Nigeria: One-month waiver of penalties and interest on certain tax liabilities
A one-month waiver of all penalties and interest computed by TaxPro-Max on additional tax liabilities
A one-month waiver of all penalties and interest computed by TaxPro-Max
The Federal Inland Revenue Service (FIRS) announced a one-month waiver of all penalties and interest computed by the TaxPro-Max on additional tax liabilities arising from monitoring, desk review, tax audit and tax investigation exercises.
Thus, taxpayers will need to pay only the principal liabilities established during the various verification processes. Affected taxpayers must settle all outstanding principal liabilities on or before 31 December 2022 to benefit from the waiver.
KPMG observation
The FIRS action responds to taxpayers’ concerns about the use of TaxPro-Max to track tax audit and investigation, desk audit review and monitoring exercises.
While TaxPro-Max has improved the ease of administration of federal income taxes, there are still some outstanding issues. In particular, the TaxPro-Max is best used as a platform for the submission of income tax returns and payment of related income tax liabilities, rather than a computational tool. Thus, taxpayers need to pay their income tax liabilities based on their computations, and any difference between the taxpayer’s computations and computations by TaxPro-Max can be resolved subsequently.
In the meantime, taxpayers need to promptly settle their undisputed tax liabilities, and taxpayers with open tax reviews, audits or/and investigations need to proactively engage their respective tax offices for quick resolution of the dispute before the deadline to enjoy the waiver.
Read a December 2022 report prepared by the KPMG member firm in Nigeria
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