It is an offence to contract collection of taxes to consultants, FIRS warns MDAs

The Federal Inland Revenue Service, FIRS, has warned Ministries, Departments and Agencies, MDAs against authorizing any person or any agency other than it to assess, collect, enforce or account for taxes, saying it is, “an offence under Section 68(3) of the FIRSEA” and “Such appointment or authorization is punishable, upon conviction, with fine, imprisonment or both under Section 6816) of the Act”.

Whilst stating that no part of its responsibilities can be contracted to a private enterprise by any other MDA, the FIRS in a statement released yesterday, Thursday September 22, noted: “Section 12(4) of the FIRSEA further provides that The Service may appoint and employ such consultants, including tax consultants or accountants and agents to transact any business or to do any act required to be transacted or done in the execution of its functions under this act; provided that such consultants shall not carry out duties of assessing and collecting tax or routine responsibilities of tax officials”.

The statement e-signed by the Executive Chairman of Federal Inland Revenue Service, FIRS, Muhammad Nami and obtained by Fresh Angle International from the twitter handle of FIRS, added inter-alia: “It has come to the notice of the Federal Inland Revenue Service that some Ministries, Departments and Agencies of Government (MDAs) are appointing concessionaires or consultants for the assessment, collection, accounting or enforcement of taxes and levies due to the Federal Government or any of its agencies. Some MDAs include such functions in their agreements with concessionaires or consultants.

“The Service wish to call the attention of the general public, particularly, all MDAs to Section 68(2) of the Federal Inland Revenue Service (Establishment) Act (FIRSEA) 2007 (as amended), which provides that subject to subsection (1) and notwithstanding any other law imposing taxes or levies in Nigeria, the Service shall be the primary agency of the Federal Government of Nigeria responsible for the administration, assessment, collection, accounting and enforcement of taxes and levies due to the Federal Government or any of its agencies, except as may be authorised by the Minister responsible for Finance by regulation as approved by the National assembly.

“In view of the foregoing, where any person, individual or corporate, has any information or assistance that may be of use to the Service for the purpose of administration, assessment, collection, accounting or enforcement of taxes and levies due to the Federal Government or any of its agencies or for the performance of its duties under the FIRSEA, such person should approach the Service directly”.

×