FIRS, LIRS sign MoU on joint tax operations, audit

The Federal Inland Revenue Service (FIRS) has signed a Memorandum of Understanding (MoU) with the Lagos Internal Revenue Service (LIRS), where the two tax authorities would collaborate on joint tax audit, investigation and automatic exchange of information.

The MoU signing ceremony, which held at the State House, Marina, Lagos State, Monday was executed by the Executive Chairman, FIRS, Mr. Muhammad Nami, and the Executive Chairman, LIRS, Mr. Ayodele Subair, and was witnessed by the Minister of State, Budget and National Planning, Prince Clem Agba, as well as the Lagos State Governor, Mr. Babajide Sanwo-Olu.

The MoU, which establishes a joint FIRS, LIRS audit and investigation team, obliges the two tax authorities to share relevant information that would assist both parties in their tax administration and enforcement roles, while also providing for capacity building between both authorities.

Speaking during the ceremony, the FIRS Executive Chairman, Nami noted that the cooperation would enable the two authorities to work as a team to achieve these objectives.
“We will carry out joint audits and investigations as a team; we will also conduct automatic exchange of information for gathering data for the purpose of tax administration. With that information, we would be able to carry out tax administration seamlessly.
“In addition to that, what we are going to introduce administratively because of our joint operation, is to ensure that we are able to implement a presumptive tax regime as far as issues of tax administration are concerned.
“But that is going to happen after we are done with the regulation we are putting together with the Ministry of Finance, Budget and National Planning, which the Honourable Minister of Finance would issue in due course.
“The presumptive tax would be for the purpose of Personal Income Tax and also Ground Rent administration in Lagos State.
“Another key issue I want to emphasise is capacity building. There are certain things we know as FIRS and would like to share with the State Inland Revenue Service. And there are also areas of specialisation you have that we expect you to share with us through capacity building.
“The major objective of this collaboration is to raise enough funds for Lagos State government and the Federal Government to be able to fund their budgetary requirements,” the FIRS boss stated.

In his message, Mr. Nami stated, “civilisation globally does not happen by accident,” but that “people or citizens of various jurisdictions, states and countries globally make it happen through the taxes they pay.”

A statement made available to the media yesterday by the Special Assistant to the Executive Chairman, FIRS, Media and Communication, Johannes Oluwatobi Wojuola, said Mr. Nami explained that without funds received by the government through taxes, governments all over the globe would not be able to provide critical infrastructures such as roads, hospitals, internationally rated airports, schools and be able to cater for security and safety of their citizens.