Reacting to Nami’s revelation, Taiwo Oyedele on his X handle, said the committee’s budget includes provisions for a national “Data for Tax” project, which aims to reform the tax system.

He said: “This project was initially meant to be funded by the federal government and states but faced a lack of funds. Therefore, it was included in the Committee’s budget.

“Other expenses covered in the Committee’s budget include office setup, salaries for staff, travel logistics, stakeholder engagements, and international engagements.”

The committee’s mandate, Oyedele said includes ensuring prudence and accountability in resource management. As a result, it operates on a voluntary basis, with members receiving reasonable allowances to cover expenses.

He therefore disclosed that over N4 billion of the amount is still intact in the JTB account.

According to Oyedele in his post: “Clarification regarding the money provided by the FIRS to the Joint Tax Board to fund the activities of the Presidential Fiscal Policy and Tax Reforms Committee.

We are aware of a recent story regarding some funds transferred by the FIRS to the Joint Tax Board (JTB) for the Presidential Fiscal Policy and Tax Reforms Committee.

“The committee’s budget includes provisions for a national “Data for Tax” project which the JTB has been championing for over 2 years. The project was presented to the National Economic Council in 2022 and was meant to be funded by the federal government and the 36 states. However, it stalled due to lack of funds. Given the importance of the project to the effective reform of our tax system, it was included in the Committee’s budget.

“Other expenses included in the Committee’s budget, which has the approval of the National Assembly, include the setting up of offices for the Committee in Lagos and Abuja, payment of salaries for the full-time staff engaged by the Committee, travels and other logistics for over 70 members representing more than 40 institutions and stakeholder groups mapped to 6 different Subcommittees, more than 30 Secretariat personnel and over 40 students across the country.

“In addition, the budget covers planned stakeholder engagements with various sectors and interest groups, as well as international engagements and understudy of some leading tax regimes around the world, and so on. The budget covers a period of one year being the lifespan of the committee.

He further stated: “It should be noted that the Committee was not set up simply to produce reports and recommendations, we are also charged with the implementation of recommended and approved proposals which need to be funded.

“The committee’s mandate includes ensuring prudence and accountability in the management of our national resources. It will therefore be a contradiction for the same Committee to be wasteful or reckless in its own affairs. Members of the Committee work on a volunteering basis and are only paid reasonable allowances to cover their out-of-pocket expenses as we cannot afford to pay the commercial value for their time, skills, and experience. As the Chairman of the Committee, despite working full-time on the assignment, I do not receive a salary.

“All the expenses of the Committee are properly documented and available for audit. We collect receipts for fuel, stationeries, and virtually every Naira that we spend to the extent possible. Over N4 billion of the said funds transferred by the FIRS to the JTB for the Committee’s work is yet to be spent and very much intact in the JTB account. We will be responsible, prudent, and accountable with every Naira of public funds we have been entrusted with.”

The post How Tax Reform Committee will spend N5bn, Oyedele explains appeared first on New Mail Nigeria.

He said the acting executive chairman was “fully briefed on everything”.

Reacting to a report that he approved N11 billion ‘suspicious’ payments days after he left office, Nami in his rejoinder said all the decisions he took while he was the executive chairman of the FIRS followed due process.

He said: “I want to categorically state that every decision I made within the time of my stay in office was within the ambit of the law and within the lawful powers I exercised then as Executive Chairman”.

Nami added that “all decisions reached and extant liabilities/commitments of the Service during my stay in office are contained in the handover notes I made available to my successor, Mr. Zacch Adedeji.

The items listed in the report he declared “were part of the N16 billion outstanding commitments contained in our handover note.”

Nami further disclosed that “the N5 billion paid to the Joint Tax Board (JTB) was paid to fund the activities of the Presidential Committee on Tax and Fiscal Policy Reforms two months before I left office. It was paid after we received a letter to that effect from the office of Mr. President signed by Zacch Adedeji himself”.

He noted: “No payment was made by the Service after the announcement of my pre-retirement leave as claimed by this story. An approval for payment in the Service is one step of the journey to payment.

“It is the custom that when a new Executive Chairman resumes office, he would review, validate and make final authorization before any payments can be made.”

Nami reiterated the claim he made the day he handed over to Zacch Adedeji that he “inherited only N1.4 billion in the purse of the FIRS when I assumed office. I left N129 billion in the purse of the Service when I left”.

Nami handed over to Zacch Adedeji on the 18th of September 2023 in a brief but colourful ceremony in the “Chairman’s Conference Room” in Abuja.

The post Nami, ex-FIRS boss deny spending N11bn after sack, says he briefed Zacch Adedeji appeared first on New Mail Nigeria.

