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FIRS plans to sell properties of 52 firms over N3.4bn tax debt

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The Federal Inland Revenue Service is reportedly making plans to sell the properties of 52 companies whose tax debts amount to N3.4bn.

Findings revealed that the Legal Department of the Service had begun the process to sell the properties in a bid to effectively implement the initiative.

It was gathered that 10 more companies are being profiled and investigated over tax evasion, while enforcement action is expected to be carried out on another 10 companies in Lagos with a total tax value of N727.42m.

The FIRS had also discovered that some private organisations that own properties in Nigeria had not been paying any form of taxes.

The law guiding tax payment in Nigeria stipulates that, where a company has not filed or paid any taxes, the tax authority used an estimated assessment based on the company’s turnover.

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In order to get this accurate data, the FIRS wrote to commercial banks asking for details of the turnover of some of the affected companies.

According to the letter, the banks are to provide a list of companies, partnerships and enterprises with a banking turnover of N10bn and above.

With this, the FIRS hopes to determine those companies that are compliant with the tax laws and those that are not compliant.

While the first letter went out in May last year, another one was sent in October, and the FIRS is said to be currently reviewing the responses.

The development is expected to recover tax liabilities from non-compliant companies that are currently being assessed for tax under the Company Income Tax Act.

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