FIRS waives penalty, interest on tax debts till December 31

The Federal Inland Revenue Service (FIRS) has announced a full waiver on accumulated penalties and interests for outstanding tax liabilities until December 31, 2023.

Zacch Adedeji, FIRS chairman, in a statement by Dare Adekanmbi, his special adviser on media, on Sunday, said the decision was to alleviate the burden on taxpayers and businesses and to promote compliance with tax laws.

The chairman said penalties and interests are imposed for failure by companies to fulfil their tax obligation as and when due as stipulated in extant tax laws.

“Forgiveness on piled up penalties and interests was in recognition of the challenges that many taxpayers have faced in settling their outstanding tax liabilities,” Adedeji said.

He said the full payment of outstanding original tax liabilities without interest must be made by companies wishing to benefit from the peculiar concession.

“Taxpayers are advised that the waiver of interest is subject to the full settlement of outstanding principal on or before 31 December 2023,” Adedeji0 added. 

“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.”

Adedeji appreciated taxpayers who have consistently fulfilled their tax obligations, urging them to continue their support in building a more responsive and robust tax system.

Last year, the agency approved a one-off waiver of all outstanding interests and penalties imposed on established tax liabilities by the TaxPro Max until December 31, 2022.