Employers in Lagos State have been handed a firm January 31 deadline to file their 2024 annual tax returns, the Lagos State Internal Revenue Service (LIRS) announced. This legal requirement, rooted in the Personal Income Tax Act (PITA) Cap P8 LFN 2004 (as amended), compels employers to submit detailed records of employee emoluments, taxes deducted, and remitted for the previous financial year.
Dr. Ayodele Subair, the Executive Chairman of LIRS, issued a stern warning about the repercussions of non-compliance. “Employers must prioritize the timely filing of their annual income tax returns to avoid penalties,” he said. “Submitting returns on or before the deadline ensures compliance with the law and supports accurate revenue tracking, which is essential for Lagos State’s fiscal planning and sustainability.”
Legal Obligations and Penalties
Under Section 81 of PITA, every employer is required to file annual returns of all employee earnings and taxes deducted no later than January 31. Non-compliance could attract statutory penalties and other legal sanctions. This provision underscores the government’s commitment to boosting revenue collection and ensuring financial accountability.
The LIRS emphasized that the annual filing plays a critical role in ensuring transparency in tax administration. The information provided enables the state to assess its revenue streams and plan future budgets effectively, especially given Lagos State’s economic prominence in Nigeria.
Embracing Digital Transformation
This year, LIRS has fully transitioned to a digital filing system, eliminating manual submissions entirely. Employers must now use the LIRS e-Tax portal (https://etax.lirs.net) to file their returns. The platform has been described as secure and user-friendly, providing a seamless experience for users.
Highlighting the benefits of the e-Tax portal, Dr. Subair stated, “This innovative platform simplifies the tax filing process and aligns with our vision of a technologically advanced revenue system. We urge employers to embrace this digital shift.”
The digital initiative also ensures the inclusion of Payer IDs for all employees in submitted returns. Employees without Taxpayer IDs are required to generate one on the e-Tax platform to prevent disruptions.
Support and Guidance for Employers
To facilitate compliance, LIRS has stationed personnel at various offices to assist employers with navigating the e-Tax system. Employers experiencing difficulties can also access support through multiple channels, including:
- Website: www.lirs.gov.ng
- Social Media Platforms:
- Facebook & LinkedIn: Lagos State Internal Revenue Service
- Instagram & YouTube: @lirsgovng
- X (formerly Twitter): @lirs_govng
- Email: [email protected]
- Hotline: 0700-CALL-LIRS (0700-2255-5477)
LIRS reiterated its commitment to providing necessary assistance and ensuring that no employer is left behind in this compliance drive.
Past Challenges and the Way Forward
LIRS has consistently emphasized the importance of tax compliance in driving Lagos State’s development agenda. In previous years, some employers failed to meet the annual filing deadline, leading to punitive measures. To curb such occurrences, the agency introduced the e-Tax system to streamline the filing process.
Experts believe the digitalization of tax filings will significantly reduce errors and delays while boosting compliance levels. Tax consultant Adebola Fajobi remarked, “The transition to digital filing is a game-changer. It eliminates excuses and compels employers to meet their obligations promptly.”
Implications for Lagos State Economy
Lagos State, often referred to as Nigeria’s economic hub, relies heavily on internally generated revenue (IGR) to fund its ambitious projects. Annual tax returns form a crucial component of this revenue framework, enabling the state to finance infrastructure, healthcare, education, and other key sectors.
Dr. Subair underscored the broader impact of tax compliance, stating, “Every naira collected contributes to the state’s development. We urge all stakeholders to play their part in building a prosperous Lagos.”
Employer Preparedness
With less than three weeks remaining before the January 31 deadline, employers have been urged to act swiftly. Industry leaders have commended LIRS for its proactive measures but noted the need for employers to prioritize tax filing.
In a statement, a representative of the Lagos Chamber of Commerce and Industry (LCCI) urged businesses to take the directive seriously. “Compliance is non-negotiable. Meeting the deadline safeguards businesses from penalties and demonstrates a commitment to corporate responsibility.”
