THE game appears up for most tax-evading companies in the
country as the Federal Government would soon commence tax-
audit of all the 450,000 firms operating in the country.

The essence of the audit is to catch the companies that have been
short-changing the government by avoiding paying tax, the
Federal Inland Revenue Service said on Sunday.

Statistics provided by the FIRS showed that only 125,000
companies, representing 27.7 per cent of the 450,000 firm
operating in the country, paid any form of tax. The remaining
325,000 have been evading taxation.

The FIRS, in a statement on Sunday, said a special audit of all
the companies would be carried out, in collaboration with audit
firms, and tax consultants.

In the statement, the Director, Communications and Servicom
Department, Mr. Emmanuel Obeta, explained that the decision
to carry out the exercise was reached at a meeting between the
Acting Executive Chairman, FIRS, Mr. Babatunde Fowler; and
audit firms, chartered accountants, tax consultants and other
professional service providers.
The statement added that the exercise would be carried out
within 30 days and would take into consideration the various
year ends and peak points of activities of the various companies.

Fowler was said to have pointed out that the collaboration
between the professional service providers, states Boards of
Internal Revenue and FIRS would mark a turning point for
taxation as well as reduce the country’s reliance on oil.

The statement read in part, “The meeting focused on the need to
harmonise exchange of information across all the revenue
authorities as well as ensuring a synchronised auditing of all the
various companies in the country.

“At the end of their deliberations, the meeting agreed to share
information with members of the National Assembly,
particularly on tax laws, in collaboration with other professional
bodies as well as relevant stakeholders.

“They also resolved that FIRS, state Revenue Boards and the
various audit firms will carry out joint audits of the various
companies to ensure accuracy of the exercise, enhance
transparency and drive compliance.

“These audits will be completed within 30 days and will take
cognisance of the various year ends and peak points of activities
of the various companies.”

The statement quoted Fowler as saying that the input from
stakeholders was necessary for the expansion of the nation’s tax
net, information dissemination, building capacity of tax
administration as well as sharing information that would
promote voluntary compliance.

He said, “Irrespective of the fact that we have a duty to advice
taxpayers, we equally have obligation to government in ensuring
increase in revenue collection.

“It’s time to stop all forms of unwholesome practices in tax
related issues because Nigerians need us at this critical time to
reposition the country for more resources.

“We don’t have all the answers we need you from both sides to
reposition the entire process. All we are asking for is your
cooperation to move the nation’s tax system to another level
through your support and other stakeholders’’
The tax practitioners, who spoke during the meeting, were said
to have called for adherence to professional code of ethics
among stakeholders at all time.