Lagos State Internal Revenue Service (LIRS) issued a Public Notice on Wednesday, 25 September 2019, informing the general public, especially esteemed taxpayers, of the launching of its Enterprise Tax Administration System (eTax).
eTax is a digital tax administration solution that captures all aspects of taxation from end to end . It is a multi-channel tax and levies payment solution that enables payment of all forms of taxes via the web and mobile. The eTax portal can be accessed via etax.lirs.net.
The introduction of eTax is in furtherance of LIRS’s commitment to build convenience into the payment of taxes, whilst reducing compliance cost and increasing the effectiveness of tax administration in the State. Its self-service feature reduces turnaround time for tax processes. The eTax portal was built with taxpayers in mind and it offers the under listed features and capabilities:
· Taxpayer registration with unique identification
· Instant issuance of treasury receipts
· Online annual returns filing for both individuals and corporate taxpayers
· Notification of taxpayer assessment, audit reports and liabilities
· Access to assessment details and objection status
· Emails and SMS notification for tax remittance and access to tax payment history
· In-built tax calculator for estimated self-assessment
· Ability to upload PAYE schedules, payments and print out treasury receipts
· Ability to upload withholding tax (WHT) schedules with receipts and view WHT credits
By this notice, all tax payers and tax consultants are hereby enjoined to take full advantage of the eTax portal to perform their civic duties.
KPMG Comments on the introduction of the eTax.
The introduction of eTax is a step in the right direction, as it would reduce tax compliance costs, increase the efficiency of revenue collection and improve the ease of paying taxes in Lagos State. Taxpayers would, therefore, do well to take advantage of the digital platform.
On its part, the LIRS should put in place effective measures to ensure that the transition to eTax is seamless. In this regard, a key issue that the LIRS must take cognizance of is the potential risk of digital exclusion that generally results from migration to digital platforms. It is, therefore, critical that the tax authority caters for taxpayers who may not be eTax-ready.
The LIRS must also ensure that the digitalisation of tax administration system is optimized for effective service delivery. For instance, the expectation is that the adoption of eTax would eliminate the bottlenecks that taxpayers currently face in obtaining and applying WHT credit certificates, processing employees’ tax clearance certificates, and resolving tax audit issues.
On the whole, it would be a desirable future to see State tax authorities across the country leverage technology to improve the tax compliance process and boost their tax revenues.