In order to open new accounts or operate existing ones, all Nigerians would need to show their tax clearance identification to commercial banks, according to a new bill that the federal government proposed to the National Assembly.
If lawmakers pass the bill into law, it will have an impact on citizens who use banking, investing, stockbroking and other financial services. The bill’s first reading at the House of Representatives was on Tuesday, October 8.
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The bill, aimed at enforcing tax compliance, is titled “A Bill for an Act to Provide for the Assessment, Collection of, and Accounting for Revenue Accruing to the Federation, Federal, States, and Local Governments; Prescribe the Powers and Functions of Tax Authorities, and for Related Matters”.
“A person engaged in banking, insurance, stockbroking, or other financial services in Nigeria shall make the provision of a tax ID a precondition for opening a new account or operating an existing account,” the proposed bill reads.
The bill also applies to non-residents who import taxable goods into the country in that they must obtain a tax ID.
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But non-residents who earn passive incomes from their investments in Nigeria are exempted from registering for tax ID on the condition they furnish the tax authorities with any information requested.
Tax authorities, per the tax bill, can register and issue tax IDs to eligible individuals who refused to obtain it themselves.
Individuals who disregard the directives of the bill will be fined N50,000 in the first month of erring and N25,000 in subsequent months.