₦airaland Forum

Introduction
The European Union has added further impetus to its objective of providing greater transparency with regard to harmful tax practices through an amendment to EU Directive 2011/16/EU.
The amendment builds on the Common Reporting Standard, which allows for the automatic exchange of information on financial accounts held by non-tax residents at an international level and the Organisation for Economic Cooperation and Development's Base Erosion and Profit Shifting project. In brief, EU Directive 2011/16/EU has the introduced the mandatory reporting of cross-border arrangements that are indicative of potentially aggressive tax planning. The relevant disclosure requirements must be followed by intermediaries and, in some instances, taxpayers. Hallmarks. One of the directive's key points is that it provides no definition of 'aggressive tax planning'. Instead, taxpayers must adhere to the list of hallmarks found in Annex IV of EU Directive 2011/16/EU, which include general and specific features that are deemed potential indicators of tax avoidance or abuse. Alongside broadly drafted key definitions (eg, 'intermediary' and 'cross-border arrangement'), the hallmarks appear to give the directive a broad scope. The reason given for this is that the intricacies and complexity of aggressive tax-planning arrangements are constantly evolving and modified in response to countermeasures from tax authorities. Under EU Directive 2011/16/EU, a 'cross-border arrangement' is an arrangement that concerns more than one EU member state or an EU member state and a country outside the European Union. In a similarly broad fashion, an 'intermediary' is anyone who has (or could be reasonably expected to have) knowledge of (or who directly or indirectly aids or offers advice regarding) the design, marketing, organisation, offer or management of a reportable cross-border arrangement. However, a waiver may be issued by an EU member state where the reporting obligation would breach legal professional privilege under the national law of that country. The various hallmarks appear to have been introduced to provide expansive powers of scrutiny. Generic hallmarks under Category A of the directive, specific hallmarks under Category B and certain hallmarks in Paragraph 1 of Category C are subject to the 'main benefit test'. These hallmarks can be considered only if it is established that the principal benefit or one of the main benefits of an arrangement is to obtain a tax advantage. However, other sections, such as Section D concerning the exchange of information and beneficial ownership, are not subject to the 'main benefit test' and make it possible for arrangements that may undermine reporting obligations under the laws implementing EU legislation or any equivalent agreements on the automatic exchange of financial accounting information, including agreements with third countries to be under the purview of mandatory reporting. Category E encompasses specific hallmarks concerning transfer pricing.

Source: International Law Office

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The Federal Inland Revenue Service (FIRS) issued a Public Notice today, 14 August 2019, directing taxpayers, particularly companies in the Fast Moving Consumer Goods sector, to deduct and remit withholding tax and value added tax on the “compensation” due to their distributors, dealers and agents.
The FIRS defines “compensation” to include commission, rebates, etc., granted in the form of cash, credit note or goods-in-trade. The FIRS claimed, in its Public Notice, that some companies have not been complying with the provisions of the Companies Income Tax (Rates, etc. Deduction at Source (Withholding Tax) Regulations S.1 10 1997 (sic) and Paragraph 3.8 of its Information Circular No. 2006/02 of February 2006. The FIRS, therefore, noted that it would commence monitoring of compliance with its directive by relevant companies.

Source: Proshare

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The Federal Inland Revenue Service (FIRS) says all companies must remit value-added tax and withholding tax by the 21st day of every month. According to a statement signed by Babatunde Fowler, the FIRS chairman, some companies have been found not to deduct these taxes at source.
VAT is a consumption tax placed on a product whenever value is added at each stage of the supply chain – from production to the point of sale. Withholding tax, however, is deducted at source by organisations or bodies making payments to suppliers of goods and services. They are required to remit the deducted sum to the tax authority as payments are being made to suppliers/vendors. “It has come to the notice of the service that some companies do not deduct WHT/VAT from the compensation paid to their distributors contrary to provisions of the ‘Companies Income Tax (Rates, Etc. Deduction at Source (Withholding Tax) Regulations and Paragraph 3.8 of Federal Inland Revenue Service Information Circular No. 2006/02 of February 2006, which states that commission earned by distributors/dealers will be subjected to WHT and VAT,” he said. “Following this discovery, the Service hereby puts all companies, particularly those in the fast-moving consumer goods sector on notice that compensation due to their distributors and customers in the form of commission, rebates etc and by whatever means of payments, whether by cash, credit note or even goods-in-trade must be subjected to WHT/VAT at the appropriate rates as applicable and remit same to the FIRS accordingly on or before the 21st of every month.”

Source: The Cable

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The chairman of in the council include University of Lagos (UNILAG), Yaba College of Technology (YABATECH), West African Examination Council (WAEC), Federal College of Education (Technical), Psychiatric Hospital, Queen’s College, three military barracks, State CID, among others.
According to the council boss, none of the institutions occupying half of the council’s land is paying a dime into its purse. “We spend a lot of money to provide infrastructure, maintain them and make workers of these institutions comfortable.” Omiyale spoke during a business summit organised by the council to provide a forum for interpersonal relationship between the council and the business community. He said: “Very few of the businesses operating within Yaba LCDA pay our rates; some of those paying are doing it after being compelled. We have shown them what the resources we get is spent on, and we are very prudent in our spending.” The chairman further urged business owners to prioritise youths in Yaba for employment as part of their Corporate Social Responsibility (CSR). Facilitator of the summit, Prof. Abiola Sanni, a tax consultant, advised the councils to embrace e-payment and reduce physical contact and cash payment. This, he said, would ensure prompt issuance of receipt. A call was made for heads of the institutions to pay the required rates for the businesses operating within their institutions.

Source: Guardian

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Former Premier League star Dean Saunders was on Wednesday jailed for 10 weeks after failing to give a breath test when he was caught driving ‘erratically’ after downing pints at the races. The former Liverpool striker refused to take a breathalyser when he was arrested on suspicion of drink-driving in his £70,000 Audi A8 in Boughton, Chester, on May 10. When taken to a police station, he again failed to provide a breath sample. The 55-year-old said he had been out at the Chester Races and had ‘drunk two pints.’ But ‘intoxicated’ Saunders was caught on bodycam footage slurring his speech and propping himself up against his car when he was asked to get out of the vehicle. Saunders claimed his asthma prevented him from giving a breath sample, but he failed to tell officers about his condition when he was arrested. He was slammed by the furious judge today who labelled him ‘arrogant’ and said he considered himself ‘above the law.’ He also said the father-of-three narrowly avoided an accident but had shown ‘no real remorse’. Saunders pleaded not guilty at an earlier hearing but admitted a charge of failing to comply with a roadside breath test and failing to provide a breath sample for analysis at the eleventh hour. The star, who also played for Aston Villa and Derby County and was capped by Wales 75 times, was also banned from driving for 30 months and ordered to pay court costs of £620.

