By Adedapo Adesanya
The Federal Inland Revenue Service (FIRS) has set a mandatory deadline of April 12, 2020 for all taxpayers and companies to register and obtain the Tax Identification Number (TIN) and display it on all documents supporting business transactions.
A public notice by the Chairman of the service, Mr Mohamed Nami, stated that every company or business shall provide their TIN to relevant financial services provider not later than the set date. It was explained that this will allow them update their existing records for accounts opened before the coming into effect of the Finance Act 2019.
It also directed that banks and other financial institutions are required to request for TIN as a precondition for opening new accounts for companies and any other business.
It further explained that Section 3 of the Finance Act, 2019, substituted the provision of Section 10 of the Companies Income Tax Act (CITA) which explains that – “every company shall have a Tax Identification Number (TIN) which shall be displayed by the company on all business transactions with other companies and individuals and on every document, statement, returns, audited accounts and correspondence with revenue authorities, including the Federal Inland Revenue Service, ministries and all government agencies.”
The notice also read, “Every person engaged in banking and other financial services in Nigeria shall require all companies to provide their TIN as precondition for opening an account or in case of an account already opened within three months of the passage of this act, the bank requires such TIN to be provided by all companies as precondition for continued operation of their bank accounts.”
FIRS further explained that payment of taxes are to be made on or before the due date of filing in one lump sum or by installment. This according to the service, is line with the amendments to Section 77 of the Companies Income Tax Act, (CITA) by Section 18 of the Finance Act.
The service further noted that it would grant approval to any taxpayer that wishes to pay in installments prior to the due date of filing and final installment must be paid on or before the due date of filing.
FIRS added that any tax due and unpaid by the due date of filing shall attract interest and penalties as contained in the existing tax laws.
Dipo Olowookere