This topic is specifically for PassingShot. I hope he understands why there was a reported low revenue in the first quarter of the year.

Companies Income Tax Lifts FIRS Collections to N1.19trn in Q2

---

The Federal Inland Revenue Service (FIRS) collected a massive N1.19 trillion in the second quarter of this year compared with N757 billion in the first quarter of the year, boosted by massive contribution from deposit money banks (DMB).


The outperformance, THISDAY findings revealed, stemmed from the collection of N502 billion in companies’ income tax in June, compared with a monthly target of N81billion.


However, analysts at FBN Capital Limited believe the FIRS faces enormous challenge meeting future targets following regulatory headwinds and slowdown in the economy.

The FIRS is the largest but not the only revenue collection agency in the country. It collected N2.26 trillion of gross federally collectible non-oil revenue of N3.40 trillion in 2014. The service is also responsible for the collection of petroleum profits tax for Nigeria.
Despite analysts’ prediction, the office of the accountant-general of the federation had expressed high hope of the e-collection project, which was launched in January this year.


While corroborating the accountant-general’s position, the analysts stressed that political will, could have as strong a positive impact.
Recently, a report by the seventh House of Representatives found that 60 revenue generating federal agencies had failed to remit dues of N9.4 trillion between 2009 and the year 2012.


This, the analysts stated, would suggest that remittances would have been far greater under political pressure to deliver.
According to the analysts, “The FIRS has achieved its target for revenue collection every year since 2000 with the exception of 2006, when the authorities’ expectations were unduly high. This appears a good record although we should bear in mind that the combined non-oil collections of the revenue agencies in 2014 amounted to just 3.8 per cent of gross domestic products (GDP). There are good reasons for thinking that this year’s target may also prove overly challenging.”


The added: “The first reason is that for the first two quarters the target was necessarily set at N1.02 trillion on the basis of the 2014 budget. This year’s budget was only signed off in mid-May, and was framed against a background of a sharply lower oil price and a weaker domestic economy in demand terms. A second reason is the slowing economy, with growth down to 2.4 per cent year-on-year (y/y) in the second quarter of this year.”

Source: http://www.thisdaylive.com/articles/companies-income-tax-lifts-firs-collections-to-n1-19trn-in-q2/220164/

truckpusher,mizmycoli,jmaine,ECOTERRORS,dunkem21,whynotthetruth,Severussnape,LMayedun,tomakint,HzrF,chukwudi44,taktimi,huangcheng,tola9jaa, LieDetector, freedom96, tola9ja, musiwax, GOATandYAMtheory, LLED, socialmediaman, midolian, TheFilmmaker, BUHARIWILLWIN, Jesusloveyou, dein77, Collynzo419, MuhdG, agabusta, medamillion, IbnSultaan, patrickmuf, koboko69, jpphilips, Gbawe, Mynd44, NgeneUkwenu, Beremx, Obiageli, Francizy, Anonimi, dearPreye, okotv

kaboninc:


So it means that this administration’s 'body language' caused about '130 billion naira' to be ‘added’ to our revenue pot from ‘corrupt individuals’? That’s funny. A close look at the trend of revenue generation over the years will show that the revenues generated on a monthly basis are usually the lowest at the beginning of the year and it is mostly due to the fact that companies are yet to remit their income tax for the previous year. Haba, Businessday can do a better job than this nau. Whoever wrote that piece is a politician. More so, economic activities are usually low during this time and that translates to reduced revenue. Have we also forgotten that the tax paid by NLNG was also shared within this period?

This is another funny comment. I’ll wait until the audit is completed before I make my comment.

I had argued with PassingShot on this issue and am glad there's a news report validating my story...something which is known in the industry.

I must say that it should not be in all discussions that there will be political paintings.

kaboninc:


I had argued with PassingShot on this issue and am glad there's a news report validating my story...something which is known in the industry.

I must say that it should not be in all discussions that there will be political paintings.

