FIRS Orders Banks to Close Unauthorised Tax Accounts to Boost Tax Collection Transparency

The Federal Inland Revenue Service (FIRS) has issued a directive to all banks in Nigeria, mandating the closure of any tax and levy collection accounts not authorised under its TaxPro Max system. This decision aims to centralise the tax collection process, promote transparency, and ensure efficiency in the country’s tax framework. Zacch Adedeji, the Executive Chairman of FIRS, communicated the order through a public notice circulated on Monday. It requires that all tax and levy collections be processed exclusively through the TaxPro Max platform, which has been central to FIRS’s digitalisation efforts.

TaxPro Max is a locally developed digital platform designed to streamline Nigeria’s tax processes, including taxpayer registration, returns filing, payment processing, and issuance of receipts. This initiative is part of FIRS’s broader effort to modernise the tax administration system, reduce human contact, and improve compliance. The platform has already been integral to the agency’s strategy to minimize revenue leakages and enhance real-time reconciliation of collections.

Under the new directive, any tax collection not processed through the TaxPro Max system is considered unauthorised. Banks are now required to cease using such accounts and ensure compliance with the new procedure. Failure to adhere could lead to sanctions or exclusion from future tax collection activities. This move is also expected to standardise the way taxes are assessed, collected, and reconciled across the country.

For taxpayers, this change means that all payments to FIRS must be based on assessments generated via the TaxPro Max system. Payments made through unauthorised accounts or channels will be deemed invalid and could result in penalties. To facilitate a smooth transition, the FIRS has encouraged taxpayers and financial institutions to contact its Revenue Accounting and Refund Department for further guidance.

Source: Nairametrics