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Nigeria: Collection of company tax liabilities from executives, directors

Nigeria: Collection of company tax liabilities

The Federal Inland Revenue Service (FIRS) yesterday, 19 August 2019, issued a notice informing companies with bank accounts currently under a tax lien “freeze” of the need to regularize their tax status within 30 days.

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The FIRS stated that it will proceed to enforce payment of the company’s tax liabilities from the company directors, managers, secretaries, and other principal officers without further notice following expiration of the 30-day window.

Freeze on bank accounts

In 2018, the FIRS began sending letters to Nigerian banks directing them to “freeze” the bank accounts of certain corporate banking customers because of unpaid tax liabilities. However, the FIRS suspended the bank account freeze order in February 2019, for a period of 30 days during which taxpayers with frozen bank accounts were expected to regularize their tax situations.

In March 2019, following expiration of the 30-day period, the FIRS issued a follow-up notice informing taxpayers of the resumption of the tax lien freeze on bank accounts of taxpayers having unsatisfied tax liabilities.

The August 2019 notice reinforces these collection efforts for unpaid tax liabilities,


Read an August 2019 report [PDF 120 KB] prepared by the KPMG member firm in Nigeria

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