The Federal Inland Revenue Service (FIRS) on, Tuesday, 19 May 2020, released a public notice extending the deadline for reporting and filing of information return for the 2019 calendar year under the Income Tax (Common Reporting Standard) Regulations, 2019 (the CRS Regulations) from 31 May 2020 to 30 September 2020.
FIRS, in its public notice, stated that the 4-month extension of the filing deadline is part of the palliative measures to ease the tax compliance burden of Reporting Financial Institutions (RFIs), particularly in light of the COVID-19 pandemic disruption of businesses.
The CRS Regulations and FIRS’ Information Circular No. 2019/02 on Income Tax (Common Reporting Standard) Implementation and Compliance Guidelines, 2019 (the Guidelines), mandate RFIs to prepare and file annual information return of Reportable Accounts on or before 31 May of the year following the calendar year to which the return relates. The CRS Regulations impose stringent penalties for non-compliance.
FIRS encourages all RFIs to take advantage of the extension to prepare and finalise relevant information as required by the CRS Regulations and the Guidelines for reporting on or before 30 September 2020.
Please refer our earlier alert for further information on the Common Reporting Standards. We will continue to monitor this space and provide updates as they become available.