The Federal Inland Revenue Service (FIRS) says it has begun looking into the operations of a steel group – Parco Enterprises, over its refusal to open its books to and provide FIRS with requested documents for tax audit.
This action, it said, comes after several notifications and meetings. The enforcement exercise, according to FIRS, was carried out recently at the office of the company at 1, Commercial Road, Eleganza Plaza, Apapa, Lagos State, where documents and accounting records of the company were retrieved for audit purposes.
By deploying some of its latest audit tools to identify tax evaders, officials of the FIRS carried out an enforcement on the company a little over a week ago.
One of such audit tools is the risk engine tool for identification of tax evaders or non-compliant taxpayers. Companies flagged by such tools are either subject to tax audit or tax investigation.
One of such companies flagged off by the FIRS’ risk engine is Parco Enterprises Nigeria Limited, with associated interests in steel, fertiliser, chemicals, foundries and mines, with a trans-Nigerian reach.
In line with its statutory mandate and the provisions of Sections 58 and 60 of the Companies Income Tax Act (Cap. 21 LFN 2004) and Sections 26 and 27 of the Federal Inland Revenue Service (Establishment) Act 2007 (FIRSEA), FIRS commenced investigation via a letter dated April 22, 2014, requesting for a pre-audit meeting which, held on April 30, 2014.
Further requests to provide accounting and other business records requested of them repeatedly by FIRS, in June were not granted.
Consequently, the FIRS management, pursuant to the power vested on it by Section 36 of the FIRSEA, approved an enforcement action as a result of the company’s failure to oblige FIRS with requested documents and to open up its books for audit.
Meanwhile, Kabir Mashi, acting executive chairman, FIRS, at the weekend called on staff to up the ante in tax revenue collection.
Mashi, who made this known at the FIRS regional enlarged management meeting in Lagos, said such increase would help to narrow the gap between the tax revenue collection to the gross domestic product of the nation.
Iheanyi Nwachukwu
