seunmsg:


Just ignore if you don’t know. Churches that engage in commercial activities pay taxes. If they are not into any commercial activities, FIRS won’t be after them.

This guy your matter is getting out of hand, God is watching you and surely will punish you.

NaijaMutant:


Your hatred for the church will surely consume you

Why are you so hateful and violent. Read your comment again before you answer.

seunmsg:


I wanted you to clarify the point you’re trying to make before I respond.

My contributions on this thread is very clear. Commercial activities carried out by churches are liable to income taxes. If Assemblies of God church have engaged in commercial activities, the income generated should be subjected to tax.

At no point did I say FIRS is responsible for collecting PAYE. I only buttressed my point by saying even the salaries of pastors and other church workers are subjected to personal income tax.

Your argument that schools don’t pay income taxes is also laughable. If the school was registered to make profit, they are liable to income tax. Schools are only exempted from income tax if they are registered as non profit making and incomes generated are for charitable purposes.

So, I ask again, what exactly is your point?

You listed schools as one of your so-called commercial activities in your earliest post qouted below as you can see.

Schools do not have any choice than to be registered as a not-for-profit outfit. They do not have the liberties to choose how they are registered. They are simply registered as such because that is what the law says. Schools are not meant to make profit. They are chartered/registered as LGTE (limited by guarantee) not LTD (limited by shares). It is the law. The registration process must pass through the ministry of education; it is compulsory.

Your allusion to RCCG and Winners paying PAYE of their staff has no basis on the subject of discussion because the Assemblies of God's issue is with the FIRS which doesnt have any jurisdiction over PAYE.

Coming back to your so-called commercial activities. For any activities to be commercial, the charter must specify that. For example, a church running a micro finance bank must get a micro finance bank license from the CBN, which licenses all lenders in Nigeria. And for the CBN to license any lender, the very first prerequisite is that the entity must be a limited liability company.

It means that a church doesn't have any choice than to register a limited liability entity different from its own registration as a charity organization. It stands to reason that the two organizations are not one and a federal entity like the FIRS is not expected to list a charity organization as a defaulter of tax instead of the actual business.

In other words, shouldn't the FIRS have listed the "commercial organization" liable to tax instead of listing Assemblies of God as a federal tax defaulter when it is not liable ab initio? Assuming that is what happened.

seunmsg:


Assemblies of God church is not God and asking the church to obey the law does not amount to fighting God. So, don’t mix the two together.

Church are exempted from paying taxes from income generated from tithes and offerings majorly. However, if they generate other incomes from commercial activities such as sales of books and other items, operation of schools etc, they are duty bound to pay taxes on such incomes. Salaries paid to pastors and other workers in the church are also taxable. The church should go and pay up its taxes instead of throwing tantrums around.

akdjr:
The same Bible that is full of controversy? The same Bible King James (an accultic member) translated and change the original version of it? The same Bible where people killed and claim it was instruction from God Almighty? Just leave that book and the authors. quote author=successmatters post=81497497]

Go and read a bible.

bro,pls be rational.i am an unbeliever too; i think all churches are scam; all gods including jehovah and allah are fake! but the law says religious organisations should not pay taxes! it is so even in the usa.if you start an atheist organisation and register with the government,you should not pay tax.if you dont like it,go and change the law! the issue has nothing to do with tithes and offering,or your anger with xtianity.

Do you know that they register before operating and those that don't register can be shut down?quote author=felaismyhero post=81510530] bro,pls be rational.i am an unbeliever too; i think all churches are scam; all gods including jehovah and allah are fake! but the law says religious organisations should not pay taxes! it is so even in the usa.if you start an atheist organisation and register with the government,you should not pay tax.if you dont like it,go and change the law! the issue has nothing to do with tithes and offering,or your anger with xtianity.[/quote]

Okoroawusa:
If a church has a school,an event center,a microfinance bank,a water bottling company then it's expected to pay tax

Schools don't pay tax. Sorry!

