The FIRS announces a full waiver of penalties and interest on outstanding tax liabilities.
The Federal Inland Revenue Service (FIRS) has issued a public notice announcing a full waiver of penalties and interest on outstanding tax liabilities. However, affected taxpayers must remit the principal liabilities established during the various tax inquiry processes by 31 December 2023.
FIRS has advised affected taxpayers to settle all outstanding principal liabilities within the stipulated window. After this grace period, taxpayers who have not fully settled their outstanding undisputed liabilities will be subject to the reinstatement of full penalties and interest.
Points to Note:
1 Benefits for taxpayers: This concession will ease some of the compliance burden on taxpayers, who only now have to focus on paying the principal liabilities established during the various tax inquiry processes. It will also promote tax compliance on a larger scale, which will positively impact overall revenue collection.
2 Challenges and recommendations: The timeline provided for taxpayers to benefit from this concession may pose a challenge for many businesses already facing financial constraints. It would be beneficial if the FIRS considers extending this deadline. An extension could afford businesses more time to manage their finances effectively and take full advantage of the waiver.
3 Interim actions: Taxpayers with outstanding undisputed tax liabilities should promptly settle the principal liabilities, while taxpayers with open tax reviews, audits and/or investigations should proactively engage their respective tax offices for quick resolution of the disputes before the set deadline.
Source Ikenna Madu
