International shipping companies must reconcile their books with FIRS before December 31 – Zacch Adedeji  

As part of efforts to ensure strict compliance with the country’s tax laws, the Executive Chairman of the Federal Inland Revenue Service, Zacch A. Adedeji has charged international shipping companies operating in Nigeria to ensure to reconcile their books with the Service before December 31, 2023.  

The FIRS Chairman gave this charge in Lagos at a workshop on taxation of non-resident shipping companies organised by FIRS in conjunction with the Oil Producers Trade Section (OPTS) on Monday, according to a statement by Dare Adekanmbi, his special adviser on media.  

Adedeji revealed that the tax compliance exercise initiated by FIRS on the activities of foreign shipping companies lifting hydrocarbons from Nigeria was not intended to disrupt their operations, but rather a measure to widen to tax net to grow revenue for the government.   

Adedeji noted that his directive was backed by Section 14 of the Companies Income Tax Act (CITA) 2004 (as amended), which mandated foreign companies engaging in shipping and air transport operations in Nigeria to file tax returns to continue to carry out their businesses within the country. 

The FIRS boss explained that his intervention upon assumption of duty had earlier led to the six-month grace period given to international shipping companies to regularise their tax returns, emphasising that they have up to December 31 this year to reconcile their books with FIRS. 

What the FIRS boss is saying:  

The workshop was attended by members of the International Association of Independent Tanker Owners (INTERTANKO), the International Chamber of Shipping, the Independent Petroleum Producers Group, government agencies and tax advisers among others.