News
December 30, 2019
FIRS issues 30-day window to obtain tax clearance certificates
The Federal Inland Revenue Service (FIRS) has given
taxpayers 30 days window to secure their 2020 tax clearance certificates.
The 30-day window, which starts on January 2, 2020, is one
of the major directives issued by the tax collector’s new Executive Chairman,
FIRS, Muhammad Nami since he was appointed by President Muhammadu Buhari.
FIRS believes the window would ease the process of obtaining
the tax clearance certificates, which can be used by contractors and service
providers to seek contracts, obtain loans, renew permits, registration,
franchises, and sign agreements.
The exercise, which ends by January 31, 2020, is in line
with the provisions of Section 101 (1) of Companies Income Tax Act 2004 and in
conformity with Self-Assessment Regulation, 2011.
“Notice is hereby given that the Service has put in place
machinery to issue 2020 TCC for all eligible taxpayers from 2nd January to 31st
January 2020.
“The issuance of the TCC to ease the burden of taxpayers is
in line with the provisions of Section 101 (1) of CITA LFN 2004 and in
conformity with Self-Assessment Regulation, 2011.
“Taxpayers are therefore encouraged to take advantage of
this initiative and apply for their 2020 TCC as soon as possible.”
Nami sends warning to defaulters: The FIRS boss said the
agency would not hesitate to place a lien on the bank accounts of companies
that default on tax and mislead the tax administrator on their tax compliance
level.
It
had previously reported that in a renewed bid to bring tax defaulters to book
in the country, the FIRS announced its intention to commence nationwide tax
enforcement on December 18, 2019.
FIRS disclosed plans have been concluded to begin tax
enforcement against tax defaulters as they continue to fail in fulfilling their
tax obligations. The FIRS acting Chairman also advised defaulting taxpayers to
“settle their tax liabilities within Seven days of the publication to avoid any
inconveniences or interruptions in their operations.
If a lien is imposed on a bank account, some or all of the
account’s funds cannot be withdrawn and used by the account holder. This is
because a creditor or attorney has filed legal paperwork with tax defaulter’s
bank in a bid to freeze defaulter’s funds.