We all know Tax is a compulsory payment for businesses.

But is it very convenient to pay 20% or 30% tax every year?

Your answer is probably....NO

There are many ways to reduce your tax liability within legal means.

The FIRS and State tax authorities can do a desk or field audit and ask you to pay N20 million as tax.

Since you don't know much about Taxation, you'll just have to pay before you can get your Tax Clearance Certificate (TCC).

Without a TCC, you can't bid for contracts or secure funding/grants and special loans for your business.

Let me give you an example. We had a client that is into Solar business who contacted us for Tax assistance last year.

He made Sales of over 200m in 2021 from Selling solar panels, inverters and installation services.

FIRS audited his company and did a computation of 54m as Companies Income Tax, Withhoding Tax, Value Added Tax (including penalties & interest).

The first thing we determined from our experience is that - the grade of solar panels he sells are exempted by Tax law from Value Added Tax.

He was pleasantly surprised!

We were able to knock off most of the Withholding taxes that they had wrongly calculated, and the Companies Income tax as well.

His tax liability eventually came to N2.1million from the N54 million that was calculated by FIRS.

Where does your business stand right now with the FIRS or State Inland revenue service?

Or are you waiting for them to send you a letter of Audit or block business accounts for failure to remit tax?

Interestingly, for some of our clients, they find out that they're not eligible to pay taxes yet.

Although, every business is required to do what we call "Annual tax returns filing" and monthly filing for Value Added Tax and Withholding Tax even if there are no business transactions for the month.

That means, every year to submit financial statements even if you are exempted from paying taxes. There's a penalty for not doing so!

Call us to discuss further or seek our advice. 07011188844 (call or WhatsApp)

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