Joint Tax Board Nigeria: Role and Responsibilities

Joint Tax Board Nigeria: Role and Responsibilities

Joint Tax Board

You may wonder, how tax policies are formulated in Nigeria, given the complexity and diversity of its people and states. Whilst the FIRS is thought to do so, there is however the joint tax board (JTB) that carries out and oversees the tax policy formulation and amendment process across Nigeria.  

So, the FIRS don’t just wake up one morning and decide to raise taxes, grant waivers, or reduce taxes. Any policy move must go through and be approved by this governing board (The Joint Tax Board). In this article, we are going to learn about the duties and responsibilities of the joint tax board and the role they play in tax administration. 

History of the Joint Tax Board in Nigeria 

The Joint Tax Board (JTB) in Nigeria has a history that dates to the early days of Nigeria’s independence. It was established to address the need for coordination and harmonization of tax policies and administration across the various regions and states in the country.  

Here is a brief overview of the history of the JTB in Nigeria: 

Before Nigeria gained independence from British colonial rule in 1960, the country operated under a federal system of government with regions and later states having considerable autonomy in matters of taxation. Each region had its tax laws and policies, leading to inconsistencies and challenges in tax administration. 

The Joint Tax Board was formally established in 1961, before Nigeria’s independence, under the Joint Tax Board Act of 1961. Its creation was a response to the need for a coordinated and harmonized approach to taxation across Nigeria’s regions and later states. 

In today’s world, the JTB continues to adapt to Nigeria’s evolving tax ecosystem. It collaborates with federal and state tax authorities to ensure that the tax system operates efficiently, transparently, and in line with international best practices. 

Duties of The Joint Tax Board 

Given the complexity of Nigeria’s tax landscape, where multiple layers of government intersect. The joint tax board plays an important role in streamlining tax administration, to foster harmony across different segments of the government and state. In simple terms, they primarily act to ensure uniformity of tax standards across the country. They mostly play an advisory role during the policy formulation process. Their duties include:  

Coordinating Tax Operations 

The JTB makes sure that all the different governments in Nigeria (like state and federal governments) are on the same page when it comes to taxes. They work together to avoid confusion and make sure that tax rules are similar everywhere. 

Improving Tax Laws 

They also help make the rules about taxes (tax laws) better and easier to understand. This makes it simpler for people and businesses to follow the tax rates, and rules and pay their taxes correctly. 

Tax Dispute Resolutions 

If there are any disagreements or issues related to taxes between different government levels, the JTB steps in to help solve them. This prevents tax-related arguments from causing problems for the country’s economy.

Making sure that everyone follows the same rules and understands how income taxes work in different states. 

Leadership of The Joint Tax Board 

The membership of the Board includes: 

1. The Executive Chairman of the Federal Inland Revenue Service serves as the Chairman of the Joint Tax Board. 

2. One member from each State is a person experienced in income Tax Matters and is usually nominated by the State 

3. Other members include the representatives of the following bodies: 

  • Federal Road Safety Commission (FRSC) 
  • Revenue Mobilization Allocation and Fiscal Commission (RMAFC) 
  • Federal Capital Territory Administration 
  • Federal Ministry of Finance  
  • Federal Inland Revenue Service 

4. A Secretary, is a person with experience in income Tax Matters appointed by the Federal Civil Service Commission. 

5. A Legal Adviser who is also the Legal Adviser to the FIRS 

Chairperson of the Joint Tax Board 

Mr. Muhammed Nami who is the executive head of the Federal Inland Revenue Service also doubles as the chairman of the joint tax board in Nigeria. He is a highly qualified Tax, Accounting, and Management Professional. He holds professional licenses from relevant bodies and has accumulated nearly three decades of practical experience in Auditing, Tax Management, Advisory, and Management Services. He has also provided his expertise to clients across various sectors, including Banking, Manufacturing Services, Public Sectors, and Non-Profit organizations. 

Joint Tax Board vs. FIRS 

The JTB does not directly collect taxes whereas the FIRS does. The JTB only helps in coordinating and advising the FIRS.  

