If a recent advertorial by The Federal Inland Revenue Service, FIRS is anything to go by, a major reform in the tax administration is on its way in line with constitutional provisions. By the advertorial, the FIRS will soon begin to access computers and electronic storages belonging to taxable individuals.

Also in the same light, the revenue-generating agency will connect the relevant point of sales (POS) or invoicing platforms of all taxable individuals and firms who are required to grant FIRS access to all computers, electronic devices or cloud computing facilities wherein records, data or information is stored or otherwise residing.

The above are scheduled to be implemented on April 1st, 2021 at the launch of FIRS’ Automated Tax Administration Solution.  In the release signed by the Executive Chairman of FIRS, Muhammad Nami,  the new directive is in line with Section 26(4) of the Federal Inland Revenue Service Establishment Act 2007 as amended by section 51 of Finance Act 2019 and Section 26, FIRS Act and for accessing point of sales (POS) or invoicing platforms; section 26.

This innovative move by the FIRS is backed up by Section 26(4) of the Federal Inland Revenue Service Establishment Act 2007 as amended by section 51 of Finance Act 2019.

What you should know

From fact-checking, it was discovered that the Finance Act these provisions are pointed to by the statement is that of 2020 and not 2019.

However, the provision of section 26 (3) FIRS Act 2007 corroborates the amended section 25 of the Finance Act 2020 that provides the sanction for a defaulter.

“A person who contravenes the provisions of this section is, in respect of each offence, liable on conviction to a fine equivalent to 100 percent of the amount of the tax liability.”

Passionate Appeal

In the same vein, FIRS has urged persons of interest to grant access to such platforms, and failure of which would attract penalties as prescribed in Section 26(3) of the FIRS Establishment Act.

Please follow and like us:

Leave a Reply

Your email address will not be published. Required fields are marked *