Federal Inland Revenue Service Announces Complete Waiver on Tax Penalties and Interests
In a significant move aimed at easing the burden on taxpayers, the Federal Inland Revenue Service Announces Complete Waiver on Tax Penalties and Interests. The announcement talked about waiver on accumulated penalties and interests associated with outstanding tax liabilities.
Zacch Adedeji, Chairman of the service, revealed this pivotal decision in a notice personally penned by him and disseminated to the press via his Special Adviser on Media, Dare Adekanmbi, this past Sunday.
The FIRS typically imposes penalties and interests as consequences for companies failing to meet their tax obligations within the timelines specified by prevailing tax laws.
Adedeji emphasized that the decision to forgive piled-up penalties and interests stemmed from an acknowledgment of the challenges faced by numerous taxpayers in settling their outstanding tax dues.
“The waiver of these accumulated penalties and interests is a recognition of the difficulties many taxpayers have encountered in meeting their tax responsibilities,” stated Adedeji.
He further elaborated that this concession aligns with President Bola Tinubu’s commitment to fostering a conducive environment for businesses to thrive.
For companies eyeing this opportunity, Adedeji outlined a crucial condition: full payment of the outstanding original tax liabilities without any additional interest by December 31 of this year is mandatory to avail themselves of this unique concession.
“Taxpayers must note that the waiver of interest is contingent upon the complete settlement of outstanding principal amounts by December 31, 2023,” clarified Adedeji.
It was stressed that the full penalty and interest would be reinstated once the one-time concession window closes if any remaining undisputed liabilities remain unsettled, fully or partially.
Adedeji expressed the FIRS’s gratitude towards diligent taxpayers who have consistently fulfilled their tax obligations promptly. He appealed for their sustained support and collaboration to fortify a more adaptable and robust tax framework.
This move by the FIRS marks a significant step in supporting businesses and easing the financial burdens faced by taxpayers, embodying a commitment to fostering a more responsive tax ecosystem.