The Director of Legal Services at the Lagos State Internal Revenue Service, Mr. Seyi Alade, recently discussed the legal implications of non-compliance with the filing of Annual Tax Returns by individuals and firms in the state. In an interview with ANOZIE EGOLE, he shed light on the specific legal provisions governing this process.
According to Mr. Alade, the Constitution of the Federal Republic of Nigeria, 1999, mandates every citizen to declare their income honestly and pay their taxes promptly. Failure to do so can result in pecuniary fines and custodial punishments, as well as being assessed on a best of judgment basis. The seriousness of this offense was highlighted by a recent case where a popular individual in Lagos State was remanded in Kirikiri Prison for failing to file and pay assessed taxes.
Individuals have legal rights to confidentiality regarding their tax information, protected by the Personal Income Tax Act 2011. They can challenge or appeal any decisions or assessments made by LIRS within 30 days, ensuring fairness and accountability in the tax assessment process.
Providing false or inaccurate information on tax returns is a serious offense, punishable by a fine or imprisonment. However, individuals can seek legal recourse if they believe they have been unfairly penalized or treated by LIRS, by objecting to the assessment or approaching the Tax Appeal Tribunal for redress.
Keeping records of documentation related to Annual Tax Returns is a legal obligation, with failure to do so punishable by a fine. LIRS encourages compliance through public notices, direct notifications, and the e-filing process, making it simple for individuals to fulfill their tax obligations.
Residency status in Lagos State determines the filing and payment of taxes, with residents required to file and pay taxes to LIRS. Taxpayers can seek technical assistance through the agency’s call center, helpdesk, e-Tax platform, official website, and social media platforms.
Overall, compliance with legal requirements for filing Annual Tax Returns is crucial, and individuals must ensure they fulfill their tax obligations to avoid legal consequences.
