The Federal Inland Revenue Service (FIRS) has set a deadline of December 31st, 2023, for all shipping companies operating within Nigeria’s territorial waters to address any pending tax returns.
This directive was outlined in an official statement released yesterday by Muhammad Nami, the Executive Chairman of FIRS. It follows two earlier statements issued by FIRS in June and December 2021.
The two earlier directives outlined the basis of taxation for international shipping lines and urged them to sort out their tax responsibilities within three months.
FIRS stated that if any shipping companies fail to comply with the deadline, the agency will work with relevant security agencies to prosecute defaulters.
Analysts said the latest move by the FIRS was aimed at improving revenue generation for the country by ensuring that all international shipping companies operating within Nigerian waters comply with tax regulations.
The directive comes amidst efforts by the Nigerian government to improve its tax revenue generation, as well as clamp down on companies who evade tax payments.
Analysts said the move by FIRS was expected to improve tax compliance among shipping companies operating in Nigeria’s territorial waters, thus increasing the country’s revenue generation.
In addition, analysts remarked that the deadline conveyed a clear message to other companies: adhere to tax regulations or encounter legal repercussions.
