The Federal Inland Revenue Service has opened a 30 day window for taxpayers to obtain their Tax Clearance Certificate. The development was announced in a statement signed by the Executive Chairman, Mr Muhammad Nami, and shared through the official Twitter page of the agency. According to him, the decision is meant to make the process easier for taxpayers and help them meet their obligations at a time they may urgently need a valid TCC.
In the statement titled Facilitating 2020 Tax Clearance Certificate (TCC) Issuance, the tax chief explained that the move follows legal provisions. He noted that the offer to simplify issuance falls under Section 101 (1) of CITA LFN 2004 and aligns with the Self Assessment Regulation of 2011. Mr Nami said the agency had listened to concerns from taxpayers who complained about the difficulty faced when trying to obtain a TCC.
He stated that taxpayers need TCC for several purposes including seeking government or private contracts, applying for loans, renewing licenses, registrations, agreements, or franchises. These activities, he stressed, often generate revenue from which taxes will be paid, and therefore granting easier access to TCC was necessary.
“Following the numerous complaints received from our esteemed taxpayers with respect to difficulties encountered before obtaining Tax Clearance Certificate and the fact that taxpayers need TCC to enable them to, inter alia, seek and obtain contracts and loans, renew permits, registrations, franchises, agreements and/or licenses that will invariably generate revenue from which taxes will be paid, management has looked into the above complaints and has taken steps to ease the process of obtaining TCC,” he explained.
The tax service said eligible taxpayers can obtain their 2020 certificate between January 2 and January 31, 2020. However, the agency warned that the law will still be enforced against defaulters.
Mr Nami stated that FIRS will “not hesitate to use enforcement activities including imposition of lien on bank accounts of such defaulting companies to recover any outstanding debts when it discovers that the taxpayer has misled the service in her duty to observe tax compliance.”
He encouraged taxpayers to make use of the offer immediately, saying issuance of TCC under this arrangement reflects existing law. “Taxpayers are, therefore, encouraged to take advantage of this initiative and apply for their 2020 TCC, as soon as possible,” the statement added.
