The Federal Inland Revenue Service, has signed a Memorandum of Understanding with the Lagos Internal Revenue Service for joint collaboration on tax audit, investigation and automatic exchange of information.
The MoU which establishes a joint FIRS, LIRS Audit and Investigation team obliges the two tax authorities to share relevant information
This would assist them in tax administration and enforcement roles, while also providing for joint capacity building.
A memorandum of understanding signing between the Federal Inland Revenue Service and the Lagos Internal Revenue Service.
The agreement is to, among other things, bring about a joint FIRS, LIRS Audit and Investigation team and allow the two tax administrators share relevant information aimed at aiding their tax operations and enforcement duties as well as capacity enhancement.
The move is also to aid the agencies’ implementation of a presumptive tax for purposes of Personal Income Tax and Ground Rent administration.
This will follow the issuance of the regulation being put together by the tax authorities and other agencies.
The FIRS also makes known its willingness to share specialised knowledge with the Lagos Revenue Service while expecting the agency to do same .
It believes this development will aid the growth of Lagos State Revenue through taxation, thereby making it better suited to fund its expenditure obligations.
This would also include adequate funding of projects like the 4th Mainland Bridge, a Lekki International Airport, and other critical infrastructure.
The collaboration between the two parties started over a year ago with the aim of impacting the country’s fiscal space.
This includes boosting the low tax to GDP ratio.
The Lagos state government is positive the initiative will aid to raise the state revenue from a present N1.7 trillion to between four to five trillion Naira.
The FIRS also appeals to the the Lagos State government to give taxpayers value for money.
Other states in the country are asked to emulate Lagos by way of deeper engagements with the FIRS for more tax incomes.
