Tax: Banks can't debit account without owner's consent

Contributing sentiments towards policy:

58% : Read Also: New tax laws boost workers' January salary-
58% : He said: "There are also full rights of appeal under the tax dispute system, just like with any tax assessment".
57% : He said: "It is a carefully controlled tool designed to make sure the tax system is fair.
53% : He said: "The power of substitution is a tax recovery method that allows the tax authority to ask a third party to pay money that belongs to a taxpayer who has refused to settle a confirmed and unpaid tax debt.
53% : "The tax authority can send a notice to anyone who is holding funds for the taxpayer or owes the taxpayer money," Oyedele said.
52% : He explained that what exists in Nigerian tax law is the "power of substitution," which is very different from directly taking money from a person's bank account.
51% : He said: "The power of substitution only makes sense where there is a large and confirmed tax debt.
50% : He pointed out that the main reason for having this power is to make the tax system fair to everyone.
50% : He said the tax authority must first complete the full process of establishing the tax debt, the debt must be final and legally due, and the taxpayer must have refused or failed to pay within the time given in writing.
49% : It exists to ensure that people who have a confirmed and lawful tax debt cannot simply ignore their obligation to pay".
46% : He urged the public to seek correct information and not be misled by reports that suggest tax authorities can simply reach into bank accounts without following the law.
45% : Other countries also allow tax authorities to use third parties, such as through garnishment or third-party payment notices, to collect confirmed tax debts," Oyedele said.
45% : He said there were several protections in place to prevent abuse of the process, including the right to due process in assessing the tax, the right of the substitute to object, the right to appeal, and the involvement of the Office of the Tax Ombud to protect taxpayer rights.
44% : It is a last resort that can only be used after enquiries, assessments, objections, final notices and court appeals have all been concluded, and the tax debt has become final and legally due," Oyedele said.
44% : This can put pressure on government finances and lead to higher taxes for everyone else".
43% : Most low-income earners and small businesses do not fall into this category under the new tax laws".
39% : He explained that this approach is not unique to Nigeria as many countries use similar systems to recover unpaid taxes.
37% : The Presidential Fiscal Policy and Tax Reforms Committee has said that banks cannot debit customers accounts for taxes without the consent of such customers.
36% : Oyedele was reacting to media reports suggesting that the Lagos State Government planned to start debiting the personal accounts of taxpayers who fail to pay their taxes.
35% : Chairman, Presidential Fiscal Policy and Tax Reforms Committee, Mr Taiwo Oyedele, said that tax authorities in Nigeria do not have the power to directly debit or take money from people's bank accounts.

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