PUBLIC NOTICE
FIRS HAS NOT AUTHORISED ONLINE PAYMENT OF TAX REFUNDS
This is to inform the general Public that the Federal Inland Revenue Service, FIRS has not authorized nor started online payment of Tax Refunds to taxpayers.
All Taxpayers are enjoined to discountenance any request from institution, firm, individual or online websites, emails, or hard copies of mails, demanding that taxpayers should to claim any such Tax Refund.
Tax Refunds are extra/excess taxes due to taxpayers at the end of every year and to which taxpayers that pay their taxes at all times, are due.
A faceless group has however began mass mailing (email) to several web users and email users demanding that they should submit their account details to facilitate payment of such Tax Refunds.
One of such mails: E-tax Refund Notification, was mass mailed to several email and web users on Saturday 6th March 2010 and Sunday and 7th March 2010.
LEGAL BASIS OF TAX REFUND
Section 23 of the FIRS Act provides as follows:
(1)there shall be refunded to taxpayers, after proper auditing by the Service, such overpayment of tax as is due
2.) The Service shall decide on who is eligible for the refund mentioned in sub-section (1) of this section subject to such rules and conditions as may be approved by the Board
(3) Any tax refund shall be made within 90 days of the decision of the Service made pursuant to subsection (2) of this section, with the option of setting off against future tax by the tax payer
(4) For the purpose of tax refund, the Accountant of the Federation shall open a dedicated account into which shall be paid monies for settling such refunds
(5) The Service shall administer the dedicated account as created by virtue of Section 23 (4)
(6) For the purpose of the dedicated account, the Service shall prepare an annual budget for tax refund to be funded from the Federation Account as may be approved by the National Assembly.
The FIRS is authorized by law to collect the following taxes: Petroleum Profit Tax (PPT), Companies Income Tax (CIT); Capital Gains Tax (CGT); Personal Income Tax (PIT); Value Added Tax (VAT); Stamp Duties Tax (SD); Education Tax (EDT); Withholding Tax (WHT) and Technology Levy.
WHY TAX REFUND?
Tax Refund, due to taxpayers, could arise in the course of payment of any of these taxes as a result of:
- Over assessment of taxes by FIRS.
- Outright over payment of taxes by taxpayer.
- Double payment for the same tax liability by taxpayer.
- Deduction of VAT at source without corresponding.
adjustment for input VAT.
- Deduction of WHT at source higher than the tax profile of the
company.
- Input VAT Claims by zero rated VAT able persons.
- Input VAT in excess of output VAT
- Stamp Duties paid in respect of incorporation of a company but whose registration was discontinued.
- Errors committed by collecting agents (Banks etc).
- System errors – IT
There is therefore the need to establish a process for granting refunds to Taxpayers or collecting agents for excess payments resulting from any of the above reasons.
WHO QUALIFIES TO CLAIM – Taxpayers
- Collecting Agencies (e.g. Banks etc).
-Claims can be paid either in cross cheque or by
-Crediting the claimant against future taxes.
HOW TO CLAIM TAX REFUNDS
For the avoidance of doubt, the FIRS Tax Refund Mechanism structure is as follows:
STEP 1 - Documentation
A) CLAIMANT
1. Tax refund application must originate
from qualified Taxpayers with the following
information & documents directed to Large Tax Office, LTO/Integrated Tax Ofice ITO
where domiciled.
- Precise reason for refund
- Type of Tax
- Period of Transaction
- FIRS receipt of payment
- Bank tellers
- Print out record of pay direct/web portal
- Stamped documents in respect of Stamp Duties Refund
2 LTO/ITO to FIRS H/Q application
* All documents as in step 1a above
* Remittance schedule (web portal remittance
report,
REMEMBER
(Only the taxpayer whose name appears on an application form may claim refund)
STEP 2 - VERIFICATION
All application received will be subjected to proper auditing to ascertain the genuineness of the claim.
Remember
No audit, No refund
STEP 3 - PAYMENT
Payment of refund for genuine claim
to the respective Taxpayer.
The FIRS enjoins all taxpayers and the general public to ignore all such online calls for account details to facilitate online payment of Tax Refund. The Service will not be liable for any loss or liability incurred in the course of such transactions.
Taxpayers are enjoined to call the following numbers for further enquiries:
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C. N Okoroafor (Tax Revenue Accounting) 08033146359
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SIGNED
DR JOHN EDEMODE
Special Adviser (Communication)