Source: Punch

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The Federal Government is considering an extension of the value added tax (VAT) exemption on capital market transactions, Vice President, Yemi Osinbajo, has said. Also, the VP said the government is already taking steps to resolve the controversy over the collection of stamp duties.
The VP spoke at the Awards Night of the Association of Issuing Houses of Nigeria (AIHN) in Lagos on Saturday. He was represented by the Acting Director General of the Securities and Exchange Commission (SEC), Mary Uduk. In 2014, then Minister of Finance, Ngozi Okonjo-Iweala, suspended VAT charges on transactions in the capital market to encourage increased trading activities in the market. That waiver period ended on July 24 this year. The VP said the government will soon announce the decision on how the issue, along with others, like the controversy over collection of stamp duties, have been resolved. Backstory; The Nigerian Postal Service (NIPOST) is of the view it should collect and keep stamp duties on electronic banking. This appears to contravene the constitutional requirement that all revenue collections by government ministries, departments and agencies should be transferred to the Federation Account. The NIPOST argues it should use monies realised from stamp duties collections to run its operations. The Chairman of the Federal Inland Revenue Service (FIRS), Tunde Fowler, recently the law confers on the revenue service the mandate to collect the money on behalf of the Federation Account. “The issue is now in court between the consultant (for NIPOST) and the government. So, pending the resolution of the controversy, the money is being warehoused in the CBN,” Mr Fowler said. “The position of government is that any money collected as stamp duty should be deposited in the federation account to be shared among the three tiers of government. “Government is working on a new bill to take care of this stamp duties. But, under the existing laws, it is the mandate of the FIRS to collect that money on behalf of the Federation Account,” he added. Other efforts to strengthen capital market. According to the VP, work has commenced on other aspects of Capital Market Master Plan Implementation Council (CAMMIC) requests requiring government intervention. He said government would collaborate with the capital market community to address the issues affecting it’s growth. “We all desire a capital market that would broaden access to economic prosperity by enabling the emergence of financially responsible citizens, accelerating wealth creation and wealth distribution, providing capital to small and medium scale enterprises, and catalyzing housing g finance,” the VP said. He described the capital market as key to achieving the economic goals of the present administration as contained in the Economic Recovery and Growth Plan (ERGP). According to the VP, government has worked hard to ensure a stable macroeconomic environment, to attract and sustain investment needed to move the economy forward. The ERGP recognizes critical sectors for financing to include agriculture, infrastructure, power as well as small and medium enterprises (SMEs). President of AIHN, Chuka Eseka, urged the private sector and the capital market to play driving roles in achieving economic prosperity and development by partnering with the government at all levels.

Source: Premium Time

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Condemnations have trailed the harassment of an Enyimba player, Stephen Chukwude, by police officers over claims that he was involved in internet fraud, popularly called Yahoo Yahoo for driving a Mercedes Benz. A video uploaded by the player on Monday showed him being challenged by police officers while in a Mercedes Benz with Lagos plate number LSR 84 AZ. Despite the player’s display of his identity card and presence of football paraphernalia in the car, the unidentified police officers insisted on taking the footballer to the station. The video also showed one of the police officers saying “everybody who has a Mercedes Benz is an internet fraudster.” The incident happened on Monday at Ugwuoba, a border town on the bank of Oji River in Oji River Local Government Area of Enugu State. However, the 24-year-old player said he was later released unharmed by the police officers, who attempted to stop him from doing a live recording. While describing his harassment by the police officer as strange, he said, “After explaining to the police that I am a professional footballer, he said he suspected that I am doing another business, which is internet fraud. It is strange after showing my identity card and football boots. He still insisted on taking me to the office.” Reacting to the incident, Nigerians faulted the police officers, wondering how owning a Mercedes Benz would translate to being involved in internet fraud. One of them, Michael Anthony, said, “With all these we’re seeing online, where’s the motivation to go on vacation to my country. I guess it’s time to spend our vacations in other countries since it’s a crime to come back to the country or drive a nice ride, even our ID doesn’t change anything.” On his part, Leo Finesse urged that the educational qualification requirement into the Nigeria Police Force should be increased. “Nigeria as a country doesn’t practise law, so expect nothing from those security agencies because majority of them just came out with first school leaving certificate. If you fail to comply, they might go to a height of shouting the person,” he said. Austine Okpara urged Nigerian police to engage more in intelligence gathering, saying, “This (policing) job calls for only intelligent people.” The Nigeria Police Force said the case was under investigation, urging Nigerians with necessary information to assist. “The attention of the NPF has been drawn to this clip on social media, the Inspector General of Police implores anyone with credible information concerning this video to avail the Force to aid investigations and appropriate disciplinary measures,” the NPF said in a tweet on Wednesday. Meanwhile, coach Usman Abdallah of Enyimba came to the defence of Chukwude, saying, “He is one of the most disciplined players I have met since my years in Enyimba. He is a quiet, nice and gentle boy, I haven’t seen anything wrong with the boy. He has never posed any problem with the team and he is an extremely good player, so I don’t think he is a Yahoo boy. I think they are mistaking him for something like that,” he said.

Source: Punch

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Juventus coach Maurizio Sarri, still recovering from a bout of pneumonia, could yet be passed fit to make his debut for the Turin side when they face his former club Napoli in Serie A on Saturday. According to photographs published by Italian media on Wednesday, the 60-year-old is both backs on the training ground and, possibly, smoking cigarettes again as he recovers from the illness which sidelined him earlier this month. Sarri, who missed last week’s opening match at Parma but has been in constant touch with his players throughout, was widely reported to have watched practice on the touchline on Wednesday. The Corriere Della Sera also published a selfie taken by a young fan standing next to Sarri who was holding a packet of cigarettes in his hand. According to the Italian news agency ANSA, this left the club’s leadership “disappointed”. Juventus announced on Aug. 21 that Sarri was suffering from a bout of pneumonia and would miss the first two games of the season including the Napoli match. However, Italy’s main sports dailies have all reported that the chain-smoking coach will be examined by doctors on Friday and could be passed fit to take charge for the game. It would be an emotional start for Sarri who, during three seasons at Napoli, turned them into Italy’s most eye-catching side and the one most likely to end Juve’s dominance of Serie A which now stretches to eight successive titles. Napoli has finished as runners-up to Juventus in three of the last four seasons and the fixture has become a top-of-the-table clash, adding to the north-south rivalry which has always surrounded it. On Sarri’s last visit to Juventus in April last year, Napoli pulled off a surprise 1-0 win which re-opened the title race although Juventus still went on to win. His appointment in June, after one year at Chelsea, was something of a surprise as he does not fit the usual profile of a Juventus coach, the club usually preferring someone with a more conservative tactical approach. Both teams won their opening matches of the season last week with Juventus beating Parma 1-0 away and Napoli, now in their second season under Carlo Ancelotti, coming from behind to down Fiorentina 4-3. Juventus goalkeeper Wojciech Szczesny said the players were already noticing the difference. “Sarri’s Napoli was very strong and now that he is here with us, I see how intensely he works with his teams,” said the Pole. “I’ve been amazed by the impact he has had on the team. We are working hard, we are working well, obviously changing greatly our style of play. “I see a great future for Sarri’s Juventus,” he added. “He works more with the ball and the way of defending is also different, since we do it with a much higher defensive line to go and press the opponents.”

Source: Punch

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The Tax Appeal Tribunal ("TAT" or "the Tribunal" sitting in Enugu State on 20 June 2019 delivered a judgment in favour of Nigerian Breweries Plc ("Nigerian Breweries" or "Appellant" in a case with Abia State Board of Internal Revenue Service ("ASBIRS" or "Respondent".
The key issue considered in the case, amongst others, was determining whether gratuity paid by Nigerian Breweries to its employees is subject to Personal Income Tax. In delivering its judgment, the TAT held that section 3 of Personal Income Tax Act 2004, as amended (PITA or the Act), which is the charging provision regardless of the contrary provision in the Third schedule to the Act, does not make any specific reference to gratuity as a chargeable income. As such, the TAT concluded that a schedule to the Principal Act, being a subsidiary legislation, cannot amend any provisions of the Act itself. Please click here to explore the detailed newsletter.