A water bottling company is already a company, a different entity, whose liability is limited to the shares held by the shareholders.

While a micro finance bank is subject to the laws and regulations of the CBN.

Except what you are saying is that the church should start paying taxes on its processed plastic water meant for its own use.

1) Schools /educational institutions and books / research material are not taxable .this is not b cause of company registeration but govt exempted them

2) Churches ,mosques and religious organisation and activities are exempted from tax . E.g books they publish exempted . Tithes offerings exempted . Church workers are liable to PAYE it's for church to remit ..
3)commercial activities like rentals of hall
and not church auditorium etc are Liable tax to state tax authority
4) PAYE is payable to LIRS not FIRs , the likely tax which may be payable to withholding only is not likely deducted from supplier or contractor

The question is which tax is the church liable to FIRS ?

FIRS should state and not just seal . religion is a sensitive issue . Else we start hearing Islamization

porka:


You listed schools as one of your so-called commercial activities in your earliest post qouted below as you can see.

Schools do not have any choice than to be registered as a not-for-profit outfit. They do not have the liberties to choose how they are registered. They are simply registered as such because that is what the law says. Schools are not meant to make profit. They are chartered/registered as LGTE (limited by guarantee) not LTD (limited by shares). It is the law. The registration process must pass through the ministry of education; it is compulsory.

Your allusion to RCCG and Winners paying PAYE of their staff has no basis on the subject of discussion because the Assemblies of God's issue is with the FIRS which doesnt have any jurisdiction over PAYE.

Coming back to your so-called commercial activities. For any activities to be commercial, the charter must specify that. For example, a church running a micro finance bank must get a micro finance bank license from the CBN, which licenses all lenders in Nigeria. And for the CBN to license any lender, the very first prerequisite is that the entity must be a limited liability company.

It means that a church doesn't have any choice than to register a limited liability entity different from its own registration as a charity organization. It stands to reason that the two organizations are not one and a federal entity like the FIRS is not expected to list a charity organization as a defaulter of tax instead of the actual business.

In other words, shouldn't the FIRS have listed the "commercial organization" liable to tax instead of listing Assemblies of God as a federal tax defaulter when it is not liable ab initio? Assuming that is what happened.

Just like I told you earlier, my major point of argument is that churches are liable to pay taxes if they engage in commercial activities. The provisions of section 23(1)(c) of Companies Income Tax Act, Cap C.21, Laws of the Federation of Nigeria (LFN) 2007 (as amended) ('CITA') provide that the profits of any company engaged in ecclesiastical, charitable or educational activities of a public character in so far as such profits are not derived from a trade or business carried on by such company shall be exempt from tax. CITA also provides for taxation of passive income (dividend, interest, rent or royalty) when earned by educational institutions even if limited by guarantee.

FIRS is a responsible revenue generation agency. They wouldn’t have listed Assemblies of God church as a tax defaulter if the church had not generated income from trade or business. Instead of accusing FIRS falsely, you should try and find out the exact reason(s) why they took the decision.

As regards your claim that schools must be limited by guarantee, I think you should do your research very well instead of making uninformed statement. We have so many schools limited by shares. Just last year December, the court of appeal ruled on a matter between FIRS and Best international schools limited. The court ruled that the school is liable to pay income tax. Below is the link https://www.proshareng.com/news/TAXES%20&%20TARIFFS/Court-of-Appeal-Affirms-Educational-Institutions’-Companies-Income-Tax-Obligation/44026

And as regards my reference to PAYE, it is very relevant to the discussion because we are talking about taxation. So many people don’t know that salaries paid by churches to church workers are taxable. In 2008 when I was still working for LIRS, my tax station had lots of difficulties convincing Churches within our jurisdiction to deduct and remit the PAYE of their pastors and workers because they ignorantly believe that they are exempted from paying taxes.

