PEOPLES DAILY, FRIDAY, AUGUST 17, 2012
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Frequently Asked Questions About Self-Assessment (2) 16 How do you encourage taxpayers file in their appropriate Jurisdiction? If the taxpayer has previously filed in a wrong jurisdiction, the taxpayer’s file should be moved to the jurisdiction within which his address falls. Then the taxpayer should be advised accordingly. 17 What is the working relationship between Filing Debt Arrears Enforcement Unit (FDAEU) and the Returns Payment Processing Unit (RPPU)? RPPU conducts arithmetic checks of a tax return, captures data and refers a list of noncompliant taxpayers to FDAEU for further actions including a visit to the taxpayer to find out why he failed to file and remind him of the consequences of late and non-filing. 18 When is a Tax Clearance Certificate issued to a taxpayer? A Tax Clearance Certificate is issued only when tax liabilities including penalty and interest for the relevant assessment years are paid. 19 The focus of SelfAssessment appears to be on only CIT. Is VAT not part of the Self-Assessment Process? Self-Assessment is a regime and covers all tax types 20 After the risk assessments of returns have been done, are all the returns then passed to the Audit Unit? Yes, the Audit works on the result of the risk analysis to draw up its audit program for further action. In any case, RAU is a subunit of Audit. 21 Presently there are no Audit Units in some ITOs what will happen to the audit functions in these offices? All offices are expected to have
Audit Units by the time SelfAssessment is fully implemented. However, where there are no Audit Unit, the Regional Audit shall perform the audit. 22 What is the process for approving a request for instalment payment of tax? Where a taxpayer intends to conclude instalment payments not later than due date of filing, the taxpayer is required to notify the tax office of his intention. However, where a taxpayer intends to conclude instalment payments beyond the due date of filing, he shall request for approval. In any of the cases, the taxpayer is expected to commence instalment payments before due date such that the final payment is made not later than due date.
due in a manner that the final instalment is paid not later than 2 months after due date.
23 What are the conditions for granting extension of time for filing returns? · Written application to be submitted before due date of filing returns and to show good cause for taxpayers inability to file by the due date. · If the Board is satisfied with the cause, it may grant approval under the following conditions; a) Upon sudden death of any Principal officer of the Company; and b) Where the Company experienced Natural disaster. The approval to extend the time within which to file returns will not alter the time within which payment of tax is to be made.
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24 The law allows two months grace from due date of filing, does this now mean the grace period is Eight months? With respect to Companies Income Tax, a taxpayer is required to file tax returns and make payment of tax due not later than 6 months after the accounting year end. However, he has the option to make instalment payments of tax
25 What about the incentive for self-assessment filing, will taxpayers who file still enjoy this incentive? The incentive for selfassessment filing that existed up to 2007 was abolished by Companies Income Tax (Amendment) Act 2007. 26 Considering the noncompliant culture of Nigerians, do you think that self assessment as a means to achieving voluntary compliance will work in Nigeria? Put in another way; are we ripe for voluntary compliance? he self-assessment tax regime is concerned with the provision of proper enablement for taxpayers and enforcement actions that will ensure compliance. 27 My understanding is that the first instalment of tax payable should be paid on due date and the remaining maximum of five (5) instalments paid after due date but not later than November 30, 2011. In accordance with the selfassessment regulations, instalment payments may commence before due date of filing provided the final payment is made not later than due date. In addition, the regulation only provided for three (3) instalments. Note that the Companies Income Tax Act does not say six (6) instalment payments must be granted. 28 When was the Taxpayers Service Policies, Processes and Programmes Department (TSPPPD) created and what is the purpose of creating the department at the
Headquarters when Taxpayers Service Unit already exists in all the Integrated Tax Offices?
assessment numbers may be used as documentary evidence in court?
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29 Is it only the (Headquarters) TSPPPD that will carry out sensitization and education of taxpayers? TSPPPD shall be responsible for policies and coordination of TPS activities. However, the TPS Units in the tax offices are to deliver the direct services to the taxpayers.
34 At what point does a Front Desk Officer at Taxpayers Service issue acknowledgement of receiving Returns? The Front Desk officer reviews the content of the tax return and if satisfied that the required documents are attached to the tax returns, the form is duly completed and signed; an acknowledgment is then completed and issued to the taxpayer.
SPPPD was created in April, 2011. TSPPPD at the Headquarters is responsible for generating procedures for delivering uniform taxpayer service, formulating the annual operating plan and providing headquarters support to ensure taxpayer service is effectively carried out in order to target compliance gap.
30 How much time is required to check a return?
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hecking for arithmetic accuracy and completeness of the returns has replaced full desk examination of accounts and as such it is estimated that an average of thirty (30) minutes should normally be sufficient to deal with a case file. This will naturally also depend on the skill and experience of the officer. 31 Which Unit is responsible for data capture of tax returns? The Returns Payment and Processing Unit (RPPU). 32 In the work flow described in the Handbook on Self-Assessment, Tax Returns are expected to move from the front desk of Taxpayers Service to the Central Registry; does this mean it is no longer necessary for the Tax Controller to endorse the returns before sending them to the Central Registry? The Tax Controller (TC) needs not endorse the returns before sending them to the Central Registry, what is required is for front desk registry staff to forward a schedule of the returns and mails to TC and he may call for any of the files. This is to reduce the workload of the TC who is charged with the general administrative function of the office.
FIRS Headquaters in Abuja
33 When tax returns are submitted at the front desk and assessment numbers allocated at that point, who does the separation of the documents bearing in mind that
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nce an assessment number is issued at the front desk to
tax return that has been submitted, it is documented under the name of the officer who issued the number. The documents are separated by CRU and despatched to the appropriate units.
35 What happens to a Tax Returns that is filed late, does this still qualify as a Self Assessment return?
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t is still a Self-Assessment return as the taxpayer has the responsibility of computing the tax and filing the returns but he should be penalized for late filing beginning from the date the returns fell due. 36 In the Self Assessment System what documents would the Legal and Prosecution Department require to prosecute MDAs for failure to deduct or remit tax? The Audit Report of unremitted funds. 37 What should be done by RPPU while checking the arithmetic accuracy of a return and you encounter a taxpayer claiming a huge relief? Simply capture the information as indicated during data capturing process. This claim will be verified during the audit process. 38 Why is it is necessary to invite the taxpayer when an error is observed in the arithmetic calculations and the subsequent raising of Government/support assessment? This is to remove delays which usually characterize exchange of correspondences between the taxpayer and the Service in respect of re-assessment notices which will reduce objections.