Source: Mondaq

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According to KRA, this tax should be deducted from the total payout; for example, if ones stakes Sh1,000 and wins Sh500, the 20 per cent withholding tax should be applied on the Sh1,500, amounting to Sh300 in tax.
However, betting firms argue that KRA is erroneously lumping together the customer’s stake and the winnings. They say the withholding tax should only apply to the Sh500, therefore the amount to be remitted is Sh100 and not Sh300. KRA’s position is flawed. Its interpretation of the word “winnings” as the item upon which the 20 per cent withholding tax should be levied, is extortionist because, if one stakes Sh100 and wins only Sh20, the withholding tax will be Sh24, meaning the winner receives Sh96, a lesser amount than what he/she staked. This is taxing consumption before the consumption happens. Withholding tax principally applies to payments of income and gain, therefore the stake is not a taxable item. Studies on gambling taxation reveals that it is low-income households who contribute relatively more gambling tax revenue in relation to their income. In Kenya, and according to a joint survey recently conducted by Ipsos and Geopoll, the average spend on betting is Sh1,550 a month, which is Sh380 a week, or Sh55 a day. Apart from the 20 per cent withholding tax, KRA also collects another 15 per cent betting tax levied on betting firms’ gross gaming revenues, and a further 30 per cent corporate tax. In Germany, the tax levied on gross gaming revenue is at 5 per cent; United Kingdom at 15 per cent, and South Africa at 9.6 per cent. The understanding is that the gambling sector should attract tax rates over and above the ones applied to other businesses. But is high gambling tax good economics? Gambling activity has an elastic demand; an increase in gambling taxes leads to low betting activities and reduced tax revenue collection. Consistent increase in gambling tax is not desirable if gross gaming revenue goes toward public revenue, since technology has allowed tax havens like Malta to house online gambling operators.

Source: Nation

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Atletico Madrid made it two wins out of two as Vitolo scored in the second half to secure a hard-fought 1-0 La Liga victory at Leganes on Sunday. Atletico had never won in Spain’s top-flight at their fellow Madrid outfit’s Butarque stadium but Vitolo’s strike ensured they continued their impressive early season form. New signing Joao Felix created the goal, picking up the ball on the right-hand side. He drove at the Leganes backline before feeding Vitolo, who produced a composed 71st minute left-footed finish to put Diego Simeone’s side ahead. After a first half largely devoid of goalscoring opportunities, both sides traded efforts after the break. Saul Niguez hit the post for Atletico, while Leganes midfielder Jonathan Silva struck the crossbar with a free-kick. Atletico goalkeeper Jan Oblak then produced a fine stop from Javi Eraso minutes before his side opened the scoring. “I’m very pleased to get the win at a tough ground to play at and against a side who make life difficult for you,” Simeone told a news conference. “We showed our intent in the first 20 minutes and I think we dominated the game. Then they improved and the match became a bit more diluted.” Alvaro Morata wasted a glorious opening in the dying minutes that would have ensured a less nervy finish for the visitors. But the capital city side remain just one of two sides, along with Sevilla, with a 100 percent league record this season. “We needed to win and for that we tried many things over the 90 minutes and changed the system. “We wanted to improve as the game went on. We won and all good,” Simeone added. “Leganes are a side who irritate you. There’s no space, and they make the game comfortable for themselves. “Yet, fortunately, we were able to change the dynamic of the game with our change of system.” Having started the first two games of the season on the bench, goalscorer Vitolo will be hopeful of a start next time out as Atletico host Eibar on Sunday. Simeone, though, sounded a warning to all of his top players, adding: “Players don’t start just because they do or don’t score. “They start because of consistency, hard work and dedication.”

Source: Punch

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Paris Saint-Germainare planning a £100m move for Crystal Palace’s Wilfried Zaha as a replacement for Neymar, according to the Daily Mirror. The Ligue 1 side are ready to send a delegation to London this week to open talks with Palace as Barcelona and Real Madrid battle for the signature of Neymar. The Spanish giants face a race against time to complete a £200m deal for the Brazilian as the La Liga transfer window shuts on September 2. Crystal Palace slapped a £100m price tag on the 26-year-old amid interest from Premier League rivals Arsenal and Everton.

Source: Punch

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Super Eagles coach Gernot Rohr says he feels loved by Nigerians, a major reason he’s attached to the country and the national team. But the German, who holds a French passport, admits that there’s a section of Nigerians from whom he “doesn’t feel this love.” The German led the Eagles to a third-place finish at last month’s Africa Cup of Nations in Egypt but claims “one category” of people didn’t show him love especially after the AFCON. “We have difference between Francophone countries and Anglophone countries but I didn’t have any problem adapting (in Nigeria) because I was welcomed by everybody, not only in the team but the staff, and also from Nigerians,” he said. “When I go out, I feel this love, I feel it everywhere. The only people I don’t feel this love from, there is only one category especially after the AFCON, and you know who it is. But everywhere, if it is here or in other places, I feel this love, this is a reason for me, which makes it very hard to leave because there is human relationship which is important also. This is the most passionate(job) because the passion around me is giving me also the passion, enthusiasm and desire to do well. This job here is very different because we speak English, which I did not speak for a long time, since my school time. But I have learnt back quickly; the mentality is also different.

Source: Punch

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Canada’s Milos Raonic has pulled out of the US Open with a glute injury, tournament organisers announced Sunday. The former Wimbledon finalist endured an injury-hit season and has not played since retiring during the second round of the Montreal Masters this month. Raonic, 28, will be replaced by Kamil Majchrzak of Poland, who lost in the final round of qualifying. World number 22 Raonic also missed the French Open each of the past two years because of injury. He reached the last 16 on four occasions at Flushing Meadows.

Source: Punch

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The Federal Inland Revenue Service (FIRS) in Ebonyi State has scored taxpayers in the state high on compliance. The revenue agency said although majority of taxpayers in the state are civil servants, they have been remitting their tax into government coffers accordingly.
Speaking in an interview in Abakaliki, Kenneth Effiong, tax controller, Abakaliki MTSO FIRS, also decried the absence of manufacturing companies in the state, which he said was a major challenge facing the agency in the state. He said most residents of the state are working-class, unlike in other states where there is a high concentration of businessmen and companies. “Ebonyi taxpayers are trying. I give them 60 percent, but we have challenges. Number one, Ebonyi State is not a business area and another thing, the people of Ebonyi, most of them are government workers,” Effiong said. “We do not really have businessmen in Ebonyi. And the ones we have are contractors; their tax comes when they are able to carry out contracts (projects) unlike in other states that we have industries and major businesses,” he said. Effiong disclosed that from time to time the FIRS goes to educate taxpayers in the state, adding that the current enlightenment programme going on in the state would last for five days. “We go out to educate taxpayers on tax matters and possibly bring them into tax payment. A lot of businessmen out there are complaining that they are not educated, are not being put through on what tax is all about. So, with the backing of the management, we now decided to use three days to go out and educate taxpayers on tax matters which is a routine job here as tax office,” he said. Effiong maintained that tax awareness, which is a routine exercise, helps the taxpayers to pay their value added tax on or before 21st of every month. He said within the week during the awareness exercise in Abakaliki, some shops had been closed down by the enforcement team for failure to pay their tax. The tax controller urged the taxpayers to try to pay their tax in time and avoid paying money to individuals to avoid falling into the hands of touts. Rather, he said, they should pay to banks that IFRS deals with directly. He said his office is open for enquiries and further directive as may arise.

