FIRS plans review of capital gains, stamp duties tax laws

The Federal Inland Revenue Service (FIRS) says it plans to carry out a comprehensive review of the Capital Gains Tax (CGT) and Stamp Duties (SD) Acts to bring their provisions in conformity with global best practices.
Acting Executive Chairman of FIRS, Kabir Mashi, said at a workshop on Administration of CGT, SD and Personal Income Tax (PIT) in Abuja on Wednesday that the exercise would make for optimum revenue yield through these sources.
He said the Service would also embark on massive sensitization of the public to create awareness on best practices that would help drive improved collection of all forms of taxes in the country.
Mashi said there was need for the FIRS to focus more on CGT, SD and PIT to ensure increased revenue generation and maximization of revenue potentials from various sources that have remained untapped, adding that it was important for the three tax sources to contribute more to the total tax view of the need to improve revenue accruable to government across levels.
“This position must however be reversed if we are to meet our targets and ensure that these taxes begin to make substantial contribution to overall revenue collection’’, he said.
The acting Chairman reminded staff of the service that the realisation of Nigeria’s 2012 Budget objectives is dependent on earnings from taxes, adding that this is substantially predicated on the ability of the FIRS as the primary revenue generating agency of the government to meet its revenue targets.
“We need to intensify our efforts towards optimum revenue collection,” he said. “In doing this, we must bring to the fore, key issues impacting our ability to maximise revenue potentials from various sources that have hitherto remain untapped. There is therefore the need to focus on these identified areas and bring up ideas, which will enable us optimise revenue in the areas.
“It must be noted that Capital Gains Tax, despite the preponderance of huge capital assets disposals in Nigeria, and Abuja in particular, has continued to make little contribution to the overall tax yield. We must therefore commit ourselves to reverse this trend not only for Capital Gains Tax, but also for Personal Income Tax and Stamp Duties.’’
He said the challenge of growing revenue requires continuous innovation for the Service to attain and surpass the performance target not only for 2012, but on a sustainable basis.
The workshop, organized by the Registration, Returns and Filling Process and Programmes Department of FIRS featured the presentation of topics like ‘Capital Gains Tax’, ‘Applicable Strategies to Realising Optimum Revenue Collection’, and ‘Overcoming Tax Evasion and Avoidance in Capital Gains Tax Administration’.

Other presentations include Enforcing the Tax Law in the Administration of Stamp Duties for Maximum Revenue Yield and Key Issues in Enterprise Partnership and Personal Income Tax Administration as well as the Recent Amendments to Personal Income Tax Act 2011.

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