Kaduna Introduces More Covid-19 Tax Incentives

In addition to other palliatives that it had earlier rolled out, the Kaduna State Internal Revenue Service (KADIRS) has introduced Covid-19 tax incentives to cushion the effects of the pandemic on taxpayers.

A statement issued by the Executive Secretary of KADIRS, Dr Zaid Abubakar on Friday, listed the new incentives to include ‘’extension of deadline for filing tax returns, waiver of penalties and interest for late filing of returns, and tax rebate.’’

‘’The Kaduna State Government is granting the incentives in accordance with Sections 95 (1) and 127 of the Kaduna State Tax (Codification and Consolidation) Law, 2016,’’ he clarified.

Dr Abubakar also said that Kaduna tax payers will be given ‘’ grace periods for payment of consumption tax by the entertainment and hospitality sector, PAYE by private schools and for persons subject to presumptive tax.’’

According to the Executive Secretary, ‘’the deadline for the filling of Annual Tax Returns has been further extended to 30thSeptember 2020.’’

‘’Penalties and Interests that hitherto would accrue for late filling of returns have been waived for the period of the extension (1st April to July 31st, 2020).

‘’Filling of Annual Tax Returns within the extended period shall be deemed to be within the statutory timeline and shall attract 1% rebate on tax due,’’ he added.

Abubakar further said that KADIRS has opened a window within the period of extension for amicable or out of court settlement, of all pending cases in courts or tribunals.

The statement also said that ‘’taxpayers subject to Presumptive Tax shall enjoy a four-month grace period to recover from the shock of the lock down (1st June to 30thSeptember 2020)”.

The Entertainment and Hospitality Sector shall enjoy a grace period on payment of Consumption Tax for the period of 1st April to 30thSeptember 2020, the statement added.

‘’Private schools shall enjoy a grace period on payment of PAYE for the period of 1st April to 30thSeptember 2020,’’ KADIRS further said.

Dr Abubakar said that defaulting taxpayers that have hitherto failed to subject themselves to tax, either by failing to declare, under- declare, failed to file returns or failed to pay their taxes shall be granted amnesty from prosecution and may be allowed a waiver on accrued penalties and interests, if they voluntarily declare their Assets/Incomes and pay between 30th June to 31st December, 2020.’’

According to him, ‘’tricycle, bus and taxi operators shall enjoy a grace period on payment of daily revenue for the period of 1st April to 30thSeptember 2020.

‘’In line with social distancing measures, taxpayers can utilize our on-line tax audit/investigation and reconciliation meetings.