Lagos begins review of tax policy

The Lagos State Internal Revenue Service, LIRS, said it has begun a review of its tax policy. The review according to the agency will identify contentious areas with a view to improving the ease of doing business in the city.

The agency said the move, apart from simplifying the complexities and clarifying grey areas, would also bridge the gap between the tax laws and everyday practice.

It said the objective of the exercise was to ensure adherence to existing provisions by creating ease in different dealings including relief on voluntary pension contributions, allowable interest deductions on owner-occupied residential houses, exemption of compensation for loss of employment, and Pay As You Earn on employee outsourcing arrangements among others.

ALSO SEE: Tax incentives not enough to attract investors – Expert

A release from the agency said, “It is believed that these reviews will address the myriad of tax disputes that arise between the LIRS and taxpayers or their representatives, whilst strengthening its position as an efficient revenue earner that provides high quality and transparent customer oriented services.

 “Taxpayers in Lagos are hereby enjoined to take full advantage of this exercise by looking out for publications in national dailies, explaining details of the reviews in the coming days.”