The Federal Inland Revenue Service (FIRS) says it has granted a waiver of penalty and interest on tax liabilities to all companies between 2013 and 2015.
In a public notice on Monday, Babatunde Fowler, the executive chairman of the FIRS, said the waiver only relates to accumulated penalty and interest but not principal tax due.
Fowler said a 45-day window has been opened up by the service to enable companies owing to declare their indebtedness and present a payment plan on the outstanding principal tax liability, only acceptable to the Federal Board of Inland Revenue.
“The FIRS in exercise of its powers under section 85 (3) of the companies income tax act CAP C21 LFN 2007 (as amended) (and replicated in section 32 (3) of the Federal Inland Revenue Service Establishment Act (FIRSEA 2007) hereby invites all principal officers, especially chairmen, managing directors, chief executive officers, executive and non-executive directors, chief financial officers and all company owners or their representatives, to take advantage of a special window to avoid payment of penalty and interest on tax due between 2013-2015,” It read.
“That FIRS, by this public notice, will grant a pardon stretching back to three years (2013-2015) to all tax payers in default provided that such defaulting tax payers; come forward to declare their indebtedness within the 45-day window and present a payment plan on the outstanding principal tax liability acceptable to Federal Board of Inland Revenue.
“This special window will be opened for 45 days only, commencing 5th October, 2016 terminating 24th November, 2016.
“This waiver relates only to accumulated penalty and interest and not principal tax due. Based on this waiver, part/full payment of undisputed liabilities should be paid, while the balance can be paid instalmenatally, however, it is expected that a reasonable amount of not less than 25 percent should be paid on account.”
