Overview of Federal Inland Revenue Service (FIRS) Electronic Tax Filing and Online Payment of Taxes

Introduction

The Nigeria Interbank Settlement System (NIBSS) and SystemSpecs Nigeria Limited have partnered with the Federal Inland Revenue Services (FIRS) to provide electronic payment of taxes in Nigeria.

This will automate all core processes from tax registration, payment, assessment, monitoring exercise, tax audit and investigation, taxpayers file management and returns filing. FIRS is working towards full implementation of the online platform before the end of this year (2015).

This would develop an e-solution, a platform that would make it easy to pay tax across every outlet in Nigeria. That means wherever you are, you can pay your taxes easily without stress.

To access the platform, taxpayers must register with the FIRS by filling an application form which can be downloaded from the FIRS website (firs.gov.ng) or obtained from the tax office. Taxpayers will be issued a username and an initial password, with which to access the system.

Elements of FIRS Electronic Tax Filing and Online Payment of Taxes.

• Taxpayers returns filed online: Taxpayers can file all their tax returns online, for example Companies Income Tax (CIT), Value Added Tax (VAT), Capital gains Tax (CGT) and Petroleum Profits Tax (PPT), through the online platform.
•  Tax payment on the platform: Taxpayers can pay their taxes online from their bank accounts effective March 2015. This application which was developed in collaboration with the Nigeria Inter-Bank Settlement System (NIBBS) is hosted on the respective commercial bank’s internet-banking platform.
• Processing & issuance of Electronic Tax Clearance Certificates: Taxpayers can apply for a TCC online and get electronic tax clearance certificates via the platform.
• Verification of Tax Identification Number (TIN): Companies can verify the TIN of their vendors on the platform. This would solve the stress encountered when filing Withholding Tax monthly.
• Electronic correspondence with FIRS official.
• Online imposition of late filing penalties and interests: The online platform automatically compute and impose interest and penalties for late submission of tax returns or late payment of taxes.

Conclusion

E-tax Pay is an online self-service tax payment system whereby the taxpayers are given opportunity to pay their taxes through their banks' online payment portal. It is an initiative put in place by FIRS in collaboration with Nigerian Interbank Settlement System (NIBSS) and approved collecting Banks, to assist taxpayers pay their taxes with maximum ease.

The overall objective for introducing electronic tax filing and payment is to operate a transparent and efficient tax system that optimises tax revenue collection and voluntary compliance. This will ease compliance from the taxpayers and also enable FIRS to ensure better transparency in their operations as tax payers will have full access to their records which they can upload themselves through the platform.

Olatunji is a Manager (International Tax & Advisory Services) with Saffron Professional Services(Member firm of Geneva Group International), Lagos, Nigeria.E-mail:Oabdulrazaq@saffron-ng.com,Oabdulrazaq11@gmail.com