Crude Oil Shipping: FIRS Urges Foreign Coys to Obey Tax Laws
The Federal Inland Revenue Service (FIRS), has charged non-domestic companies shipping crude oil from Nigeria to ensure strict compliance with the country’s tax laws in their operations.
FIRS Chairman, Zach Adedeji gave the charge in Lagos at a workshop on taxation of non-resident shipping companies organised by FIRS in conjunction with the Oil Producers Trade Section (OPTS) on Monday.
He said the compliance exercise launched by FIRS on the activities of foreign shipping companies lifting hydrocarbons from Nigeria, was part of measures aimed at widening the tax net to grow revenue for the government.
In a statement by the Special Adviser on Media, Mr Dare Adekanmbi, the FIRS Boss assured the international companies that the agency was only interested in ensuring compliance with extant tax laws and not out to disrupt their operations.
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.
According to him, the international shipping companies have to reconcile their books with FIRS up to December 31 this year.
He explained that the workshop’s purpose was to address challenges associated with compliance by foreign companies and find a lasting solution.
Section 14 of the Companies Income Tax Act (CITA) 2004 (as amended) makes it mandatory for foreign companies engaging in shipping and air transport operations in Nigeria to file tax returns to continue running their businesses within the country.