FIRS directs banks to shut unauthorised tax assortment accounts 

This directive, introduced by a public discover issued by the Govt 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 reinforce transparency, accountability, and effectivity in Nigeria’s tax assortment framework.

In accordance with the discover, all tax and levy collections should now be processed solely by 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 outdoors 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 should be processed solely 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 said.

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 help its broader digitalisation agenda.

TaxPro Max system 

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

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

By mandating unique use of the platform, FIRS goals to remove 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 threat sanctions or exclusion from taking part in future FIRS tax assortment actions.

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

To help the transition, the FIRS inspired taxpayers and banks looking for clarification or help to succeed in out to its Income Accounting and Refund Division (RAAD).

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