FIRS commences audit of oil lifting, shipping firms

The Federal Inland Revenue Service (FIRS) is executing a back-end tax audit on operators in the maritime and aviation industries, apparently with a view to unmask tax defaulting companies, especially multinational firms that dominated the sector.

Speaking at the Pedabo Thought Leadership Breakfast Session in Lagos yesterday, Executive Chairman, Muhammad Nami, said the exercise which is being carried out in collaboration with regulatory authorities in the industries, are at advanced stages.

Nami called on foreign players in these industries, who had lifted cargoes out of Nigeria without paying taxes to voluntarily come forward and regularise their tax standing.

He stated: “Let me use this opportunity to invite all foreign companies that have lifted cargoes (including crude oil) out of Nigeria without paying tax in line with extant law to voluntarily come forward to regularise their tax positions. Those who would wait for FIRS’ audit before doing the right thing may find the taste very unsavoury.”

The FIRS boss lamented that maritime and aviation industries were not yielding the expected revenue to the treasury.

Blaming this poor revenue turn out on many factors, he stated that a major reason for the poor yield was the failure of foreign companies lifting cargoes to pay tax.

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