Nigeria ‘s Federal Inland Revenue Service is set to begin clampdown on tax defaulters today, December 18, 2019, if the most recent notification sent to tax payers warning them to clear their taxes or face sanction is anything to go by.

“The FIRS hereby informs all taxpayers (individuals, partnerships, enterprises, corporate organisations, ministries, departments and agencies) who are in default of payment of taxes arising from self-assessment, tax audit, tax investigation, transfer pricing audit, demand notices and any other liabilities, that the service will commence a nationwide tax enforcement exercise from December 18, 2019 with a view to prosecuting defaulters and recovering all outstanding tax liabilities.

“The taxes referred to are as follows: 1. Petroleum Profits Tax; 2. Companies Income Tax; 3. Value Added Tax; 4. Withholding Tax; 5. Tertiary Education Tax; 6. NITDA Levy; 7. Stamp Duty; 8. Capital Gains Tax,” the notice reads.

”We Are Going After Everybody”

The Nigerian tax agency has recently explained that it is hustling hard to meet its N8 trillion revenue target for 2019.

The FIRS also seriously wants to increase Nigeria’s current tax population to 45 million. To do that, it would be relying on multiple information sources, outgone DG of FIRS, Mr Babatunde Fowler said. And that would include invading the country’s Bank Verification Number database and other related agencies with relevant information.

“We are going after everybody. I am sure you have heard that we have placed lien on some accounts of defaulters that have a billion naira turnover annually. So certainly, we are not leaving anyone out of the tax net,’’ he said.

Voluntary Asset and Income Declaration Scheme (Nigeria ’s Tax Amnesty Programme was launched in 2017) Is Going After Companies.

The programme gave tax defaulters in Nigeria a one-year period of grace to declare and settle their unpaid taxes. This appears to be a hard time ahead for most companies in Nigeria.

Most taxpayers are insisting that the scheme was just designed to eliminate them from business. Mr. Fowler said “administrative error” should take the blame arising from the huge number of accounts involved.

“Well, there is certainly one or two instances where we made administrative error, but when you are looking at over 50,000 accounts. There is a tendency that sometimes an error might be made. For those that we made errors on, I wrote them personally apologising and of course we lifted the lien on their accounts,” he said.

Also See: These Businesses Are Currently Free From Tax In Nigeria

FIRS targets to generate between N750 billion and N1 trillion from the clampdown, which includes closure of defaulters’ bank accounts. So, it is either you obey the amnesty or you close down your business.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world