CIT Returns: FIRS extends filing date till August 31st

In a bid to encourage compliance, the Federal Inland Revenue Service (FIRS) has extended the due date for filing Company Income Tax returns.  Special Assistant (Media & Communication) to the Executive Chairman of FIRS, Johannes Oluwatobi Wojuola, in a statement to journalists Monday, said the filing for CIT will not attract penalties or interest. The Service said: “Companies that were unable to file their Companies Income Tax returns for the 2023 year of assessment (YOA) that fell due on the 30th of June 2023 have been given up to 31st August, 2023 to submit their returns to the Federal Inland Revenue Service (FIRS).” According to the Service, it received numerous calls from companies requesting the extension of time to submit their Companies Income Tax (CIT) returns as they were unable to meet up with the deadline due on 30th June 2023.  A public notice signed by FIRS boss, Muhammed NAMI, notes that as a measure of goodwill and in line with relevant provisions of the Companies Income Tax Act, “all companies whose CIT returns for the 2023 year of assessment that fall due between 30th June and 31st August 2023 (both days inclusive) are given up to 31st August 2023 to submit the returns to the Service.” The FIRS noted that the relevant Companies’ Income Tax returns will not attract late filing penalties or interests if payments were made on or before 31st August 2023, noting further that where companies fail to file by the extended date, the penalty and interest for late payment will be computed from the original due date.  “The relevant CIT returns shall, therefore, not attract Late Filing Penalty or interest for late payment if submitted to the Service on or before 31st August 2023. “Where relevant CIT returns are not filed by the extended date, penalty and interest for late payment shall be computed from the original due date and not the extended date.” The Service also stated that the extension of the filing date is only for Companies’ Income Tax and does not include returns for withholding tax, value-added tax, and personal income tax (PAYE), among others.  “The Service invites all relevant taxpayers to take the opportunity afforded by this extension to submit their CIT returns within the specified time, pay the taxes due and avoid payment of penalty and interest,” the notice read.

FCT-IRS bemoans payment of Withholding Tax to wrong jurisdictions

The FCT Internal Revenue Service (FCT-IRS) has urged Ministries Departments and Agencies (MDAs), and contractors in the territory to remit Withholding Taxes (WHT) appropriately to it. Its spokesman, Mr Mustapha Sumaila, noted in a statement he issued in Abuja, that many organisations erroneously remitted withholding taxes meant for the FCT-IRS to other tax authorities. He stressed that it was important for taxpayers to understand tax jurisdiction rules. According to him, WHT for limited liability companies is remitted to the Federal Inland Revenue Service (FIRS) while WHT for Enterprises and Individual contractors goes to Internal Revenue Services of states or to FCT-IRS. “We have observed instances where wrong tax jurisdiction is entered on the Government Integrated Financial Management Information System (GIFMIS) platform by MDAs’ desk officers. “This error can lead to contractors suffering loss of WHT credit and relevant tax authority experiencing revenue loss. “The beneficiary of the WHT may also be denied the WHT credit. “To prevent such losses, we urge all MDA desk officers to ensure accurate data entry at the point of initiation. “We also wish to draw the attention of enterprises and individual contractors in the FCT to this issue and caution them of the potential consequences,’’ he stated. Sumaila warned that FCT-IRS would not issue Tax Clearance Certificates on WHT credit wrongly sent to other tax jurisdictions by GIFMIS platform. “We advise all taxpayers to liaise closely with their respective MDA desk officers to ensure the correct tax jurisdiction is selected during WHT remittance. “Our aim is to ensure seamless tax administration system that supports compliance, promotes ease of doing business, and upholds principles of transparency and accountability,’’ he stressed. The FCT-IRS took over the administration, collection, and accounting of taxes in the FCT from the FIRS in 2018.