Business

HURIWA Endorses New FIRS Tax Administration Solution

Published

2 years ago

June 23, 2021

NewTimes

HURIWA Endorses New FIRS Tax Administration Solution

… Calls For More Sensitization of Tax Paying Population

Impressed by the provisions of the Finance Act 2020 and the proactive steps adopted by the hierarchy of the Federal Inland Revenue Service (FIRS) to ease tax compliance and modernise tax administration in the country, the leading civil society organisation, Human Rights Writers Association of Nigeria (HURIWA) has applauded the introduction of a new Tax Administration Solution (TaxPro-Max).

HURIWA said it was aware that through the TaxPro Max, taxpayers would be able to file returns electronically, pay taxes online, get instant credit for withholding taxes deducted from their income, ascertain capital allowance carried forward, loss carried forward to be utilised for subsequent income tax returns, generate tax clearance certificates, respond to tax assessments raised, keep track of outstanding debt and communicate with the FIRS local tax offices on other tax matters.

In a statement by the National coordinator, Comrade Emmanuel Onwubiko and the National Media Affairs Director; Miss Zainab Yusuf, the civil rights group quoted the Executive Chairman, FIRS, Mr Muhammad Nami, as saying that “TaxPro-Max enables seamless registration, filling, payment of taxes, automatic credit of withholding tax and other credits to the taxpayer’s accounts, among other features.

“The TaxPro-Max also provides a single-view to taxpayers for all transactions with the service.

“The TaxPro-Max platform is accessible at www.taxpromax.firs.gov.ng. From June 7, 2021, the TaxPro-Max becomes the channel for filing naira-denominated tax returns in the country.”

According to him, all taxpayers have been notified that all naira-denominated tax returns are to be filed via the TaxPro-Max Solution in order to generate the obligatory Document Identity Number (DIN).

Describing the one-stop online platform (TaxPro Max) as a laudable effort by the FIRS in ensuring that taxpayers enjoy a seamless tax filing process and also ease compliance, the rights group called on the hierarchy of the FIRS to create more awareness by sensitizing the public to the modalities for implementing the system to fully maximise the benefits in addition to ensuring that data privacy measures are given priority.

According to HURIWA, in view of the imminent migration from the existing manual tax returns filing to the full implementation of automated filing on the platform, there was the need to allow a transition phase to ensure that the usual glitches associated with system integration is prevented while recommending the implementation to be done in batches according to the current local tax office groupings i.e Large Tax Offices (Non-oil), Medium Tax Offices, Micro & Small Tax Offices, among others.

“To fully achieve the objective of introducing this innovative approach to tax collection in Nigeria, the FIRS must ensure that sufficient measures are put in place to ensure that concerns raised by users of the platform are promptly attended to and resolved. Overall, it is expected that this initiative, if properly managed, will improve tax compliance in Nigeria by reducing the related costs, time and inconvenience associated with manual returns filing”, HURIWA advised.

HURIWA observed that this innovation was timely as over the past decade, there had been a strong global move towards digitalization and most sectors were gravitating towards improving and transforming their business operations leveraging technology.

According to HURIWA, in most economies, tax authorities have also harnessed the benefits of digitalization and enhanced revenue collection through seamless adoption of technology.

HURIWA recalled that as part of the relentless digitization efforts to ease tax compliance and modernise tax administration, the FIRS had in 2017 announced the introduction of six new electronic tax services (e-services) for the convenience of taxpayers in Nigeria including:
e-Registration: for the registration of new taxpayers with FIRS
e-Stamp Duty: for the payment of stamp duties on qualifying documents.
e-TaxPay: presenting more modern payment solutions for all Federal Government taxes and levies through any of the following platforms – Nigeria Inter-Bank Settlement System (NIBSS), Remita and Interswitch
e-Receipt: for receiving and verifying e-receipts generated after taxes are paid through the e-TaxPay.
e-Filing: for taxpayers to file their tax returns online via the website: https://efiling.firs.gov.ng
e-TCC: a platform intended to replace the physical application, issuance and verification of a company’s Tax Clearance Certificate (TCC).

