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FIRS tells MDAs to stop using tax consultants, it’s illegal

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FIRS tells MDAs to stop using consultants to collect federal taxes

By Jeph Ajobaju, Chief Copy Editor

Ministries, Departments, and Agencies (MDAs) have been warned by the Federal Inland Revenue Service (FIRS) not to use consultants or concessionaires to collect taxes owed the federal government or its agencies.

FIRS Chairman Muhammed Nami expressed concern some MDAs violate the law by using consultants or concessionaires to assess and collect taxes.

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“It has come to the notice of the FIRS that some 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,” Nami said in a statement, according to the News Agency of Nigeria (NAN).

He cited Section 68(2) of the FIRS Act and clarified that “the primary agency responsible for administration, assessment, collection, accounting and enforcement of taxes and levies due to the federal government or any of its agencies is the FIRS.

“This is except as may be authorised by the minister responsible for finance by regulation as approved by the National Assembly.”

Nami said Section 12(4) of the FIRS Act provides that the FIRS may engage consultants, accountants or other agents to carry out certain functions on its behalf, but the law prohibits tax assessment and collection by consultants.

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Recovering tax deductions by states, councils

Nairametrics reports that the FIRS) had announced to begin in July this year compliance exercise on Value Added Tax (VAT) and Withholding Tax.

The FIRS also

Announced plans to begin enforcing and recovering unremitted tax deductions by states and local governments.

Advised the federal government and Finance Minister Zainab Ahmed to decline approval of request for the issuance of state bonds or other securities in the capital market because of fear of default payment.

Advised against granting requests for external borrowing and approval of domestic loans from commercial banks or other financial institutions by states and local governments.

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