The Federal Inland Revenue Service (FIRS) has stated that it will embark on a nationwide value-added tax (VAT) and withholding tax (WHT) compliance monitoring exercise for all taxable persons from July 1.
This was stated on Thursday by Muhammad Nami, executive chairman, FIRS in a circular published on its Twitter page.
Withholding Tax (WHT) is a method used to collect income tax in advance.
Nami said the exercise would make up for 2016 to 2020 accounting years.
However, he said the exercise would also be expanded to include preceding years for taxpayers whose records have not been audited by the service up to 2015.
He said teams of officers from the service would visit selected taxpayers, taxable persons including companies, NGOs or MDAS, to review their records.
“The Federal Inland Revenue Service (FIRS) shall embark on a nationwide VAT and WHT compliance monitoring exercise with effect from July 1, 2022,” the statement reads.
“The exercise shall cover 2016 to 2020 accounting years for taxable persons whose records have been audited by the service up to 2015 accounting year. However, for taxpayers whose records have not been audited by the Service up to 2015, the exercise shall be extended to include the prior years that have not been tax audited.
“All taxable persons or tax agents who have made deductions of VAT or WHT on behalf of the service are required to immediately remit all such deductions to the FIRS within two weeks of this publication.
“Taxable persons or tax agents who shall be visited for the VAT and WHT compliance monitoring exercise will be notified by the FIRS and the documents required for the exercise will be listed in the letter to selected entities. For more enquiries, contact: nationaltaxcompliance2021@firs.gov.ng.”