+- Forums (http://contripeople.com)
+-- Forum: Retired Forums (http://contripeople.com/forumdisplay.php?fid=78)
+--- Forum: Retired Forums. Please Make Your Post Within The 3 Forums In General Discussion (http://contripeople.com/forumdisplay.php?fid=49)
+---- Forum: Business/Investment (http://contripeople.com/forumdisplay.php?fid=13)
+---- Thread: FIRS generates N1.171trn in Q1 2018 (/showthread.php?tid=6643)
FIRS generates N1.171trn in Q1 2018 - Edoman - 04-30-2018
Abdulwahab Isa [url=https://newtelegraphonline.com/2018/04/firs-generates-n1-171trn-in-q1-2018/][/url]
![[Image: Fowler.png]](https://newtelegraphonline.com/wp-content/uploads/2017/03/Fowler.png)
…pays N29.757bn tax refunds to taxpayers
The Federal Inland Revenue Service (FIRS) collected taxes to the tune of N1.171 trillion between January and March 2018. The figure is N393 billion higher compared to N778.1 billion collected same first quarter of 2017. The first quarter 2018 figure represented 51 per cent increase in collection compared to 2017. FIRS Executive Chairman, Mr. Babatunde Fowler, made the disclosure at the weekend in Lagos. Also, FIRS paid out N29.757 billion to various taxpayers as tax refunds between January and October 2017.
It also recovered N205.8 million and N1.198 billion respectively as commission, tax liabilities within the period under review, a document sighted by New Telegraph detailing Withholding Tax refunds revealed. Tax refunds are paid to taxpayers with respect to Withholding Tax (WHT) credits, erroneous tax posting and double payment of taxes.
As statutory agency of government saddled with administration of tax collection and related matters, FIRS put process in place that allows it investigate and audit claims for tax refunds before payment are made to respective taxpayers. New Telegraph learnt the Service is currently contending with tax refunds backlogs as many organizations that filed for WHT refund are yet to get all their refunds. It was learnt that requests for refund undergo processes before payment is effected.
The payment is subject to availability of funds and confirmation by the Federal Ministry of Finance, a source knowledgeable about the tax refunds told New Telegraph. Tax refunds document showed that, in a bid to clear the backlog of tax refunds to taxpayers resulting from delay in fund release in 2016, FIRS was paid the sum of N6.250 billion from March to June 2017, and subsequently N2 billion every month from July 2017 to February 2018.
Further analysis of the document showed that between January and December 2016, the Service refunded the sum of N424.559 million to respective taxpayers and recovered the sum of N73.9 million as commission. Members of Federation of Construction Industry (FOCI), the umbrella body of construction firms, late last year filed withholding tax claim credit notes in the sum of N36 billion before FIRS.
The association noted during a visit by its President, Engr. Nasiru A. Dantata to FIRS Executive Chairman, Mr. Tunde Fowler, that pending WHT credit notes had constrained his members from applying for tax settlement. In the same vein, some states were said to have lodged complaints through the Federal Account Allocation Committee (FAAC) of monthly deductions by FIRS as taxes which they queried.
Following the report, FAAC mandated its postmortem sub-committee to examine the issue and report back within a given period. In its finding, the committee established that: in 2016, FIRS budgeted the sum of N25 billion for tax refund, but no fund was released to the Service throughout the year. In 2017, the Service budgeted the sum of N20 billion for tax refund culminating to N45 billion being amount budgeted for refund for 2016 and 2017 respectively.
“However, in a bid to clear the backlog of taxpayers resulting from delay in the release of funds in 2016, FIRS was paid the sum of N6.250 billion from March to June 2017 and subsequently N2 billion every month from July 2017 to February 2018. “During the period (January to December 2016), the Service refunded a total of N424.559 million to respective taxpayers and recovered a total sum of N73,907.77 million as commission,” FAAC sub-committee noted in the report. The committee endorsed the payment of tax refund and wants the system to be sustained.
The committee noted that: “Since the payment of tax refund is in accordance with Nigeria’s applicable tax laws and it’s in line with international best practices, it should not be discontinued. Consequently, it should continue to be accommodated in the budget to ensure fairness to the taxpayers.
And FIRS should ensure that the process which allows for thorough investigations and audits before refunds are made to taxpayers is strengthened.” Speaking in Lagos on the occasion of merit awards conferred on him, the Minister of Finance, Mrs. Kemi Adeosun, and other eminent Nigerians by the Institute of Chartered Accountants of Nigeria (ICAN), Fowler commended taxpayers who were paying taxes as and when due. He said the taxpayers will make Nigeria great again. On her part, Adeosun said the Merit Award conferred on her by ICAN, was endorsement of some of the Change initiatives under President Muhammadu Buhari.
ICAN President, Ismail M. Zakari, said Fowler was singled out for the merit award for the innovative ways he has deployed Information and Communication Technology (ICT) to revolutionise tax administration processes in Nigeria. On the merit award conferred on Adeosun, the ICAN President said the minister was honoured for her exemplary and distinctive contributions to the growth of the Nigerian economy and here sterling leadership qualities.
https://newtelegraphonline.com/2018/04/firs-generates-n1-171trn-in-q1-2018/