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  Tax Payer Obligations under Nigerian Law

Tax Payer Obligations under Nigerian Law

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TAXPAYER OBLIGATIONS

A. Maintenance of Business Records
To facilitate voluntary compliance and submission of correct tax returns, every taxpayer is required to keep proper business records which reflect a true and fair view of the business at all times. Generally, business records include transactions relating to:
  • Sales and Purchases of goods and services for profit.
  • Purchases/Acquisition and Sales/Disposal of fixed assets.
  • Expenditures on day-to-day running and expansion of business
  • Additional capital into the business.
B. Voluntary Disclosure
Every taxpayer is required by law to make voluntary disclosure of transactions for a given period under the relevant tax law. Voluntary disclosure involves making correct:
  •  Declaration of all relevant information as required in the tax return form.
  • Computation of capital allowance.
  • Computation of the tax liability by applying the correct tax rate(s).
C. Completion and Signing of Tax Returns
Tax Return Forms should be duly completed and signed by the taxpayer even in a case where a tax agent/consultant has been engaged by a taxpayer for the purpose of filing tax returns:
  • in the case of tax returns filed by individuals, the form must be signed by the taxpayer in person.
  • in the case of tax returns filed by companies, the form must be signed by:

  1. The Chairman or Managing Director of the company and
  2. The Company Secretary.

D. Payment of Tax.
Every taxpayer is required to pay the relevant taxes to the Federal Inland Revenue Services through the collecting bank by:
  • Properly completing the deposit slip available at the banks.
  • Accompanying the deposit slip with the among of tax to be paid and presenting the slip and amount to the bank.
  • Receiving an e-ticket from the bank as evidence of the tax paid.
  • Confirming from the e-ticket that the tax was paid into the appropriate tax account (VAT or CIT, etc).
E. Filing Tax Returns
A Taxpayer is required to voluntarily file the tax returns to Federal Inland Revenue Service in a manner prescribed by the relevant tax law. A taxpayer should collect the relevant tax forms from the Tax Office of the Federal Inland Revenue Service, properly complete the form and accompany it with the following document:
  • Audited Accounts
  • Tax Computation
  • Capital Allowances Computation
  • Schedule of Fixed Assets
  • Evidence of Tax Payment of the whole or part of the tax into  a collecting bank (that is e-ticket issued by a collecting bank)
  • Any other document(s) as may be specified
  • Submit the completed forms to the Tax Office on or before the specified due date. 
F. Conditions and Responsibilities of Taxpayer and Agents
A Taxpayer may exercise his right to engage the service of an Agent (consultant) to file tax returns on his behalf. in such a case, the tax payer is required to notify the Federal Inland Revenue Service in writing of such appointment. The Agent should, however, satisfy the necessary requirements in order to be accepted by Federal Inland Revenue Service to represent the taxpayer. In particular, the Agent must be tax compliant (that is fulfilling own obligations under the relevant tax laws, rules and regulations). Taxpayers should also note that:
  • Agents are NOT authorized to sign tax return forms of the taxpayers they represent.
  • Agents should not be Staff or Employees of the Tax Authority.  
Source: Federal Inland Revenue Service Handbook on Understanding Self-Assessment: Making Tax Payment Easy 

It Pays to Pay your Tax


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07:02:00  Federal Inland Revenue Service (FIRS), FIRS, Practice, Tax Services, Taxpayer, VAT

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