World Bank, FIRS, CAC Partner On Tax Evasion

Proshare

By Christopher Adedeji, Abuja

 

World Bank is to facilitate collaborative partnership between the Corporate Affairs Commission (CAC) and Federal Inland Revenue Service (FIRS) to synergise the operations of the two agencies with a view to improving the integrity of filing annual returns and curtailing tax evasion by Nigerian companies respectively.

 

The CAC director of finance, Mr. Gbuberu Otumara disclosed this on Tuesday in Abuja during a familiarisation visit by the investigation and law enforcement trainees of the Economic and Finance Crime Commission (EFCC) to the commission.

 

The collaboration, according to Otumara is to enable the two agencies work in towards ensuring that tax evasion by companies and individuals are alleviated to the barest minimum.

 

The commission will in no distant time commence issuance of new form of registration certificate bearing two numbers including the company tax number from FIRS and registration number from the CAC.

 

The Registrar General of the CAC, Ahmed Almustapha, told newsmen that the project will assist both agencies to carry out their functions effectively as both agencies have similar functions in terms revenue generation through tax for the federal government.

 

While explaining that the collaboration between the two agencies will help in preventing companies from indulging in tax avoidance, Mustapha mentioned two types of tax payable by companies which include stamp duty tax and company\'s tax.

 

\"For a company to get incorporated with CAC, it has to get the duty stamp tax from FIRS which is payable to the government in terms of tax. This is pre-registration exercise for FIRS and for the Service to do their work effectively on collection of company tax they need the CAC. This why the collaboration will be relevantly effective,\" he said.

 

On post registration, he said \"By the time we finished our collaboration every company that is incorporated will at the time of registration come out with two numbers; one for company\'s resignation while the other will be for tax number of the company.\"

 

While noting that the development can be achieved effectively with automation system, he said, \"We are going to achieve this by laying fibre optic cable connection between CAC and FIRS and our server will be linked with their server whereby we will be able to talk with their server.

 

\"Before registration is done it will have to pass through FIRS whereby we will be given the tax company\'s number so that when the certificate is out it will bear both the company and the tax number this will help in curtailing tax evasion by the companies\" he added.

 

Almustapha also disclosed that the Commission is perfecting plans to withdraw old registration certificates of the companies which would be replaced with the new ones soonest.

 

He also stressed that the commission has modified the method of filing the annual returns by the companies to read the end of the financial year end of the company which he said would make CAC to know when a company is due to file its annual return.

 

Almustapha who said CAC is working in collaboration with EFCC to ensure that fraud perpetrations are reduced stressed that the commission has the power to wind up a company, through legal procedure, if it involves in any fraud.

 

While welcoming the EFCC trainees to the commission, he urged them to ensure that they put in their best to complement the efforts of the federal government in reducing corruption to a barest minimum level in the country.

 

\"If you can make your impact known you will be definitely remembered of, you can go beyond mere learning on investigating and prosecuting to and use some other parameters to execute your duty.

 

It is a rare opportunity to serve your country and I will want you to make good use of this opportunity, now that you have it,\" he said.  - independentngonline.com

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