FIRS SETS TO REVIEW TAX LAW THAT WILL CRACK DOWN ON TAX EVADERS

Hmmm!!! This is certainly sad news to all the fraudulent companies in Nigeria that do everything possible to avoid paying their taxes. These thieving companies deduct some amount of money from the salaries of their employees as taxes only for them to pocket it. The Federal Inland Revenue Service (FIR) has made it clear that it would crack down on tax evaders by denying access to banking facilities for individuals and companies that fail to join its register.

Tectono Business Review got to know this development when the Chairman, FIRS, Mr. Sunday Ogungbesan, revealed it to a forum in Lagos. He said that that there were more than 440,000 companies in the country but only about 120,000 were paying taxes. This is too bad.

According to the FIRS boss, it is difficult to track the financial activities of those who do not pay taxes as most of them said their firms are not active.

He added: “We are collaborating with the central bank to enforce compulsory registration with the tax authority by companies and individuals before they can access their bank accounts. The tax identification numbers were introduced for corporate bank accounts in 2012 but some firms whose accounts pre-date the system are currently not obliged to have one. There is a need to review our tax laws because they are not stringent enough to deter evaders. Tax evasion can be punished with up to five years in prison.