•To report N100m for firms
•To act as third-party debt recovery agents
By Peter Egwuatu
Banks, insurance companies and other financial institutions will henceforth report monthly transactions above N25 million for individuals and N100 million for firms to the tax authorities.
This directive was contained in the Nigeria Tax Administration Act, NTAA section 29, titled, “ Information to be delivered by bankers and others”
The NTAA is among the new tax laws which will come into effect from January 2026. The new laws also include the Nigeria Tax Act 2025.
The law stated: “Without prejudice to section 142 of this Act, every bank, insurance company, stock broking firm, or any other financial institution, shall prepare, with or without demand by the relevant tax authority, quarterly returns to the relevant tax authority specifying the names and addresses of (a) New customers; and (b) existing customers in the case of — (i) an individual, all transactions where the cumulative transactions in a month amount to N25,000,000 or more, or (ii) a body corporate, all transactions where the cumulative transactions in a month amount to N100,000,000 or more.”
Furthere more, the NTAA also stipulated that banks and other financial institutions will act as third-party debt recovery agents.
The Act stated that the tax authority may transfer the responsibility for tax debt recovery to a third party only when all legal avenues have been exhausted.
According to the Act: “On recovery of debt owed to failed banks”, notwithstanding, anything to the contrary in any law, deed, agreement or memorandum of understanding , the court shall have exclusive jurisdiction to hear and determine all matters brought before it concerning the recovery from any person of any debt owed to a failed bank, which remains outstanding as at the date of closure of the business of failed bank”.
The Act further stated that third-party agents will also be deployed if the debt is of significant value.
“The relevant tax authority may assign outstanding tax debts, in whole or in part, to an accredited third party who shall assume responsibility for recovering the tax debts in accordance with the provisions of this Act or regulations issued by the Service,” the legislation read.
“The relevant tax authority shall only assign outstanding tax debts to a third party where all legal steps for tax debt recovery under this Act have been exhausted, including notifications, payment demands, and enforcement actions.
“For the purposes of this section “third party” includes banks and other financial institutions, debt recovery practitioners, or any other person accredited by the relevant tax authority,” the Act said.
The post Banks, others to report monthly transactions of N25m to tax authories appeared first on Vanguard News.