Finally, let’s endeavor to put the correct information out there and not mislead people just to win argument. I have nothing against churches. However, they are liable to pay taxes on income generated from commercial activities.

]universities and colleges do not pay income taxes; however, they do pay other forms of taxes, such as payroll taxes for their employees. and generally must pay tax on income from an activity, trade, or business that is not substantially related to their educational tax-exempt purposes. That is from Dalliot

Just like I told you earlier, my major point of argument is that churches are liable to pay taxes if they engage in commercial activities. The provisions of section 23(1)(c) of Companies Income Tax Act, Cap C.21, Laws of the Federation of Nigeria (LFN) 2007 (as amended) ('CITA') provide that the profits of any company engaged in ecclesiastical, charitable or educational activities of a public character in so far as such profits are not derived from a trade or business carried on by such company shall be exempt from tax. CITA also provides for taxation of passive income (dividend, interest, rent or royalty) when earned by educational institutions even if limited by guarantee.

FIRS is a responsible revenue generation agency. They wouldn’t have listed Assemblies of God church as a tax defaulter if the church had not generated income from trade or business. Instead of accusing FIRS falsely, you should try and find out the exact reason(s) why they took the decision.

As regards your claim that schools must be limited by guarantee, I think you should do your research very well instead of making uninformed statement. We have so many schools limited by shares. Just last year December, the court of appeal ruled on a matter between FIRS and Best international schools limited. The court ruled that the school is liable to pay income tax. Below is the link https://www.proshareng.com/news/TAXES%20&%20TARIFFS/Court-of-Appeal-Affirms-Educational-Institutions’-Companies-Income-Tax-Obligation/44026

And as regards my reference to PAYE, it is very relevant to the discussion because we are talking about taxation. So many people don’t know that salaries paid by churches to church workers are taxable. In 2008 when I was still working for LIRS, my tax station had lots of difficulties convincing Churches within our jurisdiction to deduct and remit the PAYE of their pastors and workers because they ignorantly believe that they are exempted from paying taxes.

Finally, let’s endeavor to put the correct information out there and not mislead people just to win argument. I have nothing against churches. However, they are liable to pay taxes on income generated from commercial activities.
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successmatters:
If the government want to fight GOD, they will soon meet their fate according to what the Bible, the authentic word of GOD says.

i'm still wondering why God has refused to kill some leaders out of this country, God decided to punish us in their hands, hence they resulted in mocking God

seunmsg:


Just like I told you earlier, my major point of argument is that churches are liable to pay taxes if they engage in commercial activities. The provisions of section 23(1)(c) of Companies Income Tax Act, Cap C.21, Laws of the Federation of Nigeria (LFN) 2007 (as amended) ('CITA') provide that the profits of any company engaged in ecclesiastical, charitable or educational activities of a public character in so far as such profits are not derived from a trade or business carried on by such company shall be exempt from tax. CITA also provides for taxation of passive income (dividend, interest, rent or royalty) when earned by educational institutions even if limited by guarantee.

FIRS is a responsible revenue generation agency. They wouldn’t have listed Assemblies of God church as a tax defaulter if the church had not generated income from trade or business. Instead of accusing FIRS falsely, you should try and find out the exact reason(s) why they took the decision.

As regards your claim that schools must be limited by guarantee, I think you should do your research very well instead of making uninformed statement. We have so many schools limited by shares. Just last year December, the court of appeal ruled on a matter between FIRS and Best international schools limited. The court ruled that the school is liable to pay income tax. Below is the link https://www.proshareng.com/news/TAXES%20&%20TARIFFS/Court-of-Appeal-Affirms-Educational-Institutions’-Companies-Income-Tax-Obligation/44026

And as regards my reference to PAYE, it is very relevant to the discussion because we are talking about taxation. So many people don’t know that salaries paid by churches to church workers are taxable. In 2008 when I was still working for LIRS, my tax station had lots of difficulties convincing Churches within our jurisdiction to deduct and remit the PAYE of their pastors and workers because they ignorantly believe that they are exempted from paying taxes.

