PwC Nigeria has unveiled, TaxTim, a new solution which helps individuals and sole-proprietors compute their tax and prepare their returns online. READ ALSO: See Daily Update And Market Performances
With the changes in the tax environment, individuals, sole-traders and partnerships now have to pay more attention to tax matters, and ensure effective compliance including the prompt filing of their returns in line with the tax laws. State governments previously focused a lot of attention on PAYE but are now asking questions whether there are incomes from rental, ‘side-hustle’, trading or professions that individuals need to declare. One of the reasons often cited for why many businesses and individuals do not pay their taxes is because the process can be complex and cumbersome, and taxpayers are not sure of how much to compute or interpret the tax law.
TaxTim, a web-based chatbot, helps taxpayers correctly compute their tax returns online with the help of a virtual assistant called Tim, so that they can file the correct amount to the tax authorities.
Kenneth Erikume, Partner Tax Reporting & Strategy, PwC Nigeria said: “By answering simple questions that do not require any tax knowledge, Tim will convert your answers into a fully completed tax return, which taxpayers can then submit to the respective Internal Revenue Services. The entire process can be completed within 20 minutes. The real value here is that with TaxTim, the process of paying taxes has become a lot simpler and more efficient”.
This solution is coming at an important time as the deadline for filing tax returns under Section 44 of personal income tax act (PITA) is 31st March. It is thus important that taxpayers realise that they have a civil obligation to compute and file their returns themselves, even if they are in paid employment, and TaxTim can assist them in this process. Already there are commercials by agencies like the Lagos Internal Revenue Services (LIRS) about this, with reminders on the penalties applicable to individuals who fail to do this by the due date.