Source: Business day

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Serena Williams faces Maria Sharapova in a blockbuster first-round match Monday at the US Open, the feature showdown on the first day of the year’s final Grand Slam tennis event. Eighth-ranked Williams, who lost to Naomi Osaka in last year’s US Open final and to Simona Halep in last month’s Wimbledon final, is seeking her 24th career Grand Slam singles title to match Margaret Court’s all-time record. The 37-year-old American owns a 19-2 record against Russia’s 87th-ranked Sharapova and has beaten her 18 consecutive times dating to 2005. That lopsided rivalry, however, has not prevented the matchup from being the talk of the tournament since Thursday’s draw announcement. “Of course I’m going to watch it,” Osaka said. “I think everyone in New York is going to watch it.” Williams owns a 3-1 record over Sharapova in Grand Slam matchups, having lost their first such meeting in 2004 at Wimbledon, but this will mark the first time they have met in a US Open. “Someone texted me about it,” US 10th seed Madison Keys recalled. “I think I was shopping, had no idea the draw was actually happening. So it was like, ‘Oh my God. Look at this first round.’”

Source: Punch

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The Nigerian Communications Commission (NCC) has begun another round of compliance audit of SIM registration databases of MTN, Globacom, Airtel, 9Mobile, Ntel and other operators offering SIM-based services. Following the commencement of the compliance audit, Mobile Network Operators (MNOs) are reportedly jittery over the status of their registered Subscribers Identity Module (SIM) cards.
The details: The audit is the second to be carried out by the Commission across all the mobile network providers since SIM registration was introduced in 2011. Basically, the audit was initiated to ensure strict compliance to specifications for subscribers’ SIM registration. The specifications are prescribed in the Telephone Subscribers Registration Regulations and the Technical Standards and Specifications issued by the Commission in 2011. Meanwhile, the NCC has disclosed that the verification would involve the back-end verification and scrubbing of SIM registration data already submitted by telecom operators. According to a statement credited to the Executive Vice Chairman of the Commission, Prof. Umar Danbatta, the latest audit is a “very sensitive one” considering the importance of the information to security and law enforcement in the country. “The Subscriber Registration Database is a veritable tool being used by security and law enforcement agencies in the detection and apprehension of criminal elements involved in heinous crimes like kidnapping, financial crimes, armed robberies, banditry, cattle rustling and other crimes. “The security operatives can leverage on easy access to the national telecoms network. As such, we (NCC) are determined to continue to ensure all SIM cards are traceable to their real owners with the least effort. “The audit is a natural next step to ensure that not only does the data already submitted fully comply but that operators maintain the highest standards of registration practices across all their touch-points so that the subscriber data they are collecting continues to serve the national security and other interests for which subscriber registration was mandated.” The back story: Recall that the first SIM registration audit compliance carried out by the NCC in 2015 led to the imposition of N1.04 trillion fine on MTN. Specifically, MTN was fined for its failure to disconnect 5.1 million unregistered and improperly registered lines from its network. The move by NCC followed accusations by mobile phone users that the regulator had failed to bring operators to account for poor services rendered to subscribers. After several negotiations, the N1.04 trillion infraction fine was reduced to N350 billion, which represents a fine of N200,000 for each unregistered line. MTN paid the fine in tranches and completed the payment in June 2019. Another fine imminent: According to reports, all mobile network operators are reportedly jittery and currently employing several strategies in order to have clean books before the NCC hammer falls on them. According to the report by Newtelegraph, since the beginning of August, network operators have been embarking on another round of ‘Know Your Customer (KYC)’ exercise, which is aimed at correcting any irregularity on their SIM registration database. It was gathered that the telcos are aggressively pushing subscribers for the update as they have been sending messages urging subscribers to come for registration update before the end of August. In the meantime, while the imposition of fines may be new to other network operators, MTN is expected not to allow another showdown with the NCC, considering the fact that it still has a case with the Federal Inland Revenue Service over tax deduction. It should be noted that the move made by NCC is backed by its drive to ensure sanity in the telecommunication sector due to the security threat it portends to the country.

Source: Nairamatric

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HE statement by Mr Babatunde Fowler, executive chairman of the Federal Inland Revenue Service (FIRS), that the service may, as from next year, ask banks to charge customers five per cent Value Added Tax (VAT) on online purchases leaves much to be desired. Though VAT is legal, being a product of the nation’s laws, its proposed imposition on online transactions has grave implications for the economy and deserves reconsideration by the government.
Going by the laws of the land, every transaction within the country already have VAT built into it. For instance, every purchase made on Jumia or Konga, or every air ticket bought online, comes with a VAT because the seller is empowered by law to add VAT to the cost of purchase. According to Section 4 of the VAT Act 2007 (as amended), VAT is calculated at a flat rate of five per cent on all goods and services sold in Nigeria. Kaduna files fresh suit challenging El-Zakzaky’s medical trip to India In accordance with the Section 15 of the Act, subsection 1, businesses operating within the country are mandated to calculate the amount of VAT received from customers in a month and remit same to the FIRS by the 30th day of the month. The implication of this is that save for goods and services exempted from VAT, all those who buy goods and services pay VAT. So, if VAT is already built into the cost of an article, why should the FIRS ask banks to do another billing? Won’t that be double taxation? Given the position of the Act, the statement by Mr Fowler is suggestive of two things, desperation to increase the revenue generated by the service or arrant ignorance of the law from where he derives his powers as the FIRS boss. While both are regrettable, we are persuaded to believe that the former is the propelling force behind the proposed imposition. Indeed, Fowler has not hidden his desire to increase the government’s tax revenue. That is okay. He should be applauded for that. And to his credit, since his assumption of office as the executive chairman of FIRS, the revenue of the service has been on the upswing. However, his determination to enrich the government should not be at the expense of citizens and businesses. The FIRS’s ability to continually generate tax revenue for the government is dependent on the prosperity of the people. So, in his quest to increase his service’s revenue generation, he should avoid killing the goose that lays the golden egg. Unless this proposal is nipped in the bud and prevented from becoming an enforceable law, it is going to injure the nation’s budding online businesses because many Nigerians, in order to avoid double payment of VAT, would resort to cash transactions and this has the potentiality of killing a whole industry. To say the least, the proposition will disincentivise Nigerians who are trying to energise the economy through their innovative activities. Then, for a while, the Central Bank of Nigeria (CBN) has been promoting cashless transactions which quite a number of Nigerians are buying into. If the FIRS, out of sheer desire to make more money for the government, distorts a policy that is already gaining ground, would that not amount to government agencies working at cross-purposes? To avert the disaster which the Fowler proposition represents, it is best to stop it dead in its tracks.

