January 30, 2020
The Federal Inland Revenue Service (FIRS) has issued a Public Notice informing the general public on the appropriate FIRS office to file their tax returns. This Public Notice reviews the previous position of the FIRS directing taxpayers to file their tax returns at any FIRS Tax office of their choice and now directs taxpayers to file tax returns as follows:
This Public Notice essentially reverts to the pre-2015/2016 arrangement, where tax offices were organized according to revenue threshold, industry and locations. As stated by the Public Notice, this aligns with global best practice in respect of taxpayer segmentation and will enable the FIRS to deliver better and more focused taxpayer services.
The return to segmentation of taxpayer offices creates uniformity and clarity for tax administration and ensures that taxpayers are domiciled in the tax office best suited to their needs as is done in other jurisdictions globally. This change may, however, occasion some inconvenience for taxpayers whose files have to be moved again and may also require significant administrative efforts on the part of the FIRS in ensuring that files are properly moved to the appropriate tax offices. Notwithstanding, we believe it is a positive step towards improving delivery of tax services, specialization in treatment of tax issues and creating certainty for all stakeholders in the tax ecosystem pertaining to the lodgment of their tax files and resolution of their tax issues.
We will monitor administrative guidelines and directives in this regard and highlight any further significant developments.