The Federal Inland Revenue Service (FIRS), has expressed determination to achieve 100% automation of all its tax administration processes in 2022.
This is with the aim of blocking revenue leakages thereby revolutionizing revenue generation in Nigeria, the Service said.
The Executive Chairman of the FIRS, Mr. Muhammad Nami, made the disclosure while speaking at the Pedabo Annual Public Private Sector Engagement on Tuesday underscoring the amendment to Section 25 of the FIRS (Establishment) Act in the 2021 Finance Act.
According to him, any person who fails to grant the Service access to its information technology systems to connect to its automated tax administration solution will be liable to penalties under the law.
The Special Assistant to the Executive Chairman, on Media and Communication, Mr. Johannes Oluwatobi Wojuola, quoted the FIRS boss as saying: “We will seek to achieve 100% automation of all our tax administration processes, which will block revenue leakages and revolutionize revenue generation in the country. We expect your full cooperation in this regard, considering that by the amendment to Section 25 of the Federal Inland Revenue Service (Establishment) Act in the 2021 Finance Act (through Section 18 of the 2021 Finance Act), any person who fails to grant the Service access to its information technology systems to connect to its automated tax administration solution is liable to penalties under the law.”
Nami, had earlier acknowledged that in 2021, the Service had leveraged on the amendments Act to embark on a major infrastructure overhaul, focusing on the deployment of technology for the automation of its processes and procedures, which led to the deployment of its home-grown integrated tax administration system, TaxPro Max.
The Service in 2022, he added, will give priority to the collection of taxes from the digital economy, and that it will deploy technological tools in assessing entities that fall within the Significant Economic Presence (SEP) threshold and relevant turnover generated from Nigeria.
“With the amendment of Section 10 of the VAT Act by the Finance Act 2021, we will implement the published Guidelines on the Simplified Compliance Regime on VAT for Non-Resident Suppliers, to collect VAT on digital supply of services and intangibles to Nigeria.
“The Service has deployed a digital service interface, the Digital Economic Compliance (DEC) Tool, to facilitate the implementation of the Regime. The implementation of the DEC Tools will also assist the Service in determining entities that fall within the SEP threshold and relevant turnover generated from Nigeria. This tool will go live shortly.”
He also stated that the Service “will focus on compliance and enforcement strategies in 2022, by leveraging on intelligence, strategic data mining and analysis, to enhance audit and investigation functions and implementing the penalty regimes in accordance with the laws;” adding that, “the Service is poised to ensure prosecution of recalcitrant taxpayers in 2022.”
Nami called on taxpayers, tax consultants, tax collection agents and other stakeholders in the tax system to partner with the FIRS to make taxation and tax revenue collection a pivot for economic growth and national development, stating that “no society can grow without its citizens paying their taxes.” He said.