The Federal Inland Revenue Service, FIRS, has waived accumulated penalties and interests on outstanding tax liabilities.
The decision was contained in a circular by the chairman of the agency, Mr. Zacch Adedeji, in Abuja yesterday.
Statutorily, the FIRS imposes penalties and interests for failure by companies to fulfil their tax obligation as and when due as stipulated in extant tax laws.
But Adedeji said the forgiveness on 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 is in line with the commitment of President Bola Tinubu to support businesses to flourish.
The FIRS boss explained that full payment of outstanding original tax liabilities without interest on or before December 31 this year must be done by companies wishing to benefit from the peculiar concession.
He said: “Taxpayers are advised that the waiver of interest is subject to the full settlement of outstanding principal on or before the 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.”
(Vanguard)
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