Confusion As FG Makes U-Turn On Bank Registration, Apologises To Nigerians

– Says Bank Registration Applies To Individuals Paying Taxes In More Than One Country

The Federal Inland Revenue Service on Friday said that its directive to bank customers to update their records applies only to individuals paying taxes in more than one country.

The Service had on Thursday issued a notice to banks, insurance companies and other financial institutions directing customers to obtain, complete and submit Self – Certification Forms to their respective financial institutions.

It had directed all financial institutions to begin the process of registering their customers, adding that this is required by the relevant financial institutions to carry out due diligence procedures in line with the Income Tax Regulations 2019

Following the notice, Nigerians took to social media to condemn the directive, stating that it was against the Bank Verification Number policy of the Central Bank of Nigeria.

Many Nigerians had gone on rampage on micro-blogging site, Twitter, over the Federal Government’s threat to sanction account holders that failed to complete the new Self Certification Forms

They questioned the motive behind government’s decision despite several biometric mode of identification in the country including the national Identity Card and the BVN.

They also said that the directive would increase the current burden on bank customers as many of them are still experiencing delays in carrying out bank transactions due to the physical distancing policy of the goverment to contain the spread of Covid-19.

Many Nigerians have also expressed fear that the new directive might increase the bank charges as the cost of the registration might be transferred to account holders.

Following the outcry that greeted the FIRS directive, the service on Friday apologised for the earlier notice issued on Thursday.

It said, “We apologise for the misleading tweets (now deleted) that went up yesterday, regarding the completion of self-certification forms by Reportable Persons.

“The message contained in the @firsNigeria Notice does not apply to everybody. FIRS will issue appropriate clarification shortly.”

In the new notice that was issued after the apology, the service said
that the publication for financial institutions account holders in Nigeria to complete the self certification form, pursuant to the Income Tax (Common Reporting Standard) Regulations 2019 is for the fulfilment of Automatic Exchange of Information Requirements.

It said, “This is to clarify the publication for financial institutions account holders in Nigeria to complete the self-certification form, pursuant to the Income Tax (Common Reporting Standard) Regulations 2019 which is for the fulfilment of Automatic Exchange of Information Requirements.

“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 a residence for tax purposes in more than one jurisdiction or Country.

“Financial Institutions are expected to administer the Self Certification form on such account holders when the information at its disposal indicates that the Account holder is a person resident for tax purpose in more than one jurisdiction.

“The information that indicates an account holder is a resident for tax purposes in more than one jurisdiction, is expected to be available to Financial Institutions during the account opening processes for the KYC and AML purpose.”

The self-certification form, according to the FIRS is in three categories.

They are Form for Entity; Form for Controlling Person (Individuals having controlling interest in a legal person, trustee, etc) and Form for individuals