Outstanding Tax Liabilities: FIRS Grants Waivers On Penalties, Interests

Federal Inland Revenue Service (FIRS) has granted taxpayers and businesses full waiver on accumulated penalties and interests for outstanding tax liabilities.

Chairman of the revenue service, Zacch Adedeji, made the decision known in a notice he signed.

The agency imposes penalties and interests for failure by companies to fulfil their tax obligation as and when due as stipulated in extant tax laws.

According to a statement by his special adviser on media, Dare Adekanmbi,

Adedeji said 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.”

According to him, the concession also syncs with the commitment of President Bola Tinubu to support businesses to flourish.

He explained that full payment of outstanding original tax liabilities without interest on or before the 31st of December this year must be done by companies wishing to benefit from the peculiar concession.

“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.

“FIRS appreciates all taxpayers who have been diligent in complying with their tax obligations as and when due, while seeking their continued support and cooperation for a more responsive and robust tax system,” Adedeji said.