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Clarification of FIRS' waiver of penalty and interest

Deloitte Tax Alert

FIRS provides clarification

The Federal Inland Revenue Service (FIRS) has clarified grey areas noted in its public notice of 5 October 2016 in relation to tax amnesty offered to taxpayers on waiver of penalty and interest charges.

Highlights of the internal memorandum include:

  • Reiteration of the period covered as 2013 to 2015 financial years. The waiver covers interest and penalty on all taxes, including personal income taxes, payable to FIRS. This include interests and penalties for late registration, late filing of returns, late payment and extends to tax liabilities arising from tax audits and investigations provided the relevant assessment notices have been raised for the relevant years.
  • Written application, addressed to the Executive Chairman, is expected from taxpayers through their respective Area Tax Offices. Applications are to be supported with relevant documents, evidence of payment of minimum of 25% of the tax due and payment plan for the outstanding sum. Taxpayers with no outstanding tax liability but who are in default of filing returns are also eligible for waiver of penalties for late registration/filing provided that that all outstanding tax returns are submitted within the 45-day window.
  • There is no indication that the tax amnesty window will be extended beyond the deadline of 24 November 2016. Taxpayers are therefore advised to expedite action and stay within the rules.

We will continue to monitor developments in this space and update you as further facts become available.

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