The Federal Inland Revenue Service (FIRS) has announced a comprehensive relief package for taxpayers, offering a complete waiver on accumulated penalties and interests for outstanding tax liabilities, provided the full principal is paid before December 31, 2023.
This concession, in accordance with Section 32 of the Federal Inland Service (Establishment) Act, LFN 2004 (as amended), aims to address the challenges faced by many taxpayers and reflects the government’s commitment to supporting businesses.
Chairman Zacch Adedeji emphasized that the forgiveness of penalties and interests recognizes the difficulties taxpayers have encountered in settling their outstanding tax liabilities. The concession aligns with President Bola Tinubu’s dedication to fostering a favorable environment for businesses to thrive.
Adedeji outlined the key points of the concession, stating, “Taxpayers are advised that the waiver of interest is subject to the full settlement of outstanding principal on or before December 31, 2023.
Please note that the full penalty and interest shall be reinstated after the expiration of this one-off concession window where the outstanding undisputed liability remains fully or partially unpaid.”
Expressing appreciation for diligent taxpayers and their compliance with tax obligations, the FIRS encourages continued support and cooperation for a more responsive and robust tax system.
The imposition of penalties and interests by the FIRS for non-compliance with tax obligations is in line with existing tax laws, with specific provisions detailing the consequences of defaulting on tax payments.