NewMailNG recalls that President Bola Tinubu recently sacked Nami, directing the erstwhile FIRS Chairman to proceed on a three-month pre-retirement leave with immediate effect.

However, sources in FIRS not authorised to speak on the matter have revealed how Nami approved N11 billion suspicious payments after he was fired.

According to the sources, who made the disclosure to the former FIRS boss directed staff of the finance, audit, and internal affairs departments to work on Saturday and Sunday.

This, according to the sources was to perfect some financial transactions while files were allegedly moved from the agency’s headquarters to his house, where they were said to have been “backdated and signed”.

Sources familiar with the matter told our correspondent that Nami also moved about N5 billion to the account of the Joint Tax Board (JTB) from the FIRS account.

According to an official, the FIRS director, finance and accounts, was compelled to approve the payments despite allegedly warning Nami about the potential ripple effects.

Nami was said to have assured the FIRS director that there was no cause for alarm, reportedly saying the incoming chairman of the agency would not find out about the approvals.

An insider said Jibrin Jibrin, Nami’s cousin who is an assistant manager at the FIRS, assured some members of staff that the payments would raise no eyebrows, alleging that his uncle had “done the needful” when the acting executive chairman of the FIRS was the special assistant on revenue to the president.

Nami travelled out of the country following the approval of the payments on September 16.

According to documents seen by our correspondent, the former FIRS chairman approved N5,628,496,823.04, $863,293.00 and £8,780 for express payment to 196 beneficiaries — all in one day.

Nami approved the payment of N1,409,950,625.00 to 807 nominees for a ‘Business Case for Strategic Leadership’ retreat which is billed to take place in November 2023 while N250,325,000 was greenlit for FIRS Data Mining Management and Analytics in Taxation Course.

The ex-FIRS chairman also approved N221,311,840.00 to be paid to Odey Jacob & 611 others for “Skill Development and Management Improvement Workshop Training”; N42,398,000.00 was earmarked as payment to Mawo Dav Printing Nig. Ltd for the “production of letterhead papers & call cards” while another N36,513,718.75 was approved for Gebos Nig. Ltd — also for the production of letterhead papers and call cards.

Nami appropriated N81,488,127.00 to himself — and nine others — as estacode for a study visit to the Inland Revenue of Malaysia while N54,979,390 was approved for to CDP Partnership Ltd as payment for engagement as a consultant for “stage I &II quantity surveying services”.

In total, over N591 million was approved as estacode payment for official trips made by staff to Rwanda, Kenya, and Morocco, among other countries.

The former FIRS boss approved over one billion as payment for the training of staff on tax disputes, capital market operations, and tax evasion strategies, among other modules.

As an engagement fee for consultancy work in respect of “education and enlightenment of civil society organisations”, Nami approved over N173 million to Juzor & Company Ltd. while Jiop Azzy Ltd was listed to receive over N132 million for the same purpose.

Nami also reportedly signed off on the payment of over N100 million to Skymart Capital Trading Ltd, Toplead Consulting Limited and Alim and Associates Limited for consultancy, monitoring and evaluation services.

The post How ex-FIRS boss approved N11bn ‘suspicious’ payments after sack appeared first on New Mail Nigeria.

It has also collected N8.5 trillion in new taxes so far this year, bringing the total collection to N12.5 trillion.

Immediate Past Executive Chairman, Federal Inland Revenue Service (FIRS), Muhammad Nami gave the update on tax collection and administration while handing over to his successor, Dr. Zacch Adedeji, yesterday in Abuja.

Nami said FIRS assessed, reconciled and recovered over N4 trillion outstanding tax liabilities and sequestered funds from NNPCL on behalf of the government.

He said FIRS generated over N12.5 trillion for the Federal Government between January and September 14, 2023, including N4 trillion recovered from NNPCL and another N8.5 trillion cash collected as tax revenue during the period.

He explained that the N12.5 trillion was exclusive of amounts invested by taxpayers under the Road Infrastructure Tax Credit Scheme and tax implications of waivers by government from January, 2023 to date.

Adedeji said FIRS under him will create a tax system that is both innovative and trustworthy.

He said the focus would be to incorporate quality data into the operations of the tax system to improve its efficiency and effectiveness.

Adedeji said by utilizing data, the tax system will track its progress, set benchmarks, make informed decisions, and ultimately enhance its performance.

He said the use of data will provide accurate insights that will lead to better outcomes in terms of the output of the tax system.

Adedeji stressed: “We will build a tax system that is smart and modern, one with unquestionable integrity and will earn the trust as well as admiration of stakeholders.