Other more recent efforts include the e-filing of transfer pricing (TP) declaration and disclosure forms, country-by-country reporting as well as the VATrac introduced by the FIRS.

Situating this innovations with what is obtainable in other advance climes, HURIWA expressed its endorsement noting that certainly, there is no better time to evaluate the capabilities of a digital tax system than a period when social distancing and lockdowns are being enforced to curtail the spread of Covid-19, which according to the rights group underscores FIRS’ assurance to taxpayers to improve ease of doing business without disrupting the affected business’ operations.

“The United Kingdom (UK) for instance, has also steadily transformed itself into one of the most digitally advanced tax administrations by successfully reducing the need for filing annual tax return and creating a single view of a taxpayer’s affairs through a portal on the Government website. The UK tax authorities are also able to pre-populate personal tax returns with some information in their database; such as an individual’s earnings and taxes paid.

“Also, their payroll tax system, which was once largely reliant on annual returns, was replaced in 2013 by Real-Time Information (RTI); a solution that involves employers updating Her Majesty’s Revenue and Customs (HMRC), along the same timeline that they pay their employees. The aim is for HMRC to profile each employee accordingly and ensure that the correct amount of tax is collected from individuals at each pay point in the year, thereby reducing the tax gap.

“Globally, governments are using data analytics to help optimize tax collections and monitor compliance initiatives to advance overall efficiency. The exponential use of data analytics in real-time and predictive tax administration will revolutionize the Nigerian tax administration as data can be transformed into a powerful tool to monitor tax compliance.”

HURIWA charged government to promote a compliance culture developed through taxpayer education and simplified digital filing processes.

“Online tax services must be robust enough to function as an intelligent solution that can accommodate end-to-end validation, combat tax fraud and police tax returns.

“The journey to fully implementing and reaping the benefits of a seamless e-tax administration system is neither short nor simple.

“There is no one-size-fits-all solution; however, an assessment of the above consideration will enhance the performance of our tax system in Nigeria and ultimately increase government revenue,” the group added.

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Business

NLC Directs Officials To Monitor Banks Over Cash Scarcity

Published

3 days ago

March 28, 2023

NewTimes

BREAKING: Old Naira Notes Deadline Stays - Emefiele

CBN Governor Emefiele

The Nigeria Labour Congress (NLC) has directed its officials across the country to go round and monitor cash dispensing situations at the commercial banks.

This is coming ahead of today’s National Executive Council, NEC meeting, leaders of orfficials of state councils of NLC and industrial union affiliates are to take pictorial evidence of the actual situations at the banks, “whether the banks are dispensing cash or not, and report same to the NLC headquarters.”

The monitoring which ends by 12.30 pm will enable the NEC meeting that will commence by 1:00 p.m.at the Labour House, Abuja, takes a final decision on tomorrow’s planned nationwide strike over the cash crunch in the country.

The National leadership of NLC gave the directive yesterday (Monday, March 27).

An official of NLC who spokelsaid, “Yes, the directive was given yesterday. Union leaders are to go around their areas to monitor commercial banks this Morning before 12.30pm and show pictorial evidence of the situation at the banks.

“Whether they are dispensing cash or not. The pictorial evidencesl are to be forwarded to Congress headquarters to be us assess the activities of Commercial banks before the NEC meeting by 1pm to enable us take a final decision on tomorrow’s planned industrial action.”

Business

BREAKING: Old N200, N500, N1,000 Notes Remain Legal Tender Till Dec 31 – CBN

Published

3 weeks ago

March 14, 2023

NewTimes

In compliance with a ruling of the Supreme Court, the Central Bank of Nigeria (CBN) has declared that old N200, N500, N1,000 banknotes remain legal tender till December 31, 2023.

The apex bank’s Acting Director of Corporate Communications, Isa AbdulMumin spoke in a statement on Monday. This is coming 10 days after the Supreme Court ruled that old naira notes should co-exist with new ones till the end of the year.

“In compliance with the established tradition of obedience to court orders and sustenance of the Rule of Law Principle that characterized the government of President Muhammadu Buhari, and by extension, the operations of the Central Bank of Nigeria (CBN), as a regulator, Deposit Money Banks operating in Nigeria have been directed to comply with the Supreme Court ruling of March 3, 2023.

