TAX – Nov 2021 – L2 – Q7 – Tax Administration

Explanation of five different aspects of tax administration that TAXPRO MAX can handle.

Question

Tago Nigeria Limited was incorporated in 2009 as a trading company. It supplies
office furniture, equipment and other office materials to end users.

Due to the favourable business climate in recent years, the company achieved a
gross turnover of N120,000,000 in 2020. The directors were impressed by the profits
posted by the company, hence the decision to computerise the accounting system of
the company.
You were appointed the tax consultant to the company in 2018. You are aware that
in 2006, the Federal Inland Revenue Service (FIRS) deployed the first tax portal
(Webportal) to automate and streamline taxpayer‟s registration and other tax
administration system (ITAS) known as SIGTAS. This was implemented though its
deployment was stalled.

Following the enactment of the Finance Act, 2020, the Federal Inland Revenue
Service is empowered to automate filing of tax returns and payment processes.
You attended a seminar organised by the Federal Inland Revenue Service in June
2021, to inform tax consultants of the adoption of a locally developed tax
management solution known as TAXPRO MAX. The FIRS insisted that manual filings
of tax returns would no longer be allowed.
At a meeting held with the Managing Director of Tago Nigeria Limited, you intimated
him of the tax development. He was worried that there could be a delay in filing of
tax returns for the year ended December 31, 2020, more so when taxpayers are yet to
be fully aware of this new development.

Required

Explain to the management FIVE different aspects of tax administration that the tax management solution known as TAXPRO MAX can handle.

Answer

Five Aspects of Tax Administration Handled by TAXPRO MAX:

E-Registration:
TAXPRO MAX facilitates accurate capture of taxpayers’ data and assigns a unique Taxpayer Identification Number (TIN). It also allows taxpayers to self-enroll through a web application service, ensuring that registration is streamlined and efficient.
E-Assessment:
The system computes taxpayers’ liabilities automatically upon submission of returns. The assessment notice is generated and sent to the taxpayer’s email, reducing manual intervention and improving accuracy.
E-Payments:
TAXPRO MAX supports several electronic payment methods, including POS, internet banking, bank transfers, and USSD options. This allows taxpayers to pay taxes remotely from the comfort of their homes or offices.
E-Filing:
The system provides a module for electronic filing, enabling taxpayers to file their tax returns online without needing to visit the tax office. This feature reduces the stress and time involved in filing periodic tax returns such as VAT and CIT.
E-Tax Audit:
TAXPRO MAX enables the entire tax audit process to be conducted without the physical presence of auditors. Meetings can be held via video conferencing, and documents can be exchanged electronically, making the audit process more efficient.

Tags: Automation, E-Payment, Tax Filing, TAXPRO MAX
Level: Level 2

Series: NOV 2021

Uploader: Kwame Aikins