Taxes & Tariffs | |
Taxes & Tariffs | |
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Thursday, March 26, 2020 /04:14
PM / By Wole Obayomi, KPMG Nigeria / Header Image Credit: EcoGraphics
Following measures introduced by the Federal
Government to ameliorate the impact of the Coronavirus disease (COVID-19), the
Lagos State Internal Revenue Service (LIRS) has extended the deadline for
filing annual tax returns for employees and self-employed persons by two months
from 31 March 2020. Consequently, the new filing deadline for the returns is 31
May 2020.
Comments
The extension of filing deadline by the LIRS is a step
in the right direction, as it would be difficult for taxpayers to file their returns
timely following the mandatory closure of non-essential businesses by the Lagos
State Government in response to COVID-19 pandemic.
However, the LIRS did not extend this palliative to
other compliance obligations, such as filing and payment of monthly withholding
tax and Pay-As-You-Earn (PAYE) tax. As businesses grapple with loss of revenue,
reduced productivity, lockdowns, cashflow challenges, etc., it is imperative
for the LIRS to introduce measures that would mitigate the inevitable financial
burden on taxpayers as is the case in other climes. For instance, Denmark
extended the timeline for payment of PAYE taxes by 4 months while the
Netherlands has decided not to impose penalty for non-payment or late payment
of taxes.
We expect the LIRS to continue to review the COVID-19
situation and introduce additional palliative measures for business survival in
this challenging time.
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