05 May Federal Inland Revenue Service Issues Public Notice on Payment of Outstanding Taxes By Defaulting Collection Agents And Its Intention To Prosecute Offenders
The Federal Inland Revenue Service (FIRS or “the Service”) on the 4th of May 2021, issued a public notice (“the Notice”) to companies, corporations, and other relevant persons who are empowered under the relevant tax laws to collect, deduct or withhold taxes on the supply of goods and/or services, to remit any outstanding tax due to the Service within thirty 30 days from the publication of this notice. The FIRS in its public notice informs tax defaulters of its intention to apply the provisions of section 31 of the FIRS establishment Act (FIRSEA) in the recovery of the unremitted taxes.
Furthermore, The FIRS also stated that necessary steps shall be taken to prosecute defaulters for wilful negligence, tax evasion, unlawful conversion of government property, etc. If the taxes remain unsettled after the specified timeline and that penalties and interest shall be recovered with the principal tax liabilities. The FIRS also informed tax offenders that henceforth, the Service shall prosecute all tax offences listed in Part VI of the FIRSEA and other tax laws, particularly offences of tax evasion, tax fraud, failure to deduct or remit tax, obstruction, false declaration, counterfeiting of documents, failure to file tax returns etc.
WYZE Comments: We understand that the FIRS in its bid to drive revenue generation for the government will seek all necessary measures to recover outstanding taxes due to the service.
We urge affected taxpayers and the public to seize this opportunity to regularize their outstanding taxes due to the service within this grace period to avoid being hit with stringent penalties and interests accordingly.