Business entities with an annual banking turnover in excess of N100million that have been collecting Value Added Tax (VAT) and deducting Withholding Tax (WHT) without remitting same to the Federal Government have until 14 March to register for tax.
In the event for failure to comply with this directive, such business entities face the risk of the bank accounts been restricted from 15 March, the terminal date of the 30-day grace period granted by the Federal Inland Revenue Service (FIRS).
The FIRS had, on 14 February, directed commercial banks to lift the restriction placed on the bank accounts of tax-defaulting business entities to allow them regularize their tax affairs. This was sequel to the rush to various FIRS offices by the affected business entities for the purpose of registration and payment, a situation that tasked the Service administratively, as it could not lift the restriction on accounts as quickly as necessary.
With the grace period ending on 15 March, non-compliant business entities will, again, have restriction placed on their accounts.