LIRS PAYE mid year tax review. 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.