“Accordingly, the CBN met with the Bankers’ Committee and has directed that the old N200, N500 and N1000 banknotes remain legal tender alongside the redesigned banknotes till December 31, 2023.

“Consequently, all concerned are directed to conform accordingly,” the statement read.

The highest court of the land had on March 3 ordered that old N200, N500 and N1000 notes remain valid till December 31, 2023.

This was after 16 states of the federation instituted a suit to challenge the legality or otherwise of the introduction of the policy.

The 16 states led by Kaduna, Kogi and Zamfara had prayed the apex court to void and set aside the policy on the ground that it is inflicting hardships on innocent Nigerians.

The Supreme Court subsequently ruled that President Muhammadu Buhari’s disobedience of its February 8 order is a sign of dictatorship, adding that the President breached the Constitution of the Federation in the way he issued directives for the re-designing of the Naira by the CBN.

After the March 3 judgement by the Supreme Court, the Presidency, CBN and the AGF kept mum, throwing many bank customers and Nigerians into confusion as the ruling of the apex court contradicted the directive of the President on February 16 that old N500 and N1000 notes are banned and old N200 notes remain valid till April 10.

However, the Presidency broke its silence on Monday, saying the President never told the CBN and the AGF not to obey the order of the apex court.

“The CBN has no reason not to comply with court orders on the excuse of waiting for directives from the President,” the Presidency noted.

According to the Presidency, the President is an absolute respecter of the rule of law and that the “negative campaign and personalised attacks against the President by the opposition and all manner of commentators is unfair and unjust.”

The CBN had extended the deadline for the swap of old N200, N500, and N1,000 from January 31 to February 10 following complaints by many Nigerians but the Supreme Court, after a suit filed by the states, held that the Federal Government, the CBN, commercial banks must not continue with the February 10 deadline pending the determination of a notice in respect of the issue.

However, the President, in a national broadcast on February 16, directed the apex bank to release old N200 notes into circulation to co-exist with new N200, N500 and N1,000 banknotes for 60 days — by April 10, 2023. He also said old N500 and N1,000 banknotes cease to be legal tender in Nigeria.

There has been a flurry of reactions and stark criticisms against the President’s directive including from governors of his party, the All Progressives Congress (APC).

Governors Nasir El-Rufai (Kaduna), Abubakar Badaru (Jigawa), Rotimi Akeredolu (Ondo), Umar Ganduje (Kano); Speaker of the House of Representatives, Femi Gbajabiamila; Minister of State for Labour and Employment, Festus Keyamo; and many stalwarts of the ruling APC have openly censured and faulted the President’s directive, arguing that it has no grounds because the case is before the apex court.

Leading Senior Advocates of Nigeria like Femi Falana and Mike Ozekhome have equally faulted the President’s move, saying he cannot overrule the apex court of the land.

Business

CBN Asked Banks To Receive Old Naira Notes – Soludo

Published

3 weeks ago

March 13, 2023

NewTimes

BREAKING: How Nigerians Keeping N2.7 Trillion At Home, Others Caused Naira Redesign - Emefiele

CBN Governor Emefiele

The Central Bank of Nigeria (CBN) has asked commercial banks to dispense and accept old naira notes as deposits, according to Anambra State Governor Charles Soludo.

Soludo, a former CBN governor, made this known in a statement he posted on his social media handles.
He explained that the Governor of CBN, Godwin Emefiele gave the directive at a Banker’s Committee meeting on Sunday.

He added that Emefiele personally confirmed the directive to him.
According to him, residents should report banks refusing to accept the old notes.

“Commercial banks have been directed by the Central Bank to dispense old currency notes and also to receive the same deposits from customers. Tellers at commercial banks are to generate the codes for deposits, and there is no limit to the number of times an individual or company can make deposits.”

“The Governor of the CBN gave the directive at a Bankers’ Committee meeting held on Sunday, 12th March 2023. The Governor, Dr Godwin Emefiele, personally confirmed the above to me during a phone conversation on Sunday night. Residents of Anambra are therefore advised to freely accept and transact their businesses with the old currency notes (N200, N500; and N1,000) and the new notes”, the statement added.