Challenges in complying with the first Common Reporting Standard in Nigeria - The way forward
By Mayowa Falohun - Senior Tax Adviser KPMG in Nigeria
Challenges in complying with the first CRS in Nigeria - The Way Forward
Nigeria joined other signatories to the Common Reporting Standard - Multilareral Competent Authority Agreement (CRS-MCAA) in August 2017 as part of its commitment to combat tax evasion globally. Subsequently, the Federal Government via the Federal Inland Revenue Service (FIRS) issued the Income Tax Common Reporting Standard Regulations, 2019 ( the Regulation) as the legal basis for the implementation of the Automatic Exchange of Lnfonnation (AEOI) in Nigeria.
According to the Regulation, financial institutions(FIs), including banks, asset management companies, life insurance companies, funds are required to prepare and submit CRS returns, covering information on reportable persons, to FIRS for onward exchange with tax authorities of other participating jurisdictions. While some FIs successfully filed their CRS return before the deadline, several stakeholders encountered challenges in the preparation and filing of the return as 2020 was the first year of compliance in Nigeria.
This article highlights some of I.he challenges noted in complying with the CRS Regulation and recommends ways to ease compliance for FIs in Nigeria going forward.
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