…..to sanction erring firms
The Federal Inland Revenue Service (FIRS) has ordered all shipping companies operating in Nigeria’s territorial waters to regularize their outstanding tax returns obligation before 31st December 2023 or face sanctions.
The Service, in a public Notice signed by its Executive Chairman, Muhammad Nami, indicated that the directive was sequel to two previous circulars it issued in June and December 2021 wherein the Service provided the basis of taxation of international shipping lines and also charged them to regularize their tax returns within three months.
Nami stated that the FIRS had observed that many international shipping lines operating in the country had not been complying with the nation’s extant tax laws hence the need to enforce the law.
The latest circular stated: “The circular provides the basis of taxation for all international shipping lines in Nigeria and the public notice requested all international shipping lines to regularize their tax affairs with the Federal Inland Revenue Service (FIRS) within three months of the date of that publication.
“Consequently, the Service hereby requests all international shipping companies operating in Nigerian territorial waters in whatever capacity (containerized, bulk cargo, fishing trawlers, crude oil and natural gas lifting vessels, dredging, survey, floating, production, storage, and offloading, etc.) to immediately regularise their tax positions”, the Service added.
The agency disclosed that it was collaborating with relevant security agencies to prosecute defaulting shipping agencies after the December 2023 timeline set for the regularization of their tax obligations.
It clarified: “The Service is collaborating with relevant government regulatory and security agencies in the maritime sector to commence enforcement action on defaulting shipping companies after the expiration of the grace period of December 31, 2023.”
