management for the acceptance of the visit which the class considered a rare privilege.

However, the participants mentioned the need to improve the timing for the training held between July and September yearly, which coincides with the peak period for tax returns filing in FIRS.

Ikpeazu added that the purpose of the visit was to enable FIT participants interact with Management so as to discuss matters of concern as well as provide recommendations where applicable.

Further expressing their gratitude Ikpeazu said, “We are immensely grateful for the opportunity to

undergo the training in a period when other equally important projects are competing for the scarce resources available to the Service. Motivated by the new knowledge gained, we wish to contribute our ideas as they could ensure greater tax yield.

“We submit this communique to the Management of the Service for possible consideration in the hope and expectation that it would contribute to the ongoing efforts to increase tax collection and continuously improve service delivery to taxpayers.”

She urged Management to ensure regular rotation of job functions as it will enable staff acquire varied job experience and engender stronger work integration.

The Coordination Director, Domestic Taxes Group, Abiodun Aina expressed the need to maintain consistent operational standards within the system as it enhances staff performance, checks excesses and improves collection.

The eight week long FIT course is principally conducted for Senior Managers proceeding to the rank of Assistant Director within the tax career path in FIRS across the country.

Fowler tasks FIT ‘Cadets’ on high performance

By Ayorinde Aghede

The Executive Chairman and the 2018 batch of FIT participants in a group photograph

34 A Quarterly Publication of the Federal Inland Revenue Service April - June, 2018

s part of strategies to

Aenhance compliance levels in tax practice, the Institute of

Chartered Accountants of Nigeria (ICAN), has promised to promote compliance through capacity building, improved tax administration and fiscal policies regulations.

Razak Jaiyeola, President of ICAN, during a courtesy visit to the Executive Chairman, Federal Inland Revenue Service (FIRS), Tunde Fowler, said that following the adoption of the Non-Compliance with Laws and Regulations initiative (NOCLAR) by ICAN, there will be accurate tax provisions and compliance with relation to tax auditing.

“Our members are obliged to blow the whistle on any non-compliance activity and to deal with proven cases of professional misconduct,” he remarked.

The Executive Chairman, while highlighting the swift growth recorded in revenue generation in

recent times, credited ICAN for its contributions to FIRS.

“We are aware of the importance of taxation to our development and for quite a number of years, taxation was on the back burner in the Nigerian economy and society and we also know that every naira collected improves the standard of living for citizens. To date, we are N1 trillion above our collection compared to the same time last year and believe that with the understanding and cooperation ICAN, we will be able to change the financial profile of Nigeria,” he stated.

He said the introduction of technology into tax administration in Nigeria has helped to improve both online payment of taxes and transparency in tax practice.

“When we started the reforms, our focus was to identify our weaknesses and renew the FIRS to help provide stable non-oil tax revenue that will be sufficient to fund both federal and state budgets as the need may arise. Currently,

ICAN partners FIRS toeradicate non-complianceBy Ayorinde Aghede our non-oil tax revenue accounts for

over sixty percent and we believe that in the next twelve to eighteen months it should account for at least eighty percent of the tax revenue to enable government at all tiers discharge their financial obligations and responsibilities.”

In identifying other area of partnership, the Executive Chairman informed the institute on the MOU agreement between FIRS and State Boards of Internal Revenue to improve customer service relations at the federal and state levels.

Fowler, however, admonished Jaiyeola to provide clients with the necessary guidance and support in delivering their professional responsibilities as it relates to tax matters.

Jaiyeola, thanked the Executive Chairman for a robust partnership which he said impacted the institute's achievement positively.

He said the institute is obliged to support FIRS on any non-compliance incident and sanction erring members accordingly.

NEWS

The CD,SSG; the CD,DTG and SA, ECFIRS; the Executive Chairman, FIRS and the President, CITN

35April - June, 2018 A Quarterly Publication of the Federal Inland Revenue Service

NEWS

he Executive Chairman, Federal

TInland Revenue Service (FIRS), Tunde Fowler has called on soon

to be top management staff to demonstrate performance in order to uphold the Service's key job positioning.

Fowler, while addressing the 2018 batch Final Inspectors of Taxes (FIT) participants at the FIRS Boardroom, said that the Service required competent and skilled personnel to fill available positions.

In terms of availability of vacancies, he explained that there were still quite a number of functional vacancies which the Service lacked staff to fill.

“Management is appreciative of your visit. We cannot say that we have a good tax practice at the federal level and must therefore continue to ensure improved taxation at all levels. We are impressed at your laudable contributions through the communique to improve tax yield. I hope that a few of you will be lucky to participate in the upcoming Commonwealth Association of Tax Administrators and African Tax Administration Forum international tax

conferences which are foreign exposures to provide added insight about other tax jurisdictions. However, staff selection will be strictly measured by individual ability and performance,” he remarked.

Fowler reiterated the need to develop capacity building in key knowledge areas in the Service in the progress of an officer's career.

The class governor, Patricia Ikpeazu recognized the importance of the course to the Service and thanked the Executive Chairman and Management for the acceptance of the visit which the class considered a rare privilege.

However, the participants mentioned the need to improve the timing for the training held between July and September yearly, which coincides with the peak period for tax returns filing in FIRS.

Ikpeazu added that the purpose of the visit was to enable FIT participants interact with Management so as to discuss matters of concern as well as provide recommendations where applicable.

Further expressing their gratitude Ikpeazu said, “We are immensely grateful for the opportunity to

undergo the training in a period when other equally important projects are competing for the scarce resources available to the Service. Motivated by the new knowledge gained, we wish to contribute our ideas as they could ensure greater tax yield.

“We submit this communique to the Management of the Service for possible consideration in the hope and expectation that it would contribute to the ongoing efforts to increase tax collection and continuously improve service delivery to taxpayers.”

She urged Management to ensure regular rotation of job functions as it will enable staff acquire varied job experience and engender stronger work integration.

The Coordination Director, Domestic Taxes Group, Abiodun Aina expressed the need to maintain consistent operational standards within the system as it enhances staff performance, checks excesses and improves collection.

The eight week long FIT course is principally conducted for Senior Managers proceeding to the rank of Assistant Director within the tax career path in FIRS across the country.

Fowler tasks FIT ‘Cadets’ on high performance

By Ayorinde Aghede

The Executive Chairman and the 2018 batch of FIT participants in a group photograph

36 A Quarterly Publication of the Federal Inland Revenue Service April - June, 2018

he Executive Chairman, Federal

TInland Revenue Service (FIRS), Tunde Fowler has expressed his

unwavering commitment towards achieving stronger collaboration with the Benue State Internal Revenue (BSIR), in a bid to transform federal and states revenue collection.

Fowler, gave the assurance during a courtesy visit by the Acting Chairman of BSIR, Atser Terzugwe, saying that the mandate of the two revenue institutions are similar and they required closer ties to sustain enhanced revenue boost.

He said the Service's readiness through partnership with the state is much desired as it will create an avenue for sharing of tax experiences and knowledge transfer which will help reduce over-dependence on prescribed laws that make tax payment difficult for taxpayers.

“We do have a lot of information

in our books right now about organizations, enterprises, business names, limited liability companies that have margin turnover in excess of N1 billion. However, we discovered that over five thousand of them have not been paying taxes. We are therefore willing to share these details with you for further findings towards building a continued mutual beneficial engagement which we believe will help to strengthen our revenue base, both at the state and federal levels, in order to change the financial profile of Nigeria. FIRS will not cease to contribute to the Nigerian tax system,” he stated

The Executive Chairman also recommended the need to establish a study engagement between FIRS and BSIR to provide the necessary information to tackle debt management concerns within the tax system.

“In the spirit of our cooperation and good working relationship we

believe that we have the ability to fund the respective budgets both at the federal and state levels. I encourage BSIR to take advantage of the signed memorandum of understanding between the FIRS and other State Boards of Internal Revenue which has tremendously improved the level of cooperation in tax administration, as well as the 6 e-Solutions which have been providing taxpayers with easy accessibility in prompt payment of taxes and enhancing the level of transparency and accountability in FIRS,” Fowler remarked.

