Lagos Internal Revenue Service Introduces Enterprise Tax Administration System

October 1, 2019

Summary

The Lagos Internal Revenue Service (LIRS) recently introduced the Enterprise Tax Administration System (eTax) to enhance tax administration within the state. In a Public Notice (PN) signed by the LIRS Chairman, the eTax was described as a multi-channel tax and levies payment solution that enables payment of all forms of taxes via the web and mobile. The eTax platform will officially become effective on 1 October 2019.

Details

The eTax is a digital tax administration solution aimed at improving the ease of tax remittance whilst reducing compliance burden and increasing the effectiveness of tax administration. It provides a self-service digital platform, where taxpayers can perform their tax transactions through the eTax portal (the portal) via eTax.lirs.net. However, taxpayers are required to make use of a unique taxpayer’s identity and a password to access the portal. The LIRS would provide the password to the taxpayer upon signing up on the portal.

Some of the features and capabilities of the eTax Portal include:

• Taxpayer registration with unique identification;
• Instant issuance of treasury receipts;
• Online Annual Returns filing for both individuals and corporate taxpayers;
• Notification of taxpayer assessment, audit reports and liabilities;
• Access to assessment details and objection status;
• Emails and short message service notification for tax remittance and access and access to tax payment history;
• In-built tax calculator for estimated self-assessment;
• Ability to upload PAYE schedules, payments and print out treasury receipts;
• Ability to upload withholding Tax (WHT) schedules with receipts and view WHT credit.

Implications

The introduction of the eTax highlights the LIRS’ commitment to employing technology and digital services to enhance tax administration within Lagos State. The eTax provides an alternative and seemingly more efficient means of conducting tax transactions.

The eTax also appears to be a follow up to the LIRS’ recent integration of taxpayer’s personal identification digit with the national identification number using taxpayer’s bank verification number. This stems from the fact that access to the eTax portal requires an account to be created on the portal using taxpayer’s bank verification number.

Taxpayers are encouraged to consult adequately for proper guidance on how best to utilize the services and benefits of the eTAX.