Business Day Report on increase in allocations to states:

According to Business Day newspaper, “the unexplained rise at a time of a continued fall in international crude oil prices left many analysts wondering but investigation by BusinessDay has showed that the transparent reporting method imposed by the two-month old Buhari administration meant that revenues that were hitherto unaccounted for, had to be brought into the collective pool for sharing. The total disbursable fund for June amounted to N539bn or $2.71bn, up by 32 per cent from the level for May. http://businessdayonline.com/2015/08/cash-going-to-states-from-faac-rising-on-fear-of-buhari/#.Vck2F4Eo7qA

And your response:

kaboninc:

Another spin treatment.

So it means that this administration’s 'body language' caused about '130 billion naira' to be ‘added’ to our revenue pot from ‘corrupt individuals’? That’s funny. A close look at the trend of revenue generation over the years will show that the revenues generated on a monthly basis are usually the lowest at the beginning of the year and it is mostly due to the fact that companies are yet to remit their income tax for the previous year. Haba, Businessday can do a better job than this nau. Whoever wrote that piece is a politician. More so, economic activities are usually low during this time and that translates to reduced revenue. Have we also forgotten that the tax paid by NLNG was also shared within this period?

While there is massive increase from target of N81bn to N502bn from company tax, we need to understand why such tax was not envisaged in the first place. After all, it couldn't have been a new development if it's the usual occurrence as you argued.

We seriously have to wonder why the target was only N81bn if the said company income taxes have usually come in the 2nd quarter of the year. The gap between N81bn and N502bn is too huge not to wonder why. Or could anything near N502bn have been envisaged/expected and still put the target at N81bn? I am sure no one will answer "yes" to that question. The disparity is just too much!

Why not take the analysts further submission which is also in line with the BusinessDay's report into consideration?:

While corroborating the accountant-general’s position, the analysts stressed that political will, could have as strong a positive impact.

and

This, the analysts stated, would suggest that remittances would have been far greater under political pressure to deliver.

PassingShot:


While there is massive increase from target of N81bn to N502bn from company tax, we need to understand why such tax was not envisaged in the first place. After all, it couldn't have been a new development if it's the usual occurrence as you argued.

We seriously have to wonder why the target was only N81bn if the said company income taxes have usually come in the 2nd quarter of the year. The gap between N81bn and N502bn is too huge not to wonder why. Or could anything near N502bn have been envisaged/expected and still put the target at N81bn? I am sure no one will answer "yes" to that question. The disparity is just too much!

My aim for bringing up this topic is to make you understand that company income tax affects government revenues. In your BusinessDay article which - I still stand by my earlier position that it is the writer's opinion - it was said that the government recorded a low revenue and the spike in June, (the first month of President Buhari's presidency) his 'body language' was responsible. I countered that assumption when I said companies do not remit tax (especially companies whose year end is usually either in December or the first quarter) within the first quarter but will do so as from the second quarter. By that time, they would have audited their books. I went on to tell you that lower revenues are usually recorded in the beginning of the year.

So President Buhari's 'body language' has nothing to do with it.

Secondly, I saw the 81bn as their monthly target and I think it is clear and what is misrepresented was the figure of 502bn as Income Tax. These are my reasons:

1. Going by the report, collecting 757bn for the first quarter translates to approximately 252bn per month although we were not given the portion claimed by the Income Tax as there are other taxes and revenues accruing to the State. So 81bn of 252 is approximately 32 percent. So for the month of June, 32 percent of the average revenue for a month (539bn which was the distributed sum in June going by the link you posted) which is the income tax translates to 172bn - I think any figure within this range is the most realistic and not 502bn.

2. The amount stated as the Income tax received for June was 502bn. I believe that was wrong because going by the revenues generated in Nigeria for several years, the amount within the range of 502bn has been reported as the aggregate figure for all taxes, revenues and collections received within a particular month. They include VAT, Income Tax, PPT, Royalties, revenues generated by the Customs and Port Authority, the income generated by the subsidiary of NNPC and remitted to the Federation's account. So I contest that figure.


