FG Warns Nigerians: File Your Tax Returns or Face the Law

The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has urged Nigerians to file their annual tax returns as required by law.

He said paying and filing taxes is compulsory for both employers and individual taxpayers.

Oyedele made this statement during a webinar organised for HR managers, payroll officers, chief financial officers, and tax managers.

The event was held in partnership with the Joint Revenue Board and shared on YouTube on Friday.
He explained that many Nigerians are still not filing their self-assessment tax returns.

According to him, employers are required to file annual tax returns for their employees.

He noted that while many employers have already done so, those who have not only have a few days left to comply. Employers must also include estimates of how much they plan to pay their workers.

Oyedele added that individual taxpayers must also submit their own tax returns. He said tax compliance in Nigeria is very low.

“This is a major problem in Nigeria. In many states, even the most developed ones, less than 5% of people file tax returns,” he said.

He stressed that employees should not assume their tax duties are complete just because their employers deduct tax from their salaries.

“Many people think that once tax is deducted from their salary, they don’t need to do anything else. That is not correct.

Both old and new tax laws require employees to still file their tax returns,” Oyedele explained.
He also said the government is working to make tax filing easier across the country.

“The tax authorities, Joint Revenue Board, and state internal revenue services are trying to simplify the process. Everyone must file tax returns, including low-income earners. Tax returns for the previous year must be filed by March 31,” he said.

Oyedele also noted that companies enjoying tax incentives must now declare those benefits when filing their tax returns.

“Under the new tax law, businesses that benefit from tax incentives must disclose them when submitting their tax returns or shortly after,” he stated.

He added that employers must submit their annual tax returns by January 31 each year. These returns should include details of employees’ salaries and tax deductions.