Terzugwe thanked the Executive Chairman for the rapid intervention to address the major impediments confronting the state in tax administration which includes inadequate equipment for capturing Taxpayer Identification Numbers, poor administration of tax audit analysis and debt management issues among others.

NEWS

FIRS partners BSIR for mutual development

By Ayorinde Aghede

The Executive Chairman, FIRS, Tunde Fowler and the Acting Chairman, BSIR, Atser Terzugwe

37April - June, 2018 A Quarterly Publication of the Federal Inland Revenue Service

NEWS

he Federal Inland Revenue

TService (FIRS) and Bauchi State Board of Internal Revenue

(BBIR) have agreed to further close ranks and to share information and knowledge on how to increase tax revenue receipts at the federal, state and local government levels.

During his courtesy visit to the FIRS headquarters in Abuja, the Chairman, BBIR, Jibrin Jibo, said that Bauchi State has benefited much from deploying the tax administration initiatives of the FIRS, urging the FIRS to continue supporting the BBIR with ideas and innovations.

The Executive Chairman, FIRS, Tunde Fowler, said FIRS would not hold back any initiative that would help states across the federation to do better in terms of tax administration and revenue collection.

Fowler encouraged State Boards of Internal Revenue (SBIRs) to also consider staff welfare as well as other ideas that will increase revenue collection. He also noted that exchange of information on taxpayer database between FIRS and SBIRs will be done through the Joint Tax Board (JTB) Secretary in order to ensure that taxpayers within the states are adequately captured.

“FIRS sees tax administration in Nigeria as not only federally-driven. As a result, FIRS strives to share new ideas that it comes up with at the JTB. This was demonstrated recently by the signing of an MOU on cooperation between the FIRS and SBIRs,” he said.

Fowler highlighted some of the achievements of the FIRS which he invited the Bauchi team to take advantage of. “FIRS has deployed ICT solutions to ease tax administration, especially for the benefit of the taxpayer. Taxpayers will no longer need to come to FIRS offices to do their tax transactions. They can access Stamp Duties and download receipts, amongst several other functions on the website,” Fowler disclosed.

The Executive Chairman also said that FIRS also takes it upon itself to educate Nigerian youths, some of whom are not used to paying tax, and has come up with publications for taxpayer education for secondary school students.

In changing tax administration for the better, the FIRS had to look inwards at its modus operandi and changed some of its operations by imbibing some of the attributes of President Muhammadu Buhari, whom he said lives a peaceful and quiet lifestyle. The FIRS, Fowler said, will therefore do its job better in terms of

its behavior towards taxpayers.The Executive Chairman further

noted that FIRS has improved considerably in its revenue collection by exceeding its target and expressed its willingness to share and exchange information and ideas with the Bauchi state team.

Jibo, a former staff of FIRS, described his visit as a 'homecoming' and said the opportunity to lead the delegation of Directors of the Bauchi State Internal Revenue Board to the FIRS was a great pleasure and a rare opportunity for his staff.

According to Jibo, there is no gainsaying the fact that the FIRS under the leadership of Fowler has achieved a lot. He expressed his belief that there is a connection between the outstanding performance in the FIRS and the recognition given to FIRS staff by most state governments who prefer FIRS staff to chair their SBIRs.

Jibo said: “Some achievements of the Bauchi State Internal Revenue Service are the creation of new Area Offices, successful enforcement activities, staff welfare in terms of upgrade via promotion, work with MDAs in community impact programmes and audit functions. We must thank the FIRS for its continuous support and we look forward to a greater working relationship.”

FIRS partners Bauchi Internal Revenue Board to boost revenue collection

By Maureen Ugwa

The Executive Chairman, FIRS, Tunde Fowler and the Chairman, BBIR, Jibrin Jibo

36 A Quarterly Publication of the Federal Inland Revenue Service April - June, 2018

he Executive Chairman, Federal

TInland Revenue Service (FIRS), Tunde Fowler has expressed his

unwavering commitment towards achieving stronger collaboration with the Benue State Internal Revenue (BSIR), in a bid to transform federal and states revenue collection.

Fowler, gave the assurance during a courtesy visit by the Acting Chairman of BSIR, Atser Terzugwe, saying that the mandate of the two revenue institutions are similar and they required closer ties to sustain enhanced revenue boost.

He said the Service's readiness through partnership with the state is much desired as it will create an avenue for sharing of tax experiences and knowledge transfer which will help reduce over-dependence on prescribed laws that make tax payment difficult for taxpayers.

“We do have a lot of information

in our books right now about organizations, enterprises, business names, limited liability companies that have margin turnover in excess of N1 billion. However, we discovered that over five thousand of them have not been paying taxes. We are therefore willing to share these details with you for further findings towards building a continued mutual beneficial engagement which we believe will help to strengthen our revenue base, both at the state and federal levels, in order to change the financial profile of Nigeria. FIRS will not cease to contribute to the Nigerian tax system,” he stated

The Executive Chairman also recommended the need to establish a study engagement between FIRS and BSIR to provide the necessary information to tackle debt management concerns within the tax system.

“In the spirit of our cooperation and good working relationship we

believe that we have the ability to fund the respective budgets both at the federal and state levels. I encourage BSIR to take advantage of the signed memorandum of understanding between the FIRS and other State Boards of Internal Revenue which has tremendously improved the level of cooperation in tax administration, as well as the 6 e-Solutions which have been providing taxpayers with easy accessibility in prompt payment of taxes and enhancing the level of transparency and accountability in FIRS,” Fowler remarked.

Terzugwe thanked the Executive Chairman for the rapid intervention to address the major impediments confronting the state in tax administration which includes inadequate equipment for capturing Taxpayer Identification Numbers, poor administration of tax audit analysis and debt management issues among others.

NEWS

FIRS partners BSIR for mutual development

By Ayorinde Aghede

The Executive Chairman, FIRS, Tunde Fowler and the Acting Chairman, BSIR, Atser Terzugwe

37April - June, 2018 A Quarterly Publication of the Federal Inland Revenue Service

NEWS

he Federal Inland Revenue

TService (FIRS) and Bauchi State Board of Internal Revenue

(BBIR) have agreed to further close ranks and to share information and knowledge on how to increase tax revenue receipts at the federal, state and local government levels.

During his courtesy visit to the FIRS headquarters in Abuja, the Chairman, BBIR, Jibrin Jibo, said that Bauchi State has benefited much from deploying the tax administration initiatives of the FIRS, urging the FIRS to continue supporting the BBIR with ideas and innovations.

The Executive Chairman, FIRS, Tunde Fowler, said FIRS would not hold back any initiative that would help states across the federation to do better in terms of tax administration and revenue collection.

Fowler encouraged State Boards of Internal Revenue (SBIRs) to also consider staff welfare as well as other ideas that will increase revenue collection. He also noted that exchange of information on taxpayer database between FIRS and SBIRs will be done through the Joint Tax Board (JTB) Secretary in order to ensure that taxpayers within the states are adequately captured.

“FIRS sees tax administration in Nigeria as not only federally-driven. As a result, FIRS strives to share new ideas that it comes up with at the JTB. This was demonstrated recently by the signing of an MOU on cooperation between the FIRS and SBIRs,” he said.

Fowler highlighted some of the achievements of the FIRS which he invited the Bauchi team to take advantage of. “FIRS has deployed ICT solutions to ease tax administration, especially for the benefit of the taxpayer. Taxpayers will no longer need to come to FIRS offices to do their tax transactions. They can access Stamp Duties and download receipts, amongst several other functions on the website,” Fowler disclosed.

The Executive Chairman also said that FIRS also takes it upon itself to educate Nigerian youths, some of whom are not used to paying tax, and has come up with publications for taxpayer education for secondary school students.

In changing tax administration for the better, the FIRS had to look inwards at its modus operandi and changed some of its operations by imbibing some of the attributes of President Muhammadu Buhari, whom he said lives a peaceful and quiet lifestyle. The FIRS, Fowler said, will therefore do its job better in terms of

its behavior towards taxpayers.The Executive Chairman further

noted that FIRS has improved considerably in its revenue collection by exceeding its target and expressed its willingness to share and exchange information and ideas with the Bauchi state team.

Jibo, a former staff of FIRS, described his visit as a 'homecoming' and said the opportunity to lead the delegation of Directors of the Bauchi State Internal Revenue Board to the FIRS was a great pleasure and a rare opportunity for his staff.

