FIRS Extend Deadline For Tax Debt As Taxpayers Now Risk Penalty

Individuals and businesses have been given a grace of another month to pay their tax debt to the Federal Inland Revenue Service (FIRS) after the tax administrator extended the deadline initially set for this month, June 30, 2020. The FIRS said the extension is a form of palliative for businesses and individuals.

FIRS said the decision was made to assist businesses and households that have been negatively impacted by the COVID-19 pandemic and lockdown measure adopted by Nigeria. AllNews had reported that Nigeria went on a two months lockdown from March before easing the lockdown on May 4.

The lockdown prevented businesses from operating in Nigeria, with several of them recording losses and revenue hitting zero for the period. In order to prevent the collapse of businesses and cushion the impact on individuals, Nigerian agencies have been issuing different waivers.

The Type Of Taxes FIRS Extended Payment Deadline For

AllNews gathered the latest extension applies to tax audit, tax investigation and desk review assessments, approved installment payment plans under Voluntary Assets, and Income Declaration Scheme (VAIDS). According to the FIRS executive chairman, Muhammad Nami, the aforementioned taxes are "yet to be fully liquidated."

The extension will prevent businesses and individuals from paying penalties and interests on the tax debt. The deadline for the payment of the tax debt has now been moved from June 30 to next month, August 31, 2020.

No More Extension By The FIRS

While speaking on the extension, Nami said it will be the last extension on the tax debt, “Taxpayers are advised to note that there will be no further extension of this palliative measure. Tax debtors are therefore enjoined to liquidate their outstanding tax liabilities on or before August 31, 2020, in order to enjoy a waiver of accumulated penalties and interests,” he said in a statement.