Business
Regularize your tax positions or face sanctions, FIRS tells shipping lines
The Federal Inland Revenue Service, FIRS, has mandated all shipping companies operating in Nigeria’s territorial waters to regularize their outstanding tax return before 31st December 2023.
The service disclosed this in a public statement made available to the public and signed by its Executive Chairman, Muhammad Nami.
FIRS noted the order is the sequel to two previous seculars of June and December 2021 wherein it provided the basis of taxation of international shipping lines and also called on them to regularize their tax affairs with the service within three months.
The circular also stated that the FIRS had observed that many international shipping lines operating in the country had not been complying with the nation’s extant tax laws.
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“The circular provides the basis of taxation for all international shipping lines in Nigeria and the public notice requested all international shipping lines to regularise their tax affairs with the Federal Inland Revenue Service (FIRS) within three months of the date of that publication”
“Consequently, the Service hereby requests all international shipping companies operating in Nigerian territorial waters in whatever capacity (containerized, bulk cargo, fishing trawlers, crude oil and natural gas lifting vessels, dredging, survey, floating, production, storage, and offloading, etc.) to immediately regularise their tax positions.”
The service noted that it is collaborating with relevant security agencies to prosecute defaulting shipping agencies after December 2023.
The statement reads, “The Service is collaborating with relevant government regulatory and security agencies in the maritime sector to commence enforcement action on defaulting shipping companies after the expiration of the grace period of December 31, 2023”
Federal Inland Revenue Service (FIRS) was created in 1943. Prior to that time, its functions had been performed by the Inland Revenue Department of British West Africa.
The Board of Inland Revenue was created in 1958, and the service gained autonomy with the passing of the FIRS (Establishment) Act 13 of 2007.