Source: The Tribune

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The Federal Inland Revenue Service (FIRS) in Ebonyi state, has decried the absence of manufacturing companies in Abakaliki, the state capital, a development it said was the challenge facing it.
Kenneth Effiong, tax controller, Abakaliki, MTSO FIRS, who spoke to our correspondent in Abakaliki, also told this paper that majority of taxpayers in the state are civil servants. According to him, majority of people in the state are working class compared to other states where there are large concentration of businessmen and companies. “We go out to educate taxpayers on tax matters and possibly, bring them into tax payment. A lot of businessmen out there are complaining that they are not educated, not being put through on what tax is all about. So, with the backing of the management, we now decided to use three days to go out and educate taxpayers on tax matters, which is our routine job here as tax office. “Compare to other states, Ebonyi state has been complying. Everyone knows about FIRS presently. The name FIRS is now a household name in the state. Every family that is into business knows about FIRS and they comply. I think I will give them 60% compliance. “Ebonyi tax payers are trying. I give them 60 percent, but we have challenges. Number one, Ebonyi state is not a business area; and another thing is that the people of Ebonyi are mostly government workers. We do not really have business men in Ebonyi. And the ones we have are contractors; their tax comes when they are able to carry out contracts (projects) unlike in other states, that have industries and major businesses

Source: Orient Daily New

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The Federal Inland Revenue Service (FIRS) is the main agency of the government charged with responsibility of accessing, collecting and accounting for tax and other revenues accruing to the Federal Government. There is no doubt that in the last few years, there has been tremendous improvement and increase in tax collection due to some reforms being carried out by FIRS to boost tax administration in the country.
The report obtained by the News Agency of Nigeria (NAN) showed that FIRS generated N12.62 trillion revenue from tax in the last three years. The breakdown of the amount indicated that N3.3 trillion was generated in 2016, N4.02 trillion in 2017 and N5.32 trillion was realised in 2018, making it the highest revenue generated so far. With this drive, the management of the service set a target of N8.2 trillion revenue for 2019, but some financial experts and insiders who spoke to NAN on this benchmark, doubted if such revenue could be achieved considering what the service had realised so far. The statistics given by the Executive Chairman of FIRS, Babatunde Fowler recently in New York during the sidelines of a high-level meeting on illicit financial flows hosted by the UN General Assembly, showed that about N1.5 trillion revenue had been collected from January to May 15, 2019. The amount realised between January and the middle of May represented only 18.7 per cent of the said target by FIRS. Effort by NAN correspondent to get an updated report that covers first and second quarter of the year failed. Acting Head of Communication and Servicom Department of the service who gave her name as Kubili said there has been an order from above not to release such document concerning the revenue generated by FIRS. She said if such would be given out, there must be an official request which has to pass through some processes before it may be considered for approval. Another official of the FIRS who pleaded for anonymity corroborated Kubili on the directive not to disclose to the@ public the figures of what had been realised by the service. The source said the reason was largely due to not so impressive figure of taxes collected so far in the year, considering the target of more than N8.2 trillion given by the service as benchmark for 2019 revenue. The source said: “from what I know, so far, we have not collected up to N3 trillion as taxes for half of the year and how do you then think we can achieve the N8.2 trillion target by the end of the year? “Whoever tells you that when you write requesting for such information, it will be given to you is not sincere. “The management does not want to make what has been generated known for now”. Reacting to the said target, a financial expert, Mr Akinsanya Niyi described the proposed collection of N8.2 trillion as ‘a tall order’ meant to spur performances by the personnel of the service, but not necessarily to be achieved. Niyi explained that law allows companies to pay for taxes of previous years up till the month of June of the successive years. He, however said that there was tendency of more taxes to be collected as companies prepared for the new national budget cycle. He explained that many organisations would want to ensure compliance with tax laws so as to position themselves for job bidding. According to him, there is the need for FIRS to ensure continuous sensitisation of the general public to the importance of tax payment as well as the need for strict implementation of some provisions of the laws to boost tax collection. The expert strongly advocated incentives for faithful taxpayers and the need to ensure that tax payment processes were more convenient. Mr Muhammad Sallau, another financial expert and a lecturer with the Federal University, Dutse, Jigawa, advised FIRS to be more proactive. He said the service should target more on collections in largest outstanding debts and also ensure regular updates of the taxpayers register to enhance tax collection. Sallau also called for closure of loopholes on tax laws, simplified tax system to encourage formalisation and compliance as well as enforcement through external checks to achieve expansion of taxpayers database. The expert also enjoined FIRS to reduce tax rates, minimise tax holidays and tax havens, adding that there must be inclusive growth strategies and rebalance tax deals to tackle tax evasion in the country.

Source: Pulse

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The City of White Rock thinks cities should have that right so it’s looking for support for a proposed motion at the upcoming Union of B.C. Municipalities convention. White Rock is hoping the province will amend the Community Charter to allow municipalities to impose an annual vacancy tax on residential and commercial properties.
The City of Vancouver currently has that ability, imposing an annual empty home tax of one per cent of a residential property’s assessed value. Governed by its own charter, Vancouver implemented its vacancy tax a couple of years ago. In a letter to Delta council, White Rock Mayor Darryl Walker noted how Vancouver has already set a precedent through the Vancouver Charter and that similar changes can be implemented for the Community Charter. Municipalities under the Community Charter don’t have the authority to impose taxes or fees beyond basic taxes on property. “We believe that providing local governments this authority is one step closer towards addressing B.C.’s affordable housing crisis,” Walker wrote. He stated larger, expensive homes in his city are sitting empty, reinforcing the need for local governments to address the issue directly. Vancouver’s tax is the first of its kind in Canada and the city estimated it collected $38 million in the first year. Delta finance manager Vivian Koo told the Optimist the city’s finance department currently doesn’t have information on the number of Delta homes that are vacant. “The provincial speculation and vacancy tax is a different tax and targets foreign and domestic speculators and vacant homes in designated taxable regions in B.C. We have asked the province for information on the number of Delta homes that would be subject to this speculation tax but we have not heard back from the province,” Koo said.

Source: Delta Optimistic

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The federal government will soon come up with a resolution on issues bordering on the collection of stamp duties as well as the extension of Value Added Tax (VAT) exemption on capital market transactions, among others, the Vice-President, Prof. Yemi Osinbajo disclosed weekend.
VAT charges on transactions in the capital market, which was suspended in 2014 by then Minister of Finance, Dr. Ngozi Okonjo-Iweala to encourage increased trading activities in the market, ended on July 24, 2019. Osinbajo, who was represented by the acting Director General of the Securities and Exchange Commission (SEC), Ms. Mary Uduk, at the awards night of the Association of Issuing Houses of Nigeria (AIHN) in Lagos, stated that VAT exemption, stamp duties and other issues were being addressed currently, adding that a resolution would be announced very soon. A press statement issued by the SEC Head, Public Communications, Efe Ebelo quoted Osinbajo as saying: “We have also commenced work on other aspects of CAMMIC’S requests that require government intervention and would be collaborating with many of you in the capital market community to successfully address them. “My Office is actually represented on the CAMMIC. I will therefore be receiving periodic reports on suggestions to further strengthen our support of your efforts and the market as a whole. “We all desire a capital market that would broaden access to economic prosperity by enabling the emergence of financially responsible citizens, accelerating wealth creation and wealth distribution, providing capital to small and medium scale enterprises and catalyzing housing finance. “Let me therefore commend the Securities and Exchange Commission, CAMMIC and the capital market community for the laudable accomplishments so far recorded in the implementation of the master plan, especially in the areas of dematerialisation of share certificates, e-dividend mandate, facilitation of access to alternative investments as well as various initiatives to enhance the commodities eco-system.” The vice-president described the capital market as essential and key to achieving the economic goals of the present administration as enshrined in the Economic Recovery and Growth Plan (ERGP), noting that the administration has worked hard to ensure a stable macroeconomic environment, which is necessary to attract and sustain investment needed to propel the economy forward. He added: “We see the capital market as an important driver of our growth agenda and we will continue to collaborate with the capital market community to support its efforts to positioning our market to where it should be. This administration and especially my office has supported the ten-year Capital Market Master Plan implementation initiatives since inception in 2015.” He described AIHN as an important player in the Nigerian capital market and commended its members for directly contributing to the economy by aggregating the much-needed funding to support entities in the private and public sectors, adding that government and the private sector need to continue to work together to create sustainable businesses and provide the necessary jobs for the teeming youths. The ERGP of the Buhari administration, he noted, recognises critical sectors for financing to include agriculture, infrastructure, power and SMEs, but added that the government cannot do this alone. According to him, government must evolve from an omnibus provider of citizens’ needs into a force for eliminating the blockages that restrict innovation and market-based solutions. “In this regard, government has collaborated with the capital market community and particularly with members of your association in structuring novel arrangements to fund infrastructure development through instruments such as the FGN Sukuk Bond, FGN Green Bond, Infrastructure Funds as well as the planned trading of tax credit instruments. “Therefore, as you chart the course of the capital market for the next four years, I assure you of this administration’s support and I look forward to working with you and other stakeholders in the financial system to actualize a vibrant economy of our dreams,” he added. In his address, the President of AIHN, Mr. Chuka Eseka, expressed the need for the private sector and the capital market to play driving roles in achieving economic prosperity and development while partnering with the government at all levels. He emphasised the need for market operator role in the financial system value chain to be strengthened to enable the capital market deliver on its role as a catalyst of economic growth.