“Under me, we will not force things down the throat of our stakeholders. I will always be ready to engage with them, work with and through them to jointly build a tax administration that we will all be proud of and one that enjoys the trust and confidence of all.

“We have a duty to make it clear and certain to the taxpayers why they should perform their tax obligation without waiting for the enforcement team to knock on their doors. On our part, we must ensure we simplify the tax system to make it easy for people to pay.

“In all of our operations, quality data will be a key component. We shall increase the use of data to allow us to measure progress, establish benchmarks, make informed decisions and enhance performance excellence.

“Data and of course evidence from its use will give us accurate insights that will make our output better. Reliable data will also aid accountability.”

The post FIRS recovers N4tr tax liabilities from NNPCL appeared first on New Mail Nigeria.

Adedeji, who stated this while taking over the mantle of leadership of the agency from his predecessor, Muhammad Nami, noted that about 96 per cent of Federal Government revenue was spent on debt servicing last year, stressing that the situation is not sustainable.

This is even as the former chairman of the revenue agency, Nami, said the FIRS generated N8.5 trillion in revenue into the federation account as of mid-September.

Recall that one of the main reasons the government removed subsidy from petrol is inadequate revenue to run the affairs of the country.

Adedeji said: “We are in a revenue crisis, government revenue is low amid a huge public debt. Last year, 96 per cent of government revenue went into debt servicing.

“Where debt has grown bigger than the Gross Domestic Product, GDP, and debt servicing faster than revenue, immediate actions have to be taken to remedy the situation.”

On his agenda to optimise revenue generation, he said: “In this direction, therefore, we will key into the reforms being made by President Bola Tinubu who has since inaugurated a Presidential Fiscal Policy and Tax Reforms Committee.

“The mandate of the committee is to, among other things, evolve an effective design and implementation of fiscal policy and tax reforms for economic prosperity.

‘Need for tidy fiscal landscape’

“At FIRS, we will embrace efforts being made to design a tidy fiscal landscape for the country and in the process, address some of the obstacles impeding effective operations of the service as the primary agency of government responsible for administration, assessment, collection, accounting as well as enforcement of taxes and levies.

“We need to innovate and build our operations on foolproof technology, while also evolving a hub of fresh ideas and creativity. “

The new tax-master pledged to eliminate leakages in the system, with a view to raking in all tax revenues into government coffers.

“We must definitely plug leakages. We need to strengthen our internal processes and control mechanisms. We must put a high premium on effective coordination of assigned tasks and delegated responsibilities,’’ he added.

Adedeji said he will stimulate voluntary compliance among taxpayers to fulfil their obligations as, according to him, his team will engage stakeholders and sensitise them on the need for voluntary compliance.

‘No forcing things down the throats of stakeholders’

His words: “Under me, we will not force things down the throats of our stakeholders. I will always be ready to engage with them, work with and through them, to jointly build a tax administration that we will all be proud of and one that enjoys the trust and confidence of all.

“Broadly, we intend to come up with a menu of strategies that will stimulate voluntary payment of taxes and levies. Yes, this is achievable because Nigerians acknowledge the need for the government to increase its revenue to be able to meet its obligations to them.

“In doing this, we will build a tax system that is smart and modern, one with unquestionable integrity and will earn the trust as well as admiration of stakeholders.”

Dr. Adedeji charged management and staff to “work with uncompromising integrity, uphold taxpayers’ confidentiality, and demonstrate a high level of professionalism, fairness and show exemplary public service.”

N8.5 trn already collected this year — Nami

In his remarks, the outgone chairman of FIRS, Muhammad Nami, disclosed, however, that the agency was on its way to setting a new revenue record in 2023, having collected N8.5 as at September 14.

He added that within the period under review, his administration assessed, and recovered another N4 trillion from the Nigeriian National Petroleum Company Limited, NNPCL.

Nami said he had surpassed his 10 per cent Tax-to-GDP target of four years, having achieved 10.86 per cent in two years.

He said the 18 per cent target in four years, set by the current administration was not only achievable but could be surpassed.

In 2022, the FIRS set a revenue target of N10 trillion and collected N10.1 trillion within the period. Similarly, in 2023, it set a target of N12 trillion in revenue and has collected N8.5 trillion, with about four months to the end of the year.

The post Nigeria in revenue crisis with huge public debt, says Adedeji, new FIRS boss appeared first on New Mail Nigeria.

On Thursday, President Bola Tinubu directed Nami to embark on a terminal leave, easing the taxman out of office.

The president appointed Zaccheus Adedeji, a former Oyo state commissioner of finance, to replace him.

