LIRS: Plan integration of PID, TIN to expose tax defaulters
Tax experts have said that Lagos State Internal Revenue, LIRS, plan to integrate personal identification digit, PIN, for tax payers with the national identification number, TIN, would expose tax defaulters and evaders if properly implemented.
Consultants at LSintelligence noted that the objective of the integration is to facilitate seamless sharing of taxpayers’ information between tax authorities and other relevant stakeholders.
Also, to create central database of all tax payers among other objectives.
“With the integration, there would be low incidence of multiple taxation. Also, defaulters can be easily tracked while tax invasion would be tamed significantly.
What this would do to Lagos is a massive improvement in internally generated revenues”, LSintelligence said in a discussion.
It would be recalled that the Lagos State Internal Revenue Service (LIRS) issued a public notice disclosing its intention to integrate the LIRS’ Personal Identification Digit (PID) for taxpayers with the national Tax Identification Number (TIN) system using taxpayers’ Bank Verification Numbers (BVN).
The PID, which is also known as the Lagos State Government Electronic Banking System (LASG-EBS) Taxpayers Identification Digit, is a unique identity code issued by the LIRS to taxpayers in Lagos State.
Meanwhile, TIN is a national identification number for individuals or corporate entities for the purpose of tax remittance.
The pubic notice provides that the integration is designed to be biometric-based and the LIRS intends to employ the existing BVNs to achieve the planned integration.
The LIRS notice states that going forward, access to LASG-EBS platform for all transactions including but not limited to registration and creation of payer ID for new taxpayers, payment and validation of payers’ profile shall compulsorily require taxpayers’ Bank Verification Number (BVN).
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The BVN provides LIRS the fastest and least disruptive route to achieving the planned integration with the JTB-TIN system.
Accordingly, the notice requires all self-employed individuals to provide their BVNs to the LIRS in order to assist in the creation of their unique PID.
Corporate Organizations are also required to ensure that their employees who qualify for tax clearance certificate (TCC) include their BVN in their individual e-TCC forms.
The integration is expected to provide LIRS with a more reliable taxpayers’ database which will improve planning, reduce payment evasion and invariably increase fiscal revenue.
In an attempt to address the potential reluctance of taxpayers to share personal and confidential information, LIRS has assured taxpayers of the safety and security of all data/information in its custody.
Andersen Tax LP said, “We expect that the proposed integration of the PID into the TIN would provide the LIRS with more reliable taxpayers’ information to enable them track down tax defaulters and combat tax evasion.
“However, it is important that the tax authorities safeguard all data and information of taxpayers, which may be obtained from the integration process to boost taxpayers’ confidence in the system.
Thus, taxpayers should engage their consultants as soon as possible to obtain professional guidance in complying with the directives under the notice”.
LIRS: Plan integration of PID, TIN to expose tax defaulters
