Business - Business & Economy - News - June 12, 2022

Nationwide monitoring of tax compliance in MDAs, NGOs, others to begin July 1, says FIRS

Individuals or tax agents given two weeks to remit all VAT or Withholding tax deductions or face sanctions

MEDIATRACNET

The nationwide monitoring of tax compliance by ministries, departments and agencies (MDAs), non-governmental organizations and corporate organizations is scheduled to commence on July 1, the Federal Inland Revenue Service (FIRS) has announced.

Details of the announcement on Friday said the monitoring would focus on the extent of compliance in the payment of the Value Added Tax (VAT) and Withholding Tax (WHT) by the affected entities.

The announcement was contained in a public notice signed by the Chairman of the FIRS, Muhammad Nami, who said the exercise followed an earlier notice for commencement of a similar enforcement and recovery of unremitted tax deductions owed the Federation by some States and Local Governments.

The VAT and Withholding Tax Compliance Monitoring exercise, the FIRS Chairman said, would involve teams of FIRS officers visiting selected taxpayers and taxable persons to review their VAT and Withholding Tax payment records across the country.

“The Federal Inland Revenue Service (FIRS) shall embark on a nationwide VAT and WHT compliance monitoring exercise with effect from July 1, 2022,” the notice reads.

“As a result, teams of officers from the Service shall visit selected taxpayers, taxable persons (including companies, NGOs or MDAs) to review their VAT and WHT records.”

In the notice, Nami also said the exercise would cover the period between 2016 and 2020 accounting years for taxable persons whose records have been audited by the Service up to 2015 accounting year.

The Chairman, however, noted that for taxpayers whose records have not been audited by the Service up to 2015, the exercise would be extended to include the prior years that have not been tax audited.

The Service also called on all taxable persons and tax agents to immediately remit to the Federation Account deductions of VAT and Withholding Tax they have made on its behalf.

“All taxable persons or tax agents who have made deductions of VAT or WHT on behalf of the Service are required to immediately remit all such deductions to the FIRS within two weeks of this publication or face sanctions,” the Chairman warned.

The notice also stated that those who would be visited during the monitoring exercise would be notified and informed of the required documents for review beforehand.

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