We’ll Track Multinationals Evading Tax in Lagos – FIRS

The Federal Inland Revenue Services (FIRS) has revealed that some big companies have been operating in Lagos State without paying their full tax due to the coffers of government.

FIRS Chairman, Mohammed Nami during a visit to the Lagos State government stated that some multinational companies operating in Lagos – Nigeria’s commercial hub – have not been paying CIT since 2011.

Nami said the tax-evading firms will be tracked down and put in the tax net.

He said: “A number of multinational companies operating in Lagos State have not paid CIT since 2011 as they appeared to have perfected the illicit act of profit shifting to escape paying tax.

“The FIRS and the Lagos State government need to collaborate to map out strategies to tax these tax-evading companies, whose goods and services we all consume or patronise and who also use public infrastructure to do their business but yet repatriate their profits home.

“We need to tax them so that we can have the fund to combat insecurity, build and maintain public infrastructure and provide social amenities for Nigerians.”

The FIRS boss also charged all tax-collecting agents in the public and private sectors to make correct collection and prompt remittance of all collectable taxes priority.

Nami also clarified that the outstanding Value Added Tax (VAT) on contracts invoiced before the February 1, 2020 kick-off date for Finance Act 2019, should be paid on the old VAT rate, stressing that all collecting agencies in default in this regard should clear this up immediately.

The FIRS chief urged the National Airspace Management Agency (NAMA) and similar collecting agencies to increase their diligence in collecting offshore taxation from service providers based outside Nigeria.

“If you don’t take offshore tax from them, they will take it back to their countries and pay it there. But we need this money more in Nigeria to fight insecurity, build public infrastructure and provide social amenities for our people,” the FIRS chief said.