The Federal Inland Revenue Service (“FIRS”), in a public notice (“the Notice”) dated 4 November 2020, has issued a palliative to tax payers due to the recent business disruptions following the ENDSARS protest that occurred in certain parts of the nation.
In the Notice, the FIRS empathized with businesses that suffered some form of losses as a result of the recent protest; and to support such businesses in this difficult time, the FIRS has decided to extend the period for waiver of penalty and interest on tax liabilities.
Specifically, businesses that effect full payment of the principal portion of their outstanding liabilities arising from self-assessments, desk audit, field audit or investigation on or before 31 December 2020 shall enjoy waiver of penalty and interest on such tax liability.
The FIRS further stated that the above palliative is in addition to other previously publicized palliatives, which are still available to taxpayers. These include:
a) Extension of monthly Withholding Tax and Value Added Tax returns filing to the last day of the month; and
b) For tax payers earning revenue in Naira and facing challenges in sourcing foreign currency to settle foreign denominated tax liabilities, permission to settle such tax liabilities in Naira. The applicable conversion rate should be the prevailing Investors & Exporters (I & E) foreign currency window rate as at the day of payment of such liabilities.