The Federal Inland Revenue Service has on Friday clarified that the mandatory completion and submission of Self-certification forms in financial institutions and insurance firms is not for all Nigerians.
This clarification was contained in series of tweets sequel to the outrage leveled on the first release by state house on Thursday via Twitter.
According to the series of tweets by FIRS, “The Self Certification form is basically to be administered on reportable persons holding accounts in Financial institutions that are regarded as “Reportable Financial Institutions” under the CRS,”.
“Reportable persons are often non-residents and other persons who have residence for tax purposes in more than one jurisdiction or Country,” it added.
The government added that “failure to comply with the requirement to administer or execute this form attracts sanctions which may include monetary penalty or inability to operate the account.”
The first release by state house made the self-certification compulsory for all and this was criticised as it is yet again, another analogue means of generating data, after the National Identification Number (NIM) and Bank Verification Number (BVN).
In another series of tweets by the FIRS, the body states further that the objective of the self certification form is meant to improve transparency in Nigeria’s tax system and fight against corruption.
The tweet reads:
“We like to refer our esteemed taxpayers & general public to the FIRS Public Notice: ‘Completion of Self-Certification Forms By Reportable Persons.’ This exercise is required for due diligence in line with requirements of Income Tax (Common Reporting Standards) Regulations 2019.
The ultimate objective of the Automatic Exchange of Information is to improve transparency in Nigeria’s tax system and boost the anti-corruption drive of the Government.
The Self-Certification Forms are to be administered by Financial Institutions to enable account holders clearly document their respective jurisdictions of tax residence. Relevant Financial Institutions and other stakeholders have been adequately sensitised on this process.
Please note that this is a seamless process as the form is available for download on the FIRS website: http://firs.gov.ng. Financial institutions are expected to provide email addresses or electronic portals for customers to upload completed forms.