OGIRS issues public notice on Post COVID-19 Lockdown palliatives
The Ogun State Internal Revenue Service (OGIRS) has issued a public notice (“the Notice”) on the Post COVID-19 Lockdown palliatives for taxpayers in Ogun State. The Notice, which was published on their official website, conveys the response of the Ogun State Government to the effect of COVID-19 on tax-resident businesses and individuals.
In the Notice, OGIRS communicated a 6-month extension period, from 31 March 2020 to 30 September 2020, for the filing of individual annual returns (Form A) by self-employed individuals/informal sector. The Service also granted an 8 -month extension for the filing of the 2019 annual employer tax returns (Form H1), from 31 January to 30 September 2020.
The following additional palliatives were also provided to taxpayers:
- Waiver of penalty and interests for late filing of 2019 annual PAYE tax returns during the approved extension period
- Waiver of penalty and interests for late remittance of monthly PAYE from 31 January 2020 to 30 September 2020
- Waiver of penalty and interests for late remittance of direct assessment or personal income tax by self-employed individuals in 2020
- Waiver of weekly tax by operators or promoters of betting and pool businesses from 1 April to 30 June 2020
The Notice also informed stakeholders that OGIRS has adopted video conferencing as the official mode for tax audit reconciliation committee (TARC) meetings, in alignment with safety measures published by health agencies. The adoption of technology to aid TARC meeting is a welcome development that will reduce the tax audit cycle and thereby generate more revenue for the government.
We commend the Service for taking this initiative to mitigate the burden of the pandemic on the taxpayers in Ogun state.
Meanwhile, it is the expectation of taxpayers that the palliatives will be extended to the following areas during this critical period, to further ease cash flow challenges:
- An extension of the waiver of interests and penalties to protracted tax audits. This will aid taxpayers to regularise their books and thereby unlock tax revenues hitherto trapped as a result of audits.
- A tax rebate to all (individuals and businesses) who have duly complied with extant tax laws at the end of the current tax year considering the current cash flow challenges that many taxpayers are facing.
Nevertheless, it is expected that OGIRS will continue to monitor and review COVID-19 developments and introduce additional palliative measures in response to the pandemic, at the appropriate time.
We will continue to monitor this space and provide updates as they become available. Please click to access the Notice.