AT the African Union (AU) High-Level Panel on Illicit Financial Flows in Abuja on Thursday, Chairman, Federal Inland Revenue Service (FIRS), Mr. Tunde Fowler, disclosed that 114 companies have been handed over to Attorney General of the Federation’s office for prosecution.

While going through Abuja Geographic Information Service (AGIS), FIRS discovered hidden landed properties allocated to the companies but which no taxes had ever been paid.

However, when approached, the 114 companies denied that the properties did not belong to them.

The “114 companies claimed they were unaware of land allocated to them but AGIS has confirmed the ownership for all the cases referred to them and we will soon hand these cases over to the Attorney General on the way forward.”

Fowler revealed that the total tax debt recovered from January 2017 to 31st August 2018 was N3.632 billion.

Speaking on the issuance of tax notification obligation to Company Income Tax (CIT), non-compliant companies that own properties and identified non-filers for Abuja, Fowler stated FIRS issued 2,672 demand notices; 653 those now filing and N2.983 billion as total payments for demand notices for Abuja properties

The tax boss identified components of illicit financial flows (IFF) in Nigeria to include commercial activities which are illegal flows from business activities that lead to hiding wealth, evading or aggressively avoiding tax, and dodging customs duties and domestic levies;

IFFs, he added, are often driven by criminal activities with the purpose of keeping the transactions from the view of law enforcement agencies or revenue authorities; and Corruption.

He described corruption as money acquired through bribery and abuse of office by public officials saying that they are enormous and can otherwise be used to further develop different beneficial projects to the society.

Fowler also identified IFFs also occur through payments of expatriates’ staff emolument and remuneration and failure to declare for personal income tax purposes on such emoluments to the relevant tax authorities.

In addition, illegally acquired money is laundered through real estate transactions in choice locations outside Nigeria; Illegal transfer of money via unapproved channels; mispricing of goods and services transferred between interrelated Nigeria based companies and individuals to offshore based entities and individuals; profit shifting through excessive interest payments on foreign and locally sourced loans and invoicing of imports and exports.

•Text (excluding headline) courtesy of Nigerian Tribune.

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