According to Jibo, there is no gainsaying the fact that the FIRS under the leadership of Fowler has achieved a lot. He expressed his belief that there is a connection between the outstanding performance in the FIRS and the recognition given to FIRS staff by most state governments who prefer FIRS staff to chair their SBIRs.

Jibo said: “Some achievements of the Bauchi State Internal Revenue Service are the creation of new Area Offices, successful enforcement activities, staff welfare in terms of upgrade via promotion, work with MDAs in community impact programmes and audit functions. We must thank the FIRS for its continuous support and we look forward to a greater working relationship.”

FIRS partners Bauchi Internal Revenue Board to boost revenue collection

By Maureen Ugwa

The Executive Chairman, FIRS, Tunde Fowler and the Chairman, BBIR, Jibrin Jibo

NEWS

38 A Quarterly Publication of the Federal Inland Revenue Service April - June, 2018

he Economic and Financial

TCrimes Commission (EFCC), has credited the N1 billion tax

payment recovery to the synergy between the Federal Inland Revenue Service (FIRS) and the EFCC.

According to the EFCC, the tax recovery was as a result of the enforcement drive in revenue collection following the recent establishment of the FIRS-EFCC Joint Task Force.

The Executive Chairman, Tunde Fowler, represented by Faramade Ogunsanya, Director, Efficiency Unit, during his address, said FIRS' partnership with EFCC has helped to recover a substantial amount of tax within the last three months.

“Over the period, I'm aware that you have been able to assist us in generating some taxes. We really do appreciate this cooperation with us in the interest of ensuring that the

revenue of the country is paid to the right sources,” he said.

Ogunsanya equally thanked the EFCC team for the cooperation towards realization of the Service's revenue objectives, urging them to observe confidentiality of taxpayers information while discharging their duties.

“We have to keep our duty of confidentiality under the law because matters regarding taxpayers and tax defaulters are usually confidential,” he remarked.

The EFCC team lead, Mr. Hanafi Baba, stated that the purpose of the visit was to enhance the efficiency of the working relationship between both agencies in collaboration with the Joint Tax Board (JTB).

He however stressed the need to establish a platform where taxpayers' data can be sourced for easy tracking of tax information.

Director, Legal Services Department, Ike Odume counseled EFCC to maintain arrest and detention of persons in accordance with the Criminal Justice Arbitration Act 2015, adding that under no circumstance should the right of any Nigerian be abridged under the exercise.

The two agencies agreed to develop a Memorandum of Understanding, MoU that will guide the processes and activities of their operations.

Head, FIRS-EFCC Joint Task Force, Hart Enwerem observed the need for both teams to streamline their activities so as to minimize interference and reduce the bureaucratic bottlenecks that may be responsible for approval delays and ensure criminal tax cases are given accelerated hearing and treated expeditiously in order to achieve clarity and legality of purpose.

EFCC credits N1 billion tax recovery to mutual efforts

By Ayorinde Aghede

The Acting Chairman of the EFCC, Ibrahim Magu and the Executive Chairman, FIRS

39April - June, 2018 A Quarterly Publication of the Federal Inland Revenue Service

he Nigeria Civil Service Union

T(NCSU), Federal Inland Revenue Service (FIRS) Unit held a seminar

at the Brighter Hotel and Suites in Minna, the Niger State capital. The theme for the seminar, 'Labour – Management Relations, a Tool for Industrial Harmony in FIRS', was chosen because of the good working relationship between the union and Management.

According to the Chairman, NCSU FIRS Unit, Comrade Hassan Abdulrahman Idris there existed a good working relationship between the union and Management. “Even though sometimes we may disagree on certain fundamental issues, at the end we find a way forward and achieve reasonable success,” he said.

“Some staff have asked why we do not go on strike in order to achieve certain things, but we believe that it is not about strike or shutting down the Service. Rather, it is about dialogue, dialogue and more dialogue!

“Since the inauguration of the current NCSU Executive Council under my leadership on 11th December, 2017, we have been able to achieve quite a lot. Among our achievements, we have been able to facilitate payment of bonuses, we were involved in the review of staff salary, we have revived the Joint Union Council and we have partnered with our sister union to seek approval for staff housing estates, among other things.

“The NCSU FIRS Unit charges staff to be more dedicated to work, avoid negative tendencies such as sharp practices that are capable of preventing us from getting bonuses and we also call on Management to put every machinery in place that will

improve the welfare of staff who are their greatest assets.”

Some of the papers presented at the seminar included 'Industrial Relations: Meaning, Scope and Essence' by

Mohammed Jiddah Idris and 'Trade Union's Role in Promoting Efficiency in the Workplace' by Comrade Nehemiah A Ogem, the Assistant General-Secretary (Organising and State Council Affairs)

NCSU holds seminar in MinnaBy Umar Yusuf Usman

Group picture of the participants at the NCSU seminar

ederal Inland Revenue Service

F(FIRS) in an effort to ensure e f f i c i e n c y a n d t o t a l

t r a n s f o r m a t i o n o f t h e t a x administration system has agreed to cooperate with the Federal Capital Territory Internal Revenue Service (FCT/IRS) to develop a robust taxpayer database information system.

The Executive Chairman, FIRS, Tunde Fowler said that one of such shared information is on properties owned by individuals and corporate entit ies that can help generate in format ion of h igh net worth individuals in the Federal Capital Territory (FCT).

According to him, the engagement will additionally promote an effective and efficient tax administration system and encourage adherence with statutory regulations in line with best global practice.

He said both institutions were committed to serving taxpayers in a

manner that will instill transparency and taxpayers'satisfaction.

In his remarks, Chairman FCT/IRS, Abdullahi Attah sought the Executive Cha i rman 's ass is tance through provision of work materials to enable the office function optimally.

“My commitment is to ensure that the flag of FIRS keeps flying.The purpose of our visit is essentially to thank the Executive Chairman for a very smooth transition since the FCT/IRS commenced operations and to seek quick assistance in areas that we consider very challenging,” Attah explained.

He also plans on the deployment of additional staff with special interest in debt management in order to address i s s ue s r e vo l v i ng a round deb t management and achieve optimum productivity.

I t wi l l be recal led that the establishment of the FCT/IRS gave the agency the mandate of collecting taxes from individuals and corporate entities residing in the FCT, a function that was previously carried out by FIRS.

FCT/IRS partners with FIRS on optimal performance

By Ayorinde Aghede

NEWS

38 A Quarterly Publication of the Federal Inland Revenue Service April - June, 2018

he Economic and Financial

TCrimes Commission (EFCC), has credited the N1 billion tax

payment recovery to the synergy between the Federal Inland Revenue Service (FIRS) and the EFCC.

According to the EFCC, the tax recovery was as a result of the enforcement drive in revenue collection following the recent establishment of the FIRS-EFCC Joint Task Force.

The Executive Chairman, Tunde Fowler, represented by Faramade Ogunsanya, Director, Efficiency Unit, during his address, said FIRS' partnership with EFCC has helped to recover a substantial amount of tax within the last three months.

“Over the period, I'm aware that you have been able to assist us in generating some taxes. We really do appreciate this cooperation with us in the interest of ensuring that the

revenue of the country is paid to the right sources,” he said.

Ogunsanya equally thanked the EFCC team for the cooperation towards realization of the Service's revenue objectives, urging them to observe confidentiality of taxpayers information while discharging their duties.

“We have to keep our duty of confidentiality under the law because matters regarding taxpayers and tax defaulters are usually confidential,” he remarked.

The EFCC team lead, Mr. Hanafi Baba, stated that the purpose of the visit was to enhance the efficiency of the working relationship between both agencies in collaboration with the Joint Tax Board (JTB).

He however stressed the need to establish a platform where taxpayers' data can be sourced for easy tracking of tax information.

Director, Legal Services Department, Ike Odume counseled EFCC to maintain arrest and detention of persons in accordance with the Criminal Justice Arbitration Act 2015, adding that under no circumstance should the right of any Nigerian be abridged under the exercise.

The two agencies agreed to develop a Memorandum of Understanding, MoU that will guide the processes and activities of their operations.

