The Federal Inland Revenue Service (FIRS) said it would rake in four trillion naira as tax revenue from the extractive sector of the Nigerian economy in the 2020 fiscal year.
The FIRS made this known in a statement issued by Abdullahi Ahmad, Director, Communications and Liaison Department on Tuesday.
The statement explained that the Executive Chairman, FIRS, Mr Muhammad Nami, disclosed this when a team of the Nigerian office of the Organisation for Economic Cooperation and Development (OECD) paid him a courtesy visit.
Nami solicited the support of the OECD in stemming the tax evasion scheme of oil majors and multinationals operating in Nigeria through the illegal act of transfer pricing under which these foreign companies dodged tax and transfer their profit offshore.
The FIRS boss emphasized on the need for capacity-building, information sharing, data interpretation, usage and related technical synergy with the OECD in order to meet tax revenue targets in the extractive industry and the newly emergent Digital Economy.
He observed that revolution in Information and Communication Technology (ICT) had made physical filing of tax returns obsolete.
Nami, however, stated that ICT had also made tax collection more complex, especially in trans-border trade and trans-continental commerce.
According to him, in such trade big players like Amazon, Google, facebook, Alibaba and other e-commerce corporations do big business around, drive the digital economy and yet countries find it difficult to take due tax from the huge economic activities these online giants engage in.
“This is more so for developing countries like Nigeria where our people buy luxury goods more and more online while these big online stores don’t pay any tax to us.
