The Federal Inland Revenue Service (“FIRS”) and Lagos State Internal Revenue Service (“LIRS”) signed a Memorandum of Understanding (MoU) to establish a Joint FIRS and LIRS Audit and Investigation Team (“JAIT” or “the Team”) on 6 February 2023. The JAIT implementation committee organised a sensitisation meeting on 10 August 2023 to educate stakeholders on the guidelines for successful implementation of the collaborative framework. The objective of the MoU is to harmonise the tax procedures between the FIRS and LIRS, foster collaboration, promote exchange of information and reduce time and cost for relevant stakeholders.
There are perceived concerns about the likelihood of success of the JAIT initiative, considering the short lived nature of a similar policy introduced in 2017 which aimed to harmonise audits among the FIRS and all the State Internal Revenue Services (SIRSs). However, carrying out a pilot with only the FIRS and LIRS under the JAIT is more practical.
In our Tax Alert below, we have analysed the JAIT initiative and put forward key highlights of the MOU, for your reading pleasure
Download PwC Tax Alert - FIRS and LIRS agree to establish joint audit and investigation framework