Head, FIRS-EFCC Joint Task Force, Hart Enwerem observed the need for both teams to streamline their activities so as to minimize interference and reduce the bureaucratic bottlenecks that may be responsible for approval delays and ensure criminal tax cases are given accelerated hearing and treated expeditiously in order to achieve clarity and legality of purpose.

EFCC credits N1 billion tax recovery to mutual efforts

By Ayorinde Aghede

The Acting Chairman of the EFCC, Ibrahim Magu and the Executive Chairman, FIRS

39April - June, 2018 A Quarterly Publication of the Federal Inland Revenue Service

he Nigeria Civil Service Union

T(NCSU), Federal Inland Revenue Service (FIRS) Unit held a seminar

at the Brighter Hotel and Suites in Minna, the Niger State capital. The theme for the seminar, 'Labour – Management Relations, a Tool for Industrial Harmony in FIRS', was chosen because of the good working relationship between the union and Management.

According to the Chairman, NCSU FIRS Unit, Comrade Hassan Abdulrahman Idris there existed a good working relationship between the union and Management. “Even though sometimes we may disagree on certain fundamental issues, at the end we find a way forward and achieve reasonable success,” he said.

“Some staff have asked why we do not go on strike in order to achieve certain things, but we believe that it is not about strike or shutting down the Service. Rather, it is about dialogue, dialogue and more dialogue!

“Since the inauguration of the current NCSU Executive Council under my leadership on 11th December, 2017, we have been able to achieve quite a lot. Among our achievements, we have been able to facilitate payment of bonuses, we were involved in the review of staff salary, we have revived the Joint Union Council and we have partnered with our sister union to seek approval for staff housing estates, among other things.

“The NCSU FIRS Unit charges staff to be more dedicated to work, avoid negative tendencies such as sharp practices that are capable of preventing us from getting bonuses and we also call on Management to put every machinery in place that will

improve the welfare of staff who are their greatest assets.”

Some of the papers presented at the seminar included 'Industrial Relations: Meaning, Scope and Essence' by

Mohammed Jiddah Idris and 'Trade Union's Role in Promoting Efficiency in the Workplace' by Comrade Nehemiah A Ogem, the Assistant General-Secretary (Organising and State Council Affairs)

NCSU holds seminar in MinnaBy Umar Yusuf Usman

Group picture of the participants at the NCSU seminar

ederal Inland Revenue Service

F(FIRS) in an effort to ensure e f f i c i e n c y a n d t o t a l

t r a n s f o r m a t i o n o f t h e t a x administration system has agreed to cooperate with the Federal Capital Territory Internal Revenue Service (FCT/IRS) to develop a robust taxpayer database information system.

The Executive Chairman, FIRS, Tunde Fowler said that one of such shared information is on properties owned by individuals and corporate entit ies that can help generate in format ion of h igh net worth individuals in the Federal Capital Territory (FCT).

According to him, the engagement will additionally promote an effective and efficient tax administration system and encourage adherence with statutory regulations in line with best global practice.

He said both institutions were committed to serving taxpayers in a

manner that will instill transparency and taxpayers'satisfaction.

In his remarks, Chairman FCT/IRS, Abdullahi Attah sought the Executive Cha i rman 's ass is tance through provision of work materials to enable the office function optimally.

“My commitment is to ensure that the flag of FIRS keeps flying.The purpose of our visit is essentially to thank the Executive Chairman for a very smooth transition since the FCT/IRS commenced operations and to seek quick assistance in areas that we consider very challenging,” Attah explained.

He also plans on the deployment of additional staff with special interest in debt management in order to address i s s ue s r e vo l v i ng a round deb t management and achieve optimum productivity.

I t wi l l be recal led that the establishment of the FCT/IRS gave the agency the mandate of collecting taxes from individuals and corporate entities residing in the FCT, a function that was previously carried out by FIRS.

FCT/IRS partners with FIRS on optimal performance

By Ayorinde Aghede

NEWS

40 A Quarterly Publication of the Federal Inland Revenue Service April - June, 2018

he President of the Federal

TInland Revenue Service (FIRS) Sports Club, Daniel Ogbaki has

ascribed the emergence of the Service as overall winner in the recently organized Federation Service Games competition held in Bauchi, Bauchi state to Management's support.

Ogbaki, while thanking the Executive Chairman, FIRS, Tunde Fowler for his unflinching support towards the progress and development of sporting activities and general wellness of staff, congratulated him upon the performance of the Service's revenue collection efforts, while promising to encourage his colleagues'contribution in order to exceed the collection target.

“We are thankful for the support that you have availed this Sports Club. As we are aware, the objective of the Service is primarily centered on revenue generation and a healthy workforce is also a productive workforce. We however wish to seek your support ahead of the next Federation Service Games competition which is expected to hold in December, wherein we will be

participating as defending champions,” Ogbaki remarked.

He said FIRS emerged as the best organisation, topping the competition with 25 medals and a trophy.

He said FIRS Sports Club is fully committed to the strategic focus of the Service to ensure value-added collection on both non-oil and oil taxes.

“At the Federation of Public Service games last year, FIRS obtained ten gold medals, three silver medals and twelve bronze medals. Our participation at the event enabled us to showcase the FIRS brand, gain the highest recognition and also the largest contingent amongst all participating MDAs,” He explained.

The Sports Club President also informed the Executive Chairman that one of the challenges of the Sports Club was the lack of an aerobics programme for staff of the regions.

The Executive Chairman, while delivering his remarks urged staff to be focused towards the realization of the revenue mandate as the country relied on FIRS for funding of the federation budget.

“The federal, state and local governments also expect us to fund their respective budgets. So far, we

have achieved 78% of our revenue target, which is about N3.9 trillion and a little below what we realized about the same period last year but you will agree that there is room for improvement. I believe through additional efforts, we should exceed N5 trillion by the end of the year,” he emphasized.

Fowler approved commencement of aerobics activities for FIRS regional staff as it will contribute to staff wellness and overall performance.

The Executive Chairman reiterated that tax administration is a service to taxpayers and a tool for national development, adding that field officers must imbibe a positive change attitude in carrying out their day-to-day roles.

“Prior to now, we had a lot of arm-chair tax administration. Having realized the need to change our focus and vision, we felt that staff needed to change their attitude towards service delivery and thought over certain changes that should be fixed internally as it affects individuals.”

He commended the executives for an excellent performance during the last sporting event, adding that the effort of winning medals was not an easy task and urged them to keep up the good work.

FIRS sports master crowns victory on Management's support

By Ayorinde Aghede

The Executive Chairman receiving his personal sports jersey from Daniel Ogbaki

NEWS

41April - June, 2018 A Quarterly Publication of the Federal Inland Revenue Service

he Executive Chairman, Federal

TInland Revenue Service (FIRS), Tunde Fowler has advisedthe

Gambia Revenue Authority (GRA) to exercise caution following the recent discovery of crude oil in the country.

“Firstly, let me say congratulations to you on your country's discovery of oil but I do not know whether it is right to say congratulations or beware based on research gathered. Nigeria, in the late seventies was lucky to discover oil which indeed provided a good source of foreign exchange and revenue for us but imposed a lot of challenges. Meanwhile, we tend to forget there are other sources of revenue that can be harnessed, especially when those sources play major roles in terms of total revenue yield which can either be generated in foreign or local monies,” he remarked.

Fowler said that challenges were associated with the oil and gas sector. In addition, he said Nigeria was reviewing all the laws guiding the operations of the oil and gas sector as it related to revenue generation and reinforcing its existing partnership with all oil companies within the

sector to maximize the potentials within the sector.

According to him, “A lot of our laws have not been updated because we have not reached a common agreement. Basically, our laws are passed through the Senate and House of Representatives, after which they are assented to by the President. So far, we have been able to cross most of the hurdles.”

The Gambian visit is expected to facilitate positive engagement between GRA and relevant government agencies in Nigeria following the discovery of crude oil resources in the country.

The Deputy Commissioner, GRA, Fafaning Cham, explained that the purpose of the visit was geared towards establishing operational procedures that will be needed to run the sector and avoid pitfalls suffered by most resource rich nations.

