Posted by From Kunle Aderinokun in Abuja on
Federal Inland Revenue Service (FIRS) yesterday disclosed that National Electric Power Authority (NEPA) was owing Federal Government in tax revenue to the tune of N8 billion.
Federal Inland Revenue Service (FIRS) yesterday disclosed that National Electric Power Authority (NEPA) was owing Federal Government in tax revenue to the tune of N8 billion.
This, according to FIRS, was arrears, which had accumulated over the years. Also, FIRS said President Olusegun Obasanjo has approved that it deducts four per cent of tax revenue collection to fund its operations.
Speaking yesterday in Abuja at the opening of "2005 Preliminary Course for Inspectors of Taxes," FIRS Chairman, Ms Ifueko Omoigui, however pointed that NEPA was alone in the tax non-compliance but Nigeria Port Authorities (NPA) and some other major ministries and parastatals.
She said only about 30 per cent of taxpayers are performing the obligations of paying their taxes as and when due, noting that FIRS has been meeting with the officials of NEPA with a view to ensuring that the payment of backlog of unpaid taxes are paid.
According to her, "the reason why we even got to this stage of knowing that NEPA had N8 billion was because we are in dialogue with NEPA, reconciling figures. And we have had several meetings on ways in which these monies would be repaid. In fact, what has improved in terms of collection has been the current payments. This has improved relatively to what existed in the past. And right now, we already have approval on how the backlog would be treated and we are currently pursuing that with both the MD of NEPA, Mr. Joseph Makoju as well as the Minister of Power and Steel, Senator Liyel Imoke.
"So, that is more or less done. I am not in a position to announce that yet until all the documents are signed to ensure that we get our taxes paid. So that is an on-going process. But, I have mentioned it because we intend to pursue every single tax payer to logical conclusion. I am not just saying for the purpose of saying it. NEPA is not the only one. Nigerian Ports Authority is another one that owes us quite a lot of taxes."
She therefore revealed that the FIRS has set up a dedicated tax office which would "predominantly focus on Federal Government agencies and ministries to ensure that tax payments are done because as they are collecting it we do need to ensure that these monies are effectively collected."
However, FIRS chairman said "for the first time in the history of the service that we are going to be funded to a percentage of commission."
Although she said Obasanjo had approved the four per cent funding, the National Assembly would still have to pass it into law. "Right now, it is still with the National Assembly to be passed as part of the appropriation bills," she noted, while pointing out that the constitution actually provides that the Service get that kind of leverage.
She admitted that some of FIRS staff were picked up for their involvement in the fraud. According to her, "there were some tax officers there were picked up in respect of it and EFCC is handling it. Some other staff are on the run."
She added that FIRS was working with Economic and Financial Crimes Commission (EFCC), to close a lot of its outstanding cases.