Taxes & Tariffs | |
Taxes & Tariffs | |
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Friday, December 04, 2020 / 11.17PM / By
KPMG / Header Image Credit: KPMG / FIRS / Ecographics
The
Federal Inland Revenue Service (FIRS) on 1 December 2020, issued a Public
Notice reminding taxpayers to take advantage of its recent palliative for
waiver of penalties and interest on outstanding taxes arising from desk
examinations, audit exercises, investigations or all other forms of tax
assessment to regularise their tax records.
Please see the KPMG Tax Alert No. 11.1 of November
2020 for details.
With just 19 working days to the expiration of the 31 December 2020 deadline for the palliative, the FIRS has notified taxpayers of its intention to exercise its powers to recover all outstanding debts with penalties and interest from taxpayers, including the "power of substitution" conferred on it by Section 31 of the Federal Inland Revenue Service (Establishment) Act 2007.
Commentary
That
not many taxpayers have taken advantage of the recent FIRS' palliative is a
reflection of the times as businesses continue to grapple with the twin impact
of the pandemic and the recent civil unrest on their finances. In light of this, while the FIRS has been
magnanimous to grant the palliative, it should consider revisiting the 31
December 2020 deadline to enable taxpayers who may need additional time to
settle their outstanding tax liabilities to enjoy the palliative.
Meanwhile,
the FIRS should follow due process if and when it becomes necessary to exercise
its statutory power of substitution.
In
this regard, consideration should be given to the judgement of the Federal High
Court (FHC) judgement in Ama Etuwawe Esq and the FIRS & Guaranty Trust Bank Plc. which KPMG reviewed in
Finally,
unless the FIRS extend the deadline of operation of the palliative, affected
taxpayers should endeavour to regularise their tax affairs within the deadline,
or otherwise proactively engage the FIRS to agree a mutually acceptable
arrangement.
Read the FIRS Public Notice to Taxpayers On The Recovery of Outstanding Taxes
For further enquiries, kindly contact Wole OBAYOMI via ng-fmtaxenquiries@ng.kpmg.com
Related News - FIRS
1.
FIRS Puts
Taxpayers on Notice on the Recovery of Outstanding Taxes - Dec 04, 2020
2.
FIRS Grants
Further Tax Palliatives in View of Recent Business Disruptions
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