In a recent move to support businesses and ease the burden on taxpayers in Nigeria, the Federal Inland Revenue Service (FIRS) has introduced certain concessions (via a Public Notice) for those grappling with outstanding tax liabilities. This development, backed by Section 32 of the Federal Inland Revenue Service (Establishment) Act, LFN 2004, brings forth a set of measures aimed at providing relief and support during these challenging times.
The concessions, as announced by the FIRS, include:
- Full Waiver of Penalties: All penalties incurred on outstanding tax liabilities are set to be completely waived.
- Full Waiver of Interest: Outstanding tax liabilities will benefit from a complete waiver of associated interest charges.
While the waiver of interest presents a significant opportunity, it comes with conditions. Taxpayers must ensure the full settlement of outstanding principal amounts on or before December 31, 2023, to benefit from this concession. After this stipulated window, any remaining undisputed liabilities will result in the reinstatement of full penalty and interest charges.
The FIRS expressed appreciation for taxpayers diligently meeting their obligations as and when due. They have called for continued cooperation to strengthen and refine the existing tax system, emphasizing a collective effort towards a more responsive and robust framework.
For all our esteemed clients and taxpayers, this announcement provides a critical window to address any lingering tax liabilities. We encourage you to take full advantage of this opportunity and ensure compliance within the specified timeline to benefit from the offered concessions.
Should you require further clarification or guidance, please do not hesitate to reach out to us by sending an email to clients@vi-m.com. We are here to support you through this process.