#EndSARS Protests: FIRS Offers More Tax Palliatives to Affected Businesses

Published by

In a bid to cushion the effect of the violent demonstrations across the country in recent weeks, the Federal Inland Revenue Service (FIRS) has said that it will grant additional tax palliatives to Nigerian businesses.

The FIRS said the palliatives will provide relief for companies and businesses that suffered during the protests.

“Following the disruption to businesses which followed the recent protest across Nigeria, the Federal Inland Revenue Service (FIRS) has issued a public notice (the Notice) granting an additional window for obtaining a waiver of interest and penalty on outstanding tax liabilities resulting from tax desk reviews, audit and/or investigations and self-assessments from 4 November to 31 December 2020,” the FIRS said.

Also Read:

Also Read: EndSARS Impacted Nigeria’s Economic Recovery Path, says Rewane’s FDC

“This waiver only applies where taxpayers settle their outstanding tax liabilities (principal amount) on or before 31 December 2020.

According to the Notice, an additional window granted for obtaining a waiver of interest and penalty on outstanding tax liabilities is necessary to provide some relief to businesses that have suffered disruptions as a result of the recent protest across the country, in addition to disruptions caused by the COVID-19 pandemic.

The FIRS also reiterated that the palliatives earlier granted to companies are still in place, including an extension of the filing and payment deadline for Withholding Tax and Value Added Tax returns from the 21st day of the month to the last day of the month.

Also Read: #EndSARS: Insurance Firms Confront Record High Claims

The FIRS said taxpayers who earn revenue in Nigerian Naira but are facing challenges in obtaining foreign exchange (forex) for use in offsetting their tax liabilities can pay their outstanding tax liabilities in Naira at the prevailing Investors and Exporters (I&E) Forex window rate on the day of payment.

“The palliatives introduced by FIRS is a welcome development for taxpayers as it demonstrates FIRS’ sensitivity to the disruptions experienced by businesses. Taxpayers are encouraged to take advantage of this window of opportunity to plan their tax affairs accordingly,” the statement said.