FIRS Requests Firms To Submit Five-Year Expenditure Certificates From N500k
Federal Inland Revenue Service (FIRS), has requested all taxpayers to submit to their individual tax offices, a five-year acceptance certificate obtained from the industrial Inspectorate Division of the Federal Ministry of Industries, Trade, and Investment on qualifying capital expenditure from N500k and above.
Similarly, the FIRS has asked that the Certificates be submitted to it no later than 31st October 2022 and failure to comply will lead to forfeiture of such incentive. They are also to submit the certificate of acceptance every year to the tax office effective from this year.
The Executive Chairman, FIRS, Muhammad Nami, disclosed Monday, citing Section 3 of the Industrial Inspectorate Act, Cap. 18 LFN 2004 (as amended), that any person incurring Qualifying Capital Expenditure (QCE) of N500,000 and above is required to obtain Certificate of Acceptance (C of A), from the Industrial Inspectorate Division of the Federal Ministry of Industries, Trade, and Investment in respect to that QCE.
Nami explained that by the provisions of Section 5 (1) (a) of the Act, the Service may take account of any fact contained in the acceptance certificate in the exercise of its functions, including granting of capital allowance under the second schedule to the Company Income Tax Act (CITA) Cap. C21, LFN 2004 (as amended).
The FIRS boss explained that Section 26 of the Federal Inland Revenue Service (Establishment) Act, 2007 (as amended) and Section 60, of the CITA, provide that the service may, by notice, call for the submission of book, document or record at the place and time stated in the notice.
The FIRS executive chairman said: “In view of the foregoing, the Service, by this notice, requests all companies that enjoyed capital allowances on QCE (of N500,000 and above) between 2016 and 2021 years of assessment to submit the Certificate (s) of Acceptance issued by the Industrial Inspectorate Division of the Federal Ministry of Industries, Trade, and Investment. The Certificate (s) of Acceptance shall be submitted to the tax office where the company’s tax file is domiciled not later than 31st October 2022′.
He continued: “The Service may withdraw the capital allowances enjoyed for the relevant years by any company that failed to comply with this notice with a consequential additional tax assessed accordingly.
In addition, Nami said: “Notice is further given that, henceforth, every company shall provide Certificate (s) of Acceptance in respect of QCE (of N500,000 and above) incurred in each year of assessment.
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