The Federal Inland Revenue Service (FIRS) has cautioned government’s ministries, departments and agencies (MDAs) against appointing consultants and concessionaires to collect taxes due to the Federal Government or any of its agencies in view of its statutory role as the sole agency empowered to administer such taxes in the country.
In a Public Notice issued on Thursday and signed by its Executive Chairman, Muhammad Nami, the Service accused some MDAs of including functions of assessment, collection, accounting and enforcement of taxes and levies in their agreements with concessionaires and consultants.
Specifically, it stated that it was aware that some MDAs were appointing concessionaires or consultants for the assessment, collection, accounting or enforcement of taxes and levies due to the Federal Government or any of its agencies and that some of them include such functions in their agreements with concessionaires or consultants
Citing Section 68(2) of its Establishment Act to justify its position on the illegal fiscal actions of the MDAs, the FIRS stressed that by law it is “the primary agency of the Federal Government of Nigeria responsible for the administration, assessment, collection, accounting and enforcement of taxes and levies due to the Federal Government or any of its agencies, except as may be authorized by the Minister responsible for Finance by regulation as approved by the National assembly”.
The Notice further clarified that while Section 12(4) of the FIRS Establishment Act has provided that the Service may engage consultants, accountants or other agents to carry out certain functions on its behalf, the law has expressly prohibited the carrying out of assessing and collecting tax by consultants.
The revenue agency stated that the law provides that: “The Service may appoint and employ such consultants, including tax consultants or accountants and agents to transact any business or to do any act required to be transacted or done in the execution of its functions under this act; provided that such consultants shall not carry out duties of assessing and collecting tax or routine responsibilities of tax officials”.
In addition, the FIRS maintained that going by “the above provisions of the law, it is clear that the duty of administration, assessment, collection, accounting or enforcement of taxes and levies due to the Federal Government or any of its agencies is that of the Federal Inland Revenue Service and its tax officials. No part of these responsibilities can be contracted to a private enterprise by any other MDA.”
On the appointment of consultants for tax assessment and collection by the MDAs, the FIRS’ Executive Chairman warned: “Furthermore, appointment or authorisation of any person, other than by the Federal Inland Revenue Service, to assess, collect, enforce or account for taxes constitutes an offence under Section 68(3) of the FIRSEA. Such appointment or authorisation is punishable, upon conviction, with fine, imprisonment or both under Section 68(6) of the Act.
“In view of the foregoing, where any person, individual or corporate, has any information or assistance that may be of use to the Service for the purpose of administration, assessment, collection, accounting or enforcement of taxes and levies due to the Federal Government or any of its agencies or for the performance of its duties under the FIRSEA, such person should approach the Service directly with such useful information”, Nami added.
