COVID-19: Gombe Grants Tax Concessions, Palliatives to Taxpayers

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Segun Awofadeji in Gombe

The Gombe State Internal Revenue Service (GSIRS) has outlined a series of tax concession and palliatives for taxpayers in response to the impact of the COVID-19 pandemic which has led to the shutting down of both government and private businesses and disrupted supply chain.

The measure is designed to cushion the effects of the pandemic, and relieve taxpayers of the burden of tax compliance at this trying moment.

The administrator of GSIRS, Malam Abubakar Inuwa Tata, who announced the tax concessions and palliatives yesterday, said the measures included extension of time for filing of annual returns by individuals from March 31, 2020 to August 31, 2020.

According to him, “The due date for filing of annual returns by companies is also extended to August 31, 2020, as against earlier deadline of January 31, 2020,” adding that the penalty of N50,000 for individuals and corporate organisation N500,000 for non-filing has also been waived.

“The Service has also waived all penalties and interests for outstanding liabilities on back-duty audit for individuals and enterprises in the state, particularly the micro, small and medium scale (MSMEs) enterprises affected by the pandemic.

“There is a waiver of interest on all outstanding liabilities for limited liability companies operating in the state, he said, adding that “taxpayers will be allowed to file returns using unaudited accounts, but must subsequently submit their audited accounts within two months after the revised due date for filing.

“Waiver on interest element on back-duty liabilities for mast/towers levies of telecommunications companies, radio stations and commercial banks.

“Registration and renewal of vehicle particulars have been slashed by 5 percent and 10 percent respectively from the original cost to enable all road users comply with road traffic regulations.”

Tata also explained that “A 40 percent waiver on back-duty withholding taxes for rent on institutional estates, private estates, individuals rented properties, shops and apartments; waiver on contracts, director and consultancy fees, among others, while a 50 percent waiver on Capital Gain
Tax assessed on sale of properties.

“These palliatives and tax reliefs are available to taxpayers, who wish to settle their outstanding tax liabilities on or before October 31, 2020. However, this doesn’t include back-duty on PAYE.”

The GIRS administrator expressed hope that all residents and business entities operating in the state would take advantage of the palliatives and reciprocate government’s gesture by discharging their civic responsibilities of paying taxes and levies due to the state government promptly.