The Federal Inland Revenue Service (FIRS) will commence implementation of automated Value Added Tax (VAT) and Withholding Tax deductions at source for the aviation industry by September 2013.
The Acting Executive Chairman of FIRS, Alhaji Kabir Mashi, made the disclosure in Abuja, at a one-day sensitisation workshop for FIRS field officers, collection agents and banks.
The automation, which would serve as a pilot scheme, is expected to go live in the third quarter of 2013 and would cover other sectors like telecommunications, power and financial institutions.
Mashi, represented by the Coordinating Director, Direct Report Group (DRG), Onyekachi Ihedioha, also listed the automation of all receipt processes, increase in the number of payment channels, as well as the implementation of the Integrated Tax Administration System (ITAS), as among steps taken by FIRS to ensure increased tax revenue collection for the government.
He also disclosed that FIRS is collaborating with the commercial banks to make the Taxpayer Identification Number (TIN) mandatory for opening of an account and all transaction with the individuals and corporate bodies.
Mashi said: “We have extended invitations to our collecting agents for their magnanimity in collecting and remitting taxes on behalf of the service. Businesses now know that there is no hiding place for them anymore. Yes they can run, but they can no longer hide.
“We appreciate the level of cooperation thus far in the implementation of the Taxpayers Identification Number (TIN) system. We have achieved some significant mileage with the introduction of TIN and we hope the banks will fully adopt the ‘No TIN No Account’ option as we go on.”
According to him, efficient revenue management entails generating the maximum level of revenue without leakages, prompt delivery of quality services to the tax-paying public and high level of transparency and accountability.
He said that while part of the ITAS project focuses on taxpayers registration using TIN, the filing and registration and returns processes, payment processing were being addressed by the collection of automation project.
The FIRS boss explained: “We have adequate mechanisms for proper analysis and monitoring of these initiatives to enable us address attendant challenges as they occur.
“The success or otherwise of some of the above initiatives depended on the level of cooperation of agencies like the Nigeria Customs Service, Central Bank of Nigeria, Nigeria Civil Aviation Authority, Office of the Accountant General of the Federation.
“We have extended invitations to our collecting agents for their magnanimity in collecting and remitting taxes on behalf of the service. Businesses now know that there is no hiding place for them anymore. Yes they can run, but they can no longer hide.
“I am sure you are all aware of the introduction of the Electronic Form M by the Nigeria Customs Service and the Central Bank of Nigeria. We have also keyed into this arrangement in such a manner that transaction involving the use of e-form M cannot be processed without a valid Taxpayers Identification Number (TIN).
“Equally important for the success of this idea is the level of cooperation of Banks, we therefore solicit for your assistance in the implementation of this and other various initiatives.’’