• Stakeholders meeting/focus group discussions; and
• Website
Role of the tax office in taxpayer service delivery
At the FIRS, the following activities which are listed in the FIRS Handbook on the Implementation of Self Assessment Tax Regime (First Edition, September, 2011)
are rendered to taxpayers:
• Management of front/help desk;
• Attending to all taxpayers seeking assistance;
• Providing information to taxpayer through the distribution of brochures, pamphlets, circulars etc.;
• Providing guidance to taxpayers on obtaining and completing tax forms;
• Receiving taxpayers’ questions and complaints; and
• Collating taxpayer feedback from suggestion box and perception card.
Taxpayers Service Polices, Processes and Programmes Department (TSPPPD)
A department known as the TSPPD was created at the FIRS headquarters to ensure the effective delivery of service to taxpayers. It is charged with the following responsibilities :
• Develop policies, oversee and evaluate the provision of taxpayer service in the field offices.
• Develop and monitor implementation of taxpayer charter.
• Identify taxpayer service needs in collaboration with the Field Operations Group (FOG) and develop strategies to ensure that the needs are met.
• Ensure effective engagement with stakeholders such as trade associations/taxpayer groups/professional groups etc., in collaboration with the FOG, for the purpose of gathering feedbacks and widening the tax base.
• Develop taxpayers’ education programmes for implementation by Taxpayer Service Units.
• Develop modes of providing assistance to taxpayers through call centre, telephone facilities and other electronic means.
• Develop the content of taxpayer’ guides on tax matters for use by taxpayers thereby proactively filing the gaps in tax information.
• Accumulate and disseminate frequently asked questions and answers.
• Facilitate training of taxpayer service personnel in the field offices.
• Set and monitor effective implementation of standards in taxpayer service and ensure that remedial measures are put in place with regards to observed gaps and deviations from standard set.
• While TSPPPD develops the standard for taxpayer service, including writing the manuals, the Field Operation Group has the responsibility of delivering taxpayer education to the taxpayer
Integrated Tax Administration System (ITAS)
Taxpayers’ service is being improved upon continuously since the 2002 tax reform. For instance, one of the ways is through the project termed ITAS. It is an accounting software which FIRS acquired in 2005 under its second phase of automation with a twin objective of streamlining and strengthening tax collection functions. The system will enable a holistic view of a taxpayer’s record such as Accounting, Appeals, Assessment, Collection, Database, and Refunds. The Integrated Tax Administration System (ITAS) is being adopted to consolidate all automation processes and projects.
Taxpayer assistance
A Taxpayer may require any of the following services from a Tax Office:
• Ensure the prompt issuance of Tax Clearance Certificate;
• Provide guidance/explanatory notes for the completion of tax forms;
• Issuance of TIN and relevant educational and informational materials;
• Familiarise the taxpayer with his/her rights;
• Respond to taxpayers questions on the tax law and other administrative procedures;
• Operate a nationwide telephone answering system for taxpayer’s questions.
• Operate a robust web site where taxpayers may obtain information on various topics and download tax forms, instructions, and other explanatory publications;
• Increase the range of electronic services offered.
Illegal assistance to taxpayers
Assistance to taxpayers by tax officers in revenue offices may take different shapes and dimensions. Assistance in the form of educating the tax-payers on their rights and obligations under the tax law is commendable and makes for voluntary compliance with the tax law among tax payers. However, some forms of assistance to taxpayers by tax officers is unacceptable. Such illegal assistance may come by way of making use of inside knowledge to the advantage of taxpayers and to the disadvantage of the Revenue Service. Such assistance includes divulging tax information or secret, rendering of professional service/advice to taxpayer by tax officers for monetary or other rewards.
FIRS Charter
• Display professionalism, integrity and sense of responsibility in the discharge of our official duties
• Relate with all our clients with courtesy and respects and give service to all Nigerians at all times.
• Recognise the individual needs of each client and observe clients right to privacy and confidentiality.
• Educate, enlighten and assist the taxpayers through promotional campaigns.
• Deliver quality and timely service to the taxpaying public.
• Account for all taxes collected.
• Use taxation as a friendly tool to encourage voluntary compliance and foreign direct investment.
• Refund excess tax paid by taxpayer through a transparent and timely refund mechanism.
Taxpayers’ obligation
Just as the Tax Authority has certain duties to the taxpayer, the taxpayer, on the other side has certain obligations towards the tax authority.
