There is palpable fear across the social and economic strata of Nigeria as the countdown to the January 2 date set by the Federal Government for all Nigerians to ensure their bank accounts have their Tax Identification Number (TIN) or risk being blocked. Most Nigeria spoken to on the preparedness for the commencement of the policy in less than two weeks time, described the policy as draconian, urging government to look for other ways to ensure people pay their taxes.

Many said that they are not even aware that their accounts will be blocked by January 2 if it does not have their TIN numbers. Speaking, Mr. Chinazo Ibeneche, a spare parts trader at Ladipo Market Lagos, said: “I pay my tax, I have my TIN but what of my old mother and father in the village?

They are not doing anything, so I transfer money to their account regularly for their upkeep. What will happen to them from January 2nd? Does it mean that I will be travelling home regularly just to give them the small small money I normally send to them?

This is confusing! “ Dr Duroajai Fakurade, a lecturer in the Department of Medicine, University of Lagos, lashed out at the National Assembly for passing such ambiguous law, saying it will create hardship and cause anxiety in the land.

According to him, the move by the Federal Inland Revenue Service to commence the implementation of the new law from January without adequate education and explanation to the Nigerian public is insensitive. “We are just moving from one harsh policy to the other? Do a vox pop of the teaching staff in this school alone, you will realize that no one has an in-depth understanding of what this law or policy is all about. Is it for taxpayers alone or for whosoever that has a bank account?

“Those supposed to pay tax are the working class, business and property owners. When it comes to tax collection in Nigeria, where does the government have problem? Definitely not with the workers, maybe the informal sector but mainly the big men of Nigeria who do not pay tax. When you look at all luxuries they indulge in, you will understand my point.

“The bank account policy will increase the hardship of Nigerians who in other climes are normally taken care of by their governments vis a vis the unemployed youths, dependants, housewives and aged people,” he said. Also speaking, a financial expert and former President of the Association of National Accountants of Nigeria (ANAN), Dr. Samuel Nzekwe, said while the TIN requirement to operate an bank account in the country from January 2, 2020 is aimed at ensuring that all taxable Nigerians are brought into the tax net, he urged the government to note that all account holders are not taxable.

“So the challenge here is isolating the taxable from the un-taxable.

Doing that is not likely to be hitch free without causing a dislocation in the system. “How do you isolate the accounts of the unemployed, the aged and the old dependants who depend on the stipend paid to them through their accounts by their breadwinners or their benefactors? “Mind you, you cannot be able to determine whether a person is employed or not through the amount in the person’s account, because there are many unemployed people who live more comfortably than those working, courtesy of their benefactor or breadwinner.

You have some women who are full time housewives and you have people living in the village but are being provided for by their kit and kins in the cities and the Diaspora.”

He said without adequate sensitization, commencing the implementation of the policy create a lot of confusion in the land “because there is nothing you can do about our culture here. We provide for extended family members and our immediate family. Are those category of Nigerians expected to pay tax? Does the policy imply that anybody with a bank account number must pay tax?

These are issues

The Federal Inland Revenue Authority must address before implementing of the law that require people to have their TIN linked to their bank account number,” he stressed. FIRS begins nation-wide clamp down on tax defaulters Meanwhile, in a renewed bid to bring tax defaulters to book in the country, the Federal Inland Revenue Service (FIRS) commenced nationwide tax enforcement on Wednesday, December 18, 2019.

The latest move by the FIRS was confirmed by Wahab Gbadamosi, Head, Communications and Servicom Department. According to Gbadamosi, the FIRS has issued a notice to commence nationwide tax enforcement with a view to prosecuting defaulters. The details: In a notification sent to taxpayers on Tuesday, signed by the Acting Executive Chairman of FIRS, Abiodun Aina, the FIRS disclosed that plans have been concluded to begin tax enforcement against tax defaulters as they continue to fail in fulfilling their tax obligations.

The FIRS acting Chairman also advised defaulting taxpayers to “settle their tax liabilities within Seven days of the publication to avoid any inconveniences or interruptions in their operations. Nigerians pay more for bank deposits in 2020 As the Central Bank of Nigeria moves to commence implementation of the cashless policy across the country from March 31, 2020, the Apex Bank said Nigerians will now be charged more for cash deposits and withdrawals in furtherance of its cashless policy.

In a circular, dated September 17, 2019, the CBN’s Director of Payments System Management Department, Sam Okojere, instructed deposit money banks to implement the policy starting from September 18.

“Charges on deposits shall apply in Lagos, Ogun, Kano, Abia, Anambra, Rivers states and the FCT, in addition to already existing charges on withdrawals, effective September 18, 2019,” the statement read.

According to the policy, a 3 per cent processing fee will be charged for withdrawals of amounts above N500,000 for individual accounts, while 2 per cent will be charged for deposits.

For corporate accounts, a processing fee of 5 per cent will be charged for withdrawals, and 3 per cent for deposits of amounts above N3 million.

“Please ensure strict compliance,” the CBN circular told banks. The CBN hopes the policy will reduce the amount of physical cash (coins and notes) circulating in the economy, and encourage more electronic-based transactions.

Why Nigerians need TIN to access accounts in 2020 The Federal Government warned that come January 2020, millions of Nigerians without TIN may be denied access to their bank accounts with rega rds to the Finance Bill as recently amended by the National Assembly.

What is TIN? TIN stands for Tax Identification Number. A taxpayer Identification Number is an identifying number used for tax purposes in Nigeria. The Finance Bill currently passed by NASS has amended sections 33, 49 & 58 of the Personal Income Tax Act.

Thus, individuals are required to produce their TIN before they can operate existing or new bank accounts in Nigeria.

What this means is that, if you don’t have TIN, you will not be able to operate your bank account.

This may come as a shock to many, but the important thing to do at this point is to ensure that you have a TIN as the date for implementation has been set for January 2, 2020.

If you run a registered business and have dealings with government, there is likelihood you already have your TIN, so you should not have issues.

The idea of this new law according to sources close to the Ministry of Finance is to get more Nigerians into the tax net.

How to get a TIN

Step 1:

Visit any tax authority office nearest to you and obtain the relevant application form.

Step 2:

Complete the application form and return to the tax authority with valid proof of identity such as Driver’s License, International Passport or any other similar valid document.

Step 3:

Provide required biometric information

Step 4:

Upon confirmation a card will be issued to you on the spot.

Also there are no age limits in having TIN as teenagers are obliged to pay Tax if they receive income from a company.

The only exemptions are on certain thresholds of income. If you want to verify your TIN or to know if you have one, you can go to the Joint Tax Board website.

https:// tinverification.jtb.gov.ng. (Sunday Telegraph)

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