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By Henry Uche, Lagos
Tax experts have urged the Federal Inland Revenue Service (FIRS) to go back and review the compounding interest and other amendments made in its TaxPro Max administration solution, saying that it is negating the ease of doing business in the country.
Speaking at a one-day workshop organised by the Chartered Institute of Taxation of Nigeria (CITN), the Group Head, Strategic Tax & Compliance Dangote Industries Ltd, Mrs Titilayo Fowokan, decried that there was no due consultation of tax professionals by FIRS in the TaxPro Max amendment, hence taxpayers are not finding it funny.
“Our ideas were not sought for, we saw it in the social media but we are the ones to get taxpayers to comply. When taxpayers are not happy, you get more litigations and you can’t collect the tax, and that affects everybody. We should make life easier while we collect taxes”
Fowokan who spoke on “Emerging Issues in Corporate Tax Filing: Industry Perspective”, maintained that it could have been better if all hands were on deck before the amendments were made. Moreover, what FIRS did could give room for corrupt and illicit practices. So FIRS should look into the amendments in terms of filing VAT returns.”
He urged tax practitioners to strive to be closer, understand and guide their clients and know exactly where the shoes pitch the taxpayers. “Tax professionals should always use the CITN platform to have a voice to make amendments where necessary. To taxpayers, they should be tax compliance because the cost of non – compliance is more injurious” she added.
Meanwhile, a tax expert, Kennedy Iwundu, who spoke on Emerging Issues in Corporate Tax Filing: Experience of Small & Medium Practitioners, recommended that FIRS should increase their Taxpromax broadband to reduce the internet network downtime.
Moreso, there should be a more efficient integration of Taxpromax with Ministries, Departments and Agencies, MDA’s WHT deductions and remittances so that WHT on government contracts will be automatically uploaded into the TaxPro Max.
Iwundu maintained that Taxpayer in the areas in Nigeria that lacks power supply and internet access should be allowed to file manually without consequences and penalties.
He suggested that TaxPro Max should be structured to generate straight-line interests on tax liabilities and not on a compounding basis.
“TaxPro Max should be structured to utilize WHT credit on foreign-denominated currencies and should be properly structured for self-generation of tax clearance certificate when all taxes, interest and penalties have been paid.
He posited that taxpayers or tax consultants must not visit FIRS or field operational officers, but FIRS need full automation where files and physical documents will not be needed for the examination of accounts and in the approval of tax clearance certificates.
Recall that FIRS had in June 2021, said with the TaxPro Max, taxpayers could now get their Tax Clearance Certificate (TCC) in a single click.
The Service made announced this via its social media handles Twitter, Facebook, and Instagram where it stated that the generation of tax clearance certificates, which used to be issued within a period of two weeks would now be available with a single click by the taxpayer.
The one-stop shop for taxpayer registration, tax returns filing, tax payment, and tax clearance certificate requesting, among other functionalities. This innovation came on the heels of a wide call for technological reforms that the Service has embarked on in its bid to achieve a hundred per cent automation of its tax administration functions.
