January 17, 2018
As you may be aware, Section 81(2) of the Personal Income Tax Act CAP P8 LFN 2004, as amended, (PITA) requires employers of labour to render returns of all emoluments paid to each employee in any preceding year, to the Relevant Tax Authorities not later than 31st January of every year. All employers of labour are therefore required to file their 2017 annual returns for the year ended December 2017 not later than Wednesday, 31 January 2018. The returns shall include any relief and tax deducted from an employee within the stated period.
Failure to file the required returns before the expiration of the deadline attracts a penalty of ₦500,000 upon conviction, where such employer is a body corporate, and ₦50,000 in the case of an individual.
As the government at all levels continues the drive for increased revenue from taxes, it is incumbent on all tax payers to enhance their tax compliance status in order to avoid undue exposures to non-compliance penalties.