The expectations from taxpayers are: to be truthful and prompt in meeting all legal obligations;
to pay adequate taxes in time; to obtain Taxpayer Identification Number and quote it in all documents and correspondence; submit bank details in the returns of income; to intimate change of address to the relevant tax authorities concerned;
• Be fully acquainted with the service charter and promptly report any breach.
• Follow laid down procedure to obtain required services
• Submit complete, accurate and honest information necessary for optimum and realistic assessment and collection of taxes.
• Make enquiry when in doubt.
• Deduct, remit and account for taxes accurately as and when due.
• Report corrupt tax officers and other public officers who divert tax revenue; and
• Avoid negative influence or inducement of tax officials
Taxpayer convenience
At the federal level, the operational mode of the FIRS has been restructured between 2004 and 2007 to give greater emphasis to taxpayer focus and convenience. Amongst the various initiatives in this regard are:
Integrated Tax Office
The concept of Integrated Tax Office/One-Stop-Shop was introduced. This is aimed at reducing the cost and burden of tax compliance by making it possible for the taxpayer to carry out all his tax transactions with respect to assessment and collection of VAT, Companies Income Tax, and Personal Income Tax in one single tax office. The integration of tax files has had a rewarding effect on tax administration through easy data match and cross referencing. Eighty-two integrated tax offices are located across the country to attend to the needs of small and medium taxpayers whose turnover usually below N l billion;
Large Taxpayer Department
A Large Taxpayer Department (LTD) which operates through five Large Tax Offices (LTOs) across the country, was created to cater for the peculiar needs of those taxpayers whose turnover exceed the N I billion threshold. The Department was created to focus on this class of taxpayers with a view to administering the tax laws in line with their needs and as a means of focussing on the blue chip companies who make up the LTD.
Taxpayer Identification Number (TIN)
The concept of TIN was first inserted into the Nigerian statute by the Finance Miscellaneous Taxation Provisions Decree No 21 of 1991 which introduced new Section 8A to Companies Income Tax Act 1979 requiring every company to display on all business correspondence, its incorporation number which has now become its identification number for purpose of business transaction and rendition of tax returns. In like manner, section 8 (q) of the Federal Inland Revenue Service (Establishment) Act, 2007 provides that the Service shall ‘issue taxpayer identification number to every taxable person in Nigeria in collaboration with States Boards of Internal Revenue and Local Government Councils.’
The Taxpayers’ Identification Number (TIN) was introduced with the main objectives to develop reliable and comprehensive taxpayers’ database to taxpayers and ensuring the mandatory use for all payments in order to expand the tax net. TIN is a prerequisite for banks for upload of tax payments on the Interswitch platform for sweeping into Lead Banks and into the Central Bank of Nigeria. Banks are to request for TIN when opening new accounts for current account holders or when customers are transacting businesses on those accounts.
TIN shall be required from each taxpayer when payments for the following taxes are being made to collecting Banks;
Personal Income tax (PIT)
Petroleum Profit tax (PPT)
Company Income tax (CIT)
Capital Gains tax (CGT)
Education Tax (EDT)
Value added tax (VAT)
Withholding Tax (WHT) ,
Stamp Duties .
National information Technology Development Fund Levy.
The benefits of TIN have been identified to include:
– Cost effectiveness to achieve lower cost of compliance for both taxpayers and tax authorities.
– Facilitates the widening and deepening of the tax base to enable proper assessment and the taxation of undeclared income.
– Creates a unified system for identification of taxpayers nation wide.
Conclusion
One of the major conditions for tax compliance is a conducive political environment. Taxpayers comply readily with the tax laws when they have the assurance that the government that is imposing the tax is for them and their perceived interest and well-being are protected. The contrary is the case when they feel politically oppressed or victimised. This is why voluntary compliance is always easy under a favourable political climate.
Failure of governments in the provision of amenities and infrastructure promotes non-compliance and less revenue. Governments should spend the revenues collected wisely and let the structures be visible for the tax-paying public to see how their tax money is being spent. This will urge them to pay willingly and happily. Tied to this, is curbing corruption and tax evasion. For every revenue collected that is mis-applied, it reduces monies that would otherwise be available to the government for developmental purposes. Corruption serves as disincentive to payment of taxes. The fight against corruption must be continuous and sustained. Above all, treat the taxpayer as king. It is the centrepiece.
Above all, the taxpayer should be “treated as King;” no taxpayer, no assessment, no tax revenue, and no growth.
Related Article: Taxpayers’ service in FIRS (1)
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