The Federal Inland Revenue Service (FIRS) has halted the freezing of bank accounts of tax defaulters. The agency made this known in a series of tweets from its Twitter handle, which was also posted as a press release.
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BREAKING: FIRS Directs Banks To Lift Lien On Tax Defaulters’ Accounts
The Federal Inland Revenue Service (FIRS) has written to banks, directing them to lift the lien on tax defaulters’ bank accounts for 30 days.
— FIRS Nigeria (@firsNigeria) February 15, 2019
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The directive, which takes immediate effect, was contained in a letter from the Chairman, FIRS, to bank Managing Directors.
— FIRS Nigeria (@firsNigeria) February 15, 2019
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The FIRS explained that it issued the directive because of the large number of taxpayers, who have besieged itself offices in their bid to regularize their tax positions and the inconveniences they are going through.
— FIRS Nigeria (@firsNigeria) February 15, 2019
Prior to this
The move had been condemned by several parties. KPMG in a note recently issued had called the action draconian.
Nothing in the CITA or FIRSEA authorises the FIRS to impose a
freeze order on a taxpayer’s bank account beyond the amount of tax proven to be due and payable by that taxpayer. The requirement directed to banks not to honour mandates from taxpayers over and above the tax amount supposedly proven by FIRS to be due and payable is without foundation and goes too far.
Eyes on a target
The agency may have decided to take such an extreme measure, due to a large number of perceived wealthy tax defaulters. Tunde Fowler, the Executive Chairman of the agency had earlier this month stated its intentions to go after these defaulters.
We looked at businesses, partnerships of any activity that has banking turnover between N100 million and N999 million. We have done a review of this group of businesses.
The FIRS made over N5 trillion last year, and has set a target of N8 trillion for this year.
