The Federal Inland Revenue Service (FIRS) has signed a Memorandum of Understanding (MoU) with the Lagos Internal Revenue Service (LIRS) that would ensure both bodies collaborate on joint tax audit, investigation and automatic exchange of information.
The MoU signing ceremony which took place at the State House, Marina, Lagos State, Monday was executed by the Executive Chairman, FIRS, Mr. Muhammad Nami, and the Executive Chairman, LIRS, Mr. Ayodele Subair, and was witnessed by the Minister of State, Budget and National Planning, Prince Clem Agba as well as the Lagos State Governor, Mr. Babajide Sanwo-Olu.
The MoU which establishes a joint FIRS, LIRS audit and investigation team obliges the two tax authorities to share relevant information that would assist both parties in their tax administration and enforcement roles, while also providing for capacity building between both authorities.
Speaking during the ceremony, the FIRS Executive Chairman noted that the cooperation would enable the two authorities to work as a team to achieve these objectives.
“We will carry out joint audit and investigation as a team; we will also conduct automatic exchange of information for gathering data for the purpose of tax administration. With that information, we would be able to carry out tax administration seamlessly.
He explained that without funds received by the government through taxes, governments all over the globe would not be able to provide critical infrastructures such as roads, hospitals, internationally rated airports, schools and be able to cater for security and safety of their citizens.
The Lagos State Governor, Mr. Babjide Sanwo-Olu in his remarks stated that the collaboration commenced over a year ago with the intention to improve the fiscal space of the country.
He noted that the country’s tax to GDP ratio, at around six to eight percent was unimpressive and unacceptable, stating that other nationals within the Sub-Saharan region are doing better.
The Minister of State, Budget and National Planning, Prince Clem Agba commended the two tax authorities for this landmark agreement, and appealed to other states to follow suit.