LIRS to Implement Additional Tax Incentives and Reliefs to Taxpayers in Lagos State

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The Lagos State Internal Revenue Service (LIRS) has commenced that it would commence the implementation of additional reliefs and measures to further ease the impact of the COVID-19 pandemic disease on taxpayers in the state from Thursday, July 16, 2020.

These additional measures and incentives are sequel to the agency’s initial three-month extension of the deadline for filing of annual returns from March 31 to June 30, 2020.

According to the Executive Chairman of the LIRS, Mr. Ayodele Subair, “the LIRS shall allow on a case by case basis, payment of outstanding liabilities in installments to ease cash flow challenges that may affect taxpayers. Taxpayers are to enjoy a waiver of penalty for late payment of liabilities under PAYE (Pay As You Earn) that was due during the period of March-May, 2020 when the state was under COVID-19 lockdown.

“In addition, a waiver of penalties due on late filing of 2020 annual tax returns known as ‘Form A’ will be granted. A remarkable waiver of interest and penalty on liabilities arising from 2009 to 2015 tax audit for taxpayers who can pay up on or before December 31, 2020 will be implemented.

“In appreciation of taxpayers that have supported the state government in the fight against the pandemic, the LIRS through the Lagos State Government will be granting tax credit of 20 per cent of all cash and kind donations made towards COVID-19 by individuals resident in the state for the 2021 Year of Assessment (subject to a cap of 35 per cent of tax due).”

Subair further announced that additional payment channels have been opened up to make payment of taxes easier, simpler and more convenient for all. The Executive Chairman pronounced that video conferencing has been adopted as the default mode for conducting Tax Audit Reconciliation Committee [TARC] meetings in consonance with social distancing advisories from government and other relevant health authorities.

He encouraged taxpayers to make use of the agency’s digital communication platforms to get updates on its operations and details of all tax payment platforms.