The Lagos State Internal Revenue Service has reaffirmed March 31 as the deadline for filing annual income tax returns, but confusion persists among residents of Lagos over the difference between paying tax and filing returns.

In a notice to corporate organisations, LIRS stressed that filing annual tax returns is a legal requirement for all taxable individuals, including employees under the Pay-As-You-Earn system, regardless of deductions already made from their salaries.

The agency warned that failure to file attracts penalties of ₦100,000 for the first month and ₦50,000 for each subsequent month of default.

Despite this, many residents surveyed admitted they either equate tax filing with direct payments or believe deductions and daily levies already cover their obligations. Others said they were unaware of the requirement entirely.

Some respondents also questioned enforcement, citing economic hardship, lack of digital access, and concerns over accountability.

LIRS has directed taxpayers to file through its electronic platform, urging them to log in, update their details, and submit returns before the deadline.

However, findings suggest a significant awareness gap remains, with many residents still unclear that filing tax returns is a separate obligation from paying taxes, even when little or no tax is owed.