The Nigerian Federal Inland Revenue Service was created in 1943 carved out of the Inland Revenue Department of Anglophone West Africa and established as an autonomous body under the supervision of the Commissioner of Income Tax.
FIRS has an in-built system that process all tax collection and payment. However this is not available to the public and the actual working of tax calculation is not transparent to the tax payers. The tax calculator in-use was inefficient in providing satisfactory guidance to the tax payers.
Monad implemented OPA as a tax calculator that Nigerian companies can use as a guidance to determine the company’s liability to pay Corporate Income Tax (CIT), Value Added Tax (VAT) and the tax amount to be paid including any penalty amounts. Two versions of the calculator was developed:
- An express version of the calculator for companies which have already prepared their financial statements for the year and therefore have aggregate financial details.
- An in-depth version of the calculator to help the companies prepare their financial statements.
The developed OPA solution provides a guidance to the tax payer, not only for completing the tax calculation, but also the relevant legislation used in determining the obligation, the tax and the penalty amounts.
- The developed OPA solution provides a guidance to the tax payer, not only for completing the tax calculation, but also the relevant legislation used in determining the obligation, the tax and the penalty amounts.
- Providing self-service allowed Nigerian companies to easily calculate tax amounts with full transparency across the process. This in turn reduces the volume of queries and operational effort to handle them.
- Tax regulations change on an annual basis. The solution allows for these to be made with minimal maintenance effort at rapid implementation speeds ensuring implementation of urgent policy changes.
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