April 21, 2024

Tax trouble on high seas: Nigerian Authorities crack down on oil, gas vessels, “tax affairs or face sanctions”

FIRS to International shipping coy "tax affairs or face sanctions"

Oredola Adeola

 

The Federal Inland Revenue Service (FIRS) has served a notice to bulk crude oil and natural gas lifting vessels, floating production, offloading operating, and other international shipping lines operating in Nigerian waters to regularize their tax affairs within three months, stating that “Failure to comply may result in enforcement actions after December 31, 2023.”

 

 

has issued a notice to international shipping lines operating within the Nigerian Territorial Water to regularize their tax affairs within three months.

. Mohammed Nami, the Executive Chairman of FIRS, made this announcement in a statement.

The notice is based on the FIRS circular No 2021/14, which outlines the tax compliance requirements for international shipping lines.

The circular provides information on the taxation of international shipping lines in Nigeria and requests that they regularize their tax positions within three months.

The FIRS has observed that many international shipping lines have not complied with their tax obligations under the existing tax law.

Therefore, the service is requesting all affected companies, including containerized, bulk cargo, fishing trawlers, bulk crude oil or natural gas lifting vessels, dredging survey, and floating production and offloading, to immediately regularize their tax positions.

The FIRS has set a deadline of December 31, 2023, for the affected international shipping lines to conclude the regulations of their outstanding tax returns at the Non-Resident Persons tax office in Awolowo Ikeja.

After this grace period, the FIRS, in collaboration with relevant government regulatory and security agencies in the maritime sector, will commence enforcement actions on all defaulting shipping companies.