FIRS Suspends Directive To “Freeze” Taxpayers’ Bank Accounts

Proshare

Sunday, February 17 2019  03:35 PM / KPMG Nigeria  

 

The Federal Inland Revenue Service (FIRS) has through its letter dated 15 February 2019 directed banks to suspend its lien on bank accounts of alleged tax defaulters for a period of 30 days with immediate effect. The directive became necessary to allow the affected large number of taxpayers with frozen bank accounts to regularize their tax positions and alleviate the inconveniences they are going through. 

This is a welcome development as the suspension should allow the banks to notify their customers of the directive so that they can engage with the FIRS to resolve their outstanding tax issues, and enable a positive outcome for all the parties. While it is doubtful that the 30-day window would be sufficient to resolve the disputes involving the acknowledged large number of affected taxpayers, it is a positive response by the FIRS to complaints from taxpayers and other stakeholders, and a demonstration of its willingness to engage with them when occasions demand. 

It is expected that the FIRS will use the opportunity of the break to refine the process of exercising its statutory power of substitution in a manner that respects taxpayers’ rights and ensures that the sanctity of bank-customer relationship is not jeopardized. Doing this will repair any damage that might have been done, and thereby revamp the credibility of the Nigerian tax system and restore investors’ confidence in the economy.

 

Proshare Nigeria Pvt. Ltd.


Related News

1.       Court of Appeal Affirms Educational Institutions’ Companies Income Tax Obligation

2.      FG Revises Excise Rates For Specific Products

3.      Appointment of Banks by FIRS as Collecting Agents for Recovery of Alleged Tax Liabilities

4.      RIRS Launches Electronic Platform for Taxpayers to Manage their Tax Affairs

5.      NGO Sues FIRS Over Sponsorship of Entertainment Concerts

6.      Large Shortfall In Non-oil Revenue Collection

7.      N273.50bn Generated as VAT in Q3 2018 - NBS

8.     Releases New Executive Order to Combat Money Laundering and Tax Evasion

9.      Strong Growth in FIRS Collections

10.  Still a Mountain to Climb on Non-oil Revenues

11.   #NES24: Fiscal Governance And Taxation in Nigeria - Dr. Doyin Salami

12.  #NES24: 6 Global Lessons on Tax For The Nigerian Context- Neil McCulloch

13.  #NES24:Stakeholders Explore Leveraging Domestic Resource Mobilisation for Sustainable Development

14.FIRS issues Public notice on Implementation of the Revised 2018 Transfer Pricing Regulations

Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.
READ MORE:
Related News
SCROLL TO TOP