CAC Blames Stamp Duty Payment Failures on System Incompatibility, Promises Fix

The Corporate Affairs Commission (CAC) has attributed recent disruptions in Stamp Duties payments on its portal to technical incompatibility between its upgraded system and the legacy platforms used by partner agencies.

In a statement released via its official X (formerly Twitter) handle on Friday, the Commission acknowledged the challenges customers have faced in processing Stamp Duties and assured the public that a permanent fix is near completion.

“We are aware of the difficulties some of our valued customers are facing in making Stamp Duties payments through our portal. Please be assured that this matter is receiving the urgent attention of engineers from both agencies involved, and a permanent solution is almost in place,” the statement read.

According to the CAC, the glitch emerged following the deployment of a new, advanced digital portal, which currently outpaces the systems used by its sister agencies, notably those tasked with Stamp Duty collections.

Engineers from both the CAC and collaborating agencies are said to be actively working to resolve the technical misalignment and restore seamless service delivery.

AI-Driven Filing System Coming Soon

As part of its broader digital reform efforts, the CAC also announced the upcoming launch of an AI-powered post-incorporation filing system, starting with the Annual Returns process for Business Names.

This simplified platform is expected to go live over the weekend, aiming to enhance the user experience and reduce filing delays.

What You Should Know About Stamp Duties in Nigeria

Stamp Duty is a form of indirect tax governed by the Stamp Duties Act (CAP S8 LFN 2004). It applies to both physical and electronic documents, making them legally admissible in court once stamped.

The Federal Inland Revenue Service (FIRS) is the agency responsible for collecting Stamp Duties across Nigeria.

Key highlights:

• In March 2024, the Federal Government mandated banks to deduct 0.375% as Stamp Duty on loans, based on the principal amount.
• Between 2016 and 2022, the government collected a total of ?370.686 billion in Stamp Duties, according to former CBN Governor Godwin Emefiele.

Business Implications

The current disruption could temporarily impact company filings and other business processes requiring Stamp Duty payments, especially for newly incorporated businesses or those submitting post-incorporation filings.

However, the CAC has reiterated its commitment to resolving the issue promptly, ensuring that its users benefit from improved digital infrastructure and streamlined regulatory compliance in the near future.