TAX WATCH – REMINDER ON ANNUAL TAX RETURNS

TAX WATCH – REMINDER ON ANNUAL TAX RETURNS

Dear  Taxpayers,

In line with our usual practice, we will like to remind you the need to file your annual tax returns at the appropriate time, in order to avoid unnecessary penalty and interest.

In line with S 55 (2) of the Company Income Tax Act,

“Subject to this Act or any regulation made, the time of filing returns shall be:

(a) in the case of a company that has been in business for more than eighteen months, not more than six months after the end of its accounting year; and

(b) in the case of a newly incorporated company, within eighteen months from the date of its incorporation or not later than six months after the end of its first accounting period, whichever is earlier;in addition……………………”

In other words, existing companies with November year end must take steps to file their annual tax returns latest by the end of this month of May. Those with December year end will therefore have deadline of next month, being June.

Failure to comply with this section definitely attract penalty of N25,000 in the first month of default and N5,000 for every subsequent month.

 

OUR CONCLUSION

We advise that taxpayers act on filing their (monthly and annual) tax returns on time without having to wait for the deadline to approach. This will help them avoid being trapped with the law and having to incur unnecessary interest and penalty that may arise fro the delay.

 

Should you have any further clarification or question on the above subject or any other issue in taxation, kindly contact us on partners@habileconsulting.com or the Chief Executive Officer, Habile Consulting on 0818 564 1411 and we will be glad to attend to request.