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NECA faults FIRS’ stance on advance payment of taxes

NECA faults FIRS’ stance on advance payment of taxes

The Nigeria Employee Consultative Association (NECA) has described the Federal Inland Revenue Service’s (FIRS’) request to companies for advance payment of taxes as additional pressure on businesses. The FIRS had issued a circular requesting corporate organizations to commence payment of their Annual Returns earlier than their due dates.
The revenue agency hinged the appeal   on the need “to ease some of the cash flow gaps being experienced by governments.” Reacting to the fiscal directive, the Director-General of NECA, Dr. Timothy Olawale, said: “If the Government is experiencing the cash crunch effects of the lockdown as admitted by the Circular, then Businesses should be worst off. The government should stop considering the private sector as a ‘cash-cow’. Rather, Governments should look towards inwards on how to cut governance costs.”
Olawale pointed out that it remained a known fact that businesses were facing numerous challenges before the advent of Covid 19 even with the privilege of full time working hours.
He lamented that pandemic had further compounded the challenges because of limited hours of work and increased over-head.
According to him, based on the issued circular the FIRS has not taken into consideration the holistic nature of industries operating within the global context, the constraints imposed by Covid-19, and its attendant collateral damages on businesses and economies. He clarified: “While we appreciate the need for the FIRS to generate income to facilitate cash flow because of the tumbling prices of oil, there is an erroneous assumption that some companies were experiencing a boom during this time of economic lockdown. “It is pertinent to note that there is the interconnectivity of sectors so hardly does any sector, formal or informal get exonerated. All the sectors of the economy have felt the effect of the Covid lockdown and some companies are on the verge of closing shop. “It is noteworthy that Corporate organizations know when to file their annual returns according to the relevant tax laws, and should only be reminded, and not be harassed by such circular, not even minding the current predicament that endangers livelihoods and businesses, wherein sectors were clamoring for further palliatives to support the sustainability of businesses”, the industrial sector expert added. The association’s chief recalled that due to the lockdown, businesses in Lagos State had experienced about five weeks of operational paralysis.

source: https://www.dailytrust.com.ng/neca-faults-firs-stance-on-advance-payment-of-taxes.html