The Federal Inland Revenue Service (FIRS) recently issued a Public Notice communicating the waiver of interest and penalty on outstanding tax debts arising from tax desk review, audit and/or investigation exercise. This concession is only available to taxpayers that settle the principal portion of the said outstanding debts on or before 31 May 2020.
By issuing this Public Notice, FIRS exercised its powers to waive the interest and penalty on outstanding tax audit liabilities. It is also part of initiatives by the FIRS, which are aimed at cushioning the negative impact of COVID-19 on taxpayers. It is important to note that this waiver does not expressly apply to interest and penalty on tax liabilities that have not been established through a tax desk review, audit and/or an investigation exercise.
Therefore, taxpayers need to take urgent steps to conclude on any outstanding desk review, audit and/or investigation to take advantage of the interest and penalty waiver