As technology giants across the globe continue to yearly declare massive profits with some measuring up to a country’s GDP, countries in partnership also are looking at harnessing their tax potentials through these tech giants.

It is in line with these thoughts that the Federal Inland Revenue Service has decided to project as revenue a whopping sum of ₦10.1 Trillion which is double what it projected in the current year. This ambitious projection is with a view of implementing a clause of the Finance Act 2021 which identified digital giants with significant economic presence irrespective of physical presence as eligible to pay taxes.

Top of the identified tech giant to contribute to the FIRS’ revenue crusade is Twitter which had already begun registration with the federal agency.

The registration of Twitter and other technology giants with a significant economic presence in the Nigerian Market with the FIRS has commenced

See Mohammed Nami, the FIRS’ chairman statement on this,

“The total collection that we are trying to generate and remit to the appropriate accounts, including the federation account in 2022, is ₦10.1 trillion.

“Twitter and others are already registering with us, so we are aware. So we expect that the impact of those registrations would be felt positively by FIRS and that is why the targets are going up.”

Rationale

The FIRS’ chairman during a recent appearance before the House of Representatives Committee on Finance put forward that the ₦10.1 trillion was the global figure projected to be generated and remitted to the Federal Government in 2022 by the FIRS, the agency responsible for assessing, collecting, and accounting for tax and other revenues accruing to the Federal Government.

In a publication culled from Vanguard, the FIRS’s chairman also gave a clear perspective of the budget performance, clearing that the agency realized the sum of ₦4.950 trillion against targeted revenue of ₦5.076 trillion.

His submission,

“The service achieved a total revenue collection of ₦4.950 trillion against budgeted ₦5.076 trillion representing 98 percent.  Out of the total collection, non-oil and oil components contributed ₦3.435 trillion and ₦1.515 trillion respectively.  

“Consequently, the cost of collection (4% net of 2% Nigerian Customs Service VAT) of ₦130.45 billion was achieved against the budget of ₦180.76 billion to fund the three operational expenditure heads for the year,”

What you should know about FIRS’ performance so far in 2021

Reviewing the 2021 budget performance, Nami noted that FIRS had achieved 43 percent of the projected revenue as of June.

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