Kaduna State Internal Revenue Service (KADIRS), has introduced COVID-19 tax incentives to cushion the effects of the pandemic on taxpayers, in addition to previously introduced palliatives.
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A statement issued by the Executive Secretary of KADIRS, Dr Zaid Abubakar, on Friday listed the new incentives to include “extension of deadline for filing tax returns, waiver of penalties and interest for late filing of returns, and tax rebate.
“The Kaduna State Government is granting the incentives in accordance with Sections 95 (1) and 127 of the Kaduna State Tax (Codification and Consolidation) Law, 2016,’’ he said.
Abubakar added that Kaduna tax payers would be given “grace periods for payment of consumption tax by the entertainment and hospitality sector, PAYE by private schools and for persons subject to presumptive tax.’’
According to the Executive Secretary, “the deadline for the filling of Annual Tax Returns has been further extended to Sept. 30, 2020.
“Penalties and interests that hitherto would accrue for late filling of returns have been waived for the period of the extension (April 1, to July 31, 2020).
“Filling of Annual Tax Returns within the extended period shall be deemed to be within the statutory timeline and shall attract 1 per cent rebate on tax due,’’ he added.
Abubakar further said that KADIRS had opened a window within the period of extension for amicable or out of court settlement of all pending cases in courts or tribunals.
He said taxpayers subject to Presumptive Tax shall enjoy a four-month grace period to recover from the shock of the lockdown from June 1, to Sept. 30, 2020.
“The Entertainment and Hospitality Sector shall enjoy a grace period on payment of Consumption Tax for the period of April 1, to Sept. 30, 2020.
“Private schools shall enjoy a grace period on payment of PAYE for the period of April 1, to Sept. 30, 2020,’’ he said.
Abubakar said that defaulting taxpayers that had hitherto failed to subject themselves to tax, either by failing to declare, under-declared, failed to file returns or failed to pay their taxes shall be granted amnesty from prosecution.
According to him, such persons may be allowed a waiver on accrued penalties and interests, if they voluntarily declare their Assets/Incomes and pay between June 30, and Dec. 31, 2020.’’
Also, “tricycle, bus and taxi operators shall enjoy a grace period on payment of daily revenue for the period of April 1, to Sept. 30, 2020.
“In line with social distancing measures, taxpayers can utilise our on-line tax audit/investigation and reconciliation meetings.
“Taxpayers are also enjoined to take advantage of our various e-tax platforms (www.kadirs.kdsg.gov.ng), to file tax returns, process their vehicle particulars, as well as purchase number plates,’’ he added.