The Federal Inland Revenue Service (FIRS) at the weekend ordered banks in the country to lift its earlier imposed lien on tax defaulters’ bank accounts, saying the measure will enable the banks to contact the affected customers for regularisation of their tax positions.
The federal tax administration agency gave the directive in a letter dated 15 February, 2019 to the banks to suspend its earlier ordered lien on bank accounts of alleged tax defaulters for a period of 30 days with immediate effect.
It attributed the basis of its latest decision to the need to allow the affected taxpayers with frozen bank accounts to regularize their tax positions with a view to reducing the inconveniences they are going through currently.
Reacting to the FIRS’ latest stance, analysts at Proshare, one of the nation’s leading financial and business intelligence consulting firms, described the move as desirable for the financial system as the suspension would allow the banks to notify their customers of the directive so that they can engage with the FIRS to resolve their outstanding tax issues.
The experts believe that the measure would achieve a positive outcome for all the parties, especially the revenue agency and the taxpayers.
According to the experts, whereas it appears doubtful that the 30-day window will be sufficient to resolve the tax disputes involving the affected taxpayers, it is however a demonstration of the sensitivity of the FIRS to taxpayers complaints and other stakeholders, and a proof of its willingness to engage with them when as occasions demand.
The Proshare analysts expressed the hope that the Service would explore the opportunity of the 30-day window to modify the process of exercising its statutory power of substitution in a manner that respects taxpayers’ rights and ensures that the sanctity of bank-customer relationship is not jeopardized.
They maintained that doing this would repair any damage that might have been done, and by so doing enhance the credibility of the Nigerian tax system and restore investors’ confidence in the economy
