Federal Government's directive for account holders in financial institutions to complete a new “self-certification” form is not for all bank customers, Federal Inland Revenue Service (FIRS) and tax experts have clarified.

The government through its verified handle, @NigeriaGov, had directed all account holders in financial institutions, including banks and insurance companies to obtain, complete and submit the forms to enable financial institutions in Nigeria carry out due diligence in line with extant tax regulations.

Since the announcement, Nigerians have expressed anger over the latest requirement, with most commentators on social media saying it was one requirement too many in view of several such directives previously issued to Nigerians for identification purposes.

Commentators said such was not necessary as Nigerians were already verified through their Bank Verification Numbers (BVN) and other biometric exercises like the driver’s license, national identity card numeration, Independent National Electoral Commission (INEC) voters’ card and registration, and international passport.

However, FIRS in a clarification through its verified twitter handle, @firsNigeria, said the requirement was neither for all Nigerians nor for all account holders.

FIRS said the form is required to be completed by customers of financial institutions who maintain accounts in countries and tax jurisdictions other than Nigeria, for tax and anti-money laundering monitoring purposes.

“This is to clarify that the publication for financial institutions account holders in Nigeria to complete the self-certification form, pursuant to Income Tax (Common Reporting Standard) Regulations 2019 which is for the fulfilment of Automatic Exchange of Information Requirements.

“The Self Certification form is basically to be administered on Reportable persons holding accounts in Financial institutions that are regarded as “Reportable Financial Institutions” under the CRS (Common Reporting Standard).

“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 KYC (know your customer) and AML (Anti-money laundering) purpose,” FIRS said on Friday.

PT