Prior to the Federal government announcement on the Self-Certification forms for accounts holder in all financial institutions including insurance firms, and It It threatened to block access to defaulters’ accounts or impose a monetary penalty.
This has generated many reactions from Nigerians most especially on Twitter platform immediately after the information on the Self-Certification forms was announced by the Government of Nigeria on Thursday 17th September, 2020.
In a recent development the Federal Inland Revenue Service FIRS have also give a detailed explanation on their official Twitter page.
“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 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 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 account opening processes for the KYC and AML purpose”
In other words this means the Self Certification form is not applicable to all banks users but “The Self Certification form is basically to be administered on Reportable persons holding accounts in Financial institutions…Reportable persons are often non-residents and other persons who have residence for tax purposes in more than one jurisdiction or Country” For instance a US citizen, working in Nigeria is liable for tax both in Nigeria and in the US. As the last tweet indicates, banks already acquire information in their KYC forms.
Also the Federal Inland Revenue Service have release the Self Certification form format which will serve as a guide to the affected Nigerians.
What is your Opinion on this?