Individuals who gave reliefs to government as a way of cushioning coronavirus effects are to enjoy 20 per cent tax credit for 2021 tax assessment, the state revenue-collection agency has said.
This implies that beneficiaries will have 20 per cent slashed from individual taxes owed to the government.
In its statement on Tuesday, the Lagos Internal (Board) Revenue Service (LIRS), said the concession is subject to a cap of 35 per cent due. Other measures taken by the government include payment in instalments of outstanding liabilities.
The LIRS also said it is waiving penalties for late remittance of PAYE (Pay As You Earn) tax liabilities for March-May, 2020 during which the state was on a lockdown. Also waived are penalties for late filing of 2020 annual tax returns, called ‘Form A’.
For taxpayers in arrears of payable taxes from 2009 to 2015 tax audit, the LIRS said it would waive interest on the liabilities and stipulated penalties only if affected firms can pay up on or before December 31, 2020.
The LIRS further said it had launched video conferencing for conducting Tax Audit Reconciliation Committee [TARC] meetings in consonance with government’s social distancing advisory.