In a farewell statement, Nami thanked ex-President Muhammadu Buhari, and Tinubu, for the opportunity to serve the country and humanity.

He also appreciated the entire staff of the FIRS, esteemed taxpayers, and Nigerians for their support and cooperation.

Nami said the support and cooperation he received enabled his team to meet their targets and set new records for tax collection in Nigeria.

“Even as I take my bow, we have so far collected more than N8 trillion in eight months and would have set a new record of a minimum of N13 trillion at the end of this tax year,” he said.

“During the inauguration of the erstwhile board members of the service, I promised to raise the country’s tax-to-GDP ratio from 6% to 10% in 4-years. We already have achieved a Tax-to-GDP ratio of 10.86% within two years (i.e. as at 31st December 2021.).

“I can, therefore, say that I am leaving as a fulfilled man knowing that I have served diligently. I am equally leaving a service that is built on world-class best practices. Indeed, it couldn’t have been more fulfilling.”

Nami also encouraged staff, taxpayers, and Nigerians to extend the same measure of cooperation to the incoming executive chairman, to enable him to succeed.

He added that tax collection is a sensitive matter that requires all hands to be on deck to achieve.

The post ‘Tax-to-GDP ratio rose to 10.86%,’ Nami speaks on feats as FIRS boss appeared first on New Mail Nigeria.

Tinubu also directed Muhammad Nami, the current FIRS chairman, to proceed on three months of pre-retirement leave, as provisioned by Public Service Rule (PSR) 120243, with immediate effect.

The leave would lead to Nami’s eventual retirement from service on December 8, 2023, according to a statement on Thursday, by Ajuri Ngelale, special adviser to the president on media and publicity.

Ngelale said Adedeji’s appointment, according to directives of the president, takes immediate effect.

“Hon. Zacch Adedeji is hereby appointed in acting capacity for a 90-day period before his subsequent confirmation as the substantive executive chairman of the Federal Inland Revenue Service for a term of four (4) years in the first instance,” the statement reads.

“Hon. Zacch Adedeji is a first-class graduate in accounting from the Obafemi Awolowo University. He most recently served the nation as the special adviser to the president on revenue.”

Prior to his appointment as special adviser, Adedeji served as the commissioner of finance in Oyo state.

He was also the executive secretary and chief executive officer (CEO) of the National Sugar Development Council (NSDC).

The post Tinubu appoints Adedeji as FIRS boss, asks Nami to proceed on terminal leave appeared first on New Mail Nigeria.

The revenue agency announced the development in a public notice released on Friday and signed by Muhammad Nami, its executive chairman.

According to FIRS, examples of items excluded from building are radio and television masts, transmission lines, cell towers, mobile homes, caravans and trailers.

The commission said the provision is contained in the Finance Act 2023 which had an commencement date of May 1 but was later deferred to September 1.

“The definition of “building” was amended in Section 46 of the VAT Act to exclude any fixture or structure that can be easily removed from the land,” the notice reads.

“As such, all the items removed from the definition of land have become chargeable to VAT. Companies letting, trading in or providing services with such items must charge VAT at the prevailing rate with effect from 1st of September, 2023.”

FIRS also said Section 14(3) of the VAT Act was amended to the effect that persons appointed to withhold or collect VAT shall remit the VAT withheld or collected on or before the 14th day of the month following the month in which the VAT was withheld or collected.

“Consequently, all VAT withheld or collected in August 2023 shall be remitted to FIRS on or before the 14th of September 2023,” the notice reads.

“Similarly, VAT withheld or collected in subsequent months shall be remitted to FIRS not later than 14th day of the month following that in which the VAT was withheld or collected.”

The commission said the rate of tertiary education tax (TET) was changed to three percent of assessable profits.

“The new TET rate of 3% shall take effect for TET becoming due in respect of accounting period ending on or after 1st September, 2023,” the FIRS said.

On investment allowances and convertible currencies, the FIRS said sections 32, 34 and 37 of the Companies Income Tax Act (CITA) granting allowances in respect of capital expenditure incurred in certain circumstances, and tax exemption on income earned in convertible currencies from tourists by hotels have been repealed.

This, the commission said, means that the said allowances and tax exemption are no longer available for tax returns becoming due in respect of accounting period ending on or after September 1, 2023.

The post FIRS to charge companies trading in TV masts, cell towers VAT from Sept. 1 appeared first on New Mail Nigeria.

The Chairman of the Joint Tax Board (JTB) Muhammad Nami, disclosed this at the meeting with Chairmen of States Internal Revenue Boards, in Abuja, this afternoon.

“Harmonization and codification of taxes at the National and Sub-national levels: Key to achieving a tax friendly environment in Nigeria,” was the theme of the meeting.

