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LIRS Issues COVID 19 Protocols on Tax Audit Reconciliation Committee (TARC) Meetings

Lagos State Internal Revenue Service has informed the public that tax audit reconciliation committee (TARC) meeting will now be virtual (online) due to Covid 19 pandemic.

In issuing the modification to the TARC meeting procedures, the LIRS premised its decision on Section 29 of the Finance Act 2019 which confirms electronic correspondence as acceptable means of communication to the tax authority and also on the physical distance advice from both the federal and state health authorities.

LIRS stated that the TARC meeting will only be constituted where the documents submitted conflicts or contradicts with the objection issues, findings from the field audit are significantly higher than the taxpayer’s position or when it is necessary.

The new tax audit reconciliation committee (TARC) meetings procedures are:

  1. The default mode for TARC meetings is now video conference while the physical meeting will be an exception.
  2. LIRS will create and host the virtual TARC meetings.
  3. A taxpayer will have to provide documentary evidence in soft copies at least a week to the TARC meeting except in rare situations where LIRS may accept hard copies.
  4. Taxpayers must support every issue with relevant documentary evidence. Non-compliance shall render the issue unresolved and dischargeable.
  5. LIRS may request more documentation where the information provided is inadequate or insufficient.
  6. LIRS will not consider new documentary evidence submitted during the meeting except in an extra-ordinary occasion and at the discretion of the TARC Chairperson

We advise taxpayers to adhere strictly to the new LIRS protocols on TARC meeting