Recall that the Office of the Auditor-General had indicted the FIRS and 104 other ministries, departments, and agencies of the Federal Government for the failure of certain remittances as contained in its 2015 report.

The Federal Inland Revenue Service, FIRS has got a new mandate. The mandate is to within 90 days, clamp down on tax defaulters, recover and remit unremitted taxes as exposed by a 2015 report from the Office of the Auditor General of the Federation.

This mandate is after confirmation by the FIRS in a recent Senate hearing that companies indicted had devised a means of registering untraceable addresses which furthered tax evasion in 2015 to a tune ₦17.69 690,341,565.

On the flip side of these allegations,  the FIRS in its response to the query said it had recovered ₦2,879,152, 077.76 but actual receipted recoveries made by FIRS was ₦273, 038,474.74, leaving a balance of ₦17,417,303,090.90 to be recovered.

The senate has directed the FIRS to go after defaulters for shoddy acts committed in 2015

Further Allegations

Beyond going after defaulters from the year under review, the FIRS has also been directed by the Senate to sanction any of its officials involved in an alleged overlapping and splitting of contracts between 2014 and 2015.

The Federal agency under the leadership of Muhammad Nami now has a larger mandate to in totality, recover and remit with prove, a total sum of ₦32.45m into government coffers within 90 days with evidence of compliance submitted to the auditor-general and the committee.

Rationale

The order by the Senate is on a recent recommendation by the Committee on Public Accounts in its report on the audit queries issued by the Auditor-General for the year under review.

What you should know

  • The OAuGF had issued various queries against the FIRS and 104 other ministries, departments, and agencies of the Federal Government in the 2015 report, which the Senate sustained.

In the query against the FIRS, the auditor-general submitted that,

  • The Federal Inland Revenue Service failed to recover the total sum of ₦17,690,341,565 from different companies in the year under review.
  • The unrecovered taxes are made up of Value Added Tax, Company Income Tax, Withholding Tax, Education Tax, and National Information Technology Development Fund, NITDEF.
  • Several companies were also discovered to have defaulted in filing their annual returns, many of which FIRS said could not be located due to a change of addresses.
  • The Senate also wants the indicted companies blacklisted.
  • Evidence of compliance is expected to be forwarded to the Public Accounts Committee.
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