The Federal Inland Revenue Service (FIRS) issued “Letters of Substitution” under provisions of Nigerian tax law to appoint certain banks to serve as tax collection agents for customers that are identified as “affected companies” and that maintain bank accounts with those banks.
The FIRS asserted that the affected companies have breached their tax obligations by failing to pay tax to the FIRS. Therefore, the banks have been directed to set aside the indicated sums of tax and to remit such amounts over to the FIRS in full or partial payment of the alleged tax debt.
Furthermore, the FIRS directed the banks not to execute any mandates on those accounts without its prior approval.
Read a February 2019 report [PDF 121 KB] prepared by the KPMG member firm in Nigeria
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