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Why FIRS cancels penalties, interests on companies’ pending tax liabilities –Adedeji

Mr. Zaccheus Adedeji, Executive Chairman of FIRS

*Zaccheus Adedeji, Executive Chairman of the Federal Inland Revenue Service, says the agency’s decision to cancel penalties and interests for outstanding tax liabilities is a demonstration of President Bola Ahmed Tinubu’s commitment to supporting businesses in Nigeria

Isola Moses | ConsumerConnect

In view of how several corporate organisations have made efforts at adding value to the Nigerian economy amid recent headwinds, the  Federal Inland Revenue Service (FIRS) has approved “amnesty” on penalties and interests for outstanding tax liabilities.

Mr. Zaccheus Adedeji, Executive Chairman of FIRS, confirmed this development in a statement Sunday, December 3, 2023, in Abuja, FCT.

ConsumerConnect reports the FIRS, as the Nigerian foremost tax administrator, imposes sanctions and interests for failure by companies and other corporate

organisations to fulfil their tax obligations.

Adedeji also explained the step is in recognition of the challenges that several taxpayers have experienced in settling their tax obligations in the year.

The FIRS Executive Chairman noted the decision is a demonstration of President Bola Ahmed Tinubu’s commitment to supporting businesses.

Adedeji, however, stated that full payment of outstanding original tax liabilities without interest on or before December 31, 2023, must be done by companies wishing to benefit from the concession.

The Executive Chairman said: “Taxpayers are advised that the waiver of interest is subject to the full settlement of outstanding principal on or before 31 December 2023.

“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.

“The Service appreciates all taxpayers who have been diligent in complying with their tax obligations as and when due while seeking their continued support and cooperation for a more responsive and robust tax system.”

ConsumerConnect reports the FIRS imposes sanctions and interests for failure by companies and other corporate

organisations to fulfil their tax obligations to the tax regulatory agency in the country.

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