The Federal Inland Revenue Service (FIRS) has appealed to businesses who are experiencing a boom due to the lockdown to consider paying their annual returns earlier than the due date.
This, it said, would support government efforts in ramping up revenue during the COVID-19 pandemic which has affected oil revenue by reducing global demand and resulted in a glut and reduced oil prices.
Muhammad Nami (pictured), FIRS executive chairman, said the global shutdown is putting pressure governments, and in turn, revenue-generating agencies to bridge budget funding gaps.
Sympathising with businesses going through difficult times due to the pandemic, he said: “I wish to appeal to a section of taxpayers. whose sectors are experiencing a boom and a significant increase in income at this point in time. for a high level of cooperation in payment of their taxes.
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“Nonetheless, we wish to acknowledge that some sectors such as telcos, financial institutions, e-Commerce, supermarkets, manufacturers/ processors of certain products, etc are experiencing a boom due to increased transactions as a result of the lockdown or even despite the pandemic.”
“In view of the above, I wish to specially make an appeal to corporate bodies in the sectors mentioned above to go the extra mile at this time to cooperate with us in making special arrangements to pay their taxes.
“They may consider, for instance, a situation where they can commence payment of their annual returns earlier than the due date apart from their normal monthly obligations.”
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The arrangement, Nami said, would ease some of the cash flow gaps being experienced by the government.
Some of the annual returns filed by companies include companies income tax (CIT), capital gains tax
Taxes like value-added tax, withholding tax and pay as you earn (PAYE) are filed monthly.
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