Nigerian Tax Authority, Federal Inland Revenue Service [FIRS] will now digitally verify tax paid by telecom companies As part of the MoU which was signed with NCC.
FIRS has concluded plans to integrate API technology solution,to verify the accuracy of taxes paid. With the MoU, the FIRS will be able to integrate an application programming interface (API) technology solution with the systems of telecom Operators for independent verification of the amount of VAT that should be paid by mobile network operators (MNO) rather than relying entirely on the Operators’ books of accounts.
As stated “The API, which was developed in-house, is transaction-based would ascertain better accuracy of VAT elements in telecoms transactions rather than books of account
According to the FIRS Executive Chairman and Chief Executive Officer, Muhammad Nami, the MoU is mainly “to ascertain the completeness of tax transactions of mobile service providers to the Federal Government due to the shift of physical businesses to electronic-based business activities”.
Chief Executive Officer, Muhammad Nami,stated:
“Our concern, as Regulator of the telecoms industry, is that we needed to be sure that it is not another way to tax telecoms Operators, who are already dealing with multiple taxation issues. We have also ensured that the integration of the solutions with telcos’ transactions systems will not, in any way, impact the cost and quality of service delivery by the Operators to telecoms consumers.”
See Press Statement:
PRESS STATEMENT
*NCC, FIRS sign MoU for ascertaining VAT elements of telcos’ transactions*
Link: https://t.co/3BgV2dVRc4 pic.twitter.com/svYxa2Bg0V
— ncc.gov.ng (@NgComCommission) June 9, 2020
Executive Vice Chairman of NCC, Prof Umar Danbatta, also stated the new initiative will not lead to multiple taxations for network service providers or increase the cost and quality of their operation and service delivery.
(C) Control TV 2020.
