Bank Re-registration directive only for ‘reportable’ persons, FG clarifies

213

Only reportable persons are required to fill and submit a Self-Confirmation form in line with the Income Tax Regulations 2019.

The federal government clarified this on Friday, hours after it asked all account holders in the country’s financial institutions to register their details again.

In a tweet, the government stressed that “Failure to comply with the requirement to administer or execute this form attracts sanctions which may include monetary penalty or inability to operate the account.”

The directive since it was issued on Thursday night has generated harsh reactions from Nigerians who questioned why citizens are being subjected to multiple identity verification processes like the Bank Verification Number, BVN, and the National Identification Number, NIN.

However, in a tweet on Friday, the government apologized for misinformation, stating that it was only reportable persons that will be required to go through with the self confirmation exercise.

It tweeted, “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.”

It also clarified that “Reportable persons are often non-residents. And other persons who have a residence for tax purposes in more than one jurisdiction or Country.

In a press statement, the Federal Inland Revenue Service explained that only “reportable persons” are expected to submit the form.

The statement read, “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.”




Leave a Reply

Your email address will not be published. Required fields are marked *