LIRS warns Lagosians: File your tax returns by March 31st to avoid penalties

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The Lagos State Internal Revenue Service (LIRS) has issued a reminder to all individual taxpayers within the state to file their annual tax returns by March 31st, 2024. This directive applies to both self-employed individuals and those employed under the Pay As You Earn (PAYE) scheme.

The announcement, made through a statement signed by LIRS Head of Corporate Communications, Monsurat Amasa-Oyelude, emphasizes the legal obligation for residents to file their returns. This obligation is stipulated in Section 41 of the Personal Income Tax Act (PITA) Cap P8 2011 (as amended).

“Under Section 41 of the Amendment Act, all taxable entities must submit a return reflecting their total income from all sources for the preceding fiscal year to the relevant state tax authority within 90 days of the commencement of each new assessment year,” she said.

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While emphasising that tax returns should be submitted exclusively through the LIRS eTax portal, the LIRS said all taxable entities within Lagos State must register on the eTax portal, “which has been designed to provide ease, convenience, and security to taxpayers.”

“In furtherance of our commitment to facilitating compliance for taxpayers, dedicated tax officers are available at our various tax stations to assist individuals in completing online registration and tax return submissions via the eTax portal,” the statement further noted.

The statement highlights the importance of filing returns within the designated timeframe. Failure to comply by March 31st could result in penalties for late submission. The specific nature of these penalties was not disclosed in the LIRS announcement.

Who Needs to File?

The LIRS directive encompasses all individual taxpayers in Lagos State. This includes:

• Self-employed Persons: Individuals running their own businesses or providing freelance services are required to file returns.
• PAYE Employees: Those employed by companies and organizations that deduct income tax at source (PAYE) are also obligated to file individual tax returns.

Why File Your Tax Returns?

Filing tax returns allows the government to assess individual tax liabilities and ensure a fair and balanced tax system. It also provides valuable data for economic planning and resource allocation.

How to File Your Tax Returns

The LIRS encourages taxpayers to utilize their online tax filing platform for a convenient and efficient filing process. Details and instructions on how to file online can be found on the LIRS official website https://lirs.gov.ng/.

The LIRS announcement serves as a timely reminder for Lagos residents to fulfill their tax obligations. By filing their returns before the March 31st deadline, taxpayers can avoid potential penalties and contribute to the state’s economic development.