The Federal Inland Revenue Service (FIRS) is the only Federal Government institution saddled with the primary responsibility of the collection and payment of Federal government taxes across Nigeria.
According to Section 1 & 2 of the FEDERAL INLAND REVENUE SERVICE (ESTABLISHMENT) ACT, 2007:
1.(1) There is established a body to be known as the Federal Inland Revenue Service (in this Act referred to as “the Service”).
(2) The Service – (a) shall be a body corporate with perpetual succession and a common seal; (b) may sue or be sued in its corporate name; and (c) may acquire, hold or dispose of any property, movable or immovable, for the purpose of carrying out any of its functions under this Act.
(3) The Service shall have such powers and duties as are conferred on it by this Act or by any other enactment or law on such matters on which the National Assembly has power to make law.
2. The object of the Service shall be to control and administer the different taxes and laws specified in the First Schedule or other laws made or to be made from time to time, by the National Assembly or other regulations made there under by the Government of the Federation and to account for all taxes collected.
This shows that only the Federal Inland Revenue Service has the legal right for collation and collection of taxes due to the Federal Government.
The Federal Inland Revenue Service comprises of the following board members:
- The Executive Chairman who is a person with numerous years of practical and hands on tax experience.
- Six members with the relevant qualifications and experience who are appointed by the President. Each members represent each geo-political zones
- The Chairman of the National Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) or his representative;
- A representative of the Minister of Finance that is not below the rank of Director
- Group Managing Director of the Nigeria National Petroleum Corporation or his representative not below the rank of Group Executive Director or its equivalent;
- The Chief Executive Officer of the National Planning Commission or his representative not below the rank of Director;
- Comptroller-General of the Nigerian Customs Service or his representative not below the rank of Deputy Comptroller-General;
- The Registrar General of the Corporate Affairs Commission or his representative not below the rank of Director;
- A representative of the Attorney-General of the Federation;
- The Governor of the Central Bank of Nigeria or his representative
Functions of Federal Inland Revenue Service
- To provide sustainable finance and revenue for the government so that there would be the availability of resources to use to develop the country.
- The Federal Inland Revenue Service aids in the even distribution of wealth in order to bridge the gap between the rich and the poor.
- The enforce tax laws and orders and ensure tax compliance in order to help the citizenry pay taxes as and when due to as to avoid penalties and sanctions for non-compliance.
- The promote the act of patriotism in the Nigerian corporate sector by being socially responsible.
- To ensure that tax compliant individuals and corporate organizations get derived benefits that are accrued to them based on their tax compliance.