An economist and tax practitioner, Dr Ernest Abegbe, has urged the nation’s tax authorities to introduce a temporary waiver on the Late Returns Penalty and accrued interest to encourage companies to regularise outstanding tax filings and payments.
Abegbe said this in an interview where he noted that the waivers would align with ongoing reforms aimed at strengthening compliance and expanding the national tax base.
The tax practitioner revealed that the proposed measures were anchored on Section 66 of the Nigerian Tax Administration Act 2025.
He noted that while many businesses are willing to meet their statutory obligations, accumulated penalties and interest, particularly those generated through automated tax platforms, have created financial and operational burdens for firms seeking to clear backlogs.
According to him, the current reform climate presents an opportunity to reset the compliance landscape, adding that legacy penalties and accrued interest often discourage voluntary disclosure and timely settlement of outstanding liabilities.
Abegbe proposed a structured and time-bound waiver window limited strictly to penalties and interest without affecting the principal tax due.
He said such an arrangement would drive increased voluntary compliance, facilitate the clearance of backlog filings by companies, boost revenue inflows, strengthen long-term tax culture and trust, and reduce enforcement and litigation costs.
“This is not a request for tax forgiveness,” he said. “It is a strategic compliance enhancement measure designed to accelerate revenue collection while fostering goodwill between taxpayers and the tax authority.”
The tax expert added that the approach would balance government revenue objectives with the practical compliance challenges faced by businesses, while reinforcing fairness and sustainability in the evolving tax framework.
Abegbe reaffirmed his commitment to constructive engagement among policymakers, regulators and the private sector to ensure that ongoing tax reforms deliver efficiency and long-term stability.
The PUNCH reports that new tax reform laws went into force on 1 January 2026.
