Report on Interest
under logo

LIRS introduces new tax payment mode, fine waivers

By Idowu Abdullahi,

As part of its measures to implement additional tax incentives and reliefs for taxpayers across the state, Lagos State Internal Revenue Service (LIRS) has introduced instalment payment mode for taxpayers and also waived penalty on late payment.

It explained that the new payment model was in line with the service’s commitment to mitigate the negative effect of coronavirus pandemic on individuals and businesses across the state which had been affected by outbreak of the pandemic four months ago.

The LIRS Executive Chairman, Ayodele Subair, said that the implementation of the new payment model aimed at additional reliefs and measures to further ease the impact of the pandemic on taxpayers in across the state commenced on Thursday, July 16, 2020.

Subair, through a statement released to newsmen, noted that the additional measures and incentives followed the agency’s initial 3-month extension of the deadline for filing of annual returns (from March 31 to June 30, 2020).

He explained that the agency had concluded plans to waive 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 and that the agency would allow instalments for outstanding liabilities.

The LIRS boss also revealed that the agency would waive accrued interest and penalty on liabilities from 2009 to 2015 tax audit for taxpayers ready to pay up on or before December 31, 2020.

“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. 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),” the statement read.

Subair, however, announced that additional payment channels have been opened up to make payment of taxes easier, simpler and more convenient for all, stressing that taxpayers can make use of the agency’s digital communication platforms to get updates on its operations and details of all tax payment platforms.

“All businesses and individuals resident in Lagos state are enjoined to take advantage of these additional palliatives and reciprocate the kind gestures of Lagos State Government by discharging their civic responsibilities through prompt payment of all taxes and levies due to the state,” the statement added.

Leave A Reply

Your email address will not be published.