We understand that the FIRS today wrote a letter to all banks communicating a temporary suspension of lien on accounts of taxpayers alleged to be in default of tax payments. The suspension is for 30 days with immediate effect.
There are key questions regarding the powers of the FIRS to place a lien on a taxpayer's bank account and the lack of due process in doing so in many cases. We are of the view that the substitution power granted the FIRS under the relevant laws does not support the freezing of bank accounts in the way and manner the power is being exercised by the FIRS.
Read our earlier article on the subject which outlines the extent of FIRS powers, the role of banks, and the remedies available to affected taxpayers.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
