Tax Harmonisation: FIRS signs MoU with LIRS for joint tax operations and audit

From Abubakar Yunusa ABUJA

The Federal Inland Revenue Service (FIRS) yesterday signed a Memorandum of Understanding (MoU) with the Lagos Internal Revenue Service (LIRS) where the two tax authorities would collaborate on joint tax audit, investigation and automatic exchange of information.

The MoU signing ceremony which took place at the State House, Marina, Lagos State, Monday was executed by the Executive Chairman, FIRS, Mr. Muhammad Nami, and the Executive Chairman, LIRS, Mr. Ayodele Subair, and was witnessed by the Honorable Minister of State, Budget and National Planning, Prince Clem Agba as well as the Lagos State Governor, Mr. Babajide SanwoOlu.

The MoU which establishes a joint FIRS, LIRS Audit and Investigation team obliges the two tax authorities to share relevant information that would assist both parties in their tax administration and enforcement roles, while also providing for capacity building between both authorities.

Speaking during the ceremony, the FIRS Executive Chairman noted that the cooperation would enable the two authorities to work as a team to achieve these objectives.

“We will carry out joint audit and investigation as a team; we will also conduct automatic exchange of information for gathering data for the purpose of tax administration. With that information, we would be able to carry out tax administration seamlessly.

“In addition to that, what we are going to introduce administratively because of our joint operation, is to ensure that we are able to implement presumptive tax regime as far as issues of tax administration is concerned.

“But that is going to happen after we are done with the regulation we are putting together with the Ministry of Finance, Budget and National Planning, which the Honourable Minister of Finance would issue in due course.

“The presumptive tax would be for the purpose of Personal Income Tax and also Ground Rent administration in Lagos State.

“Another key issue I want to emphasize is capacity building. There are certain things we know as FIRS and would like to share with the State Inland Revenue Service. And there are also areas of specialization you have that we expect you to share with us through capacity building.

“The major objective of this collaboration is to raise enough funds for Lagos State government and the Federal Government to be able to fund their budgetary requirements,” the FIRS boss stated.

In his message to the people of Lagos, Mr. Nami stated that “civilisation globally does not happen by accident,” but that “people or citizens of various jurisdictions, states and countries globally make it happen through the taxes they pay.”

Mr. Nami explained that without funds received by the government through taxes, governments all over the globe would not be able to provide critical infrastructures such as roads, hospitals, internationally rated airports, schools and be able to cater for security and safety of their citizens.

He stated that “with this collaboration, we are confident that Lagos State would earn more revenue from taxes, and be able to deliver to Lagosians a 4th Mainland Bridge, a Lekki International Airport — which it has already conceived — and other critical infrastructure. “I appeal to the Lagos State Government to continue to give Lagosians— particularly taxpaying residents— value for the taxes they pay.”

The Lagos State Governor, Mr. Babjide Sanwo-Olu in his remarks stated that this collaboration commenced over a year ago with the intention to improve the fiscal space of the country.

He noted that the country’s tax to GDP ratio, at around six to eight percent was unimpressive and unacceptable, stating that other nationals within the SubSaharan region are doing better.

“Other nations even within the Sub-Sahara region are doing between 14 to 15 percent. If you talk about developed countries, they are doing 35 to 40% and that is what makes them developed countries because indeed, it is really an avenue for you to support your government and hold them accountable.”

Mr. Sanwo-Olu noted that with this collaboration, the State was on track to rise above its N1.7 trillion to within the region of four to five trillion Naira.

The Honorable Minister of State, Budget and National Planning, Prince Clem Agba commended the two tax authorities for this landmark agreement, and appealed to other states to follow suit.

NECA to FG: Prosecute saboteurs of new naira notes supply to avert looming danger

From Abubakar Yunusa Abuja

The Nigeria Employers’ Consultative Association (NECA) has asked the federal government to prosecute anyone sabotaging efficient and smooth implementation of the naira redesign policy.

Adewale-Smatt Oyerinde, director-general, NECA, made the call in a statement on Monday.

Oyerinde said the government must provide ways to save the country from its fragile state and further bashing.

He also urged the government to efficiently implement its policies, as Nigerians tussle with multi-facet problems.

“The government should, as a matter of urgency, ensure the availability of the new naira notes and if necessary to prosecute saboteurs to ease the frustration of Nigerians and avert the impending breakdown of law and order,” he said.

“One worrisome and distinctive feature of recent economic policies remains the poor implementation of such.

“While it is commendable to develop policies and programmes, the implementation of same is as important to the success of the said policies and programmes.

“The trail of poor implementation of decisions is palpable and worrisome.

‘80% PoS operators out of business’ — AMMBAN laments naira scarcity

From

Abubakar Yunusa Abuja

The Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) says over 80 percent of its members have shut down their operations due to the cash crunch in the country.

Speaking to journalists on Tuesday, Hussein Olanrewaju, national chief aggregating officer of AMMBAN, said the current cash shortage has affected the means of livelihood of point of sale (PoS) operators nationwide.

TheCable had reported that POS operators increased transaction charges amid the increasing demand for cash by customers.

Commenting on the position of the association, Olarenwaju said AMMBAN has cautioned its members not to engage in such an “illegal” act.

“However, the reality is obvious, agents are treated as other Nigerians even when they act as a mini-bank in catering for the needs of underbanked and unbanked Nigerians,” he said.

“Some agents do go the extra mile to get cash which of course comes with a cost and then push the same cost to their customers. It’s sad and worrisome.

“AMMBAN has frowned on this illegal act and has warned its members not to be found wanting in such an act.

“This has made over 80%

PoS agents shut down their business across the country and negatively affected their livelihood.

“Where there used to be 10 agents before, you can hardly find 2 agents operating in the same location now.

“We have been engaging with the CBN to categorise PoS agents separately so that these excesses are put to an end.”

Olanrewaju said the CBN’s cash swap programme might not achieve its objective due to the low number of agents selected for the scheme.

He also said the scheme was not profitable for POS operators.

“Cash swap program is aimed at enabling the hinterland to exchange the old naira notes for the new notes at a maximum of N10,000 per person per day without charges,” the AMMBAN official said.

“Agents are only allowed to charge if the amount is above N10,000 or if it’s a card withdrawal. In the true sense, it’s not profitable.

“The CBN governor said there will be a constant review of limits. From the look of things, the CBN is trying to get data they don’t have to monitor money transactions in the country.

“The only record they have is the amount of money printed and how much is in the bank’s custody. They do not however know how much is in individual custody.”

“It is obvious that the country is not short of good policies, but their implementation by relevant authorities has remained a challenge. While the naira redesign is commendable, the implementation, so far, is short of commendable.

“A policy that was purportedly designed to curb inflation, encourage the cashless culture, and foster financial inclusion among others is inadvertently pushing many Nigerians into frustration in view of the current epileptic bank transfer/epayment systems and general inadequacy of online banking infrastructure.

“The current situation portends grave danger for the economy, even as Nigerians do not have access to the new notes, businesses are short of sales and most employees find it difficult to go to work because of lack of cash.