Business

Nigeria loses $10b from multinationals via tax leaks

Landlords, property agents must collect, remit 6% Stamp Duty on tenancy, lease agreement-FIRS

 

The Federal Island Revenue Service (FIRS) haw revealed that Nigeria is losing about $10 billion of tax through illicit profit shifting by multinational corporations operating in the country.

Executive Chairman (EC), FIRS, Mr. Muhammad Nami, who made the disclosure on Friday in Abuja at the start of theService’s 2020 Management Retreat said the funds would have been applied to critical infrastructure development by the three tiers of government.

Quoting the African Union Illicit Financial Flow Report, Nami said: “Africa is losing $50 billion through profit shifting by Multinational Corporations and about $10 billion of this amount is from Nigeria alone.”
To block this and other identified tax avoidance schemes by individuals and corporate organizations, Nami disclosed that he has launched a comprehensive, ongoing tax collection reform process “anchored on four cardinal pillars of rebuilding FIRS’ institutional
framework; robust collaboration with stakeholders; building a customer or taxpayer-centric Institution; and a making the FIRS data-centric institution.”

According to a statement made available to the Media by Director, Communications, FIRS, Abdullahi Ismaila, the FIRS Chairman, his board and team have also set a target of improving the Service’s performance over the next four years by a “minimum target of $5 million staff-to-revenue- ration and a 10% tax-to-GDP ratio.”

Showing that the FIRS is gradually weaning Nigeria off its dependence on oil revenue, Nami disclosed that non-oil taxes “accounted for 60% contribution to the total collection” of taxes in 2019.

Projecting into this year, Nami stated: “For the year 2020, we have
a target of N8.5 trillion. This is broken down into oil tax of N3.7 trillion and non-oil taxes target of N4.8 trillion.”

The FIRS chief assured that the Service would play its “strategic role in the nation’s political economy, including supporting the actualization of President Muhammadu Buhari’s administration’s commitment of moving the country up on the Ease of Doing Business
Ranking and taking 100 million Nigerians out of poverty over the next 10 years and rebuilding Nigeria’s critical infrastructure.”

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