FIRS cautions MDAs against contracting tax collection, enforcement to consultants

Nami expressed worry that some MDAs engage in assessment, collection, accounting, and enforcement of taxes and levies in their agreements with concessionaires and consultants.

Firs cautions mdas against contracting tax collection, enforcement to consultantsThe FIRS has cautioned Ministries, Departments and Agencies of Government (MDAs) against appointing consultants and concessionaires to collect taxes due to the Federal Government or any of its agencies.

A statement issued on Thursday in Abuja by the Executive Chairman of FIRS, Muhammad Nami, said that the Federal Inland Revenue Service (FIRS) remained the sole agency of government saddled with the responsibility of collecting tax.

Nami expressed worry that some MDAs engage in assessment, collection, accounting, and enforcement of taxes and levies in their agreements with concessionaires and consultants.

“It has come to the notice of the FIRS that some MDAs are appointing concessionaires or consultants for the assessment, collection, accounting or enforcement of taxes and levies due to the Federal Government or any of its agencies.

“Some MDAs include such functions in their agreements with concessionaires or consultants,” he said.

Nami said that Section 68(2) of the Act establishing FIRS highlighted that “the primary agency responsible for administration, assessment, collection, accounting and enforcement of taxes and levies due to the Federal Government or any of its agencies is the FIRS.

“This is except as may be authorised by the Minister responsible for Finance by regulation as approved by the National Assembly,” he said.

According to him, while Section 12(4) of the FIRS Act provides that the Service may engage consultants, accountants or other agents to carry out certain functions on its behalf, the law has expressly prohibited the carrying out of assessing and collecting tax by consultants.