The Federal Inland Revenue Service (FIRS) is set to waive accumulated penalties and interests on outstanding tax liabilities.
This move by the tax agency to alleviate the burden on struggling businesses was announced via a circular issued by the Chairman, Mr. Zacch Adedeji, in Abuja yesterday.
Traditionally, FIRS imposes penalties and interests on companies that fail to meet their tax obligations as stipulated in existing tax laws. However, Adedeji clarified that the forgiveness of piled-up penalties and interests is a response to the challenges faced by many tax payers in settling their outstanding tax liabilities.
This initiative aligns with President Bola Tinubu’s commitment to supporting businesses and fostering economic growth. Adedeji emphasized that companies aiming to benefit from this concession must make full payment of their outstanding original tax liabilities without interest on or before December 31, 2023.
He stated,
“Taxpayers are advised that the waiver of interest is subject to the full settlement of outstanding principal on or before the 31 December, 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.
“FIRS appreciates all taxpayers who have been diligent in complying with their tax obligations as and when due, while seeking their continued support and cooperation for a more responsive and robust tax system.”
FIRS expressed gratitude to diligent taxpayers who have consistently complied with their tax obligations, urging their continued support and cooperation for a more responsive and robust tax system. The concession is seen as a proactive measure to ease the financial strain on businesses and stimulate economic recovery.
Businesses are encouraged to take advantage of this limited-time opportunity to settle their tax liabilities and benefit from the relief provided by FIRS. The decision reflects a strategic approach to balance fiscal responsibility with economic support during challenging times.