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- The Joint Tax Board (JTB) is proposing the commencement of joint audits by the FIRS and state tax authorities.
- The proposal is meant to improve collaboration between the FIRS and the states and also help taxpayers reduce time spent dealing with audits.
- The objective of this initiative, according to the FIRS, is to create an opportunity where taxpayers can resolve all their tax issues centrally, rather than individually with different tax authorities.
- The FIRS requests taxpayers to embrace the joint tax audit exercise, especially where there are unresolved issues involving both the FIRS and state tax authorities.
- Taxpayers that are interested in having a joint tax audit are to provide information regarding their unresolved tax audits and notify the FIRS of the date they would like the audit to commence.
- According to Tax Consultants Price Waterhouse Coopers, while this may sound like a good initiative, it is not clear yet how it can be operationalized effectively.
- The FIRS is however, keen to conclude any outstanding audits, and to commence audits of open periods within the next few months with or without a joint audit. The expected timeline from commencement of an audit to completion is 3 months with very tight deadlines, which may result in enforcement where the taxpayer is uncooperative.