April 18, 2024

FIRS Demands Tax Compliance by Crude Lifting Shipping Firms

 

The Chairman, Federal Inland Revenue Service (FIRS), Zacch Adedeji, has charged different companies shipping crude oil from Nigeria to ensure strict compliance with the country’s tax laws in their operations.

 

Adedeji gave the charge in Lagos at a workshop on taxation of non-resident shipping companies organised by the FIRS in conjunction with Oil Producers Trade Section (OPTS) on Monday

 

He said the tax compliance exercise commenced by FIRS on the activities of foreign shipping companies lifting hydrocarbons from Nigeria was part of measures aimed at expanding the tax net in order to grow revenue for the government.

The FIRS chairman, according to a statement by his special adviser on media, Dare Adekanmbi,  assured the international companies that the agency was only interested in ensuring compliance with extant tax laws and not out to disturb their operations.

 

Section 14 of the Companies Income Tax Act (CITA) 2004 (as amended) makes it mandatory for foreign companies engaging in shipping and air transport operations in Nigeria to file tax returns to continue to carry out their businesses within the country.

 

Adedeji, who prior to his appointment as FIRS chairman was Special Adviser on Revenue to President Bola Tinubu,  reminded the companies about how his intervention had earlier led to the six months grace period given to them to regularise their tax returns.

 

The international shipping companies have up to December 31 this year to reconcile their books with FIRS.

He explained that the purpose of the workshop was to address challenges associated with tax compliance by the foreign companies and find a lasting solution.

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