Does the new finance act requires the submission of bvn
According to the Finance Act 2020, which came into effect on January 1, 2021, the Nigerian government has introduced a new requirement for taxpayers to submit their Bank Verification Number (BVN) as part of their tax filing obligations.
The Finance Act 2020 requires taxpayers to provide their BVN when filing their tax returns, starting from the 2021 tax year. This is aimed at improving tax compliance, reducing tax evasion, and enhancing the overall efficiency of the tax system.
The BVN is a unique identifier assigned to each individual by the Central Bank of Nigeria (CBN) and is linked to their bank accounts. By requiring taxpayers to submit their BVN, the government aims to:
- Verify the identity of taxpayers and prevent tax evasion.
- Improve the accuracy of tax returns and reduce errors.
- Enhance the efficiency of tax collection and reduce the risk of tax fraud.
Taxpayers who fail to provide their BVN when filing their tax returns may face penalties, including fines and even criminal prosecution.
It's essential for taxpayers to ensure they have a valid BVN and provide it when filing their tax returns to avoid any issues or penalties.