Members of the National Assembly have proposed a new bill to mandate individuals in banking, insurance, stock-broking, and other financial institutions to provide a Tax Identification Number as a prerequisite for opening a new account or operating an existing one.
The aims to enhance tax compliance and improve the country’s revenue collection process.
Punch reports that the bill disclosed that a person engaged in banking, insurance, stock-broking, or other financial services in Nigeria should require a tax ID to open a new or operate an existing account.
The requirement is part of a bigger plan to ensure that all individuals and entities participating in financial activities are registered for tax purposes.
It also outlines that any non-resident person providing taxable goods or services to any individual in Nigeria or deriving income from the country must register for tax purposes and obtain an ID.
However, non-resident persons who derive only passive income from investments in Nigeria will not be asked to register but must provide relevant information as the tax authority prescribes.
The proposed law also empowers the relevant tax agencies to automatically register and issue a Tax ID to persons who should apply but fail to do so.
In such cases, the tax authority will promptly notify the individual of their registration and the issuance of the tax ID.
Failure to comply with the stated requirements may result in administrative penalties.
It says a taxable person who fails to register for tax will incur an N50,000 penalty in the first month of non-compliance and N25,000 subsequently.
TimesNow.com.ng earlier reported that Nigerian banks have been included in the list of the biggest African banks in 2024 in a new report published by the African Business.
Financial institutions in South Africa, Egypt, Morocco, and Algeria dominate the list.
South Africa’s banking giant Standard Bank Group is the top Bank in Africa for 2024, followed by the National Bank of Egypt, and Morocco’s Attijariwafa Bank comes third.
Proofread by Kola Muhammed, journalist and copyeditor at TimesNow.com.ng
Source: TimesNow.com.ng
