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France has approved a digital services tax despite threats of retaliation by the U.S., which targets American tech giants. The 3 percent levy will apply to revenue from digital services earned in France by firms with over $845 million worldwide.
U.S. President Donald Trump ordered an investigation into the tax, a step that could lead to the United States imposing new tariffs or other trade restrictions. France pushed ahead with the tax after EU countries failed to agree a levy valid across the bloc in the face of opposition from Ireland, Denmark, Sweden and Finland. Other EU countries including Austria, Britain, Spain and Italy have also announced plans for their own digital taxes.

Source: The Nigerian

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AFCON 2013 winner Brown Ideye recently joined Greek side ArisSaloniki. The 31-year-old striker tells JOHNNY EDWARD about his spell in China, an unlikely return to the Super Eagles and more in this interview . You’re back to football after 12 months out. How does it feel getting back to play football again? It feels very amazing. No footballer loves staying out of football that long even because of injury. Being back in action once again is really good. For me, this is what I have been dreaming of and Aris Saloniki gave me that opportunity to continue my career. I just love playing football and I missed the game all through the time I was on the sidelines.
How frustrating was it staying out of the game for one year?
It wasn’t easy but I had to keep my body in good shape and stay strong mentally. It was not what I wanted, the club (Tianjin TEDA) chose that path and I had to respect the tough call they made. I was ordered to train with the youth team despite not going against any laid down rules. I don’t pray for any footballer to go through all that I experienced this past one year in China. Thank God I’m back in the game and psychologically I have put that behind me. I need to pick up well from where I stopped and focus on my new club and hopefully do better.
Why were you banished to the reserve team at Tianjin TEDA?
That’s a part of my football life I want to include in my autobiography. It’s a story I want to tell about myself and children.
Did you at any point feel like giving up?
Not at all. I never gave up because I knew my career was not going to end like that. I was so certain that I will be back again. I’ve always been positive since that terrible decision was made by Tianjin TEDA and what kept me going on was the fact that I was innocent. It wasn’t easy but thankfully, I was among the right people. You have played two Europa League games so far, the first for 90 minutes and the second for 86 minutes. Your account indicates no goals but one assist through a penalty. Do you think you are getting back to your best form?
I won’t say that yet. I stayed away for a year, so I’m still trying to put myself back on track again, get the same rhythm again. I believe with more training and total focus, I will get there. Aris are through to the next round of the Europa League, the target is to get into the group stage of the competition. The goals will come no doubt and I’m not worried about that. I have always scored goals in every team I played for and Aris won’t be any different. All I just need to do is to push myself harder. I’ve played in Greece before and they know me well. I’m not under pressure to impress as the club personnel know me very well. The team’s success comes first as far as I’m concerned. After spells with Neuchatel, Sochaux, Dynamo Kiev and Olympiakos, you had a difficult time at West Brom and now Tianjin TEDA. What’s the new deal in Greece with Aris like?
I got a call from the President of Aris through an agent and during our discussion, we tabled what we both wanted and afterwards he said he was going to speak with the coach. He got back to me surprisingly, saying that the coach will love to have me in his team despite being out for 12 months; and he wanted me early enough for pre-season. Personally, I watched the team play last season, and from what I saw, Aris are a team that I will fit in well. They don’t have big name players but they make up for that with their team play and togetherness. In terms of financial packages, it’s not what I expected but it’s a great opportunity to start my career again.
What would you like to achieve this season with Aris?
The objective of Aris this year is to have a great season. A top-four finish will be fantastic. The season has just begun and Aris are through to the next round of the Europa League. The fans know me well from my days at Olympiakos. I signed a one-year deal and so they should expect goals.
You are a striker, in terms of goal-scoring, which has been your best club and which was your worst?
I think Olympiakos was the best in terms of goals return and West Brom was the worst. I never had enough chance to prove myself there (West Brom) before I left, which still hurts in a way. You last played for the Super Eagles against Zambia in 2017, in a World Cup qualifier in Ndola. Are you thinking of a return to the team?
To be honest with you, I’m not thinking of that at the moment. The Super Eagles is the last thing on my mind now. I have been out for long and now I want to focus on my club career. I’ve come to realise I’m unlikely to ever play for my country again. I think I’m more than capable of doing a good job for my country but the fact is that I have been out for 12 months and the best thing is to focus more on getting back to my very best and my club career. It is quite unfortunate from my point of view, but it’s quite plain to see I’m not in the selectors’ plans. Still, I would love to be involved. Representing my country was always the ultimate honour, but it’s just not going to happen any time soon.