“We are here in Nigeria on a study tour. Recently, Gambia suddenly discovered oil and we are about to commence licensing of petroleum resources to oil companies. We felt the need to visit experienced countries like Nigeria that have operated this

sector over the years in order to help build our knowledge base on the challenges encountered through their years of producing oil and how they overcame it and to learn best practices before embarking on the issuance of licenses,” Cham said.

At the national level, he said that the Gambian Negotiation Petroleum Committee (GNPC) is the financial sub-group as far as the revenue sector was concerned and also oversees the fiscal regimes which include taxation and other fiscal items.

Cham thanked the FIRS for the positive response and support they gave which, he admitted, will help Gambia's economy develop meaningfully.

“We are thankful for this engaging session as we believe that it will help us resolve some of those challenges confronting us within the petroleum sector,”he stated.

The study focus areas include the current status of the Nigerian oil and gas industry, the industry structure, the regulatory bodies, the enabling legislation and current updates on the legislation, taxing parameters, as well as profit from oil and gas licenses.

Beware! Fowler cautions Gambia on crude depositBy Ayorinde Aghede

The Executive Chairman, FIRS and the Deputy Commissioner, GRA

NEWS

40 A Quarterly Publication of the Federal Inland Revenue Service April - June, 2018

he President of the Federal

TInland Revenue Service (FIRS) Sports Club, Daniel Ogbaki has

ascribed the emergence of the Service as overall winner in the recently organized Federation Service Games competition held in Bauchi, Bauchi state to Management's support.

Ogbaki, while thanking the Executive Chairman, FIRS, Tunde Fowler for his unflinching support towards the progress and development of sporting activities and general wellness of staff, congratulated him upon the performance of the Service's revenue collection efforts, while promising to encourage his colleagues'contribution in order to exceed the collection target.

“We are thankful for the support that you have availed this Sports Club. As we are aware, the objective of the Service is primarily centered on revenue generation and a healthy workforce is also a productive workforce. We however wish to seek your support ahead of the next Federation Service Games competition which is expected to hold in December, wherein we will be

participating as defending champions,” Ogbaki remarked.

He said FIRS emerged as the best organisation, topping the competition with 25 medals and a trophy.

He said FIRS Sports Club is fully committed to the strategic focus of the Service to ensure value-added collection on both non-oil and oil taxes.

“At the Federation of Public Service games last year, FIRS obtained ten gold medals, three silver medals and twelve bronze medals. Our participation at the event enabled us to showcase the FIRS brand, gain the highest recognition and also the largest contingent amongst all participating MDAs,” He explained.

The Sports Club President also informed the Executive Chairman that one of the challenges of the Sports Club was the lack of an aerobics programme for staff of the regions.

The Executive Chairman, while delivering his remarks urged staff to be focused towards the realization of the revenue mandate as the country relied on FIRS for funding of the federation budget.

“The federal, state and local governments also expect us to fund their respective budgets. So far, we

have achieved 78% of our revenue target, which is about N3.9 trillion and a little below what we realized about the same period last year but you will agree that there is room for improvement. I believe through additional efforts, we should exceed N5 trillion by the end of the year,” he emphasized.

Fowler approved commencement of aerobics activities for FIRS regional staff as it will contribute to staff wellness and overall performance.

The Executive Chairman reiterated that tax administration is a service to taxpayers and a tool for national development, adding that field officers must imbibe a positive change attitude in carrying out their day-to-day roles.

“Prior to now, we had a lot of arm-chair tax administration. Having realized the need to change our focus and vision, we felt that staff needed to change their attitude towards service delivery and thought over certain changes that should be fixed internally as it affects individuals.”

He commended the executives for an excellent performance during the last sporting event, adding that the effort of winning medals was not an easy task and urged them to keep up the good work.

FIRS sports master crowns victory on Management's support

By Ayorinde Aghede

The Executive Chairman receiving his personal sports jersey from Daniel Ogbaki

NEWS

41April - June, 2018 A Quarterly Publication of the Federal Inland Revenue Service

he Executive Chairman, Federal

TInland Revenue Service (FIRS), Tunde Fowler has advisedthe

Gambia Revenue Authority (GRA) to exercise caution following the recent discovery of crude oil in the country.

“Firstly, let me say congratulations to you on your country's discovery of oil but I do not know whether it is right to say congratulations or beware based on research gathered. Nigeria, in the late seventies was lucky to discover oil which indeed provided a good source of foreign exchange and revenue for us but imposed a lot of challenges. Meanwhile, we tend to forget there are other sources of revenue that can be harnessed, especially when those sources play major roles in terms of total revenue yield which can either be generated in foreign or local monies,” he remarked.

Fowler said that challenges were associated with the oil and gas sector. In addition, he said Nigeria was reviewing all the laws guiding the operations of the oil and gas sector as it related to revenue generation and reinforcing its existing partnership with all oil companies within the

sector to maximize the potentials within the sector.

According to him, “A lot of our laws have not been updated because we have not reached a common agreement. Basically, our laws are passed through the Senate and House of Representatives, after which they are assented to by the President. So far, we have been able to cross most of the hurdles.”

The Gambian visit is expected to facilitate positive engagement between GRA and relevant government agencies in Nigeria following the discovery of crude oil resources in the country.

The Deputy Commissioner, GRA, Fafaning Cham, explained that the purpose of the visit was geared towards establishing operational procedures that will be needed to run the sector and avoid pitfalls suffered by most resource rich nations.

“We are here in Nigeria on a study tour. Recently, Gambia suddenly discovered oil and we are about to commence licensing of petroleum resources to oil companies. We felt the need to visit experienced countries like Nigeria that have operated this

sector over the years in order to help build our knowledge base on the challenges encountered through their years of producing oil and how they overcame it and to learn best practices before embarking on the issuance of licenses,” Cham said.

At the national level, he said that the Gambian Negotiation Petroleum Committee (GNPC) is the financial sub-group as far as the revenue sector was concerned and also oversees the fiscal regimes which include taxation and other fiscal items.

Cham thanked the FIRS for the positive response and support they gave which, he admitted, will help Gambia's economy develop meaningfully.

“We are thankful for this engaging session as we believe that it will help us resolve some of those challenges confronting us within the petroleum sector,”he stated.

The study focus areas include the current status of the Nigerian oil and gas industry, the industry structure, the regulatory bodies, the enabling legislation and current updates on the legislation, taxing parameters, as well as profit from oil and gas licenses.

Beware! Fowler cautions Gambia on crude depositBy Ayorinde Aghede

The Executive Chairman, FIRS and the Deputy Commissioner, GRA

42 A Quarterly Publication of the Federal Inland Revenue Service April - June, 2018

NEWS

43April - June, 2018 A Quarterly Publication of the Federal Inland Revenue Service

he Executive Chairman, Federal

TInland Revenue Service (FIRS), Tunde Fowler has approved

collaboration with federal agencies to increase revenue as well as bolster tax sensitization and engagement with individuals and corporate entities.

Fowler, represented by the Coordinating Director, Support Services Group, Peter Hena during a courtesy visit by the Acting Director General, National Commission for Museums and Monuments (NCMM), Alhaji Abdulkerim Kadiri, stated that the long existing relationship between the two agencies, facilitated the establishment of the FIRS Tax Museum which helped increase tax awareness and showcase the heritage of taxation in Nigeria.

Kadiri, while extoling the Service's performance,expressed delight over

the upturn in revenue since the assumption of Tunde Fowler as Executive Chairman, reiterating the Commission's openness to engagement opportunities that will promote economic activities towards enhanced revenue generation.

He said that the NCMM, among other objectives,was established to collect, conserve, preserve, research and exhibit cultural artifacts to the public for the purposes of promoting tourism development in Nigeria.

“Nigeria, as we are aware, is very rich in culture, monuments, heritage and service which incidentally is a pivotal arm of the tourism industry, hence, NCMM as a major parastatal has a principal role to play in tourism development, particularly in managing the various repositories of cultural artifacts as well as conserving and restoring the cultural heritage and property of Nigeria,” he remarked.

According to him, the need to diversify revenue and income away from oil and gas into areas such as agriculture, solid minerals and tourism is essential to promoting historic exhibition of cultural artifacts from Nigeria.

