Monday,October 05, 2020 / 11:30AM / Deloitte / Header Image Credit: Deloitte 

The coronavirus pandemic has causedmonumental disruptions to health, economies and businesses. Governments aroundthe world responded with different stimulus packages and palliative measuresbased on each country's fiscal headroom and economic strength. Nigeria'sFinance Ministry and Central Bank released different economic stimulus packagesand palliative measures that are aimed at cushioning the impact of thepandemic.

Amidst the constraints of paucity of fundsand the drive to raise non-oil tax revenue for the country, the response ofNigeria's Tax Authorities to the unprecedented challenge has focused on increasingthe adoption of technology, extending timelines for the filing of returns,waiving of penalties and interest and other administrative measures. While theFederal Inland Revenue Service has led the charge in offering theseadministrative palliatives to taxpayers, a number of State Governments, throughthe relevant State Internal Revenue Service, have equally offered succour totaxpayers.

About 23 State Internal Revenue Serviceshave issued public notices in recent times, offering COVID-19 palliativemeasures to taxpayers. The palliative measures, which include deferment of taxpayment, extended timelines for filing tax returns, waiver of penalties andinterest, are meant to assuage taxpayers' burden during this pandemic.

Many Tax Authorities adoptedteleconferencing as the official mode for tax audit reconciliation meetingsduring the lockdown, in alignment with safety measures published by healthagencies. The increased use of electronic channels and gradual digitisation oftax administration is an important development that should make tax collectionmore efficient.

The adoption of technology is graduallytransforming the face of tax administration in Nigeria, leading to theoptimisation of tax processes, with a potential increase in tax revenue.Improving and sustaining the digitalisation effort is critical to the overalldrive for increased tax penetration and higher yields from tax collection.

This publication provides information about the palliatives offered byvarious Tax Authorities across the country. The compilation includes links tothe public notices and information circulars from the relevant Tax Authorities.It is expected that Tax Authorities will provide updates and further guidelinesin the days ahead.

Downloadthe Compendium Here

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