I registered a company(Ltd) in September 2016 with intention of starting in Jan 2017 but, for some reasons I couldn't start. The business is to be operated from home for now untill i raise money for a different apartment, and I intend to start next month (April 2018). So on Wednesday this month(28th March 2018), I decided to visit one of the FIRS offices in Lagos to inquire about my tax status.

I met with one of the officials who further referred me to her colleague known as auditor. The man ask me to bring out my company documents; going through them, he noticed that on the 'questionnaire form' it was stated that the business will commence in Jan 2017 and as such I must pay the outstanding tax even though I have not commenced business yet.

He further stated that the only exception to not paying the outstanding, would have been if my consultant who registered the business for me did not state that business will commence in Jan 2017. I asked him since I am yet to commence whether the outstanding can be wrtten off, he said no. He told me of preparing an audited report for those months. He also said that my tax maybe 500-1,000naira monthly since my business is just a small business. But to prepare the audited report will cost me money.

So right now, so many thoughts are going through my mind. I'm thinking whether I should dump it and register a new company(An Enterprise) but, the challenge is that I have already used the Ltd name to obtain a trademark for the propose product that I intend to produce.

Please i am asking those with experience and who might have gone through such to help me out with accurate information on how to go about this.


Thank you

don't be scammed.....you have nothing to pay....except if you have been posting funds in your business account that were it might be difficult to convince that you haven't started business. if you have every documents to prove you are yet to commence business then no problem.

Limited liability company attracts CIT, VAT etc depending on the scope of business unlike enterprises or ventures

Taiwo20:
don't be scammed.....you have nothing to pay....except if you have been posting funds in your business account that were it might be difficult to convince that you haven't started business. if you have every documents to prove you are yet to commence business then no problem.

Limited liability company attracts CIT, VAT etc depending on the scope of business unlike enterprises or ventures

Thank you.

I need more inputs to enable me take the right decision.

light101:


Thank you.

I need more inputs to enable me take the right decision.

I would attend to you issue.....I just need you to be sincere and give me detailed narrative of what happened......from the moment the company was registered.

Taiwo20:


I would attend to you issue.....I just need you to be sincere and give me detailed narrative of what happened......from the moment the company was registered.

I didn't do anything with the company after registration but in October 2017, I opened a corporate account with the company name which some financial transactions have been taking place. These transactions occurred from December 2017 till date.

light101:


I didn't do anything with the company after registration but in October 2017, I opened a corporate account with the company name which some financial transactions have been taking place. These transactions occurred from December 2017 till date.

those transactions is the loophole.....The inland revenue service would assume you has been doing business. Call tomorrow morning between 9am and 10am...

He's a consultant...he would hear you out. Tell him from TAIWO.

x8x. 3327.....5284= Mr. V2

Taiwo20:



those transactions is the loophole.....The inland revenue service would assume you has been doing business. Call tomorrow morning between 9am and 10am...

He's a consultant...he would hear you out. Tell him from TAIWO.

x8x. 3327.....5284= Mr. V2

Thanks Mr Taiwo

light101:

Thanks Mr Taiwo

You are welcome.....
Tell him the true state of affairs so that you would get the appropriate advise

Taiwo20:


You are welcome.....

Tell him the true state of affairs so that you would get the appropriate advise

I called Mr V2 this morning. He asked me to get statements of account so that he will be able to advise me properly - whether I should pay or not. Thanks once more.

light101:


I called Mr V2 this morning. He asked me to get statements of account so that he will be able to advise me properly - whether I should pay or not. Thanks once more.

You are welcome

just saw this. Like the poster said....if there was inflow into your account....then they would treat it as a business transaction, But since you said that the inflow started in December 2017, what you need to do is to communicate to FIRS telling them that you didn't commence in January as earlier stated and you just fully commenced business in December since thats the month the inflow started. The only thing that would happen is that you might have to file your VAT returns from December to date and also you would be penalized because since you are now claiming that you started in December, you would have to Late returns penalty from December to February.

This is not a serious issue...cheers

The financial transaction that occurred in your account is a trap they will use to hold you. But subsequently, when you find yourself in such situation again or you haven't made profit from your business, file an ANNUAL ZERO RETURN at the tax office, in so doing, you will'nt be taxed.

Paying the " absurd fees " has an advantage, you also have a two years record which gives you credibility boost, this is an incentive to hone in on, should you decide on paying the tax, you'll notice in the future that it's an excellent decision should you pay the wrongly issued taxes