FIRS Directs Banks to Close Unauthorised Tax Collection Accounts, Reasons Emerge
- The federal government is tightening up all loose ends in the tax and revenue collection systems
- In line with that, banks have been ordered to shut down any account being used in the illegal collection of levies
- FIRS has sent a public notice to the banks, adding that there would be consequences for going against the rule
Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.
The federal government is moving to end all unauthorised tax and levy collection in Nigeria, through its TaxPro Max platform.
As a result, the Federal Inland Revenue Service (FIRS) has issued a directive to the banks to promptly close any unauthorised bank account used for the collection of taxes and levies.
This means that collection accounts not authorized under the TaxPro Max platform will be identified across all banks and shut down immediately.
Source: Facebook
The government aims to improve transparency in tax collection across Nigeria and ensure uniformity in all its processes.
The latest directive was contained in a public notice issued and signed by the FIRS Chairman, Zacch Adedeji.
FIRS orders closure of unauthorised tax accounts
The notice titled “Directive to close unauthorised FIRS tax collection accounts” was made available to journalists on Monday, the PUNCH reports.
Banks are thus directed to ensure that tax and levy collections, remittance and reconciliations are initiated and processed exclusively from the TaxPro Max platform.
The tax administrator noted that the platform was introduced to streamline tax administration for better transparency, and should thus be used for taxpayer registrations, filing of returns, processing payments and issuing tax clearance certificates.
It reads in part;
“We count on your cooperation to ensure a smooth transition to this centralized system, thereby contributing to a more transparent and efficient tax collection process.”
According to the notice, this is part of the FIRS’ digitalization agenda in its efforts to meet its 2025 revenue target.
Recall that the Federal Inland Revenue Service (FIRS) was given a revenue target of N25.2 trillion, after surpassing its 2024 target of N19 trillion and pooling in over N21 trillion.
FG to tax rents, sales of properties
Legit.ng reported that the tax committee chairman, Taiwo Oyedele, confirmed that taxes will now be collected on rents and property sales, in the form of stamp duties and property gains tax respectively.
Source: UGC
Oyedele added that the exemptions from these taxes include properties with rents lower than N10 million, and residential properties.
These taxes are to be paid directly to the federal government, using the platform provided by the FIRS.
FIRS rolls out e-invoicing solution
In related news, Legit.ng reported that the FIRS rolled out an e-invoicing solution to be used in tax collection.
Still in its pilot phase, the solution would digitise tax administration, and the FIRS is still engaging with stakeholders to ease the implementation.
At full launch, it would ease tax payment processes for Nigerians and reduce audit stress for organisations.
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Source: Legit.ng
