FIRS Closes Waiver Window December 31, To Recover Outstanding Tax Liabilities

The Federal Inland Revenue Service has disclosed that the window of opportunity for waivers of penalties and interest on outstanding taxes arising from desk examinations, audit exercises, investigations or all other forms of tax assessment will close on December 31, 2020.

Consequently, the FIRS called on taxpayers in the country to take advantage of the remaining days of the month to settle their tax obligations in order to enjoy all subsisting waivers offered by the service.

Already, the Executive Chairman, FIRS, Mr Muhammad Nami, has issued a reminder notice in this regard on the recovery of outstanding taxes from taxpayers.

The service had recently issued series of palliatives for the waivers of penalties and interest on outstanding taxes arising from desk examinations, audit exercises, investigations or all other forms of tax assessment.

The FIRS, according to the notice issued on Wednesday, said it had observed that some taxpayers were yet to take advantage of the palliative windows opened to cushion the effect of the challenges of the economy on taxpayers.

It said, “The service wishes to put all taxpayers on notice that the last window of opportunity for the waiver of outstanding penalties and interest on all taxes collectible by the Federal Inland Revenue Service shall close on 31st December 2020.

“Consequently, all concerned taxpayers are hereby put on notice that after the expiration date of 31st December 2020, the service shall recover all outstanding debt with penalties and interest, in accordance with the provisions of the extant tax laws such as ‘the power of substitution’ conferred on it by Section 31 of the Federal Inland Revenue Service (Establishment) Act 2007.”

Nigerian businesses have been granted series of tax waivers to mitigate the impact of losses resulting from the #EndSARS protest as well as the coronavirus pandemic

The response by the FIRS followed massive disruption of business activities including destructions and massive looting which erupted after protesters were shot by soldiers at the Lekki toll gate.

The service had said that it identified with businesses that suffered one form of loss or the other occasioned by the recent #EndSARS protests.

The FIRS had said, “The attendant disruption to businesses and indeed destruction of property is coming when the economy is just struggling to recover from the harmful effects of COVID-19.

“In view of the above, and as part of its on-going initiatives of assistance to businesses at this difficult time, FIRS hereby provides additional window of penalty and interest waiver for businesses that pay up in full, the principal portion of their outstanding liabilities between now and 31 December, 2020.”

The FIRS said the outstanding arrears could have resulted from ‘Self-Assessments and Government Assessments arising from desk audit, field audit or investigation’.

The tax authority noted it was in addition to the palliative measures earlier introduced which were still in place.

The FIRS had approved the extension of monthly Withholding Tax and Value Added Tax Returns filing to the end of the month.

Also the service had granted taxpayers who earn their revenue in Naira and are facing challenges in sourcing for foreign exchange to offset their tax liabilities, the option of paying in Naira at the prevailing Investors and Exporters foreign exchange window rate on the day of payment.