Defaulting Companies Given 14 days to File Outstanding Income tax Returns

Proshare

Thursday, March 03, 2016 11:50 AM / FIRS

This is to bring to the notice of all principal officers, especially Chairmen, Managing Directors, Chief Executive Officers, Executive and Non-Executive Directors, Chief Financial Officers etc of all companies (including those exempted from incorporation) of the provisions of Section 55 of the Companies Income Tax Act (CITA, Cap 21, Laws of the Federation of Nigeria, 2004, which require every company (including those, which are not liable to pay tax ) to file self-assessment returns with FIRS within six months of the end of their financial year.

In particular, FIRS has noted that a considerable number of companies with financial year end of 30th June, 2015 are yet to file their 2015 Companies Income Tax returns over six (6) months after their year-end. In addition, we have noted that some companies are in the habit of filing their annual income tax returns in arrears and our review has shown that some companies are yet to file their 2013 and 2014 returns, while some are in default of more than three years.

We are therefore demanding that all defaulting companies should prepare and file their outstanding income tax returns and pay due for each of the outstanding years within fourteen (14) days from the date of this publication. Failure to file tax returns and pay the tax due is an offence punishable under Section 55(5) CITA. Accordingly, at the expiration of fourteen (14) days, FIRS will invoke the provision of that section and hold the principal officers ( Chairman, MD, CEOs, Executive and Non-Executive, CFOs etc) of any defaulting company personally liable (individually and collectively) and impose the prescribed sanctions under the law, which include fines and imprisonment.

The above listed principal officers of affected companies should ensure full compliance within the next fourteen (14) days, cooperate with and support FIRS in ensuring that all tax obligations are promptly paid or discharged, so that they do not fall foul of the law and personally suffer the prescribed sanctions.

Tunde Fowler

Executive Chairman

Federal Inland Revenue Service

 

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