FIRS, NNPC In Crucial Meeting Over Unremitted Taxes | Independent Newspapers Limited
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FIRS, NNPC In Crucial Meeting Over Unremitted Taxes

Posted: Apr 13, 2016 at 10:04 pm   /   by   /   comments (0)
…Reps Demand List Of Defaulting Oil & Gas, Airlines, Shipping, Others
The Federal Inland Revenue Services and Nigerian National Petroleum Corporation (NNPC) are in crucial meeting to resolve the lingering issues bothering on huge unpaid taxes into the Federal Government’s accounts.
Babatunde Fowler, FIRS chairman, said other defaulting companies being engaged by FIRS over outstanding tax issues, include four airlines, oil and gas firms, shipping companies, among others.
He disclosed that discussion with Federal Ministry of Finance has reached advanced stage to ensure deduction from source of various taxes from major oil marketers involved in the oil subsidy and all the ministries, departments and agencies (MDAs) on contracts to be awarded.
Fowler disclosed this at the investigative public hearing on the ‘Accounting procedure of FIRS’, by the Ad hoc Committee chaired by Michael Enyong (PDP – Akwa-Ibom).
He explained that the Service is funded by the 4 per cent cost of collection on all non-oil taxes collected by it as appropriated by the National Assembly to meet its personnel, recurrent, capital and other expenditure.
He said some of the reforms introduced in the finance and accounts in the bid to secure service delivery include re-engineering leading to cash to accrual based accounting method of recording financial transactions.
Others, he said, are introduction of an electronic cash book system named Accounting Transaction Recording and Reporting System (ATRRS) and deployment of Acquarius software which is an improvement on ATRRS in that it integrates general ledger transactions with the cash book.
Similarly, FIRS in collaboration with two operational account-holding commercial banks, deployed an electronic end-to-end payment system which enables the function to make instant payment directly to the beneficiaries account without submitting manual or soft copies of mandate to banks.
“These systems are called FastPay and GAPS for Stanbic IBTC and GTBank respectively. Subsequently, another end-to-end payment platform for capital transactions on CBN account was also introduced via REMITA platform provided by vendor named System Specs.
“Implementation of SAP-FICO, an integrated enterprise Resources planning application which combines procurement and finance processes and adopted to interface with the SAR-HR module. This system when fully implemented is envisaged to provide the ultimate solution for both budgeting, general ledger accounting, cash book and bank reconciliation and a seamless real time financial reports generation
and analysis for management information for internal decision making and statutory compliance,” Fowler informed the Committee.
In his remarks, Enyong directed the FIRS chairman to submit detail reports of the companies evading taxes for further legislative action.
He explained the investigative hearing was sequel to the resolution passed on the motion brought before the House that the “2014 revenue from FIRS amounted to N4.69 trillion, while the National budget for that year was N4.669 trillion, we can infer from this that if revenue from tax is properly administered transparently, accountability, diligently, it would be sufficient to fund the national budget.”