A vibrant industry known as tax planning or tax avoidance has developed in the field of taxation as a consequence of the cardinal rule of interpretation of taxing statutes. A person who is in charge of his own business, for instance should know what he may be required to pay as TAX when earns profit and the tax allowances he may derive in respect of his capital expenditure. He should be able to take advantage of the opportunities afforded him by law to offset his losses.

Many tax incentives which the law offers to businessmen are to be claimed specifically. So, a person who wishes to take advantage of these must, therefore be familiar with the relevant laws. In the field of revenue law, any arrangement whereby a private person or a businessman lawfully eliminates or reduces his tax burden is referred to a tax planning or tax avoidance.

Tax Avoidance is the systematic way of organising one's affairs with a view to minimising one's tax obligation as much as possible.

Without much ado,let us look at various forms,loopholes and provisions one can use to avoid paying tax.

1) REGISTER AS A NON GOVERNMENTAL ORGANISATION OR AS A TRUST

Companies registered as Limited by Guarantee are exempted from paying tax in Nigeria. For example; Churches, Mosques e.t.c. Organisations that are into charitable causes though do not pay taxes they are not expected to pay divdends to their owners. Note that transations made by them that results in a profit can equally be taxed.

2) WHT receipts

Withholding tax is one of the most popular form of taxation in nigeria. It is paid on contract on supplies, services,director's fees, dividends, interest e.t.c
For example; IF Mr A during the year a total of N2m has been deducted from your receipts by your clients as withholding tax. In the same year,MR A's liabilites have been calculated as N10m. Before you pay the tax liability of N10m, Mr A MUST deduct the N2m that the Tax Authorities had deducted from your receipts during the year.

Explanation:- The N2m that what withheld at source is seen as an advance payment of your tax and is kept as a credit for Mr A. So to enjoy the benefit of the credit, Mr A must obtain a WHT Credit Note from your client, without this you cannot deduct the N2m before the FIRS.

3) LOSSES

In business, there are times when you make losses in any given year. These losses can be used to reduce the tax payable at periods when profits will be made.
For example, IF Mr Ayo had made an aggregate loss of N1.0m in the last year, then in the current year, Mr Ayo then makes a taxable profit of N1.5m . Rather than being taxed on the N1.5m, Mr Ayo would be taxed on the N500,000 only thus getting a relief of N1m. This is the reason why it is so important to keep proper records and make regular filings of your accounts and annuals returns.

4)Try and Invest in business that are wholly export
oriented

Dividends and profits obtained from business that are wholly export oriented are exempted from being taxed in Nigeria. Any business that soley exports the dividends paid out to its shareholder will not be subjected for tax. Also, if a supplier supplies in raw materials that is exclusively required for the manufacture of exports then the profit made by that supplier will also be exempted from tax.

Note that such company must provide a Certificate of Purchase of Inputs to the Supplier.

This Tax Avoidance methods are not conclusive, but if applied strictly, and with the help of a Tax consultant would add good value to a business.

Yinmu.By the time tax authorities seal up your business premises,the OP will deny you die!

Oga oooo, I didn't have the time to read your long epistle (which st paul will be proud of), but I must tell you that tax evasion is a serious offence globally and it's punishable by law, so stop encouraging the masses to be law breakers.

Middlefinger1:
Oga oooo, I didn't have the time to read your long epistle (which st paul will be proud of), but I must tell you that tax evasion is a serious offence globally and it's punishable by law, so stop encouraging the masses to be law breakers.

That's the problem. It's not about tax evasion. It's about reducing your tax responsibility legally. The topic in misleading

Trying to exploit loop-holes in the system and you'll join those castigating the government for not providing this and that.

Hegeheheh

Hello everyone,

It is not an offence if you can arrange your affairs with a view to minimizing your tax burdens. With the aid of Lawyer you can manipulate the statutory provisions in favour of a taxable person.

Tav Evasion , is totally illegal& criminal. It carries punishment for such an offence.

I am not encouraging tax evasion, it is its avoidance I am talking about and it is only a skilled Lawyer that can help you to reduce your tax burdens which you have paid higher for to the Tax authorities.

Thank u.

Hello everyone,

It is not an offence if you can arrange your affairs with a view to minimizing your tax burdens. Tax avoidance is the art of dodging the law without actually breaking it. With the aid of Lawyer you can manipulate the statutory provisions in favour of a taxable person.

Tav Evasion , is totally illegal& criminal. It carries punishment for such an offence.

I am not encouraging tax evasion, it is its avoidance I am talking about and it is only a skilled Lawyer that can help you to reduce your tax burdens which you have paid higher for to the Tax authorities.

Thank u.

JEITO:
Trying to exploit loop-holes in the system and you'll join those castigating the government for not providing this and that.

what have they provided so far?

See some sense though buh think your point should be made even clearer

You get office make I come meet you for more enlightenment

Be patriotic

Olypeppy:
Be patriotic

AS IN?

Olypeppy:
Be patriotic

AS IN?

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