Nigeria’s tax authority has published in a local newspaper a request to taxpayers to submit their tax return for 2013 on August 12, 2013 and it focused on the rules for companies to file returns and fix obligations of their income tax, and the rules for making tax remittances in installments.
By this article, the tax authority described the way that companies are to fix their tax accountability in installments and noted the applicable penalty regime. Companies that agree to pay their tax liabilities by installments must commence the payments in the relevant tax year so they can complete their payments by the date on which the tax return for that year is due. The intention to charge penalties does not however appear to be in line with the requirements of the tax law. Taxpayers should therefore be cautious when paying tax by installments.
