FIRS issues Jan 31 deadline for taxpayers to obtain their certificates

New Executive Chairman of Nigeria’s Federal Inland Revenue Service (FIRS), Muhammad Nami, has given a clear hint of his determination to streamline the taxation system, one of the expected outcomes being to increase revenue going into the national treasury.

The revenue agency on Sunday December 29, 2019 gave a 30-day window starting from January 2 for taxpayers to obtain their 2020 tax clearance certificates (TCC).

The window would close on January 31, 2020, Nami stated in the notification he personally signed and dispatched to taxpayers.

The measure, he said, was designed to smoothen the process of obtaining the TCC given an avalanche of complaints by taxpayers who lamented about the difficulties experienced in getting the certificate.

Nami said considering the fact that the TCC would be used by contractors and service providers to seek contracts, obtain loans, renew permits, registration, franchises, and sign agreements, there was a need to make it easier for taxpayers to obtain the TCC.

Nami noted that the offer to ease the issuance of the TCC was in line with the provisions of Section 101 (1) of Companies Income Tax Act 2004 and in conformity with Self-Assessment Regulation, 2011.

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“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.”

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The notification read, “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.”

The agency would not hesitate to use enforcement activities, including imposition of lien on bank accounts of defaulting companies, to recover any outstanding debts when discovered that the taxpayer had misled the agency in the area of tax compliance.