By Business A.M.
The Federal Inland Revenue Service (FIRS) and the Lagos Internal Revenue Service (LIRS), have signed a Memorandum of Understanding (MoU) to set up a joint audit and investigation team, aimed at encouraging the exchange of information between both tax authorities.
The agreement, according to both parties, is expected to leverage existing distinct competencies in tax administration to facilitate collaboration in the areas of exchange of information, harmonisation of an integrated tax system and joint tax audit or investigation exercise, where necessary, in carrying out their respective mandates for the purpose of optimising tax revenue to the federal government and the state government.
They also noted that the development seeks to improve tax administration by reducing tax compliance cost thereby enabling ease of doing business in the country, with a view to enhancing tax revenue generation, creation of a robust database and improving on the country’s tax-to-GDP ratio.
Muhammad Nami, executive chairman of FIRS, and Ayodele Subair, executive chairman, LIRS,in a communique, charged the public, taxpayers and tax practitioners to provide full support and cooperation to both tax regulators for the overall economic benefit of all stakeholders.
According to Nami,the cooperation would enable the two authorities to work as a team in sharing relevant information that would assist both parties in their tax administration and enforcement roles as it would also provide capacity building between them.
He said, “We will carry out a joint audit and investigation as a team, we will also conduct an automatic exchange of information for gathering data for the purpose of tax administration. With that information, we would be able to carry out tax administration seamlessly.”
On his part, Subair noted that the agreement would foster greater collaboration between the two agencies. “There is no reason to debate the above as it has been established that tax compliance and good governance are expected to co-exist as the undividable social contract that binds citizens and governments anywhere in the world. Therefore, citizens and governments are expected to fulfil their end of the bargain in achieving a balance,” he added.
According to the communique released by both parties, the agencies are expected to establish a joint audit or investigation team to be known as the FIRS/LSBIR JAIT whose membership shall be determined by both parties to conduct a joint audit or investigation exercise which shall be concluded timeously.
