In a bid to provide succor and support to businesses affected by the violent demonstrations, the Federal Inland Revenue Service (FIRS) has disclosed that it is set to grant more tax palliatives to Nigerians to cushion the ensuing negative impacts.

This was disclosed by the FIRS, through its official Twitter handle.

READ: Nigeria’s tax potentials remain untapped – Governor El-Rufai

READ: Defaulters owe N254 billion in tax liabilities, says FIRS 

What you should know

The tax palliative will come in form of the provision of an additional window of penalty, and interest waivers for businesses that pay up in full, the principal portion of their outstanding liabilities between now and 31st December, 2020. Such outstanding arrears could have resulted from:

  • Self assessments, or
  • Government assessments arising from desk audit, field audit or investigation.

READ: LIRS shuts 16 companies over alleged tax evasion, threatens to close more 

This recent announcement is in addition to earlier measures instituted by FIRS such as:

  • Extension of monthly WHT and VAT Returns filing to end of month.
  • The option of paying in Naira at the prevailing Investors & Exporters (I & E) FOREX window rate on the day of payment. This is for taxpayers who earn their revenue in Naira and are facing challenges in sourcing for FOREX to offset their tax liabilities.

READ: Premier Paints reports N16.6 million profit in 9M 2020, down by 25.9%

Why it matters

The recent announcement by the FIRS is geared towards resuscitating businesses affected by the arson, looting and vandalism which ensued from the violent protests.

This gesture should help to resuscitate economy.

READ: Nigeria generates N424.71 billion VAT in Q3 2020