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BUSINESS & ECONOMYNEWSLETTER

FIRS Directs Firms Seeking To Pay CIT In Instalments To Apply Before Due Date

FIRS To Check Computers Of Taxable Persons for Tax Liabilities

The Federal Inland Revenue Service (FIRS) says any company that wishes to pay income taxes in installments must apply in writing before the due date of filing.

According to a statement signed by Muhammad Nami, the FIRS executive chairman, the application must be accompanied by evidence of full payment of tertiary education tax (TEDT) and the first instalment of the companies income tax (CIT) due.

Section 77 (5) of the 2004 Company Income Tax act amended by the 2019 finance act states that: “Every company shall make payment of tax due on or before the due date of filing, in one lump sum or in instalments”.

“Provided that, where the taxpayer pays in instalments- (a)the taxpayer shall first write, with evidence of payment of the first instalment, and obtain the approval of the Service to pay in such number of instalments as may be approved by the Service; and

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“(b)the final instalment must be paid on or before the due date of filing.

“(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.”

The FIRS also explained that the last instalment 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,” the statement read.

The FIRS said it would be compelled to carry out tax recovery measures in line with Section 85 (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.

About Author

Victor Okeh is a graduate of Economics from Lagos State University. He is versatile in reporting business and economy, politics and finance, and entrepreneurship articles. He can be reached via – [email protected]

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