LIRS, FIRS collaborate on tax audit, information exchange
Economy General News Uncategorized

LIRS, FIRS collaborate on tax audit, information exchange

The Federal Inland Revenue Service (FIRS), has signed a Memorandum of Understanding (MoU) with Lagos Internal Revenue Service (LIRS) on joint tax audit, investigation and automatic exchange of information.

Mr Johannes Wojuola, Special Assistant on Media and Communication of FIRS, announced this in a statement on Tuesday in Abuja.

Wojuola said the CEOs of both tax agencies, Mr Muhammad Nami of FIRS and Mr Ayodele Subair of LIRS, signed the MoU in Lagos.

The Minister of State, Budget and National Planning, Prince Clem Agba and Gov. Babajide Sanwo-Olu of Lagos witnessed the event.

Speaking, Nami said that the cooperation would enable the two authorities to work as a team in sharing relevant information.

Such exchange, he noted, would assist both parties in their tax administration and enforcement roles.

The Special Assistant said that the collaboration would also enhance capacity building between both tax authorities.

“We will carry out a joint audit and investigation.

“We will also conduct automatic an exchange of information for gathering data for the purpose of tax administration.

“With that information, we will be able to carry out tax administration seamlessly.

“In addition, we are going to ensure effective implementation of the presumptive tax regime,’’ Nami was quoted as saying.

He noted that the presumptive tax would be for the purpose of Personal Income Tax and Ground Rent administration in Lagos State.

He emphasised that people enable civilisation through the taxes they pay.

“The government cannot provide critical infrastructure if people don’t pay taxes.”

In his remarks, Gov. Sanwo-Olu said that the collaboration started before 2022 with the intention to improve the fiscal space.

He said Nigeria’s ratio of tax to GDP, which is around six to eight per cent, was unimpressive and unacceptable.

According to him, nationals within the Sub-Saharan region are doing better.

“Other nations even within the sub-Sahara region are doing between 14 to 15 per cent.

“If you talk about developed countries, they are doing 35 to 40 per cent and that is what makes them developed countries.

“It is an avenue for you to support your government and hold them accountable,” he said.

Sanwo-Olu said that with the collaboration, the state is on track to rise above its N1.7 trillion to within the region of about N5 trillion.

 

 

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