Under the Finance Act 2021, the Federal Inland Revenue Service (FIRS) can now deploy their proprietary or third party technology directly to the taxpayers’ systems (after 30days notice) for the purpose of tax administration or gathering of information.
Banks are required to submit quarterly returns of new accounts or other information to both the FIRS and the State tax authorities as required by such tax authorities, failure for which penalty of N1million will apply for each return not submitted or incorrectly submitted.
It is now an offence punishable by a fine of N10m, imprisonment or both, for any agency of the Federal Government (other than FIRS) or any of their staff or consultant, to administer, assess or collect any taxes and levies due to the Federal Government. When this provision is applied comprehensively, it might mean that even customs duties and associated taxes would only be collectible by the FIRS and no longer Customs.
Any person employed in the Service or otherwise that has access to taxpayer information is under a strict legal obligation to keep such information confidential.
FIRS is vested with the duty to assess, collect, account and enforce the payment of the Nigeria Police Trust Fund Levy. The levy is 0.005% of the net profit of companies operating business in Nigeria.
For further enquiries, discussion, advisory or help around complying with these new laws, please send us an email via clients@vi-m.com. You will be able to access all our explanatory write-ups on each of the major changes to the laws, brought about by the Finance Act 2021 and the practical ways in which they will affect taxpayers going forward, under our website group link – https://www.vi-m/category/Finance-Act-2021.