The Corporate Affairs Commission (CAC) has announced an extension of the deadline for the full application of penalties concerning the failure to file annual returns by companies. 

CAC, which has embraced technology by allowing companies to file their tax returns through its portal, had originally set the deadline for January 1, 2024 but has now been extended to begin on April 1, 2024.

This extension has been necessitated by technical glitches experienced on the Company Registration Portal (CRP) and in response to appeals from the Micro, Small, and Medium Enterprise (MSME) sector, CAC said in a statement.

The decision to extend the deadline, the tax agency said, follows an earlier notice published on Thursday, November 2, 2023, informing the general public of the impending application of penalties as prescribed by the Companies and Allied Matters Act 2020 and the Companies Regulations 2021.

According to CAC, all entities registered under the Companies and Allied Matters Act, including Companies, Limited Liability Partnerships, Limited Partnerships, Business Names, and Incorporated Trustees, are encouraged to utilise the extended window to file their annual returns promptly.

CAC explained that the extension does not affect the striking-off proceedings initiated by the Commission prior to the November 2, 2023 publication. Additionally, companies, their directors, and officers are advised that the Commission will pursue recovery of undischarged penalties against directors and officers of struck-off companies.

The tax agency also emphasised the importance of compliance with statutory requirements and urged all affected entities to take advantage of the extended deadline to fulfill their obligations promptly.