Standard Integrated Government Tax Administration System (SIGTAS), which was created in Canada by CRC Sogema, is in place in over 20 countries around the world with implementation currently underway in several other countries. It was customised to reflect Nigeria tax legislation and it replaces the current web portal systemused for all taxpayers and all tax types in Nigeria.
All taxpayers will be registered in SIGTAS. In SIGTAS, a taxpayer can be an individual, a small business, or a legal entity, such as a partnership or a large incorporated company. Also, small businesses (unincorporated) are registered under their owners. These businesses are called “Individual Enterprises.”For incorporated businesses, details of directors/partners are recorded. These are recognized in SIGTAS as “Non-Individual Enterprises.”
Transfer of taxpayers to SIGTAS
With the launching of SIGTAS, data from Webportal will be converted into SIGTAS, and a new Taxpayer Identification Number (TIN) will be automatically assigned to each taxpayer .Tax balances will also be transferred into SIGTAS. And a single and unique TIN will be issued to cover all taxpayer’s affairs.
Registration and account setup for New Taxpayers on SIGTAS
· The taxpayer submits a completed registration form to JTB/FIRS.
· The form is verified and its data captured into SIGTAS
· The TIN request process ensures that conditions are met for the issuance of the new TIN.
· A single and unique TIN is issued to cover all taxpayer’s affairs.
All required tax accounts are connected to a taxpayer’s single and unique TIN. Tax accounts include: Value added Tax (VAT), Company Income Tax (CIT), Withholding Tax (WHT), Petroleum Profit Tax (PPT) etc.
In SIGTAS, all the different tax types are configured with the appropriate rules which apply to them, such as schedule, tax period, formulae for assessment calculations, penalties, etc.
Tax Return Submission
· Taxpayer submits tax return according to schedule for particular tax type.
· Tax return is registered into SIGTAS with unique document number.
· For certain tax types, supporting documents such as Financial Statements can also be registered on the taxpayer’s file.
Tax return data captured
· If the tax return form (remittance) has been fully filled out, data from each line is captured into SIGTAS.
· As data is captured, SIGTAS displays the correct values for calculated fields, in addition to whatever the taxpayer has submitted (using two columns). Line 3: 2,000 2,000
Line 4: 500 1,000
For example, Line 3 is a declared value and Line 4 is a calculated value (50% of Line 3). Although the taxpayer has recorded this on his return as N500, SIGTAS applies the configured formula for the assessment calculation for this tax type, and corrects the figure to N1000 for the purpose of the assessment.
Assessment Issued
· After verification of the data capture, the assessment is calculated and printed.
· Assessments are then sent to taxpayers
· If there is any discrepancy, assessments are based on SIGTAS’ calculations, not the taxpayer’s.
· The assessment shows the taxpayer’s name, TIN, tax type, tax period, summary information from the lines of the remittance, the amount of tax payable and the due date. It also bears a unique document number.
Payment
· The taxpayer presents the assessment document to the Bank cashier, along with a cheque or cash payment.
· The unique document number identifies the taxpayer, tax type, tax period, amount due and due date when it is captured into SIGTAS.
Overdue Payments
· If the payment is not received by the due date, the account is included in a report for collection action, and a reminder notice is generated automatically and sent to the taxpayer.
· Again, the reminder bears a unique document number, so that it too can be used for payment purposes.
· After double-checking to ensure this information matches what is on the document, the cashier accepts the payment and posts it to the account, issuing the taxpayer with a receipt generated from SIGTAS.
Payments can only be made when associated with a SIGTAS-generated document – if the assessment notice itself is not available, another payment document can be printed from SIGTAS for this purpose.
Audit
· The progress and result of an audit are recorded in SIGTAS. If a discrepancy is identified, a reassessment can be generated from SIGTAS based on the new figures.
· The reassessment notice bears a unique document number, so that it can be used as a payment document by taxpayers.
Collection
· Tax debts remaining unpaid after a final notice has been issued can be handled by SIGTAS, through which cases are managed and tracked
For cases eventually referred to Tax Investigation, the SIGTAS Tax Account and the Collection history can together contribute to the background material required for litigation.
Objection
· A taxpayer who disagrees with an assessment (either the original assessment, or a reassessment generated as the result of an audit), may lodge an objection.
· The objection is registered and then processed in SIGTAS.
All requests and information about ITAS implementation should be forwarded to :
Itas.changemanagement@firs.
