FIRS Issues Public Notice on Tax Offices Segmentation

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/NTaxpayersTax Office to File
A. Companies Operating in the Oil and Gas Sector
i.Upstream SectorLTO (Upstream) Lagos
ii.Downstream SectorLTO (Downstream) Lagos
iii.ServicesLTO (Services) Lagos
B. By Size (For those not in Category A)
i.Below N200 Million TurnoverNearest MSTO to the taxpayer
ii₦200 Million and below ₦1 Billion TurnoverNearest MSTO to the taxpayer
iii.₦1 Billion and above TurnoverNearest Large Tax Offices
(LTO)
C. By Industry (Irrespective of size)
i.Pioneer CasesMTO 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 LagosNearest LTO/MTO to the taxpayers
iv.NGOsTax 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 LagosNearest LTO to the taxpayers
vii.Manufacturing and Conglomerates in LagosLTO Non-Oil Mainland
Ikeja, Lagos
viii.Manufacturing and Conglomerates in locations other than LagosNearest LTO to the taxpayers
D. Non – Residents
i.All non-resident companies and individualsNon-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.