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Amend existing laws to tackle tax evasion, FIRS boss pleads

Amend existing laws to tackle tax evasion FIRS boss pleads

Chairman of the Federal Inland Revenue Service (FIRS), Muhammad Nami, has urged the National Assembly to amend existing tax laws that will end tax evasion by individuals and corporate bodies in the country.

While noting that tax evasion is a global phenomenon, he pointed out that taxes not paid or waived, are returned to the treasury of defaulting companies home countries operating in Nigeria, hence the need for legislation to address the issue.

Nami stated this while appearing before the House Committee on Public Accounts, which is investigating alleged tax waivers granted to three foreign firms operating in the country. The firms are Indorama Petrochemical, Indorama Fertilizer and Petrochemical Ltd and OIS Indorama Eleme, Port Harcourt.

Besides, he disclosed that his office was working with the judiciary to stop people from using the courts to frustrate tax collections from companies and individuals.

He said: “The FIRS does not have the power or responsibility of facilitating or implementing incentives to local investors or investors coming through the Foreign Direct Investment platform, which is the sole prerogative of the Nigerian Investment Promotion Commission (NIPC).”

He disclosed that investigation of the three foreign firms started way back in 2015.

Nami further stated that the companies under consideration have been variously granted pioneer status between 1997 and 2016 for the Indorama Petrochemical Ltd and between 2017 and 2020 for the Indorama Fertilizer and Chemicals Ltd respectively.

He said upon expiration of the pioneer period and conclusion of post pioneer audit, the Indorama Petrochemical Ltd company’s tax file was returned to the Large Tax Office (LTO) Port Harcourt.

The Vice President of Indorama, Amil Leuma, who appeared before the committee, could not furnish the lawmakers with relevant information as expected.

The committee, which is chaired by Oluwole Oke, therefore, fixed the first week of July, when Leuma would have been ready with the relevant documents for further hearing.

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