Nigeria’s Federal Inland Revenue Service (FIRS) has decided to deny individuals and companies access to banking facility if they fail to register with the tax authority, in a bid to curb rising cases of tax evasion.
The move comes in the wake of a revelation that despite the presence of more than 440,000 companies in the country, only about 120,000 paid taxes.
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As per law, tax evaders can be punished with up to five years in prison.
FIRS chairman Sunday Ogungbesan said it was difficult to track the financial activities of those who did not pay taxes, most of whom said their firms were not active.
"We are collaborating with the central bank to enforce compulsory registration with the tax authority by companies and individuals before they can access their bank accounts," Reuters quoted Ogungbesan as saying.
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