The Federal Inland Revenue Service, FIRS, has issued a new directive to all banks in Nigeria over the use of unauthorised accounts to collect taxes.
According to a public notice from the Executive Chairman of FIRS, Zacch Adedeji, all banks must now close any tax and levy collection accounts not authorised under the agency’s TaxPro Max system. This is in line with the ongoing reforms that will enhance transparency, accountability and efficiency in Nigeria’s tax collection system.
In line with the new directive, all tax and levy collections must be processed through the digital solution payment system, TaxPro Max.
Since it was created, TaxPro Max has become very key to the FIRS’s goal of modernising tax collection, improving administration infrastructure, reducing human contact in tax processes, and blocking revenue leakages.
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Also, it functions as a comprehensive digital platform for taxpayer registration, filing of returns, payment processing, automatic issuance of receipts, and the generation of tax clearance certificates.
Under this directive, banks are required to synchronise their internal tax collection processes with the TaxPro Max system to prevent any regulatory violations. Financial institutions that do not adhere to this directive may face penalties or be barred from future participation in FIRS tax collection initiatives. For taxpayers, this transition signifies that all payments to FIRS must now be strictly based on assessments generated through the TaxPro Max portal.
Payments made through any unauthorised channels or to any unauthorised accounts will be deemed invalid and may subject taxpayers to penalties. To facilitate this transition, the FIRS has urged taxpayers and banks in need of clarification or assistance to contact its Revenue Accounting and Refund Department (RAAD).
