The Federal Inland Revenue Service, FIRS, says it has unveiled a new automated platform for taxpayers to file transfer pricing declaration and disclosures in Nigeria.
The electronic system, according to the FIRS, would also help block leakages in tax collection, especially the Stamp Duty collected by banks across the country.
The tax agency said the new platform will help step up its revenue generation capacity to lessen the effects of the unforeseen global challenge on the country’s economy and the dire consequences for fiscal planning by countries, in the face of the coronavirus pandemic ravaging the global economy.
Unveiling the electronic solution platform in Lagos before bank executives and other interest groups in the sector, the Executive Chairman, FIRS, Muhammad Nami, said the Service is deploying the automated platforms to ensure 100 per cent compliance.
Nami asked the banks to: “get fully prepared for the adoption of the new compliance programme as failure to comply is not an option.”
He said: “The need for total compliance and aggressive revenue drive is imperative now, in view of the recent crash of oil price from $50 to $29 per barrel which will definitely affect our collection from the Petroleum Profit Tax (PPT).”
He also noted that the outbreak of the Coronavirus has resulted in a global economic meltdown, with serious consequences to the Nigerian economy.
The FIRS Chairman, underscoring the dire economic situation Nigeria is facing with the Coronavirus pandemic, drew attention to recent reports about 50 Nigerian oil cargoes’ inability to discharge crude oil to buyers due to the virus.
This development, he said, is capable of drastically reducing government revenue target and, subsequently, the provision of infrastructures and social amenities.
According to Nami: “We earnestly need to shore up against the looming economic meltdown. It is on this note that I solicit your cooperation and understanding in the drive to use automation to rev up our revenue so that the government of President Muhammadu Buhari will be able to deliver on its mandate.