The Lagos State Internal Revenue Service (LIRS) has directed all employees residing in Lagos to file their Annual Income Tax Returns on or before March 31 each year, warning that failure to comply will attract penalties and possible prosecution.
In a notice issued to Human Resources Directors of corporate organisations across the state, the Executive Chairman of LIRS, Ayodele Subair, emphasised that the directive is backed by existing provisions of Nigerian law.
According to the notice, “Lagos State Internal Revenue Service (LIRS) wishes to remind all corporate organizations operating within Lagos State of the statutory obligation placed on individuals to file their Annual Income Tax Returns as prescribed under the applicable laws of the Federal Republic of Nigeria.”
Citing Section 24(f) of the 1999 Constitution (as amended), LIRS stated that, “it is the duty of every citizen to declare their income honestly to the appropriate and lawful agencies and to pay their taxes promptly.”
The agency further referenced Section 13 of the Nigeria Tax Administration Act, 2025, noting that, “every taxable person [is required] to file an annual return of income with the relevant tax authority within the prescribed period.”
It clarified that all employees in Lagos must file their returns using Form A with LIRS on or before March 31 annually, “irrespective of the fact that their taxes may already be deducted at source under the Pay-As-You-Earn (PAYE) scheme.”
LIRS urged corporate organisations to support compliance, stating, “we request the cooperation of your Human Resources Department to sensitize and ensure that all employees within your organization comply with this statutory requirement by filing their annual income tax returns within the stipulated timeline.”
The agency warned that non-compliance would attract financial penalties, noting, “failure to comply with this statutory obligation attracts administrative penalties of N100,000 for the first month of default and N50,000 for each subsequent month for as long as the failure continues.”
It added that, “penalties will be raised against your staff upon expiration of the deadline of 31 March 2026,” stressing that such penalties “do not preclude LIRS from initiating prosecution against any staff found to be in violation of the law.”
LIRS said increased compliance would strengthen tax administration in the state, adding that, “your organization’s support in encouraging and facilitating compliance by employees will significantly enhance voluntary tax compliance and strengthen the overall tax administration framework within Lagos State.”
The agency advised taxpayers seeking clarification to contact its support lines or visit its electronic tax portal for assistance with the filing process.
Boluwatife Enome
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