Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has urged Nigerians to comply with statutory tax filing requirements, stressing that tax compliance is mandatory for both individuals and employers.
Oyedele made the call during a webinar organised for HR managers, payroll officers, chief financial officers and tax managers in partnership with the Joint Revenue Board. He noted that many Nigerians are yet to file their self-assessment tax returns.
“This is one area where we have been non-compliant in Nigeria. In many states, more than 90%—even the most sophisticated states—cannot boast of 5% filing returns,” Oyedele said.
He explained that employees are still required to file tax returns even if taxes are deducted at source by their employers.
“Many people assume that if they are an employee and the employer has deducted pay, they don’t have to do anything. That is wrong. Both under the old and new tax laws, you must still file your returns.”
Oyedele reminded employers of their obligation to file annual returns for staff.
“In terms of filing returns, you need to file annual returns as employers for your employees. Many of you must have done that already. If you haven’t, you have just a couple of days left to file those returns, including projections of how much you will pay your staff,” he said.
He added that tax authorities are working to simplify the filing process nationwide.
“I’m sure the tax authorities, joint revenue boards, and various state internal revenue services are working on how to make this process simpler and easier. All of us must file our returns, including those earning low income. You must file returns by 31st March of the year in respect of the previous fiscal year.”
Oyedele also stated that companies benefiting from tax incentives must disclose such benefits when filing returns.
“Under the new tax law, if you operate a business as an enterprise and you enjoy certain incentives, you have the obligation to disclose those incentives. There’s a disclosure requirement for tax incentives that is not available to everybody as a general rule for taxpayers—to disclose them when filing their tax returns or shortly after.”
He further noted that employer annual returns, which cover employees’ emoluments and tax deductions, are due by January 31 each year.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
