The Federal Inland Revenue Service has approved a full waiver of penalties and interests on all outstanding tax liabilities to ease the tax burden on businesses and individuals. This one-time concession applies to all taxpayers who settle their outstanding principal tax obligations in full by December 31, 2023.
The waiver, which aligns with Section 32 of the Federal Inland Service Act, LFN 2004 (as amended), aims to address the challenges faced by taxpayers in meeting their tax obligations and aligns with the government’s commitment to supporting businesses.
FIRS Executive Chairman, Zack Adedeji, emphasized that the waiver is a one-time opportunity, and any outstanding undisputed liabilities remaining unpaid after December 31, 2023, will be subject to the full penalty and interest charges.
Adedeji further explained that the decision to implement this concession stems from the FIRS’s recognition of the challenges faced by taxpayers and the government’s commitment to fostering a more business-friendly environment.
The waiver covers both penalties and interests on outstanding tax liabilities, providing significant financial relief to taxpayers.
“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.
“Taxpayers are advised that the waiver of interest is subject to the full settlement of outstanding principal on or before December 31 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.
“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,” he said.
