The year 2021 was a critical one for tax administration in Nigeria. In line with the law, 2021 corporate income tax revenue was based on business profits of 2020.
• In year 2020, the country entered into economic recession for the second time in 5 years. The recession was caused by a 5-month lockdown occasioned by the Coronavirus pandemic. To compound the economic challenges of Covid-19, business activities were disrupted by the End-SARS protests.
• Due to the recession, many businesses struggled to survive with very few reporting profits. The base for corporate tax was grossly eroded due to losses and business failures.
• Upon the coming into office of the current Management, FIRS began strategic administrative and operational reforms including implementation of new policies that would improve its capacity to achieve its mandate.
• The deployment of the new automated tax administration system (the “TaxPro Max”) in June 2021 was a game-changer. With the solution, taxpayers experienced ease of registration, reporting, payment and issuance of Tax Clearance Certificates while the Service experienced greater efficiency in the deployment of resources thereby leading to improved revenue collection.
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