An economist and tax practitioner, Dr Ernest Abegbe, has urged the nation’s tax authorities, including the Nigeria Revenue Service (NRS), to introduce a temporary waiver on Late Returns Penalty (LRP) and accrued interest to encourage companies to regularise outstanding tax filings and payments.
Abegbe’s appeal is anchored on Section 66 of the Nigeria Tax Administration Act 2025 and aligns with ongoing reforms aimed at deepening compliance and expanding the national tax base.
He observed that while many businesses are willing to meet their statutory obligations, accumulated penalties and interest, particularly those generated under automated tax platforms such as Taxpromax have created financial and operational hurdles for companies attempting to clear tax backlogs.
“The current reform climate offers a rare opportunity to reset the compliance landscape,” he said.
“However, legacy penalties and accrued interest discourage voluntary disclosure and timely settlement of outstanding liabilities.”
According to Abegbe, a structured and time-bound waiver window limited strictly to LRP and interest, without affecting the principal tax due would deliver multiple gains. These include increased voluntary compliance, clearance of backlog filings by thousands of companies, higher immediate revenue inflows, improved long-term tax culture and trust, and reduced enforcement and litigation costs.
He stressed that such a measure would strike a balance between government revenue objectives and the practical compliance challenges faced by businesses.
“This is not a request for tax forgiveness,” he clarified.
“It is a strategic compliance enhancement measure designed to accelerate revenue collection while fostering goodwill between taxpayers and the tax authority.”
Abegbe, a Fellow of the Institute of Chartered Accountants of Nigeria (FCA) and the Chartered Institute of Taxation of Nigeria (FCTI), reaffirmed his commitment to constructive engagement among policymakers, regulators and the private sector to ensure that ongoing tax reforms achieve fairness, efficiency and sustainability.
