LIRS Warns Lagos Workers Of Penalties For Failing To File Annual Tax Returns By March 31

LIRS Warns Lagos Workers of Penalties for Failing to File Annual Tax Returns by March 31 The Lagos State Internal Revenue Service (LIRS) has warned workers in Lagos to file their annual income tax returns on or before March 31, stressing that failure to comply could result in fines and possible prosecution.

In a directive issued to corporate organisations, LIRS reiterated that filing annual tax returns is a statutory obligation for all taxable individuals residing in Lagos, regardless of whether their taxes are already deducted through the Pay-As-You-Earn (PAYE) system. The agency, led by Executive Chairman Ayodele Subair, noted that the requirement is backed by provisions of Nigerian law, including the 1999 Constitution and the Nigeria Tax Administration Act, 2025. According to LIRS, employees must file their returns annually using the designated Form A, declaring all sources of income from the previous year. The agency emphasized that compliance applies to all workers, even those who believe they have no additional tax liabilities. Failure to meet the March 31 deadline attracts financial penalties, with defaulters liable to pay ₦100,000 for the first month of default and ₦50,000 for each subsequent month until compliance is achieved. LIRS further warned that penalties do not preclude legal action, stating that prosecution may be initiated against individuals who fail to fulfill their obligations under the law. The agency urged employers and human resources departments to ensure that staff are properly sensitised and supported in meeting the deadline, noting that improved compliance would strengthen tax administration and revenue generation in Lagos State. Tax officials also advised residents to use the LIRS electronic filing platform and seek assistance where necessary to avoid last-minute challenges.