June 25, 2019

The two labour unions at the Federal Inland Revenue Service have reassured Nigerians, the Federal Government and FIRS management that they will ensure that the N8.8 trillion revenue target for 2019 is realised. Comrade Okere Samson, Chairman, FIRS chapter of the Association of Senior Civil Servants of Nigeria, and Comrade Idris Hassan of the Nigerian Civil Service Union, (FIRS chapter), gave the assurance during the week after their meetings with FIRS Chairman, Tunde Fowler. According to public notices circulated by the unions to FIRS staff, the FIRS Chairman has raised the level of staff welfare and unfolded a slew of pro-staff decisions that will enable staff to realise their individual and organisational goals. Fowler jerked up subsistence allowance from 20 per cent to 30 per cent (it was 10 per cent before the Chairman’s appointment in 2015), pegged payment of Key Performance Indicators at 70 per cent instead of 80 per cent for non-oil tax receipts, directed expedited payment of first 28 Days Movement Allowances to staff on transfer, approved meal, children education and maintenance grants – once staff meet target and attain some consensus on the vacancies for 2018 and 2019 promotion exercises. Apart from increase of subsistence allowance, staff have also been paid wardrobe allowances, while quarterly bonus on met or exceeded target in revenue collection, 13th month salary and payment of equity contribution to benefiting staff of the FIRS Mass Housing Scheme have also been approved. An amount has been provided in the 2019 budget for to this effect. In the two documents circulated to all staff, titled: “Update on Staff Matters, signed by Comrade Samson, and another co- signed by Comrades Hassan and Jimoh Idowu, the two unions rededicated their commitment and that of their members to the realisation of the N8.8 trillion target of the Service. The documents detailed staff welfare issues discussed at a meeting between the two unions and FIRS Management held on June 6 and another on June 10, 2019 as well as resolutions reached. Comrade Hassan said: “This is to inform FIRS Staff that following continuous engagement between Nigeria Civil Service Union, (NCSU) and Management of the FIRS, Management has been able to address most of the issues raised like increment of subsistence allowance to 30%, reduction of KPI (Key Performance Indicators) benchmark from 80% to 70% of non-oil, and payment of terminal benefits to staff among others.” In another document titled: “Matters Arising from the NCSU Meeting with Management,” Comrade Hassan said: “Based on the above, the Union hereby implores all staff to be of good behaviour, remain dedicated and hardworking in order to achieve the set revenue target for the Service. We, the Executive of NCSU assure our members and entire staff of the Service of our support and also continue to engage Management for better welfare and reward hard work. We equally assure Management of our continuous support as partners in progress towards the actualisation of the goals and objectives of the Service.” The Chairman of ASCSN counselled the staff to work harder towards ensuring that the Service realises its 2019 revenue target, while the union keeps engaging the Management to always appreciate and reward staff for hard work. On proposed staff grants such as meal subsidies, children’s education and furniture maintenance grants, Samson said that the FIRS Chairman has directed the Director Human Capital to implement the payment of the grants once the FIRS attains 70 per cent of its non-oil revenue target after the third quarter of the year. All outstanding severance benefits to retired staff have been approved for payment to staff that exited the Service since November 2018, while the FIRS Chairman directed that more working tools such as printers, laptops and furniture be provided by Directors in charge of Facility and Efficiency to ensure timely distribution of such tools to field offices. On the 2018 and 2019 promotion exercise, Fowler, stated Samson, directed the association to meet with the Director, Human Capital Management Department for a review of the promotion vacancies and revert to the Management for approval. Specifically on those who passed but were not accommodated on account of vacancies, the NCSU Chairman, Comrade Idris Hassan, said: “Chairman (Fowler) directed the Union to liaise with the Director Human Capital and Director, Legal to work out  modality  on how to resolve the issues within the ambit and provisions of the laws and the HRPP, (Human Resources Policies and Processes).” Fowler assured staff that all outstanding severance benefits to retired staff have been approved for payment to staff that exited the Service since November 2018.   Source: Punch

The Tax Appeal Tribunal sitting in Abuja on Wednesday fixed June 19, to deliver judgment in an appeal of N29. 2 million remittance on Value Added Tax (VAT) filed by Infinity Trust Mortgage Bank. The bank is challenging the Federal Inland Revenue Service (FIRS) for imposing the amount. The tribunal headed by Alice Iriogbe fixed the date after parties in the suit adopted their final written addresses. The appellant is seeking the order of the tribunal for the annulment of the FIRS’s assessment or demand notice dated May 17 and July 6, served on it with penalty at 10 per cent and interest at 15 per cent. Responding, FIRS stated that the letter of reviewed and audited accounts were valid and issued in accordance with the relevant provisions of the law. FIRS sought the tribunal to declare that the VAT demand served on the Bank was valid and made in accordance with the law. The respondent further sought for a declaration that the VAT transaction by the appellant outside the main objectives of its business, is liable to VAT. FIRS further sought for an order compelling the appellant to pay to the respondent the sum of N29. 2 million being its VAT liability for the period of 2015 to 2016 as contained in the demand letter. At the resumed sitting , Mr Olumide Olujimi, counsel for the appellant in adopting his address, urged the tribunal to uphold the appeal and the reliefs sought. Mr Thiwhi Dauda, counsel for FIRS also urged the tribunal to discountenance the appeal and order the appellant to pay.   Source: Punch

To widen its corporate horizon, the Chartered Institute of Taxation of Nigeria (CITN), has renewed its vision and mission statement, with the hope to pursue the actualisation of both with more vigour. The body added that it is also planning to be a leading Institute in training world-class tax professionals. It explained that the planned tax academy would be developed to project the fundamental driving force of its vision, while it will engage all stakeholders with an inclusive mind-set and strengthening other capacity building programmes. New CITN President, Dame Gladys Simplice, said this in her address during her investiture as the 14th president of the Institute over the weekend. She said the tax academy will be repositioned in terms of capacity for a technically-driven alternative route to membership through intensive training for revenue services staff. To admit lawyers into the Institute, she said they will go through extended period for pre-induction training to close the knowledge gap in their accounting and taxation. On the international scene, Simplice, who is also the President of the West Africa Union of Tax Institutes (WAUTI), said the Institute will continue to push for inclusiveness and full membership of member states to broaden their horizon and development with the needed expertise in the sub-region. The special guest of honour, Executive Chairman, Federal Inland Revenue Service (FIRS), Babatunde Fowler, said globally, the issue of taxation is already on the front burner where the profession is seen to be of importance than before. While promising his support for the president, Fowler said Nigeria has attained the position where taxation can be recognised as a choice of destination. Lagos State Governor, Babatunde Sanwo-Olu, represented by the Permanent Secretary, Ministry of Finance, Mrs Balogun, while congratulating Simplice, urged Lagosians to pay their taxes regularly for more infrastructural development in the state. Sanwo-Olu also promised to partner with the institute for development of the state.   Source: Guardian