The Federal Inland Revenue Service says
it will crack down on tax evaders by denying access to banking
facilities for individuals and companies that fail to join its register.
The Chairman, FIRS, Mr. Sunday
Ogungbesan, told a forum in Lagos on Friday that there were more than
440,000 companies in the country but only about 120,000 were paying
taxes.
Ogungbesan said it was difficult to track
the financial activities of those who did not pay taxes, most of whom
said their firms were not active.
“We are collaborating with the central
bank to enforce compulsory registration with the tax authority by
companies and individuals before they can access their bank accounts,”
Ogungbesan said.
The tax identification numbers were
introduced for corporate bank accounts in 2012 but some firms whose
accounts pre-date the system are currently not obliged to have one.
“There is a need to review our tax laws,” said Ogungbesan, adding that they were not stringent enough to deter evaders.
Tax evasion can be punished with up to five years in prison
Punch
.
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