The Federal Inland Revenue Service, (FIRS), has unveiled a new tax assessment system that would ensure proper taxation of multinational companies and enterprises operating in the country.
The Acting Executive Chairman of FIRS, Mr Kabir Mashi, unveiled the new regime at the second stakeholders’ sensitisation on “Transfer Pricing (TP) Returns” in Abuja.
Mashi, represented by the Coordinating Director, Field Operation Group, Mr Ajayi Bamidele, said the regime would help fight tax evasion embedded in “under-pricing” of controlled transactions among enterprises.
He said that TP would reduce the risk of double taxation, provide taxable persons with certainty and a level playing field between multinational enterprises and independent enterprises doing business in Nigeria.
The Acting Chairman said the programme was meant to make the various guidelines, forms and documents that would be used to file the TP returns in line with the relevant tax laws.
He said Nigeria adopted the regulations and began implementation on transfer pricing to address the problem associated with shifting profit among enterprises.
“The objective is to ensure that taxpayers in Nigeria are taxed on appropriate taxable basis corresponding to the economic activity deployed by them in Nigeria,” he said.
Mashi also stressed the need for all businesses to play by the rules, adding that the new regime could reposition the country for sustainable economic growth and rapid development.
He solicited the cooperation of all stakeholders for the successful implementation of the TP regime and emphasised voluntary compliance with the provisions of the TP regulations and the extant tax laws.
“For us in FIRS, the goal is to implement the transfer pricing regime transparently, efficiently and effectively so as to promote voluntary compliance,” he said.
The Acting chairman, said that the programme was packaged to guide, sensitise and educate companies on their TP obligations.