The JTB is involved in coordinating various taxes, including both federal and state taxes, to ensure consistency in their application and administration. It addresses issues related to personal income tax, sales tax, and other taxes that may vary from state to state. Meanwhile, the FIRS primarily deals with federal taxes, such as Company Income Tax, Value Added Tax (VAT), and other taxes that fall under federal jurisdiction. 

Joint Tax Board vs. State Boards of Internal Revenue 

The Joint Tax Board (JTB) and the State Boards of Internal Revenue (SBIRs) are two distinct entities in Nigeria’s tax administration system, and they differ in several ways, including their roles, jurisdiction, and functions.

Here’s how they differ: 

The JTB operates at the federal level and is responsible for coordinating and harmonizing tax policies, laws, and administration across all levels of government in Nigeria. Its primary focus is on promoting uniformity in tax regulations and ensuring that tax laws are consistent across the country. The JTB works with both federal and state tax authorities. On the other hand, the state tax revenue service operates at the state level. Each state in Nigeria has its own State Internal Revenue Service (IRS) or State Board of Internal Revenue, responsible for tax administration within that state’s jurisdiction. These state tax authorities collect state-specific taxes, such as Personal Income Tax, Property Tax, and other taxes that fall under state jurisdiction. 

The primary role of the JTB is to coordinate, harmonize, and facilitate cooperation among federal and state tax authorities. It does not directly collect taxes but helps ensure that tax policies are consistent and taxpayers are treated uniformly across the country. The JTB also assists in resolving tax-related disputes between different levels of government. Meanwhile, the State Tax Services are responsible for collecting state-specific taxes and administering and enforcing tax laws within their respective states. They also play a significant role in revenue generation for the state government. 

The JTB coordinates various taxes, including both federal and state taxes, to ensure consistency in their application and administration. It addresses issues related to tax harmonization and uniformity. State Tax Services primarily handle state-level taxes specific to each state’s needs and priorities. These may include taxes on income, property, and other locally determined levies. 

How to Track Your JTB TIN 

The JTB TIN (Tax Identification Number) is the unique identifier for all taxpayers under the joint tax board jurisdiction. Check yours. 

Individual Taxpayer 

Step 1: Select your Date of Birth (Optional). 

Step 2: Select your preferred search criteria from the Select Criteria Dropdown-TIN or BVN or Registered Phone Number 

Step 3: Provide the appropriate value based on the search criteria in Step 2 above 

Step 4. Step 4: Confirm you are not a robot by checking the reCAPTCHA Box 

Step 5: Click the Search button 

Non-Individual Taxpayer 

Step 1: Select the Organization’s Date of Incorporation (Optional). 

2. Step 2: Select your preferred search criteria from the Select Criteria dropdown-TIN or CAC registration Number or Registered Phone Number. 

3. Step 3: Provide the appropriate value based on the search criteria in Step 2 above. 

4. Step 4: Confirm you are not a robot by checking the reCAPTCHA Box. 

5. Step 5: Click the Search button. 

The Bottom Line 

The Joint Tax Board (JTB) in Nigeria serves as a critical coordinating body at the federal level, working collaboratively with state and federal tax authorities. Its primary goal is to harmonize tax policies, ensure uniformity in tax regulations, and resolve tax-related disputes. The JTB plays a vital role in promoting efficient tax administration and fiscal harmony across all levels of government in Nigeria. 

FAQs

What is the function of the JTB?

Ans 1. The Income Tax Management Act of 1961 created the Joint Tax Board (JTB) and charged it, primarily, to ensure uniformity of standards and application of Personal Income Tax in Nigeria. 

How do I contact JTB?

ADDRESS: 12 Sokode Street, Wuse zone 5 Abuja F.C.T., Abuja, Nigeria

PHONE NUMBER: +234 803 918 7289

WEBSITE: http://www.jtb.gov.ng

WORKING HOURS

Weekday, Time

Monday: 8:00 am – 5:00 pm

Tuesday: 8:00 am – 5:00 pm

Wednesday: 8:00 am – 5:00 pm

Thursday: 8:00 am – 5:00 pm

Friday: 8:00 am – 5:00 pm

Saturday: Closed

Sunday: Closed

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