SMES please jump in here......

Have you received any letter recently from the Lagos State Internal Revenue Service (LIRS) asking for the receipt of mid-year salary projections for employee with respect to the 2017 tax year?

The LIRS has recently started requesting for such returns and they are relying on Section 46 of the Personal Income Tax Act, LFN Cap P8 of 2004, which states that:

The relevant authority may give notice in writing to a person when and as often as it think its necessary requiring him to deliver within a reasonable time limited by such notice fuller or further returns respecting any matter as to which a return is required or prescribed by this Act.

The Lagos State Internal Revenue Service also stated that the projections which covers the period July to December 2017 should include the following:

Start dates for new employees who were not on the payroll as at January 2017, where applicable;

Projections for routine salary increments and periodic bonus payable within the mid-year period under consideration; and

Salary schedule and bank instructions for voluntary remittances for the half-year ended 30 June 2017 for reference.

The returns should be submitted in hard and soft copies, to office of the Executive Chairman of the LIRS on or before 7 days of receipt of the notice from LIRS. Please note that the LIRS office would issue template in which the returns are to be submitted.

As soon as the LIRS officials receive the information from the employer, they would then schedule a meeting with the employer at the office to conduct necessary checks in order to ascertain the correctness of the information provided.

Have you received any letter related to this from the LIRS? Do not panic, just follow the clear instructions and feel free to ask questions here if you need further clarifications.

Check out more information on the tax blog for Nigerian SMEs:

https://www.taxprof.com.ng/smes-lirs-paye-mid-year-tax-review/

cc: lalasticlala, mynd44, davide470

Lagos is now second to UK abi?

Lagos is serious about this tax issue.

It pays to pay our tax levy. Considering the developmental iniatives of Ambode, let's make him and his administration do more.




Genius J

Everyone must pay tax, you can't be preaching tithe and forget tax.

LIRS and revenue drive.

You may need to visit the Virtual Accountant for guidance.

See my signature.

Virtualaccounts:
LIRS and revenue drive.

You may need to visit the Virtual Accountant for guidance.

See my signature.

Nice, I love this concept. Keep up the good work!

its cool...

lightning networks ikeja. the company i worked for more than 4 yrs. they will deduct the tax from my salary every month but no evidence to prove. u will soon hear frm me.

i think they were no remiting my tax

Interesting.

I'm fully prepared.

I even get monthly sms from LIRS on balance or payment made via my TIN

wawappl:
lightning networks ikeja. the company i worked for more than 4 yrs. they will deduct the tax from my salary every month but no evidence to prove. u will soon hear frm me soon

Do you have employee tax card that looks like ATM card?

blueseacats:
Everyone must pay tax, you can't be preaching tithe and forget tax.

So true, including churches and Pastors.

The're treated as Charities, but with their universities and private business ventures earning more than the public higher institutions, they should be taxed.

Afterall the tax money belong to ceasar back then, now Naira belongs to the government.

Lagos state government should develop a better system to bring more people in the informal sector to tax. While the formal sectors remains the highest contributor to tax (PAYE, WHT, etc) in Lagos, the government should be careful on putting so much declaration activities on them. Annual projection was submitted during the annual filing for 2016, why request for another half year projection for 2017. May been I am missing something.

davodyguy:


Do you have employee tax card that looks like ATM card?

no sir

wawappl:
no sir

So no one is remitting tax on your behalf. The company needs to be queried.

LIRS should just make it a monthly affairs

davodyguy:


So no one is remitting tax on your behalf. The company needs to be queried.

I can say many company in lagos do not pay or remit income tax to lagos state.

wawappl:
lightning networks ikeja. the company i worked for more than 4 yrs. they will deduct the tax from my salary every month but no evidence to prove. u will soon hear frm me.

i think they were no remiting my tax

They should at least provide for evidence sake, the monthly remittance schedule for Lagos and a receipt to back the totals. Mostly likely, they don't get audited by LIRS(not in the tax net) or settle their way out.

davodyguy:


So no one is remitting tax on your behalf. The company needs to be queried.

Not necessarily. It's possible the company has remitted but they didn't give the rmployee the form to complete to enable the processing of the cards.

The ex employee is required to send a mail requesting for his tax card. This will trigger the processing if they have paid otherwise he can take a legal step or write ato complain to LIRS.

Good write up there.

with the ongoing LIRS PAYE, WHT Audit for the yeer 2016, do you think LIRS will take up the half year PAYE review?

Remember that their is an investigation on all hospitality organisations for their consumptions tax!!

Lets talk

Virtualaccounts:


Not necessarily. It's possible the company has remitted but they didn't give the rmployee the form to complete to enable the processing of the cards.

The ex employee is required to send a mail requesting for his tax card. This will trigger the processing if they have paid otherwise he can take a legal step or write ato complain to LIRS.

In my place, its a different approach. We demanded for our cards, cos even with cards, they failed to remit for over 1 year. My colleague wanted to travel, but the tax account was empty.

davodyguy:


In my place, its a different approach. We demanded for our cards, cos even with cards, they failed to remit for over 1 year. My colleague wanted to travel, but the tax account was empty.

This is possible. However, you can pay your taxes and your card will still be empty. There's a process to update your taxes to your card. The tax payer (your company) is expected to submit an application to update tax information.

This is part of the services we provide our client a at virtualaccountant.ng.

Virtualaccounts:


Not necessarily. It's possible the company has remitted but they didn't give the rmployee the form to complete to enable the processing of the cards.

The ex employee is required to send a mail requesting for his tax card. This will trigger the processing if they have paid otherwise he can take a legal step or write ato complain to LIRS.

Please is it compulsory for employer to remit PAYE up to a year before demanding for etcc card on behalf of the employee?

micolaj:
Please is it compulsory for employer to remit PAYE up to a year before demanding for etcc card on behalf of the employee?

Employers can demand for etcc on behalf of their employees only when they have filed their returns. Returns are filed for PAYE in January.

Good. Time to milk those useless developers who've been making shitloads of money in Lagos without paying taxes.

Virtualaccounts:


Employers can demand for etcc on behalf of their employees only when they have filed their returns. Returns are filed for PAYE in January.

Thanks