As part of efforts to boost the revenue base of the Federal Government, the House of Representatives has moved to plug loopholes in tax income by empowering the Federal Inland Revenue Service (FIRS) to carry out back duty investigation of all corporate entities.
The investigation which covers tax evasion by all corporate entities operating in Nigeria will also include uncovering unpaid taxes.
The lawmakers made this move while adopting the resolutions of the motion on the urgent need to improve internally generated revenue of the Federal Government through implementation of back duty investigation sponsored by Babangida Ibrahim yesterday.
“Corporate companies operating in Nigeria have undeclared income in terms of company income tax, withholding taxes, VAT deducted on contracts to the Federal Inland Revenue Service, this has led to heavy losses in the internally generated revenue of the Federal Government,” Ibrahim said while leading debate on the motion.
They also resolved that a special ad-hoc committee should be set up to ensure strict implementation and compliance with the resolution.
Contributing to the debate on the merits of the motion, chairman of Public Accounts committee, Solomon Adeola stressed that the investigation was needed in view of queries received from the Office of the Auditor-General which comprise mostly of under-recovery of taxes. He also added that it will help address loss of billions of naira to the federal government.