The Federal Inland Revenue Service (FIRS) Memorandum of Understanding (MoU) Lagos State Internal Revenue Service (LIRS) to establish a joint tax audit system that will address duplication of efforts and facilitate the exchange of data.
Highlights of the signed MoU;
The FIRS and LIRS will carry out joint audit and investigation as well as conduct automatic exchange of information for gathering data for the purpose of tax administration.
This might bring about over-lapping of responsibilities amongst the agencies.
An important aspect is the legal backing of the MoU. Section 68(4&5) of the FIRS Establishment Act as amended allows such collaboration between the FIRS and other Federal ministries and parastatals, but can the same section be interpreted to allow such collaboration with states and local government?
While the collaboration efforts are commendable, it is important that all the legal and administrative framework required to ensure the smooth take off of the MOU is properly considered by both parties.
Details of the MOU are still sketchy as no copy of the signed document has been made public yet. Until then, discussion will remain limited.
Kindly drop your comments below. #taxaudit #taxation