He added that the Commission in its effort to rediscover Nigeria's heritage sites, cultural assets and museums, initiated an engagement tour with the Association of Bikers in Nigeria and international counterparts to tour fourteen states across the country in order to preserve its cultural heritage.

“We have decided to use this project to rebrand the museums and monuments in upholding the country's cultural heritage and to change the negative perception of the public which undoubtedly will help to attract visitors and boost overall revenue yield,” Kadiri stated.

NCMM canvass support for sustainable cultural development

By Ayorinde Aghede

The Ag. DG, National Commission for Museums and Monuments, NCMM and the CD, SSG Mr. Peter Hena in a group photograph

42 A Quarterly Publication of the Federal Inland Revenue Service April - June, 2018

NEWS

43April - June, 2018 A Quarterly Publication of the Federal Inland Revenue Service

he Executive Chairman, Federal

TInland Revenue Service (FIRS), Tunde Fowler has approved

collaboration with federal agencies to increase revenue as well as bolster tax sensitization and engagement with individuals and corporate entities.

Fowler, represented by the Coordinating Director, Support Services Group, Peter Hena during a courtesy visit by the Acting Director General, National Commission for Museums and Monuments (NCMM), Alhaji Abdulkerim Kadiri, stated that the long existing relationship between the two agencies, facilitated the establishment of the FIRS Tax Museum which helped increase tax awareness and showcase the heritage of taxation in Nigeria.

Kadiri, while extoling the Service's performance,expressed delight over

the upturn in revenue since the assumption of Tunde Fowler as Executive Chairman, reiterating the Commission's openness to engagement opportunities that will promote economic activities towards enhanced revenue generation.

He said that the NCMM, among other objectives,was established to collect, conserve, preserve, research and exhibit cultural artifacts to the public for the purposes of promoting tourism development in Nigeria.

“Nigeria, as we are aware, is very rich in culture, monuments, heritage and service which incidentally is a pivotal arm of the tourism industry, hence, NCMM as a major parastatal has a principal role to play in tourism development, particularly in managing the various repositories of cultural artifacts as well as conserving and restoring the cultural heritage and property of Nigeria,” he remarked.

According to him, the need to diversify revenue and income away from oil and gas into areas such as agriculture, solid minerals and tourism is essential to promoting historic exhibition of cultural artifacts from Nigeria.

He added that the Commission in its effort to rediscover Nigeria's heritage sites, cultural assets and museums, initiated an engagement tour with the Association of Bikers in Nigeria and international counterparts to tour fourteen states across the country in order to preserve its cultural heritage.

“We have decided to use this project to rebrand the museums and monuments in upholding the country's cultural heritage and to change the negative perception of the public which undoubtedly will help to attract visitors and boost overall revenue yield,” Kadiri stated.

NCMM canvass support for sustainable cultural development

By Ayorinde Aghede

The Ag. DG, National Commission for Museums and Monuments, NCMM and the CD, SSG Mr. Peter Hena in a group photograph

he Nigeria Tax Research

TNetwork (NTRN) has held its second annual meeting with the

theme 'Revenue Beyond Oil Reliance' at the Federal Inland Revenue Service (FIRS) Training School, Durumi recently.

The NTRN is dedicated to enhancing the generation and exchange of tax knowledge in Nigeria. It is concerned with all topics related to taxation, ranging from tax policy to tax administration, and from academic papers to practical case studies.

The Executive Chairman, FIRS, Tunde Fowler, who was represented by the Director, Career and Skills Development Department, Junila Takon said at the opening of the two-day meeting of the NTRN that “There is now widespread recognition of the need to diversify the sources of government's revenue.”

Takon also said that the need for diversification was also important to build a more sustainable revenue base

for inclusive growth. The NRTN conference was aimed at bringing together stakeholders to showcase the best current researches on the pressing challenges of taxation and revenue in Nigeria.

The NRTN, an initiative of the International Centre for Tax and Development funded by the Bill and Melinda Gates Foundation, was launched in 2017 in partnership with the FIRS.

The network, she added, “aims to provide funding for quality, policy-related research partially, or wholly undertaken by Nigerian researchers. It would also provide a platform for knowledge exchange and evidence-based debate on tax issues through workshops, conferences and publications.”

Earlier, the Coordinator of NRTN, Michael Falade, said, “Rigorous research that can inform both tax policy and practice is the key to raising increased tax revenue in an equitable manner without impeding economic growth.”

Falade lamented that though

Nigeria possessed a huge deposit of natural resources, only oil has served as its economic mainstay for a very long time.

He, however, said that other sectors could be developed to maximise what the nation has beyond mineral resources and oil.

“To a very large extent oil is a major mainstay in many world economies, but to have a sustainable economy, we have to move beyond oil.

“We cannot just rely on oil; our advocacy is to make on how to really diversify the economy and make practical plans and decisions in order to put our economy in the right place,” he said.

He lamented that reliance on oil had limited the country's ability to finance and deliver critical social programmes and infrastructure to spur national development.

Part of the programmes of the conference included useful panel discussions, comments, observations, questions and answers from among participants.

Nigerian Tax Research Network holds conference

By Faiza Muhammad Farouq

Group photograph of participants at the NRTN conference

here are people whose health

Tsituations manifest earlier than 50 years. There are also people

blessed with good health. You hear some people who are 40 years and above say “I have not been ill in the last 20 years,” or “I have not been to hospital for 16 years.” Thank God for your health, but you better go for medical check-up.

Do not assume anything when it comes to health. Once you are 40 years, annual medical check-up becomes a necessity.

The check-ups recommended by medical practitioners include physical examination, visual examination, blood sugar level, Lipid profile, liver function test, electrolyte, full blood count, urinalysis, prostate specific antigen (men above 40yrs), chest x-ray (above 40yrs), prostate scan (men above 50yrs), ECG (those above 40yrs), colonoscopy (men above 50yrs), mammography (for women above 40yrs and some other tests.

Each of these procedures serves a particular purpose. Chest x-ray, for instance, is meant to show the state of your lungs. Chest x-rays can detect heart-related lung problems, cancer, infections l ike tuberculosis and pneumonia or air collecting in the space around a lung, among others.

Blood sugar level is for all persons 40 years and above, especially people from families where there is a history of diabetes. In fact, such persons should have been doing their checks long before attaining 40.

Normal blood sugar level is between 70 and 99 fasting (that is when you wake up in the morning) and not more than 140 two hours after a meal at all times. Early detection of high blood sugar can help you stave off diabetes and the attendant complications. Happily, it is one of those tests you can do at home with your test kits.

Like blood sugar, blood pressure can also be easily checked at home with the test kits. Normal blood pressure is diastolic 80 and systolic 120. Once your systolic is 130 and above, you have high

blood pressure.Of course, as people grow older,

these figures can be higher and still be okay, but you must consult your doctor if you have blood pressure.

Some people develop migraine w h e n t h e i r B P g o e s u p . T h e consequences of BP are mostly devastating: stroke which leads to partial or total paralysis and death. People with high BP should check their BP regularly and take their BP drugs religiously. It is a silent killer.

As you hit 40, you also need to adjust your lifestyle to stay healthy. This includes the kind and quantity of food you consume. In your younger days, your metabolism was higher and you could burn off carbohydrates, sugar, etc, easily. Not anymore. You need to cut down on quantity of food to reduce the work of your aging internal organs.

The common saying: “eat like a king in the morning, a prince in the afternoon and a pauper in the evening” might not apply to some people in their 50s and above.

They simply obey their bodies and eat little and when is necessary. You also have to be weary of the common saying that “you can never be wrong with fruits”.

Unless you understand your body very well, you can go horribly wrong with fruits. People with diabetic tendencies cannot consume “sweet” fruits like bananas, oranges, pineapple, etc., in large volumes. It is either strict moderation or total abstinence.

You also need to know what goes well with your body. Some people are allergic to certain fruits.

Finally, in your younger days, sports

and exercise were fun and recreation. Once you hit 40, exercising becomes a matter of life and death. For many people, it is no longer fun, because of aching joints and aging internal organs, but you must do exercise or perish slowly. You should understand the whole essence of exercise at this age: keeping healthy, giving a reasonably good account of yourself in the other room (for men) and shedding some weight, if possible.

