FIRS reads riot act to tax defaulting shipping companies
By Patience Ikpeme
All shipping companies operating within Nigeria’s territorial waters have been given until December 31st, 2023 by the Federal Inland Revenue Service (FIRS) to settle any outstanding tax returns.
This announcement was made in a public statement signed by the Executive Chairman, Muhammad Nami. The order comes after two previous statements issued by the FIRS in June and December 2021
The two earlier directives outlined the basis of taxation for international shipping lines and urged them to sort out their tax responsibilities within three months.
If any shipping companies fail to comply, the FIRS has stated that it will work with relevant security agencies to prosecute them by implication, failure to comply with the directive will result in legal actions being taken against defaulting shipping companies.
It is obvious that this latest move by the FIRS is aimed at improving revenue generation for the country and ensuring that all international shipping companies operating within Nigerian waters comply with tax regulations.
This directive comes amidst efforts by the Nigerian government to improve its tax revenue generation, as well as clamp down on companies who evade tax payments.
The FIRS has always stressed the importance of compliance with tax regulations, stating that it is essential for national development and revenue generation.
This move by the FIRS is expected to improve tax compliance among shipping companies operating in Nigeria’s territorial waters, thus increasing the country’s revenue generation.
It also sends a message to other companies to comply with tax regulations or face legal consequences.
