The Federal Inland Revenue Service (FIRS) has taken a proactive step to provide significant relief to taxpayers by approving a full waiver of penalties and interests on all outstanding tax liabilities. This announcement is detailed in a recent public notice, personally signed by Zack Adedeji, the Executive Chairman of FIRS.
The waiver, in accordance with Section 32 of the Federal Inland Service (Establishment) Act, LFN 2004 (as amended), signifies a strategic move by the government to address the challenges faced by many taxpayers in settling their overdue tax obligations. Adedeji emphasized that the full waiver is contingent upon the payment of the complete principal amount before the stipulated deadline of December 31, 2023.
“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, by 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.”
Adedeji further explained the conditional nature of the waiver, stating that the full penalty and interest would be reinstated if the outstanding undisputed liability remains unpaid, fully or partially, after the expiration of the one-off concession window.
The legal framework supporting these concessions is anchored in Sections 27(2) and 40 of the FIRS Act. This nuanced approach ensures that the liability to pay penalties is triggered by a default in complying with the FIRS’s demand for payment, rather than by the initial failure to pay the tax.
“The FIRS appreciates all taxpayers who have been diligent in complying with their tax obligations as and when due while serving their continued support and cooperation for a more responsive and robust tax system.”
The FIRS expressed gratitude to taxpayers who have diligently met their tax obligations, underscoring the importance of continued collaboration for a more responsive and robust tax system.
This initiative not only acknowledges the difficulties faced by taxpayers but also aligns with the government’s commitment to fostering a supportive environment for businesses during challenging times. The comprehensive nature of these concessions provides a crucial lifeline to those struggling with outstanding tax liabilities, offering a window for full settlement and relief from penalties and interests.
