Tax Alert: FIRS Issues Notice to Taxpayers with Annual Turnover of N1 Billion and above
According to the FIRS, the PN was issued as a follow-up to the recently concluded Voluntary Assets and Income Declaration Scheme (VAIDS). FIRS stated that it was aware that certain companies, partnerships and enterprises with annual turnover of N1 billion and above were still non-compliant with respect to tax remittances. It directed that such non-compliant taxpayers should immediately remit all taxes due.
Amongst other things, the FIRS mandated the following:
- Withholding tax deductions should be remitted with the schedule of amount deducted, name, address, Tax Identification Number and the nature of supply of the taxpayer;
- Value Added Tax (VAT) return form should be completed detailing values of supplies for the period, VAT output charged and total value of purchases on which input tax was paid.
- FIRS concluded by stating that in the event of non-compliance with the PN, it will explore all legal means to recover all tax liabilities without further recourse to taxpayers.
Although the PN suggests that the FIRS’ intention is to investigate and recover taxes due from non-compliant taxpayers, some companies that have since been complying with the relevant provisions of the tax laws have also received letters relating to the above. Although this would constitute additional compliance burden on taxpayers who have albeit been complying with the tax laws, it would seem that the FIRS is using this strategy to bring all potential taxpayers into its tax net.
We are also aware that the FIRS issued certain provisional assessments and notices for property valuation to taxpayers. It would appear that the issuance of such letters is a strategy by the FIRS to identify non-compliant taxpayers who failed to take advantage of the VAIDS, in order to bring them into the tax net. Since the FIRS appears to be issuing these notices to taxpayers regardless of their compliance status, it would be advisable for taxpayers, who have been compliant, to contact their tax consultants to engage the FIRS in this regard.
We have commenced discussions with the FIRS about these provisional assessments and letters. We will also continue to monitor developments to enable us to issue relevant updates in this regardShare on Facebook Share on Twitter Share on Pinterest