LIRS promises additional incentives, reliefs for taxpayers

The Lagos Internal Revenue Service (LIRS) says additional reliefs and incentives will be implemented as part of efforts to further ease the impact of the COVID-19 pandemic on taxpayers in the state.

A statement by Monsurat Amasa, head of corporate communications, LIRS, noted that the implementation will commence on July 16, 2020.

These additional measures and incentives are sequel to the agency’s initial three-month extension of the deadline for filing of annual returns — the deadline was extended from March 31 to June 30, 2020.

The incentives include waiver of penalties for taxpayers on pay as you earn (PAYE) who were unable to meet up with the deadline during the lockdown in the state.

“The following measures are to be implemented to further ease the impact of the pandemic on our esteemed taxpayers in Lagos state: LIRS shall allow on a case by case basis, payment of outstanding liabilities in instalments to ease cash flow challenges that may affect taxpayers,” Ayodele Subair, LIRS executive chairman, was quoted as saying.

“Taxpayers are to enjoy a waiver of penalty for late payment of liabilities under PAYE (Pay As You Earn) that was due during the period of March-May, 2020 when the State was under COVID-19 lockdown.

“In addition, a waiver of penalties due on late filing of 2020 annual tax returns known as ‘Form A’ will be granted. A remarkable waiver of interest and penalty on liabilities arising from 2009 to 2015 tax audit for taxpayers who can pay up on or before December 31, 2020 will be implemented.

“In appreciation of taxpayers that have supported the State Government in the fight against the pandemic, the LIRS through the Lagos State Government will be granting tax credit of 20% of all cash and kind donations made towards COVID-19 by individuals resident in the State for the 2021 Year of Assessment (subject to a cap of 35% of tax due).”

He added that additional channels have been opened up to make payment of taxes easier and more convenient, while video conferencing has been adopted as the default mode for conducting tax audit reconciliation committee (TARC) meetings in line with social distancing advisories from government and other relevant health authorities.

He encouraged taxpayers to make use of the agency’s digital communication platforms to get updates on its operations and details of all tax payment platforms.

Subair further enjoined all businesses and individuals resident in Lagos to take advantage of the additional palliatives and endeavour to discharge their civic responsibilities through prompt payment of all taxes and levies due to the state.

The LIRS also urged residents to stay safe and obey all COVID-19 guidelines as stipulated by the relevant health authorities and the Lagos state government.