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.
