NIGERIA TAX ALERT!!! Federal Inland Revenue Service to carry out nationwide VAT and WHT verification exercise The Federal Inland Revenue Service (FIRS) through its publication in many Nigerian newspapers on 12 March 2014, notified tax payers of its intention to carry out a nationwide value added tax (VAT) and withholding tax (WHT) verification exercise on all Companies. The exercise is given credence to by Section 26 of the FIRS Establishment Act, which empowers FIRS to “Call for returns, books, documents and information”. The one-month exercise scheduled to commence on Wednesday 12 March 2014 is expected to end on Friday, 11 April 2014. It is expected that tax auditors from the FIRS will visit Companies in teams of four (4) to verify Companies’ VAT and WHT records for the past six (6) years (i.e. from 2008 to 2013). In readiness for the exercise, all tax payers are expected to make available the following documents: 1. Relevant remittance schedule of VAT and WHT, with evidence of bank teller and FIRS receipts (where obtained) 2. Audited financial statements, cash books and general ledgers print-out 3. Year-end trial balances 4. Evidence of input taxes paid on raw material and fixed assets 5. Sales and purchases documents and related import document 6. Relevant bank statements The publication was silent on whether FIRS will send further personalized tax verification notification letters to individual Companies relating to the specific date for the exercise and whether the review will cover only years not audited by FIRS for VAT and WHT. Therefore, it is vital that Companies begin the process of collating the aforementioned documents and be prepared for the exercise. This message is a public service announcement
Posted on: Fri, 14 Mar 2014 14:55:53 +0000
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