Finally, let’s endeavor to put the correct information out there and not mislead people just to win argument. I have nothing against churches. However, they are liable to pay taxes on income generated from commercial activities.

Your link redirects to the homepage but you can get a better insight on the case on the Lawyard site; link below.

Both the High Court and the Court of Appeal simply upheld Nigerian laws in the case. If anything, the case buttresses my assertion that schools are registered as not for profit entities. There is nothing in the case that invalidates the point that schools have no choice of registration or that they are not expected to make profit. It is very simple. The FIRS in this case was simply enforcing the Nigerian laws and the courts agreed.

Excerpt from the analysis says "The court relied on the provisions of section 26 of the CAMA that provides that a company created with the purpose of promoting education or other similar objects must be registered as a company limited by guarantee. Hence, if BCIS Ltd had been registered as a company limited by guarantee, the COA would have held that it was not liable to tax due the general nature of companies limited by guarantee as non-profit making institutions"

https://www.lawyard.ng/%25EF%25BB%25BFtax-liabilities-of-educational-institutions-in-nigeria-the-public-character-twist-by-ayodeji-abdul/amp/

You cannot eat your case and have it. As is the case with many of these socalled schools with international "outlook" disobedience of Nigerian laws is rife. Registration of many of them can be classified, at best, as improper registration. They circumvent the system either by omission or outright commission. Where they should have followed due process, many choose not to go through the ministry of education so that they wont be subjected to proper scrutiny and adequate regulations regarding Nigerian educational systems and standards. They go ahead and run systems and standards at variance with the national standard.

For you to register a school, you must be limited by guarantee. The CAC must involve the ministry of education. It is compulsory. The ministry will ensure that at least one of the promoters of the school MUST be a holder of Nigeria's National Certificate of Education (NCE) or Bachelor of Education (B.Ed), among other requirements. These are basic facts that do not require "research" level inquiries to ascertain. If laws are violated, it is the courts that interpret and give judgement, which they have rightly submitted in your example.

What usually happens is that people do not have the patience to wait for the ministry to carry out its due diligence and therefore find a "short-cut", which invariably lead them back to the limited by shares route, hence the intervention by the FIRS in your example.

But that is not even the case with the issue under discussion. Churches are not registered as companies. The FIRS cannot make any claim on churches' profit/income tax. If they run schools and the schools' registration are "somehow" limited by shares, then they would have listed the specific company's name as tax defaulters and not the Assemblies of God Church, which has a different charter.

If you said you have worked at LIRS before, then you of all people should know that the charter documents (incorporation papers - Certificate of Incorporation and the MEMAT) are the very first things that tax authorities demand from entities. Under what law would you now begin to calculate the income tax liability of an entity whose charter reads "not for profit"?

It wasn't me that didn't allow the FIRS to explain itself in this case. The person who did that was you. You can check your former posts. The thread reports that the church is embarrassed that it was wrongly listed as a tax defaulter by the FIRS, stating its reasons. But instead of getting briefed properly (by them or people who commissioned you to defend every indefensible actions of government) on the specifics and details of the case, you jumped into the spin of "commercial activities". And your "commercial activities" keep changing, from schools, books, etc you now jump to "passive income".

In the spin, you lumped PAYE into an FIRS discussion in your belief that people are so ignorant that no one would know the left from the right. Was that not why you listed Winners Chapel and RCCG when you were asked to give example? Why was PAYE of pastors paid by the two churches the closest example when you were supposed to cite example of churches paying taxes to FIRS?

You think the FIRS is a responsible agency of government but the Assemblies of God Church is an irresponsible and ignorant organization, right?

But, does it occur to you that the church has hundreds of qualified professionals and academics; FCAs, CFAs and eminent professors of law, taxation and indeed experts in all human endeavor, whose advice they seek before taking decisions? Are you aware that among those who drafted the laws are members of the church?