Category: Tax

The Federal Inland Revenue Service (FIRS) has issued a public notice announcing the migration of the annual filing of Transfer Pricing (TP) returns and Country-By-Country Reporting (CbCR) Notifications from E-TP Plat to the Taxpro-Max platform.  This aims to consolidate both platforms, thereby reducing the compliance burdens for taxpayers.

The E-TP Plat was initially introduced in 2020 to facilitate the electronic filing of various returns such as: ‘TP Declaration forms’, ‘TP Disclosure Forms’, ‘CbCR Notification forms’, and ‘CbC reports’, which were all previously filed manually, while the Taxpro-Max platform was deployed later in 2021 for filing other tax returns such as Companies Income Tax (CIT), Withholding Tax (WHT) and Value Added Tax (VAT) returns.

The FIRS notice also announced a waiver of all administrative penalties imposed by the Nigerian Income Tax (Transfer Pricing) Regulations, 2018 {‘TP Regulations’} and Income Tax (Country by Country Reporting) Regulations, 2018 {‘CbCR Regulations’} in relation to all outstanding returns, with the condition that all required filings must be completed via the Taxpro-Max platform not later than 30 June 2024.

However, penalties shall be imposed on any taxpayer who fails to comply with the stated conditions for the waiver.  Additionally, taxpayers may choose to refile all TP and CbCR returns previously filed on the E-TP Plat on TaxPro-Max.

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For personalized assistance and consultation on this migration, reach out to us today. Send an email to [email protected]

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As a leading accounting consulting firm trusted by numerous corporate organizations, Stransact (Chartered Accountants) understands the challenges that come with tax filing. We recognize the importance of making the process more seamless and efficient for your organization.

In this article, we will outline the best practices that can help you navigate the complexities of tax filing, minimize errors, and ensure compliance with regulatory requirements. By implementing these practices, you can streamline your tax filing procedures and focus on what matters most—your business growth.

1. Maintain Accurate and Updated Records: One of the fundamental pillars of seamless tax filing is maintaining accurate and up-to-date financial records. Consistently record and categorize your financial transactions, including income, expenses, and assets, using standardized and well-documented procedures. This practice ensures that your tax returns are based on reliable information, reducing the risk of errors and potential audits.
2. Implement Robust Accounting Systems: Investing in advanced accounting software and systems tailored to your organization’s needs can significantly enhance your tax filing process. These systems enable efficient data entry, automate calculations, generate accurate reports, and facilitate seamless integration with tax preparation software. By leveraging technology, you can streamline your financial operations and improve the accuracy and timeliness of your tax filings.
3. Stay Abreast of Tax Regulations and Updates: Tax laws and regulations are subject to frequent changes and updates. It is crucial for corporate organizations to stay informed about these developments to ensure compliance and optimize tax planning strategies. Engage with tax professionals, attend industry seminars, and leverage reliable sources of information to remain up-to-date with the latest tax regulations relevant to your business.
4. Engage Professional Tax Consultants: Navigating the complexities of tax laws can be daunting, especially for corporate organizations with diverse operations and tax obligations. Partnering with experienced tax consultants, such as Stransact (Chartered Accountants), can provide you with the expertise and guidance necessary to optimize your tax strategy. Professionals well-versed in corporate tax laws and can help you identify tax-saving opportunities, manage risks, and ensure compliance.
5. Plan Ahead and Optimize Tax Opportunities: Proactive tax planning is key to reducing tax liabilities and maximizing deductions. By engaging in strategic tax planning throughout the year, you can identify opportunities to minimize your tax burden and take advantage of available incentives, exemptions, and credits. This approach allows for better financial forecasting and optimization of cash flow management.
6. Conduct Regular Internal Audits: Internal audits are essential for assessing the accuracy and compliance of your financial records. Regularly reviewing your accounting practices and conducting internal audits can help identify any discrepancies, errors, or potential areas of non-compliance. Addressing these issues promptly ensures that your tax filings are based on accurate and reliable information, reducing the risk of penalties or legal complications.

Conclusion

Efficient tax filing is crucial for corporate organizations to ensure compliance, minimize liabilities, and optimize financial operations. By implementing these best practices—maintaining accurate records, leveraging advanced accounting systems, staying informed about tax regulations, engaging professional tax consultants, planning ahead, and conducting internal audits—you can streamline your tax filing procedures and focus on your core business activities. At Stransact (Chartered Accountants), we are committed to helping organizations like yours achieve seamless tax compliance and drive sustainable growth. Contact us today to discover how our expertise can benefit your organization’s tax filing process.