The Federal Inland Revenue Service (FIRS) has directed commercial banks in Nigeria to close all unauthorized collection accounts. This move is part of the agency’s ongoing efforts to streamline tax collection processes and ensure compliance with tax regulations.
Under Nigerian law, banks are permitted to act as agents for collecting taxes on behalf of the FIRS. However, such arrangements require proper authorization. The FIRS has emphasized that any collection accounts not officially sanctioned should be closed to prevent misuse and ensure that all tax collections are properly accounted for.
This directive aligns with broader regulatory measures aimed at enhancing transparency and accountability in the financial sector. For instance, the Central Bank of Nigeria (CBN) has previously ordered banks to publish details of dormant account holders online to promote transparency .
Commercial banks are expected to comply with the FIRS directive promptly. Failure to do so could result in sanctions or other regulatory actions.
For businesses and individuals, it’s advisable to review any accounts linked to tax collection activities to ensure they are authorized and compliant with current regulations
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