You probably know someone residing in Lagos who has still not filed their Individual Annual Tax Returns! This one is for them.
Not so long ago, the Lagos Internal Revenue Service (LIRS) committed to take all steps necessary to mitigate the effect of Covid-19 on taxpayers in Lagos State.
Further to this commitment, LIRS decided to extend the deadline for Individuals to file their Annual Returns which is 31 March as provided by law. Through a Public Notice issued by the LIRS, this deadline was extended to April 14, 2021. (please scroll down to view the Public Notice)
As a result of LIRS’ extension of the filing deadline, Lagosians who did not file their returns as at 31 March will not be in default until April 14, 2021.
On the other hand, taxpayers not resident in Lagos and who have not filed their returns are already in default, attracting penalties under the law.
Clearly, the LIRS’ extension is beneficial to all taxpayers resident in Lagos who are yet to file their Individual returns. This group of taxpayers are enjoined to avail themselves of the LIRS’ palliative measure and file their returns as required by law
You have probably wondered: Who is required to file Individual Annual Tax Returns?
Persons who have income that is subject to Personal Income Tax are required to render returns showing their profits from all sources and the amount of Personal Income Tax payable with the tax authority of the state that they reside in.
This return must be filed within 90 days of the commencement of every year i.e. 31 March of every year.
What happens if individuals do not file their Annual Income Tax Returns?
Such individual(s) will be liable on conviction to a general fine of ₦5,000. Also, they will be liable to a specific fine of ₦100 for every day that the failure to file the returns continues..
It may be important to note that persons whose earn ₦30,000 or less from employment and who have this as their only source of income are not required by law to file their Annual returns.
LIRS through this Public Notice indicated its willingness to assist taxpayers who have difficulties in filing their annual returns through specially designated staff present at all its offices in Lagos.
Taxpayers are also implored to: (i) call the LIRS’ Customer Care representatives on 0700-2255-5477; (ii) visit its website (www.lirs.gov.ng); or (iii) engage the LIRS on social media (@lirsgovng) where they have any issues or require further updates.
One of these days, you may choose to show the LIRS some love and give them a call!
Have a delightful weekend and #StaySafe!