Following the moves by the Federal Inland Revenue Service (FIRS) to freeze tax debtors accounts, the Lagos Chambers of Commerce and Industry (LCCI) has said that such moves will cause damages to the nation’s economy.
Commenting on the directive, while speaking to newsmen in Lagos, Monday, the Director-General of LCCI, Muda Yusuf said the directive is damaging to Nigeria’s economy.
“The attention of LCCI has been drawn to the recent decision of FIRS to appoint banks as collecting agents and subsequent freezing of the accounts of tax payers considered to be in default of tax payment.
“Such an account will be debited to the time of the alleged tax debt. It gives FIRS power to appoint collection agent for the recovery of tax payable by the defaulting tax payer.
“Under the provision, such an agent will be mandated to pay any tax payable by the tax payer from any money held by the agent on behalf of the taxpayer.
“This provision is draconian and can be used as a tool of intimidation, coercion and harassment of taxpayers. It should be invoked with utmost discretion and caution as the case may be,” he said.
The DG also said that the freezing of customers’ account raised concerns on whether the claim of tax liability by the FIRS of the affected investors applies to a final and conclusive assessment.
According to him, it also raises concern on which should be an outcome of an exhaustive engagement between the tax authorities and the taxpayer, among others.
“There is no evidence that this has happened in some of the cases to which this provision has been invoked”, Yusuf said.
He noted that the timing is wrong, as many investors are reeling under the huge burden of the high cost of doing business, and identified other factors as grappling with high energy cost.