FIRS tax waivers window closes Dec. 31 -Official

Political economy of Nigeria’s digital tax experiment

The Federal Inland Revenue Service (FIRS) says the window of opportunity for waivers of penalties and interest on outstanding taxes arising from desk examinations and audit exercises will close on Dec. 31.

Mr. Abdullahi Ahmad, Director, Communications and Liaison Department of the FIRS, made this known in a statement in Abuja on Wednesday.

Ahmad urged taxpayers in the country to take advantage of the remaining days to settle their tax obligations in order to enjoy all subsisting waivers offered thereof by the service.

He said the Executive Chairman of the FIRS, Mr. Muhammad Nami, had already issued a reminder in this regard entitled, “public notice on the recovery of outstanding taxes from taxpayers”.

“The Service, in recent times, has issued a series of palliatives for the waivers of penalties and interest on outstanding taxes arising from desk examinations, audit exercises, investigations, or all other forms of tax assessment.

“However, the service has observed that some taxpayers are yet to take advantage of the palliative windows opened to cushion the effect of the challenges of the economy on taxpayers.

“Furthermore, the service wishes to put all taxpayers on notice that the last window of opportunity for the waiver of outstanding penalties and interest on all taxes collectible by the service shall close on 31st December 2020” he stated.

FIRS Explains “Self Certification” Exercise, Gives Details Of Particular Individuals Affected

Yesterday, there was palpable tension in the whole country as regarding the new mandatory financial exercise that was recently announced by the FG.

Account-holders in the country were mandated to go to their different banks to fill out a self-certification form and submit back to the banks.

This announcement came amid opinions from people that the BVN which serves as the previous identity marker in banks, was enough for the security agencies and the financial houses to use for anything they wished for, as long as customer identification was concerned.

With the rage and the counter statements from reputable Nigerians, the federal inland revenue commission, FIRS, early this morning, came out with a deeper explanation of the exercise.

According to the FIRS, in a statement issued via its twitter page, they announced that the exercise was not for all Nigerians but for a particular set of people who they described as “Reportable persons”.

These are people who hold bank accounts in Financial institutions that can be described as “Reportable Financial Institutions” under the Common Reporting Standard (CRS).

According to FIRS, the set of people described as “Reportable persons”, are primarily people who don’t permanently reside in Nigeria OR other people who have a residence in more than one jurisdiction or Country just for tax purposes.

The body therefore, called on the financial institutions to present such persons with the self-certification forms once it gets information that such an individual fits into the description.

By this new information, account holders will once again, heave a sigh of relief as the previous information had sent a shock down the minds of Nigerians as the thought of joining long unending queries in banks have been every account holder’s nightmare even as the COVID-19 pandemic is still being treated.

FG orders Nigerians with bank accounts to fill, submit Self-Certification forms

The Federal Government of Nigeria on Thursday 17, 2020 issued out a new directive that affects all persons holding accounts in any financial institution in Nigeria such as banks and insurance companies.

The announcement was made known through the Federal Government’s official twitter account handle.

According to the directive account holders are to obtain, complete and submit self-certification forms to their respective Financial Institution.

This procedures they say is in line with the Income Tax Regulations Act 2019.

The self-certification forms is in 3 categories:

a. Form for entity

b. For controlling person (individuals have controlling interest in a legal person, trustee, etc)

c. Form for individual

Failure to comply with the requirement may lead to monetary penalty and inability to office operate the affected account.

For more information on the issue you can visit the official website of the Federal Inland Revenue Service.

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FIRS Launches online portal for financial institutions

FIRS

As part of its ongoing reforms to align with the nation’s tax system with global standards, the Federal Inland Revenue Service (FIRS) has launched a new Automatic Exchange of Information-Common Reporting Standard (AEOI-CRS) system to be utilized by financial institutions in the country.

Executive Chairman, FIRS, Mr Muhammad Nami, announced the deployment of the AEOI-CRS) in a notice calling on reporting financial institutions under the Income Tax (Common Reporting Standard) Regulations 2019 to enrol on the portal.

According to Mr. Nami, “the Automatic Exchange of Information-Common Reporting Standard (AEOI-CRS) system portal is currently live, open and active. Consequently, all Reporting Financial Institutions (Commercial Banks, Merchant Banks, Discount Houses, Mortgage and Development Banks, Insurance and Life Assurance Companies, Investment Advisers, Trustees, Asset Management Companies, Issuing Houses, Brokers/Dealers, etc.) are invited to enrol on the AEOI-CRS portal.”

Explaining the simple process of enrolment, the FIRS Executive Chairman stated that “each Reporting Financial Institution (FI) is required to designate an appropriate officer as Primary User (PU).

The PU is the custodian of the FI’s login details on the portal. A letter signed by the Chief Executive Officer of the FI introducing the PU to the FIRS is required as part of the enrolment process.

According to the FIRS boss, to enrol as a PU of an FI and have access to related AEOI-CRS documents, the FIRS website at http://www.firs.gov. ng should be visited and navigate the menu tab on Automatic Exchange of Information.

He, however, cautioned that the above operation should be carried out only if relevant contact details have been fo