According to the Federal Inland Revenue Service (FIRS), voluntary compliance is the most sustainable approach to increase tax revenues in Nigeria.
During a two-day E-Invoice Post Go-Live workshop, Tayo Koleosho, the Executive Chairman of FIRS’s Chief of Staff, made the observation while outlining the limitations of auditing as a means of promoting tax compliance in the nation.
Additionally, he recognized e-invoicing as a novel approach to lowering the frequency of audits conducted by Nigerian taxpayers.
In order to encourage compliance and reduce the focus on audits and the harm they can do to businesses, FIRS is dedicated to utilizing more voluntary compliance data, according to the agency’s head.
Koleosho lamented the importance of digitization in encouraging tax compliance and noted that the country had adopted e-invoicing in order to adhere to global tax ecosystem standards.
He asserted that the country will be able to increase voluntary compliance and revenue collection as the economy grows.
According to him, there is a clear link between increased voluntary compliance and the service’s capacity to collect more money, which in turn generates more funds for development.
He clarified that the National Information Technology Development Agency, or NITDA, has strengthened the e-invoicing platform’s transaction process in order to combat cybercrime.
“In order to make sure that everyone has their data protection, regulation, and framework in place, the agency makes sure that the vetting process includes integration, background check, and assessment by NITDA,” he said.He pointed out that the 16 access point providers’ job is to assist in getting taxpayer data into their systems.
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