The Federal Inland Revenue Service (FIRS) has reacted to condemnations trailing the federal government’s order on Self-Certification Forms.
The government directed all account holders in banks, insurance companies and other financial institutions to obtain, complete and submit the forms.
On Friday, FIRS issued a clarification on Twitter.
The agency said the form is pursuant to the Income Tax (Common Reporting Standard) Regulations 2019 and in fulfillment of Automatic Exchange of Information Requirements.
FIRS explained that it would be administered on reportable persons holding accounts in financial institutions regarded as “Reportable Financial Institutions” under the CRS.
It said reportable persons are often non-residents and other persons who have residence for tax purposes in more than one jurisdiction or country.
“Financial institutions are expected to administer the Self Certification form on such account holders when information at its disposal indicates that the account holder is a person resident for tax purpose in more than one jurisdiction.
“The information that indicates an account holder is a resident for tax purposes in more than one jurisdiction, is expected to be available to financial institutions during account opening processes for the KYC and AML purpose”, the statement read.