The Federal Inland Revenue Service (FIRS) has given taxpayers 30 days window to secure their 2020 tax clearance certificates.
The 30-day window, which starts on January 2, 2020, is one of the major directives issued by the tax collector’s new Executive Chairman, FIRS, Muhammad Nami since he was appointed by President Muhammadu Buhari.
FIRS believes the window would ease the process of obtaining the tax clearance certificates, which can be used by contractors and service providers to seek contracts, obtain loans, renew permits, registration, franchises, and sign agreements.
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The exercise, which ends by January 31, 2020, is in line with the provisions of Section 101 (1) of Companies Income Tax Act 2004 and in conformity with Self-Assessment Regulation, 2011.
“Notice is hereby given that the Service has put in place machinery to issue 2020 TCC for all eligible taxpayers from 2nd January to 31st January 2020.
“The issuance of the TCC to ease the burden of taxpayers is in line with the provisions of Section 101 (1) of CITA LFN 2004 and in conformity with Self-Assessment Regulation, 2011.
“Taxpayers are therefore encouraged to take advantage of this initiative and apply for their 2020 TCC as soon as possible.”
Nami sends warning to defaulters: The FIRS boss said the agency would not hesitate to place a lien on the bank accounts of companies that default on tax and mislead the tax administrator on their tax compliance level.
Nairametrics had previously reported that in a renewed bid to bring tax defaulters to book in the country, the FIRS announced its intention to commence nationwide tax enforcement on December 18, 2019.
FIRS disclosed plans have been concluded to begin tax enforcement against tax defaulters as they continue to fail in fulfilling their tax obligations. The FIRS acting Chairman also advised defaulting taxpayers to “settle their tax liabilities within Seven days of the publication to avoid any inconveniences or interruptions in their operations.
If a lien is imposed on a bank account, some or all of the account’s funds cannot be withdrawn and used by the account holder. This is because a creditor or attorney has filed legal paperwork with tax defaulter’s bank in a bid to freeze defaulter’s funds.