Tax Refund Mechanism
FIRS Tax refund process steps
- Taxpayer fills online application form with requisite attachments in line with the applicable tax type.
- Application is received by Director – Revenue Accounting Department and Tax Controller of the taxpayer’s office.
- Responsible officers review the application, attachment and grounds of the refund and recommend for audit.
- Audit is carried out status report is issued in which the application is either recommended for refund or denial. The denied application is returned back to applicant for fixing the missing items
- The Refund recommendation is transmitted to ECFIRS for payment approval.
The recommendation will contain:
- All tax liabilities (if the application is a candidate for comprehensive audit) otherwise is a relevant tax type liabilities
- Established excess payments/credits on the tax account
- Amount recommended for refund
- Nature of refund of cash or credit carried forward for offset
- ECFIRS’s approval is sent to CD/GSG for payment through SAP
- CD/GSG direct DFA through creation of Vendor Account in SAP (if not already in existence) to receive the approved cash refund
- SAP confirms availability of fund in the respective Revenue Account and effect online payment to the Bank Account provided on the refund application
- The taxpayer tax account is debited to wipe away the excess credit on the account to the tone of the refunded amount.