Source: This days


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Daniil Medvedev, coming off back-to-back ATP finals defeats, held off David Goffin 7-6 (7/3), 6-4 Sunday to win the ATP Cincinnati Masters. The ninth-seeded Russian finished with an ace after saving break points in the final game, lifting a first Masters 1000 trophy after settling for runner-up finishes to Nick Kyrgios in Washington and Rafael Nadal in Montreal last weekend. “I’ve had so much support these three weeks,” Medvedev said., “To finally lift a trophy is just an amazing feeling.” After his full-on post-Wimbledon schedule, the winner admitted: “I’m so exhausted, I almost can’t talk now. “But the crowd gave me amazing energy.” Medvedev followed up his semi-final upset of defending champion Novak Djokovic as he controlled feisty Belgian Goffin to win an ATP leading 31st hardcourt match. He has the most match wins on any surface this year with 43. Spanish superstar Nadal, who did not play this week — is second with 41, followed by Roger Federer on 39. Medvedev stamped himself a contender for the US Open, the final Grand Slam of the season that starts in Flushing Meadows in a week. Goffin was competing in his second final of 2019 after losing to Federer in Halle. “Congratulations to your team,” he told Medvedev, “Once again, an unbelievable week for you, fantastic. “I think you are ready for New York.” Medvedev powered to a 4-1 lead in the opening set but had to win it in a tiebreaker as Goffin, coached by 2002 Australian open winner Thomas Johansson, fought back. But Medvedev’s break in the opening game of the second set was all he needed as he avenged a loss to Goffin at Wimbledon this year.

Source: Punch

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The Federal Inland Revenue Service (FIRS) may, from next year, ask banks to charge customers five per cent Value Added Tax for online purchases when using bank cards, its Chairman, Tunde Fowler, has said. Mr Fowler, who gave the hint in an interview with newsmen in his office in Abuja, also said the federal government was yet to take a decision on whether to increase VAT or not.
Online purchases are increasingly becoming popular among Nigerians with online stores such as Jumia and Konga leading the pack. Many Nigerians also buy from popular Chinese online store, Aliexpress. Payments for such purchases are often made using bank debit and credit cards, and could soon attract the five per cent tax being considered by the FIRS. Although he acknowledged Nigeria was not fully ready for the growing global digitalised economy, the FIRS Chairman said, based on existing laws, the country will adopt a solution suitable to her peculiar circumstance. “We will address the issue of the digitalised economy very soon. There is no global solution to a digitalised economy. “Different countries have taken different solutions to address the problem. Nigeria has not taken a position yet. But, we are meeting to see if we can come up with a global solution that we can all adapt to. “With the existing laws in Nigeria, we can appoint the banks as agents. First of all, all those who make payments for purchases online using bank cards and instruct their bankers to pay, we will tell the banks that, going forward, everyone who gives instructions for service for purchase online, they should deduct five per cent VAT,” he said. “We are thinking that maybe early next year, we will advise banks to start deducting five percent VAT for all online purchases done locally,” he added. Also, the FIRS Chairman spoke on the lingering debate on an increase in the VAT rate from the current five per cent to either 7.5 per cent or 10 per cent. According to Mr Fowler, given a choice between increasing VAT rate and expanding the tax base, he will prefer the latter. “Of course, the first one will be the expansion of the tax base. The tax has to be fair. That’s where we started off. That’s why we have said we have redesigned and issued new tax certificates for VAT. “We have given to all registered taxpayers. We believe we should have effectively at least 1.5 million corporate taxpayers,” he said. He said the FIRS will prefer to address the issue of VAT rate ”after it has achieved its target of bringing all eligible taxpayers under the tax net”. Describing the VAT rate in Nigeria as the lowest in the world, apart from the United Arab Emirates (UAE) that has just introduced five per cent rate, he said VAT is a consumption tax, only payable by choice. “What that means is, if A wants to impress B, and takes B to eat at the Transcorp Hilton, A will pay VAT for services enjoyed. This is because of the environment. “The cost of the Coca Cola they will drink at Transcorp Hilton at N1,000 could have been bought at N100 in any supermarket without paying any VAT. “Also, A can buy chicken, with all the ingredients in the market, cook it and eat without any VAT. But, instead of spending N5,000 for that meal, if A decides to go to the Transcorp Hilton and spend N20,000, then A must pay VAT. It is a choice A has to make,” he added. He said the only exemption for VAT are items required by everybody, like education, medical services, which, regardless of choice, one is expected to have. Despite pressures from the International Monetary Fund (IMF) on the need to increase VAT rate in Nigeria, the FIRS chief said the Federal Government is yet to make any official pronouncement on the issue. “The IMF said Nigeria’s VAT rate is one of the lowest in the world. We had discussions back and forth on the benefits of the increase. My position is to first expand the tax net. “We crossed the N1 trillion mark in VAT last year for the first time. We are equally improving this year. At the end of 2019, if we can have everybody come under the tax net, sign for VAT, start remitting VAT, let’s look at the volume we can generate. “Then we can discuss the way we are, for government to take a decision as to whether VAT should be increased or not,” he said.

Source: Today

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Plateau state Internal Revenue Service has announced that it has recovered from the Federal Ministries, Departments and Agencies (MDAs) outstanding Tax Liabilities through the joint collaborating efforts of joint tax board to the tune of N2.6 billion being part payment of their tax liabilities to the state.
Arlat Dashe Dasogot, Executive Chairman of the state Internal revenue service made this known at its Service Headquarters during Governor Simon Lalong official flag off of the accelerated Revenue drive across the 17 Local government councils in the state and Commissioning of 15 field operational vehicles in Jos . Dasogot noted that to achieve the target of N2.5 billion revenue generation monthly and N50 billion in 4 years set by the state Governor Simon Lalong for his Revenue service for 2019, his Service will henceforth begin to enforce exercise on defaulting Banks and other Corporate Organisations and Individuals in the state. According to him, 3 districts with 4 zonal offices have been created across the 17 Local government councils in the state. He also disclosed that his Board has formed informal sector committee and as well zonal operational and MDAs technical committees all aimed at raising the revenue profile of the state. Governor Lalong while commissioning 15 Sharon Vehicles purchased by the service to distribute to local government councils, People of his state and organisations must pay their tax so as to enable his government execute more projects for the benefit of the people of the state.

