FIRS requests companies to submit acceptance certificate on QCE above N500,000

FIRS requests companies to submit acceptance certificate on QCE above N500,000

The Federal Inland Revenue Service (FIRS) has requested all companies that enjoyed capital allowances on Qualifying Capital Expenditure (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.

This is contained in a statement signed by Muhammad Nami, Executive Chairman of the Federal Inland Revenue Service.

According to the statement, failure to comply might lead to the withdrawal of the allowance.
The statement read in part, “In line with Section 3 of the Industrial Inspectorate Act, Cap. 18, LFN 2004 (as amended), any person incurring Qualifying Capital Expenditure (QCE) of N500,000.00 and above is required to obtain Certificate of Acceptance from the Industrial Inspectorate Division of the Federal Ministry of Industries, Trade and Investment in respect of that QCE.

“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 the grant of capital allowance under the second schedule to the Companies Income Tax Act (CITA) Cap. C21, LFN 2004 (as amended).

“Section 26 of the Federal Inland Revenue Service (Establishment) Act, 2007 (as amended) and Section 60 of CITA provide that the Service may, by notice, call for the submission of any book, document or record, at the place and time stated in the notice.

Drawing from the Industrial Inspectorate Act, the FIRS demanded that companies that have benefitted from the QCE allowance for a period of at least 5 years would need to submit the Certificate(s) of Acceptance by the end of October.

“The Service may withdraw the capital allowances enjoyed for the relevant years of assessment by any company that failed to comply with this notice with consequential additional tax assessed accordingly. 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.”

Nairametrics

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