The Lagos State Internal Revenue Service (LIRS) has reiterated that March 31 remains the statutory deadline for filing annual income tax returns, but findings from a street survey reveal widespread confusion among residents, particularly over the difference between paying tax and filing tax returns.
In a notice addressed to corporate organisations, the agency stressed that filing annual tax returns is a legal obligation for all taxable individuals, including employees whose taxes are already deducted at source under the Pay-As-You-Earn (PAYE) system.
LIRS said: “All employees resident in Lagos State are required to file their Annual Income Tax Returns (Form A) with the Lagos State Internal Revenue Service on or before 31 March of every year, irrespective of the fact that their taxes may already be deducted at source under the Pay-As-You-Earn (PAYE) scheme.”
The agency added: “It is the duty of every citizen to declare their income honestly to the appropriate and lawful agencies and to pay their taxes promptly.”
It warned that failure to comply attracts sanctions, stating:
“Failure to comply with this statutory obligation attracts administrative penalties of ₦100,000 for the first month of default and ₦50,000 for each subsequent month for as long as the failure continues.”
Despite these directives, many Lagos residents interviewed appeared to equate tax filing with direct monetary payment, while others believed they were already fulfilling their obligations through indirect charges and levies.
One respondent said: “We pay things like tickets and levies every day. That is how we believe we are already paying tax.”
Another respondent linked tax strictly to salary deductions, stating: “At the end of the month, before your salary is paid, they deduct it. That is how I pay tax.”
For several participants, the concept of filing annual returns, declaring income separately from payment, remained largely unclear.
A respondent said: “It’s shocking news to me. I don’t know anything about income tax or this deadline.”
While the law applies to all income earners, including those in the informal sector, many traders remain unaware or unconvinced about their obligation to file.
Some respondents also questioned the practicality of enforcing compliance, particularly among low-income earners and those without access to digital tools.
One respondent said: “Some people don’t even have phones or don’t know how to use the internet. How do you expect them to file tax online?”
Economic concerns further shaped public perception, with several respondents arguing that current conditions make compliance difficult.
A respondent said: “Where is the money? People are struggling to survive, so how do you expect them to pay tax?”
Others questioned the fairness of the system, pointing to perceived gaps in accountability.
LIRS has directed taxpayers to use its electronic platform to complete the process by logging in, resetting passwords via a one-time password sent to registered contact details, and selecting the “Returns” option to file. Taxpayers are also advised to verify their income details with employers or administrative units before submission.
However, the survey findings suggest that beyond enforcement, a significant communication gap remains, with many residents unaware that filing tax returns is a separate obligation from paying tax, and one that applies even where little or no tax is owed.
As the deadline approaches, the confusion between tax payment and filing continues to shape public response, raising concerns about compliance levels and the effectiveness of public sensitisation efforts.
How To File Your Tax Returns:
Visit the LIRS eTax portal.
Click on “Login” as a taxpayer.
Select “Password Reset”.
Enter your details and receive a one-time password (OTP) via your registered phone number or email.
Create a new password and log in to your account.
On the dashboard, click on “Returns” on the left-hand side.
Follow the prompts to declare your income and complete your filing.
Taxpayers are advised to confirm their gross income with their HR or administrative department to avoid errors or over-disclosure during the process.
Faridah Abdulkadiri
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