Source: Independent

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Nigeria is planning to deduct 5% VAT for every online transaction via bank cards from next year. The burgeoning digital economy includes e-commerce where Jumia and Konga are playing. We also have the tech space with Flutterwave, Cowrywise, Piggybank, and others.
Tunde Fowler, Chairman of Federal Inland Revenue Service (FIRS), confirmed this in an exclusive interview with Premium Times Newspaper. Fowler said the country is currently working on a solution for taxing the digital economy. “We will address the issue of the digitalised economy very soon. There is no global solution to a digitalised economy. “Different countries have taken different solutions to address the problem. Nigeria has not taken a position yet. But, we are meeting to see if we can come up with a global solution that we can all adapt to,” Premium Times quoted the FIRS Chairman as saying. Nigerian government projected digital economy to generate $88 billion and create up to three million jobs in the next three years. The former minister of Industry, Trade, and Investment, Dr. Okey Enelamah, during a US roadshow last year said the Nigerian government is resolute in creating an enabling environment where digital economy opportunities are not just theoretical but become real. How FIRS plans to tax the digital economy The FIRS boss said the tax agency will make use of Nigerian banks as an agent in achieving the 5% value-added tax. A PwC's office used to illustrate the story A PwC's office used to illustrate the story Analyst says the digital economy may impact tax revenue in 2019

Source: Pulse

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The Islamic Movement in Nigeria is not registered with the Corporate Affairs Commission and is, therefore, not recognised as a legal entity neither is it a juristic body,
A search on the CAC portal showed that the IMN does not exist on the commission’s database. Also, its other names – Muslim Brotherhood and Ikhwan al-Muslimin – were not found in the database of the CAC. A spokesman for the IMN, Abdurrahman Abubakar, confirmed to our correspondent on the telephone that the IMN was not registered with the CAC. Abubakar said the IMN was a movement like Catholicism, Protestantism and Pentecostalism hence it needed not be registered. He, however, explained that the IMN had schools, foundations, and other institutions which were duly registered with the commission. The IMN spokesman said, “The IMN is a movement, it is an idea so it cannot be registered with the Corporate Affairs Commission but we have organs that are registered like schools and foundations. These ones are registered with the commission. “We also have associations that are registered with the CAC. The IMN is a concept, an idea that cannot be registered. You cannot register something that is not a substance. “Do you register Catholicism or Protestantism? No. But they can have churches or organisations that are registered with the CAC. We remain a law-abiding movement and we have the right under the constitution to worship freely.”

Source: punch

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To widen its corporate horizon, the Chartered Institute of Taxation of Nigeria (CITN), has renewed its vision and mission statement, with the hope to pursue the actualisation of both with more vigour. The body added that it is also planning to be a leading Institute in training world-class tax professionals. It explained that the planned tax academy would be developed to project the fundamental driving force of its vision, while it will engage all stakeholders with an inclusive mind-set and strengthening other capacity building programmes.
New CITN President, Dame Gladys Simplice, said this in her address during her investiture as the 14th president of the Institute over the weekend. She said the tax academy will be repositioned in terms of capacity for a technically-driven alternative route to membership through intensive training for revenue services staff. To admit lawyers into the Institute, she said they will go through extended period for pre-induction training to close the knowledge gap in their accounting and taxation. On the international scene, Simplice, who is also the President of the West Africa Union of Tax Institutes (WAUTI), said the Institute will continue to push for inclusiveness and full membership of member states to broaden their horizon and development with the needed expertise in the sub-region. The special guest of honour, Executive Chairman, Federal Inland Revenue Service (FIRS), Babatunde Fowler, said globally, the issue of taxation is already on the front burner where the profession is seen to be of importance than before. While promising his support for the president, Fowler said Nigeria has attained the position where taxation can be recognised as a choice of destination. Lagos State Governor, Babatunde Sanwo-Olu, represented by the Permanent Secretary, Ministry of Finance, Mrs Balogun, while congratulating Simplice, urged Lagosians to pay their taxes regularly for more infrastructural development in the state. Sanwo-Olu also promised to partner with the institute for development of the state.

Source: Guardian

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In less than a week after the reinstatement of Value-Added Tax (VAT) collection on stock market transactions in Nigeria, reports have shown that investors could pay as much as N2.5 billion yearly in additional costs on trading.
The five-year VAT exemption on stock exchange transactions expired on July 24, 2019. Thus, investors and dealing members of the capital market began to pay the tax for transactions carried out on the Nigerian Stock Exchange (NSE) from July 25. The charges are applicable to commissions earned on the traded value of shares; commissions payable to the Security and Exchange Commission (SEC); and commissions payable to the Central Securities Clearing System (CSCS). Based on transaction figures in the past two years, the re-introduced VAT payment would cost traders and dealers an average of N2.49 billion yearly or N207 million monthly, the Nation said, adding that the non-reversal of the tax has taken its toll on transactions immediately. The addition of VAT to market charges last weekend increased total costs of transactions – on both buy and sell sides – from 3.7 percent as at July 24 to 3.9 percent as of July 25. Consequently, stakeholders in the Nigerian capital market have expressed concerns on the matter. “It will obviously increase transaction costs and make our market more uncompetitive,” the CEO of Sofunix Investment and Communications, Sola Oni, said. “High transaction cost is at variance with global best practices. The policy is (an) overkill at a period when investors’ confidence in the market is still fragile.” With the re-imposition of five percent VAT, commission payable to stockbrokers increased from 1.35 percent per transaction to 1.41 percent; commission payable to the NSE increased from 0.3 percent to 0.315 percent while the commission payable to CSCS increased from 0.36 percent to 0.378 percent. In addition, investors have to pay stamp duty of 0.075 percent on each transaction. A further breakdown of the total costs per transaction showed that total costs on the buy-side increased from 1.72 percent as of July 24, 2019, to 1.79 percent by July 25, 2019, while total costs on the sell-side increased from 2.02 percent to 2.12 percent. The CSCS, the clearinghouse for the stock market, automatically deducts VAT on commissions payable to it and the NSE while operators use preconfigured software. However, both bodies only receive commissions on sale transactions while operators charge commissions on both sell and buy transactions. Stamp Duty and VAT on commissions on both sell and buy transactions are further charged by the government. Considering total transactions at the NSE had dropped from N2.543 trillion in 2017 to N2.404 trillion in 2018, capital markets stakeholders have berated the government for what they described as its unconcerned attitude towards the capital market, denouncing the re-imposition of VAT on stock market transactions as “insensitive.”

