06 Feb FIRS Issues Public Notice on Tax Offices Segmentation
The Federal Inland Revenue Service (FIRS) has issued a Public Notice informing the general public on the
appropriate FIRS office to file their tax returns. This Public Notice reviews the previous position of the FIRS directing
taxpayers to file their tax returns at any FIRS Tax office of their choice and now directs taxpayers to file tax returns as
follows:
| S/N | Taxpayers | Tax Office to File |
|---|---|---|
| A. Companies Operating in the Oil and Gas Sector | ||
| i. | Upstream Sector | LTO (Upstream) Lagos |
| ii. | Downstream Sector | LTO (Downstream) Lagos |
| iii. | Services | LTO (Services) Lagos |
| B. By Size (For those not in Category A) | ||
| i. | Below N200 Million Turnover | Nearest MSTO to the taxpayer |
| ii | ₦200 Million and below ₦1 Billion Turnover | Nearest MSTO to the taxpayer |
| iii. | ₦1 Billion and above Turnover | Nearest Large Tax Offices (LTO) |
| C. By Industry (Irrespective of size) | ||
| i. | Pioneer Cases | MTO Abuja |
| ii. | Banks, Insurance and other Financial Institutions in Lagos | LTO Non-Oil Financial Services |
| iii. | Banks, Insurance and other Financial Institutions in locations other than Lagos | Nearest LTO/MTO to the taxpayers |
| iv. | NGOs | Tax offices nearest to the NGOs |
| v. | Telecoms, Aviation and Construction Companies in Lagos | LTO Financial Services Lagos Island |
| vi. | Telecoms, Aviation and Construction Companies in locations other than Lagos | Nearest LTO to the taxpayers |
| vii. | Manufacturing and Conglomerates in Lagos | LTO Non-Oil Mainland Ikeja, Lagos |
| viii. | Manufacturing and Conglomerates in locations other than Lagos | Nearest LTO to the taxpayers |
| D. Non – Residents | ||
| i. | All non-resident companies and individuals | Non-Resident Persons Tax Office, Lagos |
This Public Notice essentially reverts to the previous 2015/2016 arrangement, where tax offices were organized according
to revenue threshold, industry and locations. As stated by the Public Notice, this aligns with global best practice in respect of taxpayer segmentation and will enable the FIRS to deliver better and more focused taxpayer services.
Implication
The return to segmentation of taxpayer offices will enable taxpayers are domiciled in the tax office best suited to their needs as is done in other countries. This will also create uniformity and clarity for tax administration. However, this may require significant administrative efforts on the part of the FIRS in ensuring that files are properly moved to the appropriate tax offices.