TREASURY SINGLE ACCOUNT ON TAX COMPLIANCE: IMPLICATION OF FEDERAL INLAND REVENUE SERVICES (FIRS)
Keywords:
Tax Compliance, Treasury Single Account, Implication, NigeriaAbstract
The paper examined the implication of treasury single account on tax compliance in Nigeria. Tax compliance by way of definition could include the degree of willingness with tax laws and administration that can be achieved without the immediate threat or actual application of enforcement activity. In recent years, Nigeria has massively engaged in the transition from manual to more computerized modus operandi in government activities, predominantly in the area of public fund management. Most renowned among them is the effort at reviving the Treasury Single Account (TSA) policy. Treasury single account policy seems to be a good tax compliance policy which encourages taxpayers to pay their taxes on the premise that it facilitates transparent reporting in tax revenue and prevent delays in reconciling taxpayers’ accounts and faster payment of refunds which will enable the taxpayer to easily get access to tax credits, tax clearance certificates and also use the excess payment and refunds to settle other tax payments such as withholding tax. The paper concluded that the implication of Treasury Single Account (TSA) on tax compliance in Nigeria using the Federal Inland Revenue Service (FIRS) as a case study is positive as the extent of revenue generated by the Federal Inland Revenue Service in Nigeria has increased. The study recommended that TSA main account at the CBN must be supplemented by subsidiary ledger accounts in a correspondent service bank, deposit money bank (appointed by the government) to record and control payments attributable to FIRS (for both revenue collection and payment disbursement).
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