The Federal Inland Revenue Service (FIRS) has moved to dispel widespread rumours concerning a new tax identity law, clarifying that existing National Identification Numbers (NIN) and Corporate Affairs Commission (CAC) registration numbers will now serve as primary identifiers for tax purposes across Nigeria. This announcement aims to streamline tax administration and enhance compliance, leveraging established national databases rather than introducing an entirely new identification system.

Taiwo Oyedele, Special Adviser to the FIRS Chairman, emphasized that the service is not creating a novel tax identification number (TIN) system. Instead, the initiative integrates the NIN for individuals and the CAC registration number for corporate entities into the existing tax framework. This strategic alignment is expected to reduce bureaucratic hurdles for taxpayers and improve the accuracy of tax records.

The clarification comes amid public speculation and misinformation regarding the necessity of obtaining a separate, dedicated tax identity. FIRS officials stated that the integration of NIN and CAC numbers is a logical progression towards a more harmonized and efficient national identification system, aligning with the government’s broader digital transformation agenda.

For individuals, the NIN, issued by the National Identity Management Commission (NIMC), will be the sole recognized identifier for all tax-related transactions. This means that anyone already possessing a NIN will automatically have their tax profile linked to it, eliminating the need for a distinct TIN. New taxpayers will simply use their NIN to register with the FIRS.

Similarly, corporate bodies and enterprises will utilize their unique CAC registration number as their primary tax identification. This measure is designed to simplify the process for businesses, ensuring that their legal registration status directly corresponds with their tax obligations, fostering greater transparency and accountability in the corporate sector.

FIRS maintains that this integration will significantly enhance the ease of doing business in Nigeria and bolster tax compliance rates. By removing the duplication of identification requirements, the service anticipates a reduction in administrative costs for both the government and taxpayers, while simultaneously expanding the national tax net effectively.

The agency further urged the public to disregard any information suggesting the creation of a new, standalone tax identity card or number. It reiterated that the focus remains on leveraging existing robust identification infrastructures to ensure a seamless transition for all taxpayers, fostering a more efficient and transparent tax system.

This move by the FIRS is part of ongoing efforts to modernize Nigeria’s tax administration, making it more responsive to contemporary economic realities and technological advancements. The objective is to build a comprehensive taxpayer database that is easily accessible and verifiable, thereby improving revenue collection and supporting national development initiatives.

Stakeholders across various sectors have largely welcomed the clarification, noting its potential to simplify compliance and reduce confusion. Experts suggest that a unified identification system for tax purposes could also aid in combating tax evasion and broadening the tax base, crucial steps for Nigeria’s fiscal health.

FIRS leadership has pledged continuous public awareness campaigns to ensure all citizens and businesses understand the implications of this integration. They are committed to providing necessary support and guidance to facilitate a smooth adoption of the new identification protocols, emphasizing that the goal is to make tax compliance simpler and more accessible for everyone.

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