The Federal Inland Revenue Service (FIRS) has directed all banks in Nigeria to immediately shut down any tax and levy collection accounts not integrated with its TaxPro Max platform. This new directive, issued in a public notice on Monday, aims to streamline the tax collection process and improve transparency across the country.
The directive, signed by FIRS Chairman Zacch Adedeji, mandates that from now on, all tax and levy collections must be processed only through the TaxPro Max platform. This local platform handles various tax processes, including taxpayer registration, filing, payment, and the issuance of tax clearance certificates. The platform is designed to ensure that all transactions are processed efficiently and uniformly, minimizing discrepancies and enhancing accountability.
The FIRS’ move to close unauthorised tax collection accounts is part of its broader efforts to improve the efficiency and transparency of Nigeria’s tax collection system. According to a statement from the FIRS, the decision is aimed at ensuring that all tax payments and reconciliations are handled seamlessly and without the involvement of unapproved channels.
“This decision is effective immediately,” the notice read, adding that all tax collections on behalf of FIRS must follow the procedures set on the TaxPro Max platform. The FIRS also instructed banks participating in its Collection, Remittance, and Reconciliation Scheme to comply with the new directive without delay.
The FIRS expects that with the closure of these unauthorised accounts, the tax collection system will become more centralized and better aligned with modern standards of transparency. By eliminating unauthorised channels, the agency believes that taxpayers will experience a more streamlined and reliable tax system.
Banks across Nigeria have been given the task of ensuring compliance with this new directive. Any bank found to be operating tax collection accounts outside of the TaxPro Max system risks facing sanctions from the FIRS. The FIRS has urged the financial institutions to act quickly and close all such accounts, citing the importance of the transition to a more efficient tax collection system.
For taxpayers, this move means they will now have a more straightforward and consistent method for making tax payments. The TaxPro Max platform offers a central hub for all tax-related activities, and it is expected that the system will reduce confusion and potential fraud that could occur when using multiple unapproved collection channels.
The FIRS also made it clear that taxpayers or other stakeholders with questions or in need of assistance could contact its Revenue Accounting and Refund Department (RAAD) for further clarifications.
As the country continues to grapple with the challenge of improving tax compliance, the FIRS hopes that the closure of unauthorized accounts will prevent leakages and boost public confidence in the tax system. The government’s ultimate goal is to increase the tax net, reduce reliance on oil revenues, and improve the overall fiscal health of the country.
This latest directive is expected to have a significant impact on how tax payments are made in Nigeria. With more stringent controls in place, both banks and taxpayers will need to adapt to the new system to avoid complications and ensure that tax payments are correctly processed.
