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FIRS targets N4trn Tax Revenue from Oil, Gas Firms in 2020

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The Federal Inland Revenue Service, FIRS, has said that it expects to generate N4 trillion as tax revenue from the oil and gas industry in the 2020 fiscal year.

The Executive Chairman, FIRS, Mr. Muhammad Nami, disclosed this yesterday in Abuja when it hosted a team of the Nigerian office of the Organisation for Economic Cooperation and Development (OECD) at FIRS headquarters.

The FIRS Chairman also sought the support of the OECD in curbing tax evasion schemes of oil majors and multinationals operating in Nigeria through the illegal act of transfer pricing under which these foreign companies dodge tax payment in Nigeria and transfer their profit offshore.

The Comptroller-General (CG) Federal Fire Service, Dr. Liman Alhaji Ibrahim, also paid a courtesy visit to the FIRS Headquarters in Abuja where he said that the Federal Fire Service has made a commitment to work with FIRS to protect public property and records from a possible fire outbreak.

According to Nami, the FIRS needs capacity-building support, information sharing, data interpretation, usage and related technical synergy with the OECD in order for the Service to meet tax revenue targets in the extractive industry and the newly emergent Digital Economy.

He also observed that although the revolution in information and communication technology (ICT) has made physical filing of tax returns obsolete, it has also made tax collection more complex, especially in trans-border trade and trans-continental commerce in which big players like Amazon, Google, Facebook, Alibaba, and other e-commerce corporations operate with, which has made collection of tax from them difficult.

“This is more so for developing countries like Nigeria where our people buy luxury goods more and more online while these big online stores don’t pay any tax to us here in Nigeria.”, he emphasized.

“The complexity of the Digital Economy to the tax authorities also extents to the telecommunication and financial sectors, including the emerging trades and the exchange carried out using digital currency,” Nami also disclosed.

The FIRS helmsman commended the Fire Service for coming to the rescue of the FIRS last year during a fire incident that occurred in the FIRS building in 2019 and the prompt response received from your organization.

Nami also advocated closer collaborations between the FIRS and the Fire Service in such areas as routine visits of firemen and women to FIRS offices for drills and related safety education as well as regular inspection, servicing and replacement of anti-fire equipment.

Source Prompt News Online
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