On the FIRS Public Notice on Recovery of Outstanding Taxes - A Caveat

Proshare

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.


Proshare Nigeria Pvt. Ltd.


 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 Plcwhich KPMG reviewed in Tax alert of No. 10.4 of October 2019.  

 

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

 

Proshare Nigeria Pvt. Ltd.

 

For further enquiries, kindly contact Wole OBAYOMI via ng-fmtaxenquiries@ng.kpmg.com 


 Proshare Nigeria Pvt. Ltd.

 

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

  1. FIRS Further Extends Deadline for Waiver of Interest and Penalty on Outstanding Tax Liabilities - Jul 08, 2020
  2. FIRS Extends Deadline for Waiver of Interest and Penalty on Outstanding Tax Liabilities - Jun 03, 2020
  3. FIRS Grants Further Tax Palliatives in View of Recent Business Disruptions
  4. FIRS Issues Public Notice on Completion of Self-Certification Forms By Reportable Persons
  5. FIRS Publishes Regulations on Common Reporting Standard
  6. FIRS Issues a Public Notice on Mandatory Requirements for Registration for Tax Purposes
  7. FIRS Launches Reporting Portal for Financial Institutions
  8. FIRS: Total Collection Met 56% of Target in Q1 2020
  9. FIRS Provides Clarifications on Administration of Stamp Duties in Nigeria
  10. FIRS Issues Public Notice on VAT (Modification Order) 2020 - Items Not Exempted from VAT
  11. FIRS Clarifies Changes Introduced to Nigerian VAT Regime by the Finance ACT 2019
  12. FIRS and New TCC Portal: Understanding the Inconvenient Truth of a Missing Portal
  13. FIRS Launches New TCC Application Portal
  14. FIRS' Public Notice on Regularisation of Tax Status of Dormant Companies 


Proshare Nigeria Pvt. Ltd.

 

Related News - Taxes & Tariffs

17.  Narrow Concentration of Corporation Tax Payers

18.  Taxpayers Relieved from Tax Investigation Beyond Six Years

19.  CIT Payments Reflects Pressure on Economy Despite Q3 2020 Recovery

20. N416.01bn Generated as Company Income Tax in Q3 2020 - NBS

21.  FG Presents 2020 Finance Bill to NEC, Slashes Import Duties and Levies, Reduces Minimum Tax

22. Transfer Pricing Audits: The Need for Taxpayers to Proactively Prepare

23. Finance Bill 2021: Stakeholders Engagement Begins

24. N424.71bn Generated as VAT in Q3 2020 - NBS

25. Another TAT Declares Commercial Rent Liable to VAT

26. Compendium of COVID-19 Tax Measures in Nigeria

27. Common Reporting Standard and Compliance Obligations for Nigerian Financial Institutions

28. FHC Nullifies the Schedule to the Taxes and Levies Act (Amendment) Order, 2015

29. Guide to Income Tax Regulations, 2019 for the Automatic Exchange of Financial Account Information

30. CITN Introduces The Use of Personalised Stamps for Filing of Tax Returns and Correspondences

31.  Tax Appeal Tribunal Delivers Conflicting Decisions on Whether VAT is Chargeable on Property Leases


 Proshare Nigeria Pvt. Ltd.


Proshare Nigeria Pvt. Ltd.


Proshare Nigeria Pvt. Ltd.


Proshare Nigeria Pvt. Ltd.


Proshare Nigeria Pvt. Ltd.

READ MORE:
Related News
SCROLL TO TOP