FIRS Issues New Tax Clearance Certficate Rules, Gives 30 days Grace Period

The Executive Chairman Federal Inland Revenue Service (FIRS), Muhammad Nami, has offered a 30- day grace period to enable taxpayers, obtain the 2020 Tax Clearance Certificate (TCC).

Nami disclosed this in a public notice signed by him,  titled “Facilitating 2020  Tax Clearance Certificate (TCC) Issuance.”

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The chairman said that the offer to ease issuance of  Tax Clearance Certificate is in accordance with the provisions of Section 101 (1) of CITA LFN 2004 and in conformity with Self-Assessment Regulation, 2011.

He however warned that the FIRS will not fail to invoke the provisions of the Law, including enforcement and imposition of lien should it be apparent that a taxpayer has misled the FIRS to issue a TCC.

The full text of the Public Notice reads: “Following the numerous complaints received from our esteemed taxpayers with respect to difficulties encountered before obtaining Tax Clearance Certificate (TCC) and the fact that taxpayers need TCC to enable them to, inter alia, seek and obtain contracts and loans, renew permits, registrations, franchises, agreements and/or licenses that will invariably generate revenue from which taxes will be paid, Management has looked into the above complaints and has taken steps to ease the process of obtaining TCC.

“Consequently, notice is hereby given that the Service has put in place machinery to issue 2020 TCC for all eligible taxpayers from 2nd January to 31st January, 2020.

“The Service may not hesitate to use enforcement activities including imposition of lien on bank accounts of such defaulting companies to recover any outstanding debts when it discovers that the taxpayer has misled the Service in her duty to observe tax compliance.

“The issuance of TCC to ease the burden of taxpayers is in line with the provisions of Section 101 (1) of CITA LFN 2004 and in conformity with Self-Assessment Regulation, 2011.

“Taxpayers are therefore encouraged to take advantage of this initiative and apply for their 2020 TCC, as soon as possible.”

The TCC is a requirement in the award of contracts among other things in the country.