FIRS urges foreign shipping companies to strictly adhere to tax laws

Non-domestic businesses exporting crude oil from Nigeria have been urged by Federal Inland Revenue Service (FIRS) chairman Zacch Adedeji to ensure that their operations strictly adhere to the tax laws of the nation.

Adedeji gave the charge in Lagos at a workshop on taxation of non-resident shipping companies organised by FIRS in conjunction with Oil Producers Trade Section.

He said that the tax compliance exercise that FIRS started on the operations of foreign shipping companies that were removing hydrocarbons from Nigeria was a component of efforts to expand the tax base in order to increase government revenue.

According to a statement made by his Special Adviser on Media, Dare Adekanmbi, the chairman of the FIRS gave the foreign companies the assurance that the agency was not out to disrupt their operations, but rather merely interested in ensuring compliance with existing tax laws.

Foreign companies operating in Nigeria’s shipping and aviation industries are required by Section 14 of the Companies Income Tax Act 2004 (as amended) to file tax returns in order to maintain their business operations there.

Adedeji, who before he was appointed FIRS chairman was Special Adviser on Revenue to President Bola Tinubu, reminded the companies about how his intervention had earlier led to the six-month grace period given to them to regularise their tax returns.

The international shipping companies have up to December 31 this year to reconcile their books with FIRS.

He explained that the purpose of the workshop was to address challenges associated with tax compliance by the foreign companies and find a lasting solution.

The workshop was attended by members of the International Association of Independent Tanker Owners (INTERTANKO), International Chamber of Shipping, Independent Petroleum Producers Group, government agencies and tax advisers among others.