According to him, his team was moving from the level of discussion to practicalising the much-needed tax harmonization in the country.

Nami said that President Bola Tinubu was determined to ensure necessary steps were taking to encourage more Nigerians to comply with their tax obligations, which has been identified as panacea to raising tax revenue.

His words, “we have moved from just talking about harmonizing the various taxes.  We are now at the level of actual harmonization.  President Tinubu is very serious about addressing the problem of multiplicity of taxes.

“I have addressed the State Governors at the National Economic Council and we have all agreed that it better to harmonise the taxes, have fewer taxes and effective collect them through encouraging tax payers to comply.

“As the new administrations attempt to address the many socioeconomic challenges facing the nation on many fronts, it becomes imperative for all the levels of State to shake-off any lethargic antecedents and focus on the goal of a national resurgence.

“The unique and privileged offices we occupy as drivers of the nation’s tax administration processes presents us with a rare opportunity to take hard, but necessary decisions that are expected to yield long term benefits and add immense value to our collective prosperity as a nation.

“In recent years, especially since the dawn of our current democratic dispensation, the importance of taxation has continued to be reiterated and reinforced by all, and the critical role that tax-revenue plays in funding government and governance cannot be over-emphasized.”

Nami who is also the Chairman of the Federal Inland revenue service (FIRS) said that the organization would protect small businesses, while making sure that informal sector operators were brought into the tax net.

He was specific that business with less than N25 million turnover were tax exempt.

Earlier, the Chairman, Presidential Fiscal Policy & Tax Reforms Committee, Taiwo Oyeleye, stressed the need to drastically reduce the number of taxes imposed on members of the Nigeria public and businesses in the country.

He pointed out that multiple taxation was causing low tax morale in the country, as well as discouraging investments, while creating room for corruption and making doing business difficult.

According to him, “Many MDA (Ministries, Departments and Agencies) Specialicised Purpose vehicles are set up and allowed to collect taxes and taxes are building up every day.

“Last year alone, there were four new taxes.  My team did a study and found out that there were 44 Bill in the works at the National Assembly with various types of taxes.”

Taiwo noted that multiple taxation always resulted in low tax morale of the people and that many business owners viewed government’s imposition of multiple taxes on them as being against such businesses.

He added, “Ironically, the more taxes you have, the lower the tax revenue you collect.  A lot of Nigerians pay taxes that don’t get to government.  Businesses are made to pay taxes from their capital.  That is the surest way to ruin those businesses.”

The tax expert made a comparison of tax revenues between Nigeria and South Africa’s tax revenue and concluded that tax earnings by the latter were way far more that what Nigeria earned annually, despite the fact that the   country administered many more than South Africa.

He disclosed that South Africa raised about N78.2 trillion equivalents in tax revenue in 2022 alone, which he explained was more that all the budgets of all three tiers of government in Nigeria put together.

In 2022, Nigeria’s federal, states, local governments’ entire tax revenue stood at N15. 2 trillion.

Taiwo said that the top echelon of the Nigerian society from where the chunk of the Personal Income Tax revenue should have come from either don’t pay taxes at all or pay much less than they should.

A situation, he said must be urgently addressed, to the significantly raise tax revenue, and drastically cut borrowings.

The post FG to cut multiple taxation – Nami appeared first on New Mail Nigeria.

Initially, the deadline for filing of the returns was June 30.

In a notice released on Monday, Muhammad Nami, FIRS executive chairman, said the extension is in response to numerous calls from companies who failed to meet up the initial deadline.

He said: “Consequently, as a measure of goodwill and in line with relevant provisions of the Companies Income Tax Act, the Service directs as follows:

“a. all companies whose CIT returns for 2023 YOA fall due between 30th June and 31st August, 2023 (both days inclusive) are given up to 31st August, 2023 to submit the returns to the Service;

“b. the extension of the due date is a one-off gesture for only 2023 YOA CIT returns which are due as aforesaid;

“c. the relevant CIT returns shall, therefore, not attract Late Filing Penalty or interest for late payment if submitted to the Service on or before 31st August 2023;

“d. where relevant CIT returns are not filed by the extended date, penalty and interest for late payment shall be computed from the original due date and not the extended date.”

Nami said the extension of filing date is only for CIT and does not include returns for withholding tax, value added tax, personal income tax (PAYE), and others.

He encouraged taxpayers to take the opportunity afforded by the extension to submit their CIT returns within the specified time, pay the taxes due and avoid payment of penalty and interest.

The post FIRS extends deadline for submission of CIT returns till Aug 31 appeared first on New Mail Nigeria.