In a bid to alleviate the financial burdens faced by taxpayers, the Federal Inland Revenue Service (FIRS) has announced a significant concession by offering a complete waiver on penalties and interests for overdue taxes. However, this waiver is contingent on the full payment of the principal amount before December 31, 2023.
The announcement was made through a statement issued by Dare Adekanmbi, the Special Adviser to FIRS Chairman, Zacch Adedeji, on Sunday. Adedeji emphasized that the usual imposition of penalties and interests by the agency, applied when companies fail to meet their tax obligations as per existing tax laws, will be temporarily lifted.
The statement highlighted the recognition of the challenges faced by taxpayers in settling their outstanding tax liabilities. It read, “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.”
The key concessions include a full waiver of penalties on outstanding tax liabilities and a complete waiver on interests related to outstanding tax liabilities. Taxpayers are urged to take advantage of this opportunity, bearing in mind that the waiver of interest is contingent upon the full settlement of the outstanding principal amount on or before December 31, 2023.
The statement also cautioned that the full penalty and interest would be reinstated after the expiration of this one-off concession window if the outstanding undisputed liability remains fully or partially unpaid. This initiative aligns with the government’s commitment to supporting businesses during challenging times, as stated by the FIRS Chairman.