* Offers 20% tax relief to COVID-19 fund donors
The Lagos State government has announced a fresh package of incentives for residents, saying it is in furtherance of its commitment to mitigate the impact of COVID-19 pandemic on both individuals and businesses domiciled within its territory.
Accordingly, the Lagos State Internal Revenue Service (LIRS) has commenced the implementation of additional reliefs and measures to further ease the impact of the pandemic on taxpayers beginning July 16, 2020.
The latest incentives are coming on the heels of the agency’s initial three-month extension of the deadline for filing of annual returns (from March 31 to June 30, 2020).
The Executive Chairman of LIRS, Mr. Ayodele Subair, said: “The following measures are to be implemented to further ease the impact of the pandemic on our esteemed taxpayers in Lagos State. LIRS shall allow on a case-by-case basis, payment of outstanding liabilities in installments to ease cash flow challenges that may affect taxpayers.
“Taxpayers are to enjoy a waiver of penalty for late payment of liabilities under PAYE (Pay As You Earn) that was due during the period of March-May, 2020 when the State was under COVID-19 lockdown.
“In addition, a waiver of penalties due on late filing of 2020 annual tax returns known as ‘Form A’ will be granted. A remarkable waiver of interest and penalty on liabilities arising from 2009 to 2015 tax audit for taxpayers who can pay up on or before December 31, 2020 will be implemented.
“In appreciation of taxpayers that have supported the State Government in the fight against the pandemic, the LIRS, through the Lagos State Government, will be granting tax credit of 20% of all cash and kind donations made towards COVID-19 by individuals resident in the State for the 2021 Year of Assessment (subject to a cap of 35% of tax due).”
Subair further disclosed that additional payment channels have been opened up to make payment of taxes easier, simpler and more convenient for all.
The Executive Chairman pronounced that Video Conferencing has been adopted as the default mode for conducting Tax Audit Reconciliation Committee [TARC] meetings, in compliance with social distancing advisories from government and other relevant health authorities.
He encouraged taxpayers to make use of the agency’s digital communication platforms to get updates on its operations and details of all tax payment platforms. He enjoined all businesses and individuals resident in Lagos to take advantage of these additional palliatives and reciprocate the kind gestures of the government by discharging their civic responsibilities such as prompt payment of taxes and levies due to the State.