Again, the purpose of this thread is to make you understand that company income taxes largely affects the revenue generated by the government which in turns affect the cash flow and other projects - capital and recurrent.

kaboninc:


My aim for bringing up this topic is to make you understand that company income tax affects government revenues. In your BusinessDay article which - I still stand by my earlier position that it is the writer's opinion - it was said that the government recorded a low revenue and the spike in June, (the first month of President Buhari's presidency) his 'body language' was responsible. I countered that assumption when I said companies do not remit tax (especially companies whose year end is usually either in December or the first quarter) within the first quarter but will do so as from the second quarter. By that time, they would have audited their books. I went on to tell you that lower revenues are usually recorded in the beginning of the year.

So President Buhari's 'body language' has nothing to do with it.

Secondly, I saw the 81bn as their monthly target and I think it is clear and what is misrepresented was the figure of 502bn as Income Tax. These are my reasons:

1. Going by the report, collecting 757bn for the first quarter translates to approximately 252bn per month although we were not given the portion claimed by the Income Tax as there are other taxes and revenues accruing to the State. So 81bn of 252 is approximately 32 percent. So for the month of June, 32 percent of the average revenue for a month (539bn which was the distributed sum in June going by the link you posted) which is the income tax translates to 172bn - I think any figure within this range is the most realistic and not 502bn.

2. The amount stated as the Income tax received for June was 502bn. I believe that was wrong because going by the revenues generated in Nigeria for several years, the amount within the range of 502bn has been reported as the aggregate figure for all taxes, revenues and collections received within a particular month. They include VAT, Income Tax, PPT, Royalties, revenues generated by the Customs and Port Authority, the income generated by the subsidiary of NNPC and remitted to the Federation's account. So I contest that figure.


Again, the purpose of this thread is to make you understand that company income taxes largely affects the revenue generated by the government which in turns affect the cash flow and other projects - capital and recurrent.

Just two questions to end this:
1. Are you seriously discarding the findings of BusinessDay's report that "investigation by BusinessDay has showed that the transparent reporting method imposed by the two-month old Buhari administration meant that revenues that were hitherto unaccounted for, had to be brought into the collective pool for sharing"? If you do, on what ground will you do that?

2. And do you really think I need to be told about the significant contribution of income tax to govt's revenue?

You make me laugh bro.

PassingShot:

Just two questions to end this:
1. Are you seriously discarding the findings of BusinessDay's report that "investigation by BusinessDay has showed that the transparent reporting method imposed by the two-month old Buhari administration meant that revenues that were hitherto unaccounted for, had to be brought into the collective pool for sharing"? If you do, on what ground will you do that?

What findings?

We should be talking about tangibles....things like policies, things like action plans, strategic actions already taken place that will see to a visible change and not 'body language'.

Taking a cue from the last administration, McKinsey was contracted to assist the government in increasing revenue accruals. That's a tangible step. Electronic remittance was also introduced. That was another step and it improves transparency. These are tangible steps. Tell us one of President Buhari's aside 'body language'. Like I asked, are you saying that the President's body language is responsible for an increase of over 130bn added to the monthly revenue from 'corrupt individuals'?

Or maybe you can tell us the various 'transparent reporting method' introduced by BusinessDay since you so hold on to that report.

Please let's avoid political and sentimental reasoning when discussing issues like this. You appear as someone who sees every action of this government as correct and even credit this government for things they are not responsible and have even acknowledged not being responsible for it. These mindless discus distracts your President.

2. And do you really think I need to be told about the significant contribution of income tax to govt's revenue?

You make me laugh bro.

Yes sir, you don't.

I also think the appointment of the new chairman of FIRS is a great move. He has done it before and he could do it again.

For now though, we only expect an upward increase and nothing more.

okotv:
I also think the appointment of the new chairman of FIRS is a great move. He has done it before and he could do it again.

For now though, we only expect an upward increase and nothing more.

Me too...but with time, we shall see how great was the move!

kaboninc:


Me too...but with time, we shall see how great was the move!

yes o. Cause Buhari promised to improve the welfare of those in the defence section and you know now !!!

okotv:
yes o. Cause Buhari promised to improve the welfare of those in the defence section and you know now !!!

I pray soo too brother...


But with time, I also pray you ask him about life in the villa....

kaboninc:


I pray soo too brother...


But with time, I also pray you ask him about life in the villa....

Buhari won't run for second term. Life in the villa is always difficult.