FIRS Cancels Penalties and Interests on Pending Tax Liabilities

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In a move aimed at providing relief to businesses and taxpayers, the Federal Inland Revenue Service (FIRS) in Nigeria has made a groundbreaking decision to cancel penalties and interests on pending tax liabilities. The announcement, made on Monday by the FIRS Chairman, signifies a significant shift in the government’s approach towards supporting businesses during challenging economic times.

The decision to waive penalties and interests comes as a response to the economic challenges posed by the COVID-19 pandemic and its impact on businesses. The FIRS recognizes the need to alleviate the financial burden on companies struggling to meet their tax obligations amidst economic uncertainties.

Mr. Zacch Adedeji, the FIRS Chairman, stated during a press conference, “The Federal Inland Revenue Service is committed to supporting businesses and ensuring the ease of doing business in Nigeria. In light of the challenges posed by the pandemic, we understand the difficulties faced by businesses in meeting their tax obligations. As a result, we have decided to cancel penalties and interests on pending tax liabilities to provide much-needed relief.”

This decision is expected to benefit a wide range of businesses across various sectors, providing them with the opportunity to recover and stabilize their financial positions. The cancellation of penalties and interests applies to both corporate and individual taxpayers with outstanding tax liabilities.

The FIRS emphasized that this measure is temporary and will be implemented for a specified period to allow businesses to recover from the economic impact of the pandemic. Taxpayers are encouraged to take advantage of this opportunity and settle their outstanding tax liabilities during the amnesty period to avoid future penalties.

The announcement has been met with widespread approval from business associations and chambers of commerce. Many see this as a positive step towards fostering a conducive business environment and supporting economic recovery in Nigeria.

In addition to the cancellation of penalties and interests, the FIRS has also introduced simplified procedures for taxpayers to regularize their tax affairs. This includes the option for businesses to negotiate installment payment plans for the settlement of their outstanding tax liabilities.

While providing relief to businesses, the FIRS reiterated its commitment to maintaining a fair and efficient tax system that ensures the government’s revenue needs are met. The decision aligns with the government’s broader efforts to stimulate economic growth and development in the country.

Taxpayers are encouraged to reach out to the FIRS for more information on the specific procedures and guidelines for taking advantage of the penalty and interest cancellation initiative. The FIRS will continue to monitor the economic situation and make further adjustments as necessary to support businesses and taxpayers in Nigeria.

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