Building muscles should not be a priority of men 40 years and above. Who are you trying to impress? Your wife of 20 years who is more interested in financial muscles that can give her financial security over time?

That is why people above 40 years are advised to walk briskly (not jog) about 30 minutes every day. Beyond your physician, let your personal doctor, your body, be your guide, so as to prevent one from slumping and dying prematurely.

At the National Stadium in Lagos, you see some sexagenarians and septuagenarians jogging, while people in their 30s are walking. It is partly because of the instructions from their bodies. Some of those old men jogging have been doing it religiously for over 40 years.

Listen to your body, but exercise you must. Someone said that “it is good to exercise regularly because if the benefits of exercising are put in a pill, it would be the best sold pill in the world.”

Many young people in their 40s and 50s are dropping dead with alarming rapidity. Please do not swell the number because of carelessness or negligence.

Health and lifestyle advisory: The need for comprehensive medical check annually

Adapted from a write up by Francis Ehwerido

45April - June, 2018 A Quarterly Publication of the Federal Inland Revenue Service 44 A Quarterly Publication of the Federal Inland Revenue Service April - June, 2018

he Nigeria Tax Research

TNetwork (NTRN) has held its second annual meeting with the

theme 'Revenue Beyond Oil Reliance' at the Federal Inland Revenue Service (FIRS) Training School, Durumi recently.

The NTRN is dedicated to enhancing the generation and exchange of tax knowledge in Nigeria. It is concerned with all topics related to taxation, ranging from tax policy to tax administration, and from academic papers to practical case studies.

The Executive Chairman, FIRS, Tunde Fowler, who was represented by the Director, Career and Skills Development Department, Junila Takon said at the opening of the two-day meeting of the NTRN that “There is now widespread recognition of the need to diversify the sources of government's revenue.”

Takon also said that the need for diversification was also important to build a more sustainable revenue base

for inclusive growth. The NRTN conference was aimed at bringing together stakeholders to showcase the best current researches on the pressing challenges of taxation and revenue in Nigeria.

The NRTN, an initiative of the International Centre for Tax and Development funded by the Bill and Melinda Gates Foundation, was launched in 2017 in partnership with the FIRS.

The network, she added, “aims to provide funding for quality, policy-related research partially, or wholly undertaken by Nigerian researchers. It would also provide a platform for knowledge exchange and evidence-based debate on tax issues through workshops, conferences and publications.”

Earlier, the Coordinator of NRTN, Michael Falade, said, “Rigorous research that can inform both tax policy and practice is the key to raising increased tax revenue in an equitable manner without impeding economic growth.”

Falade lamented that though

Nigeria possessed a huge deposit of natural resources, only oil has served as its economic mainstay for a very long time.

He, however, said that other sectors could be developed to maximise what the nation has beyond mineral resources and oil.

“To a very large extent oil is a major mainstay in many world economies, but to have a sustainable economy, we have to move beyond oil.

“We cannot just rely on oil; our advocacy is to make on how to really diversify the economy and make practical plans and decisions in order to put our economy in the right place,” he said.

He lamented that reliance on oil had limited the country's ability to finance and deliver critical social programmes and infrastructure to spur national development.

Part of the programmes of the conference included useful panel discussions, comments, observations, questions and answers from among participants.

Nigerian Tax Research Network holds conference

By Faiza Muhammad Farouq

Group photograph of participants at the NRTN conference

here are people whose health

Tsituations manifest earlier than 50 years. There are also people

blessed with good health. You hear some people who are 40 years and above say “I have not been ill in the last 20 years,” or “I have not been to hospital for 16 years.” Thank God for your health, but you better go for medical check-up.

Do not assume anything when it comes to health. Once you are 40 years, annual medical check-up becomes a necessity.

The check-ups recommended by medical practitioners include physical examination, visual examination, blood sugar level, Lipid profile, liver function test, electrolyte, full blood count, urinalysis, prostate specific antigen (men above 40yrs), chest x-ray (above 40yrs), prostate scan (men above 50yrs), ECG (those above 40yrs), colonoscopy (men above 50yrs), mammography (for women above 40yrs and some other tests.

Each of these procedures serves a particular purpose. Chest x-ray, for instance, is meant to show the state of your lungs. Chest x-rays can detect heart-related lung problems, cancer, infections l ike tuberculosis and pneumonia or air collecting in the space around a lung, among others.

Blood sugar level is for all persons 40 years and above, especially people from families where there is a history of diabetes. In fact, such persons should have been doing their checks long before attaining 40.

Normal blood sugar level is between 70 and 99 fasting (that is when you wake up in the morning) and not more than 140 two hours after a meal at all times. Early detection of high blood sugar can help you stave off diabetes and the attendant complications. Happily, it is one of those tests you can do at home with your test kits.

Like blood sugar, blood pressure can also be easily checked at home with the test kits. Normal blood pressure is diastolic 80 and systolic 120. Once your systolic is 130 and above, you have high

blood pressure.Of course, as people grow older,

these figures can be higher and still be okay, but you must consult your doctor if you have blood pressure.

Some people develop migraine w h e n t h e i r B P g o e s u p . T h e consequences of BP are mostly devastating: stroke which leads to partial or total paralysis and death. People with high BP should check their BP regularly and take their BP drugs religiously. It is a silent killer.

As you hit 40, you also need to adjust your lifestyle to stay healthy. This includes the kind and quantity of food you consume. In your younger days, your metabolism was higher and you could burn off carbohydrates, sugar, etc, easily. Not anymore. You need to cut down on quantity of food to reduce the work of your aging internal organs.

The common saying: “eat like a king in the morning, a prince in the afternoon and a pauper in the evening” might not apply to some people in their 50s and above.

They simply obey their bodies and eat little and when is necessary. You also have to be weary of the common saying that “you can never be wrong with fruits”.

Unless you understand your body very well, you can go horribly wrong with fruits. People with diabetic tendencies cannot consume “sweet” fruits like bananas, oranges, pineapple, etc., in large volumes. It is either strict moderation or total abstinence.

You also need to know what goes well with your body. Some people are allergic to certain fruits.

Finally, in your younger days, sports

and exercise were fun and recreation. Once you hit 40, exercising becomes a matter of life and death. For many people, it is no longer fun, because of aching joints and aging internal organs, but you must do exercise or perish slowly. You should understand the whole essence of exercise at this age: keeping healthy, giving a reasonably good account of yourself in the other room (for men) and shedding some weight, if possible.

Building muscles should not be a priority of men 40 years and above. Who are you trying to impress? Your wife of 20 years who is more interested in financial muscles that can give her financial security over time?

That is why people above 40 years are advised to walk briskly (not jog) about 30 minutes every day. Beyond your physician, let your personal doctor, your body, be your guide, so as to prevent one from slumping and dying prematurely.

At the National Stadium in Lagos, you see some sexagenarians and septuagenarians jogging, while people in their 30s are walking. It is partly because of the instructions from their bodies. Some of those old men jogging have been doing it religiously for over 40 years.

Listen to your body, but exercise you must. Someone said that “it is good to exercise regularly because if the benefits of exercising are put in a pill, it would be the best sold pill in the world.”

Many young people in their 40s and 50s are dropping dead with alarming rapidity. Please do not swell the number because of carelessness or negligence.

Health and lifestyle advisory: The need for comprehensive medical check annually

Adapted from a write up by Francis Ehwerido

45April - June, 2018 A Quarterly Publication of the Federal Inland Revenue Service 44 A Quarterly Publication of the Federal Inland Revenue Service April - June, 2018

TRUTHTruth is that which is in

accordance with fact or reality. It is also the state of being honest, upright and accurate.

Truth is a virtue. It cannot be wished away by any organisation that targets gaining positive public perception and high productive level. Truth could be used as a metric for defining integrity measures, honesty and commitment in a work environment. An organisation is on the lane of truth if it keeps faith with laid down policies that are relevant to its overall objectives and mandate.

A sure way to laying down truth as precedence is to form a policy around it and mould the behavioural pattern of people strictly towards it; and ensuring that culpable defaulters of such policies are not condoned with impunity. This will guide action the of people against fraud, dubiousness, eye-service and lack of ownership spirit in the work environment.

