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Zacch Adedeji: The Reformist FIRS Boss’ TaxPro-Max

by Rabiu Usman
4 months ago
in Opinion
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A few days ago,  the Federal Inland Revenue Service (FIRS) ordered all banks in the country to identify and close any tax and levy collection accounts not authorised under the agency’s TaxPro Max system. The banks are to abide by this directive immediately.

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Like others before now, this decision by Executive Chairman of FIRS, Dr Zacch Adedeji, is another of his tax reforms aimed at enhancing transparency, accountability, and efficiency in the country’s tax administration.

Before now, the FIRS had launched the new USSD code *829#. This has in no small measure revolutionized taxpayer engagement and access to essential tax services.

Since October 9, 2024, that it was officially launched, the USSD code *829# has simplified tax processes and provided a seamless, efficient service experience, with taxpayers now able to effortlessly access a range of services, including TIN retrieval, Tax Clearance Certificate (TCC) verification, and general inquiries all from the convenience of their mobile phones and without  need for internet access.

Also in operation is the Merchant Buyer Solution (eInvoice), a government initiative under the FIRS Digitial Transformation Strategy (2023/24) that is now being used by all Value Added Tax (VAT) registered taxpayers’ businesses to manage the issuance of e-invoices in accordance with Section 25, Part 5 of the Tax Administration and Enforcement Act 2007.

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The FIRSMBS (eInvoice) is effectively replacing traditional paper or electronic documents such as invoices, credit notes, and debit notes.

Now, it is the enforcement of the use of the TaxPro Max system, a self-service platform or portal that enables taxpayers to file tax returns, pay taxes, process and validate Tax Clearance Certificates.

TaxPro Max is a digital solution introduced by the FIRS to centralise and automate tax administration processes. It is a self-service platform that facilitates various tax-related activities, including registration, filing, payment, and the issuance of Tax Clearance Certificates (TCCs) for both resident and non-resident taxpayers.

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It has been central to the FIRS’s strategy to modernise Nigeria’s tax administration infrastructure, reduce human contact in tax processes, and improve ease of compliance for taxpayers.

By the FIRS new policy, all tax and levy collections must now be processed exclusively through the TaxPro Max platform.

According to the FIRS notice, titled; “Directive to close unauthorised FIRS tax collection accounts,” any accounts outside the TaxPro Max system are now considered unauthorised. Consequently, banks are expected to discontinue the use of such accounts without delay and ensure strict adherence to the new collection procedure.

“Effective immediately, all tax and levy collections on behalf of FIRS must be processed exclusively pursuant to an assessment raised on the TaxPro Max platform.

“All banks participating in the FIRS Collection, Remittance and Reconciliation Scheme are hereby advised to comply with this directive within the stipulated period,” the notice stated.

Dr Zacch Adedeji mandating the exclusive use of the platform, will eliminate the proliferation of multiple collection accounts and bring uniformity to how taxes are assessed, collected, and reconciled.

As for taxpayers, implication of the new policy is that all payments to FIRS must now be based strictly on assessments raised through the TaxPro Max portal. Payment through any unauthorised channel or to any unauthorised account will be invalid and could expose taxpayers to penalties.

To the banks, they are expected to avoid regulatory breaches that may incure santions by aligning their internal tax collection mechanisms with the TaxPro Max system.

For Dr Zacch Adedeji,  the reformist tax collector, this is not the last from the book of tax reforms, other steps are in the pipeline to ensure that FIRS takes it position as the crude oil of Nigeria.

 

– Usman,  a public affairs commentator lives in Abuja


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