- SHARE THIS -Pix: Muhammadu Nami, Executive Chairman, FIRS
The Federal Inland Revenue Service (FIRS) has issued clarification to the general public, taxpayers and tax practitioners on the installment payments in line with the provisions of the Finance Act, 2019.
In the Public Notice signed by the Service’s Executive Chairman, Mr. Muhammadu Nami, FIRS reminded Nigerians that Section 77(5) of CITA Cap C21 LFN 2004 as amended by Section 18 of the Finance Act, 2019 states that: “(5) Every company shall make payment of tax due on or before the due date of filing, in one lump sum or in installments: provided that, where the taxpayer pays in installments-
(a)the taxpayer shall first write, with evidence of payment of the first installment, and obtain the approval of the Service to pay in such number of installments as may be approved by the Service; and (b) the final installment must be paid on or before the due date of filing,” stressing that, “(5B)any balance of taxes unpaid as at the due date shall attract interest and penalties as provided in the Act or any other relevant law for failure to pay on the due date in accordance.”
According to Nami, “the implication of this is that any Company that wishes to pay by installments must have applied in writing, before the due date of filing, attaching evidence of full payment of Tertiary Education Tax (TEDT) and first installment of the Companies Income Tax (CIT) due. It is important to note that the last installment must be paid on or before the due date for filing tax returns, otherwise penalty and interest will be charged after the due date.”
“Taxpayers are enjoined to ensure that they comply with the above mentioned provisions of the Act. Failure to comply will compel the Service to carry out measures for the recovery of tax as enshrined in Section85 (1) of CITA Cap C21 LFN 2004 as amended, and Section 32 of FIRS Establishment Act (2007), which authorize addition for non-payment and enforcement of payment,” he said.
The Executive Chairman further informed that “Tax Offices will provide adequate assistance to taxpayers to satisfy the requirements of the Finance Act, 2019 as regards payments by installment,” asking tax payers to further direct their enquiries to: The Coordinating Director, Tax Operations Group, Federal Inland Revenue Service, Revenue House Annex, No. 20, Sokode Crescent, Wuse Zone 5,Abuja. Email: Tax.OperationGroup@firs.gov.ng or email@example.com