Truth when inculcated into the core values of the system will beget all round equity and fairness. A

system devoid of truth may short-lived. Truth is indispensible.

TRANSPARENCYTransparency implies openness,

communication, and accountability. It means operating in such a way that it is easy for others to see what actions are performed. Transparency is a good ingredient of an all inclusive management system.

In a working environment, transparency is a virtue as well as a vital social tool. As a virtue, it could be used to measure the compliance of workforce to the transparency codes of any organisation; while as a social instrument, transparency could be applied to gauge the openness of management in its policy formulation.

A workplace devoid of this tool might be heading for a collapse. Transparency, abridged communication gaps and accountability will curb all levels of suspicion and build trust.

Transparency is needed to bring management closer to the staff; and to ensure that a sense of belonging at all levels is enthroned. Building up transparency is not an enigma; it

is attainable. Steady cascading of information from top to bottom is a sure way to being transparent. Unilateral policy formulation would be a sharp antidote to transparency in any administration.

TRANQUILLITYA total state of serenity,

calmness and peacefulness could be referred to as tranquillity.

A serene environment is most suitable for achieving result. A state of tranquillity engenders optimum concentration and helps increase understanding of work done. This is as opposed to a noisy or distractive environment that cuts of people's concentration and produces divided attention.

Tranquillity of the inner mind is also pivotal at a typical work environment. This refers to serenity of the body, thoughts and consciousness. Tranquillity can be achieved via a conscious separation from internal and external distractions to enable the mind work effortlessly in understanding tasks at hand.

A tranquil environment attracts quite a number of benefits more than places bustling and humming

with activities. Naturally, people prefer a serene environment for business. Tranquillity in a work environment can be achieved without rigour; it all needs a sound policy and a tranquil work place will be close to call.

TOLERANCETolerance is the ability or

willingness to accept the existence of divergent opinions or behaviour that contradicts one's believe, standing or choice. It is a freedom from bigotry and suggests a fair, objective and permissive attitude toward those whose opinions, practices, race, religion, nationality, etc., differ from one's own.

Tolerance can be an essential component in a social unity and in the relationships between groups of people who are different from each other to engender respect, equality and liberty. It can be a remedy to intolerance and prejudice. Tolerance is a virtue. It enables players in a social setting to consider and collate

all shades of contribution and opinion relevant to the attainment of a predetermined goal.

Tolerance will be a vital asset in a work place predominated by people from diverse religious perspective, distinct tutelage and parental upbringing. It could be a source for a strong team spirit. Tolerance does not consider educational enclave, it only weights the potency of individual functions and considers if it could be useful to getting result.

THRIFTINESS Thriftiness is the quality of being

frugal, sparing, prudent or economical in the consumption of resources in order to avoid waste, lavishness or extravagance.

In the corporate world, thriftiness comes to play as an essential instrument for restraining excesses in acquiring goods and services; and to ensure resourceful use of already owned economic goods and services, to achieve a

longer term goal.Thriftiness in not only a social

instrument, it is also a virtue. Management of organisation could cultivate it and transfer same to the workforce as a way to maximising result and reducing cost. Common strategies of thriftiness include reduction of waste, curbing costly habits, suppressing instant gratification by means of fiscal self-restraint, seeking efficiency, defying expensive social norms and embracing cost-free options.

Thriftiness may contribute to health by leading people to avoid products that are both expensive and unhealthy when used in excess. Thrifty living is mainly practised by those who aim to cut expenses, have more money, and get the most they possibly can from their money. It engenders discipline among workforce and spirit of careful spending.

A sure way to reducing cost of administration is through thriftiness. It is real, let's pursue it.

100 Wise Words

By Silas Onwe Ebenyi

47April - June, 2018 A Quarterly Publication of the Federal Inland Revenue Service 46 A Quarterly Publication of the Federal Inland Revenue Service April - June, 2018

TRUTHTruth is that which is in

accordance with fact or reality. It is also the state of being honest, upright and accurate.

Truth is a virtue. It cannot be wished away by any organisation that targets gaining positive public perception and high productive level. Truth could be used as a metric for defining integrity measures, honesty and commitment in a work environment. An organisation is on the lane of truth if it keeps faith with laid down policies that are relevant to its overall objectives and mandate.

A sure way to laying down truth as precedence is to form a policy around it and mould the behavioural pattern of people strictly towards it; and ensuring that culpable defaulters of such policies are not condoned with impunity. This will guide action the of people against fraud, dubiousness, eye-service and lack of ownership spirit in the work environment.

Truth when inculcated into the core values of the system will beget all round equity and fairness. A

system devoid of truth may short-lived. Truth is indispensible.

TRANSPARENCYTransparency implies openness,

communication, and accountability. It means operating in such a way that it is easy for others to see what actions are performed. Transparency is a good ingredient of an all inclusive management system.

In a working environment, transparency is a virtue as well as a vital social tool. As a virtue, it could be used to measure the compliance of workforce to the transparency codes of any organisation; while as a social instrument, transparency could be applied to gauge the openness of management in its policy formulation.

A workplace devoid of this tool might be heading for a collapse. Transparency, abridged communication gaps and accountability will curb all levels of suspicion and build trust.

Transparency is needed to bring management closer to the staff; and to ensure that a sense of belonging at all levels is enthroned. Building up transparency is not an enigma; it

is attainable. Steady cascading of information from top to bottom is a sure way to being transparent. Unilateral policy formulation would be a sharp antidote to transparency in any administration.

TRANQUILLITYA total state of serenity,

calmness and peacefulness could be referred to as tranquillity.

A serene environment is most suitable for achieving result. A state of tranquillity engenders optimum concentration and helps increase understanding of work done. This is as opposed to a noisy or distractive environment that cuts of people's concentration and produces divided attention.

Tranquillity of the inner mind is also pivotal at a typical work environment. This refers to serenity of the body, thoughts and consciousness. Tranquillity can be achieved via a conscious separation from internal and external distractions to enable the mind work effortlessly in understanding tasks at hand.

A tranquil environment attracts quite a number of benefits more than places bustling and humming

with activities. Naturally, people prefer a serene environment for business. Tranquillity in a work environment can be achieved without rigour; it all needs a sound policy and a tranquil work place will be close to call.

TOLERANCETolerance is the ability or

willingness to accept the existence of divergent opinions or behaviour that contradicts one's believe, standing or choice. It is a freedom from bigotry and suggests a fair, objective and permissive attitude toward those whose opinions, practices, race, religion, nationality, etc., differ from one's own.

Tolerance can be an essential component in a social unity and in the relationships between groups of people who are different from each other to engender respect, equality and liberty. It can be a remedy to intolerance and prejudice. Tolerance is a virtue. It enables players in a social setting to consider and collate

all shades of contribution and opinion relevant to the attainment of a predetermined goal.

Tolerance will be a vital asset in a work place predominated by people from diverse religious perspective, distinct tutelage and parental upbringing. It could be a source for a strong team spirit. Tolerance does not consider educational enclave, it only weights the potency of individual functions and considers if it could be useful to getting result.

THRIFTINESS Thriftiness is the quality of being

frugal, sparing, prudent or economical in the consumption of resources in order to avoid waste, lavishness or extravagance.

In the corporate world, thriftiness comes to play as an essential instrument for restraining excesses in acquiring goods and services; and to ensure resourceful use of already owned economic goods and services, to achieve a

longer term goal.Thriftiness in not only a social

instrument, it is also a virtue. Management of organisation could cultivate it and transfer same to the workforce as a way to maximising result and reducing cost. Common strategies of thriftiness include reduction of waste, curbing costly habits, suppressing instant gratification by means of fiscal self-restraint, seeking efficiency, defying expensive social norms and embracing cost-free options.

Thriftiness may contribute to health by leading people to avoid products that are both expensive and unhealthy when used in excess. Thrifty living is mainly practised by those who aim to cut expenses, have more money, and get the most they possibly can from their money. It engenders discipline among workforce and spirit of careful spending.

A sure way to reducing cost of administration is through thriftiness. It is real, let's pursue it.

100 Wise Words

By Silas Onwe Ebenyi

47April - June, 2018 A Quarterly Publication of the Federal Inland Revenue Service 46 A Quarterly Publication of the Federal Inland Revenue Service April - June, 2018