FIRS: Companies Seeking To Pay CIT In Instalments Must Apply Before Due Date

The Federal Inland Revenue Service (FIRS) says any company that
wishes to pay income taxes in instalments 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

“(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.

The Federal Inland Revenue Service (FIRS) says any company that
wishes to pay income taxes in instalments 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

“(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.