The Finance Act 2020 amended Sections 25 & 26 of the FIRS Establishment Act, granting the FIRS powers to:
- deploy proprietary or third party Payment Processing Companies (PPCs) or digital platforms as agents to collect taxes due on international transactions in the supply of digital services.
- deploy technology to automate the tax administration process including assessment, collection and information gathering, provided that it gives the taxpayer a notice of 30 days.
- receive assistance in the collection of revenue claims or other tax matters relating to agreements between Nigeria and other countries or bodies.
Section 26 of the FIRSEA was also amended to mandate taxpayers to grant the FIRS access to relevant information in the taxpayers’ devices or cloud computing facilities. Refusal to allow the FIRS connect to the taxpayer’s system attracts a penalty of N25,000 in the first month and N10,000 for every subsequent month in which the default continues.
Read our alert for further details Download PwC Tax Alert - FIRS issues Public Notice on the Deployment of Automated Solutions