Taxpayers’ service in FIRS

The term taxpayer generally describes one who pays taxes. Taxes can exist in the form of income taxes as required by federal and state governments. Taxpayer service can be described as the aggregate of assistance to taxpayers through education and administration.

The taxpayers’ service function supports the promotion of voluntary compliance so that taxpayers who self-assess can carry out their tasks as easily as possible.

The service to be provided shall include direct assistance to the taxpayer who contacts the tax office; education outreach programmes to promote accurate and timely compliance as well as the development, publication and distribution of tax forms, tax journals or newsletters and related information including those on the website, with the overall aim of increasing voluntary compliance.

Voluntary compliance and taxpayers obligations

Voluntary compliance is one of those “ideal world” principles. It is an assumption that taxpayers will comply with tax laws and, more importantly, accurately report their income and deductions honestly.

It is the vision of every country to achieve voluntary compliance of her citizens , but one hundred voluntary compliance is hardly achievable in any country, developed or developing. Voluntary compliance is the goal of any modern tax administration, yet this utopian idea is still far from the reality of many developing countries. What is common in many nations is compelled tax compliance rather than voluntary compliance.

The Self-Assessment Tax system encourages voluntary compliance because of the liberty granted the taxpayer which requires him to compute his tax by himself, make payments and file returns by due date. Where however, taxpayers fail to comply with their payments and filing obligations, appropriate sanctions would be meted out which may include the application of penalties, interests and/or imprisonment where criminal activity is involved.

However, in order to assist the taxpayer in meeting his obligations and to achieve the expected level of voluntary compliance, the tax authority must ensure that a high standard of services is provided to help them determine their obligations under the laws and to complete the steps required, so that taxpayers are not unduly sanctioned for the lapses of the tax authority.

Role of taxpayers service

Taxpayers’ service function is a key ingredient to an effective and efficient tax administration of any tax authority since it is the initial point of contact and interaction with the taxpayers as well as the general public. The strategic position of Taxpayers Service requires that there must be a balance in its educational and assistance roles if taxpayers’ voluntary compliance is to be achieved.

Supporting the Taxpayer to File by Due Date

A taxpayer has to be assisted by ensuring that he is provided with all the necessary support to meet his obligation of filing his tax returns and paying his self-assessed tax on or before the due dates. Towards achieving this goal, tax authorities adopt numerous strategies which include:

• strengthening partnerships with taxpayers at all times