FIRS directs banks to shut unauthorised tax assortment accounts 

The Federal Inland Income Service (FIRS) has ordered all banks in Nigeria to right away establish and shut any tax and levy assortment accounts not authorised below the company’s TaxPro Max system.

This directive, introduced via a public discover issued by the Government Chairman of FIRS, Zacch Adedeji, and circulated to journalists on Monday by his Particular Adviser on Media, Dare Adekanmbi, kinds a part of ongoing reforms by the company to boost transparency, accountability, and effectivity in Nigeria’s tax assortment framework.

In response to the discover, all tax and levy collections should now be processed completely via the TaxPro Max platform, the digital resolution launched by the FIRS to centralise and automate tax administration processes.

What the FIRS is saying 

The discover, titled “Directive to shut unauthorised FIRS tax assortment accounts”, emphasised that any accounts exterior the TaxPro Max system are thought of unauthorised. Consequently, banks are anticipated to discontinue using such accounts at once and guarantee strict adherence to the brand new assortment process.

“Efficient instantly, all tax and levy collections on behalf of FIRS have to be processed completely pursuant to an evaluation raised on the TaxPro Max platform.

“All banks taking part within the FIRS Assortment, Remittance and Reconciliation Scheme are hereby suggested to adjust to this directive inside the stipulated interval.

“We rely in your cooperation to make sure a clean transition to this centralised system, thereby contributing to a extra clear and environment friendly tax assortment course of,” the discover acknowledged.

FIRS additional reiterated that banks taking part in its Assortment, Remittance, and Reconciliation Scheme should solely course of transactions originating from TaxPro Max-generated assessments.

The company famous that the transfer would additionally improve real-time reconciliation of collections, minimise income leakages, and assist its broader digitalisation agenda.

TaxPro Max system 

The TaxPro Max platform, developed domestically, is a complete digital tax administration resolution designed to facilitate end-to-end tax actions. These actions embrace taxpayer registration, submitting of returns, cost processing, automated issuance of receipts, and the technology of tax clearance certificates.

Since its deployment, TaxPro Max has turn into central to the FIRS’s technique to modernise Nigeria’s tax administration infrastructure, scale back human contact in tax processes, and enhance ease of compliance for taxpayers.

By mandating unique use of the platform, FIRS goals to eradicate the proliferation of a number of assortment accounts and convey uniformity to how taxes are assessed, collected, and reconciled.

Implications for banks and taxpayers 

With this directive, banks are anticipated to align their inner tax assortment mechanisms with the TaxPro Max system to keep away from regulatory breaches. Monetary establishments that fail to adjust to the directive danger sanctions or exclusion from taking part in future FIRS tax assortment actions.

For taxpayers, the transition signifies that all funds to FIRS should now be based mostly strictly on assessments raised by way of the TaxPro Max portal. Cost via any unauthorised channel or to any unauthorised account can be invalid and will expose taxpayers to penalties.

To assist the transition, the FIRS inspired taxpayers and banks in search of clarification or help to achieve out to its Income Accounting and Refund Division (RAAD).

The directive by the FIRS marks a big step in direction of tightening Nigeria’s tax assortment processes and minimising leakages via unauthorised accounts. It additionally highlights the company’s dedication to leveraging know-how to drive transparency and accountability throughout the tax ecosystem.