The Lagos State Internal Revenue Service (LIRS) signed a Memorandum of Understanding (MoU) with the Federal Inland Revenue Service (FIRS) to establish a joint tax audit system that will address duplication of efforts and facilitate the exchange of data.
This information was made known by Lagos state Governor, Babajide Sanwo-Olu after the signing ceremony on Monday in Lagos.
The Federal Inland Revenue Service and the Lagos State Government on Monday signed a Memorandum of Understanding to create a joint tax audit system. Lagos State Governor, Babajide Sanwo-Olu noted that the plan is to address duplication of measures and enable the exchange of data that are relevant to the enforcement of extant tax laws. Sanwo-Olu said the signing of the MoU is necessary for the unity of both parties.
“The MoU is in the best interest of the public, as it affirms the reason why we need to come together and strengthen the cordial working relationship between the two agencies,” he said.
The Governor also acknowledges that Lagos State is humbled by this collaborative effort and believes the citizens will be the ultimate beneficiaries of this initiative, adding that the MOU is in the best interest of the public, as it strengthens the cordial working relationship between the two agencies.
Ratecaptain Analyst believes the agreement between LIRS and FIRS will be an important step towards improving Nigeria’s tax collection process by reducing administrative costs associated with multiple audits conducted by different agencies at various levels across government departments. It also serves as an effective tool for combating fraudulence that often goes unnoticed due to a lack of communication or coordination between agencies involved in taxation processes throughout Nigeria’s federalism structure. Furthermore, it creates opportunities for collaboration amongst stakeholders from all branches of government when dealing with tax matters so that decisions are taken more efficiently than before while ensuring compliance from taxpayers across different regions within Nigeria
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