Tax default: FIRS waives fines, issues Dec 31 deadline

The Federal Inland Revenue Service has offered a complete waiver on penalties and interests for overdue taxes, contingent on full principal payment before December 31, 2023.

This announcement was made through a statement issued by Dare Adekanmbi, the special adviser to Chairman of FIRS, Zacch Adedeji, on Sunday.

The chairman highlighted that the agency typically imposes penalties and interests when companies fail to fulfill their tax obligations as stipulated in existing tax laws

However, Adedeji noted the forgiveness of piled-up penalties and interests was “in recognition of the challenges that many taxpayers have faced in settling their outstanding tax liabilities.”

The statement read in part, “In recognition of the challenges that many taxpayers have faced in settling their outstanding tax liabilities, and in line with the commitment of the current government to support businesses, the Federal Inland Revenue Service has approved the following tax concessions for taxpayers with outstanding tax liabilities, in accordance with Federal Inland Revenue Service (Establishment) Act, LFN 2004 as amended:

“Full waiver of penalties on outstanding tax liabilities and Full waiver on interests on outstanding tax liabilities.

“Taxpayers are advised that the waiver of interest is subject to the full settlement of outstanding principal on or before 31 December 2023.

“Please note that the full penalty and interest shall be reinstated after the expiration of this one-off concession window where the outstanding undisputed liability remains fully or partially unpaid,” the statement noted.