Source: Ventures Africa

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HMRC’s attempts to claw back taxes from people who used tax-planning schemes that they thought were legal have caused “widespread anxiety and distrust”, MPs have warned. MPs have previously claimed that the “loan charge” introduced to recover taxes on income that had effectively been disguised as loans has driven several people to take their own lives.
About 50,000 people are thought to have used schemes, often on the advice of their employer or a financial adviser, to route their money into a trust that then paid them a salary in the form of a loan that was never designed to be repaid. Because the money was described as a loan it was not subject to income tax. After a crackdown, many have been left with bills for income tax covering up to two decades of their earnings. HMRC has now clarified that it will not force people to sell their homes or make them bankrupt to pay back taxes under the loan charge.A new report by the Treasury Sub-Committee published on Wednesday found that collecting the tax was the correct approach but that the way HMRC had gone about it caused unnecessary stress. The committee said HMRC should give vulnerable taxpayers involved in tax disputes better guidance about the law and more support to understand their rights. Former Brexit secretary David Davis claimed earlier this month that four suicides had been linked to the way HMRC has dealt with chasing unpaid taxes relating to the loan charge. Mr Davis urged the Treasury to consider people’s mental health when implementing the policy. HMRC said it would allow people who are facing large bills under the loan charge to put in place affordable repayment plans. John Mann, chair of the Treasury Sub-Committee, said HMRC needs to do more to protect vulnerable taxpayers. The Labour MP added: “One of HMRC’s key responsibilities, as required by parliament, is to protect public funds from tax avoidance.Watch more “As such, HMRC introduced the loan charge to tackle the use of disguised remuneration schemes, which it describes as an anti-tax avoidance measure. “Setting aside the policy, HMRC’s administrative approach to the payment of large unexpected tax bills has been sensible. “The delay, however, in clarifying payment terms for those wanting to settle their past use of such schemes has caused widespread anxiety and distrust. “HMRC’s measures to improve its approach to vulnerable taxpayers are welcome, but it must urgently improve the guidance available for those involved in tax disputes.” The loan charge came into effect earlier this year to tackle the use of so-called disguised remuneration schemes. All loans made under such schemes since April 1999 that are still outstanding in April 2019 are now taxed as income.

Source: Independent

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The Association of Issuing Houses of Nigeria (AIHN) has called on the federal government to extend the exemption of Value Added Tax (VAT) on capital market transactions which expired recently. This is even as the association announced that its 2019 annual general meeting (AGM) and second edition of its annual dinner and award night will hold today.
AIHN made the call in Lagos at a press conference on Tuesday, with the focus on the state of the capital markets and the Nigerian economy. The body explained that the grant which came into effect in 2008, as the federal government’s intervention during the capital market crisis, expired last month, saying a continuation of the extension was clearly needed as VAT being a consumption tax should not be applicable to investment products. Speaking at the conference, the President of AIHN, Mr. Chuka Eseka, stated that consistently high interest rate especially on short-term risk-free instruments was among the challenges confronting the operators in the industry. Eseka described that as, “a disincentive to a long term investments and unfavourable to our equity capital markets; the wellspring of risk capital formation in any economy.” He said: “A gradual but consistent reduction in risk-free interest rates is Clearly desired and we are not unaware of the challenges faced by the economy which forces a tight monetary policy regime. “Nevertheless, we believe that as the federal government continues to diversify its loan portfolio, the need for fiscal and monetary policy alignment to prevent crowding out the capital market cannot be overemphasised. “AIHN in addition, recognises the need to incentivise equity listings in the Nigerian capital market. The Initial Public Offers (IPO) market has been abysmal in the last five years with not a single concluded transaction in 2018 and only one (a minority stake sale) thus far in 2019. “Favourable tax structures for the capital market is recommended.” The association also tasked the federal government to sustain its ease of doing business reforms in the regulatory environment (Enabling Business Reforms and Regulatory Environment) and continue to provide incentives that would catalyse domestic institutional participation in the capital markets, boost market liquidity and attract foreign flows. It added that industry regulators such as NAICOM and PENCOM must realise that their insurance and pension sectors form a core part of the demand side of the capital markets and are key elements in achieving sustainable economic growth. It therefore, urged the federal government to inaugurate the board of the National Pension Commission (PENCOM) just as it recently inaugurated the board of the Securities and Exchange Commission (SEC). AIHN also said the capital market was still awaiting the Presidential assent to the Company and Allied Matters (Repeal and Re-enactment) Bill 2018. It stressed that the CAM Bill provides for insolvency, bankruptcy and netting clauses among others, which go a long way in mitigating the risks associated with capital market transactions, promoting financial stability and boosting both domestic and foreign investor confidence in Nigeria. Meanwhile, the AIHN said its annual general meeting (AGM) and 2019 annual dinner and award night will hold on August 1, at the Civic Centre, Victoria Island, Lagos. According the association, the Vice President, Prof. Yemi Osinbajo, would be at the dinner, while the Governors of, Lagos, Niger and Edo States would be in attendance. The group also said three categories of award will be given at the event including the Capital Market Titan Award which will be conferred on the President of Dangote Group, Alhaji Aliko Dangote.

Source: this days

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Ole Gunnar Solskjaer insisted on Friday that Manchester United can cope without Romelu Lukaku following the striker’s transfer to Inter Milan, saying that it was time for him to move on despite the lack of a replacement. Lukaku joined the Serie A club on Thursday, the Premier League’s transfer deadline day, but there was no new arrival to take his place at Old Trafford before the window shut. “It was time now for Romelu Lukaku to go. I think we got a good deal and he is happy so I think both parties ended that deal as it should be,” Solskjaer told reporters on Friday. “Romelu was injured for a while this pre-season and he did not participate so I just hope for him he will get a good start at Inter Milan.” The former Everton star fell out of favour under Solskjaer last season and he was training with the youth team at Anderlecht earlier this week as he tried to force his transfer away from United. Lukaku’s behaviour was criticized in some quarters but Solskjaer insists there is no bad blood. “I have always had a good relationship with Rom, open and honest. We have always spoken to each other frankly. “I have no issue between me and Rom but we are now obviously very happy with who is here.” While Solskjaer suggested Lukaku’s departure was inevitable, he will still be missed by United as no-one in the current squad comes close to matching his 42 goals in 96 appearances over the last two seasons. Links with Juventus pair Paulo Dybala and Mario Mandzukic came to nothing, so Solskjaer has to go with what is already at his disposal. Marcus Rashford is expected to lead the attack in their Premier League opener against Chelsea on Sunday, but there could be more opportunities for 17-year-old Mason Greenwood.
– Impact players –
The youngster has impressed in pre-season and his manager expects him to become an integral part of the first-team squad. Regardless of who features upfront, Solskjaer believes there are enough goals in his team to challenge for a place in the top four. “Of course Rom has a good record. The stats say he is one of the top number nines around when you want to play with that kind of target man striker,” he said. “But for me, I am very confident that we’ll get goals from Anthony Martial and Marcus Rashford. Daniel James will create and Jesse Lingard will get more goals too. “Mason Greenwood’s pathway would have been a lot more different if we had another forward there. I believe Mason is going to be playing and involved a lot and when he is, he’s going to score goals.” With Lukaku leaving Old Trafford, the door is now open again for Alexis Sanchez to prove his worth after a miserable 18-month spell in Manchester. The chances of Chilean departing before September 2, when the last of the European transfer windows closes, are slim and although he is not yet ready for first-team action following this summer’s Copa America Solskjaer insists there is still hope for Sanchez’s United career. “Alexis has come in and trained well although he is four or five weeks behind the other boys,” he said. “He has not played in any of the pre-season friendlies apart from one behind closed doors this week. “I think he will see this as an opportunity to make his mark. “I do expect him to stay. We think there is a striker there who is going to be able to get us some goals.”

Source: Punch

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