Source: Punch

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Real Madrid have reportedly agreed personal terms with Man United and France midfielder Paul Pogba, as Los Blancos seemingly edge closer to wrapping up a move for the player. Pogba has been linked with a move away from Old Trafford for most of this summer, and now, it seems like the French international is close to finalising a move away. According to Don Balon, the Red Devils superstar has agreed a five-year deal with Los Blancos, one that’ll see him take home around €17M-a-year, a total which equates to around £300,000-a-week. The report also notes that United want €170M for Pogba, whilst Real aren’t willing going to go past €150M, thus it seems like the Spanish giants are just €20M off of finalising a move to the Santiago Bernabeu for the 26-year-old. Pogba is one of United’s best and most influential stars, and hearing that he’s agreed terms with Real ahead of a potential move to the club will surely be a hard pill to swallow. The Frenchman was arguably the club’s most important player last term, and should they sell him to Real in the coming days, Solskjaer’s side will have very little time to bring in a replacement ahead of Thursday’s transfer deadline.


Source: Punch

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The Ekiti State House of Assembly on Tuesday, passed a new bill that would guide tax policy and revenue generation. The Speaker, Funminiyi Afuye, who passed the bill through a voice vote, commended the House Committee on Finance and Appropriation for a “good job.” He said, “Ekiti needs to look inwards at this challenging time and generate more money in view of the dwindling revenues of the Federal Government.
The passage of the tax bill was sequel to that of the Board of Internal Revenue Service Bill 2019 to law by the legislative body. The Assembly, had during its previous plenary, adopted as a working document, the report of the committee on Finance and Appropriation in respect of the operation of the State Revenue Board. The Chairman of the committee, Olubunmi Adelugba (Emure Constituency), had, while submitting the report on Tuesday, said “the new law would engender collaborative efforts among stakeholders through effective tax control system. and formation of better policy for revenue generation in the state.” Adelugba, who is the Chief Whip of the Assembly, had said the new law as contained in the committee’s report would engender collaborative efforts among stakeholders through efective tax payment for more revenue that will be in the overall interest of the residents. Adelugba called attention of the House to the flooding being experienced in some towns, especially in Emure community since the beginning of the raining season and urged government to find urgent and lasting solution to the threats.

Source: punch

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The Federal Inland Revenue Service (FIRS), has taken the Midwestern Oil and Gas Company Limited to a Federal High Court, Lagos over failure to pay the outstanding tax liability due to the Federal government in the sum of $97,086,985.
In an affidavit sworn to by a legal practitioner from the law firm of DAC legal practitioners, Mr Ayodeji Jolaoso, and filed before the court by Dapo Akinosun, the deponent averred that, as normal obligatory routine, Mid Midwestern Oil and Gas company filed its self-assessment notice for the year 2012-2013 which was delivered to the plaintiffs showing that it made a profit of $271,857,000 and $173,613,950 in the two years. But FIRS verified the claim by the company in its self-assessment and discovered that the defendant did not pay any amount as its petroleum tax and Educational tax for the year 2012 and 2013 respectively.FIRS thereafter assessed the company based on its declared profit for the year 2012 and 2013, issued and served a notice of assessment dated January 29, 2015 and demanded notice 11th April, 2018, indicating the outstanding tax liability of the company covering Petroleum ta and educational tax. The break down of the outstanding tax liability of the company are as follows: Petroleum profit tax liability for the year 2012 is $65,065,644.00; petroleum profit tax liability for year 2013 is $28,024,364; Education tax liability for the year 2012 is $2,436,340 and Education tax liability for year 2013 is $1,565,638.00. The total amount of the outstanding tax liability of the company due to the Federal Government from the taxes stated above Is $97.086,985.00.The company did not raise any formal objection to the assessment and has since refused to pay the outstanding debt.The plaintiff instructed its solicitor who wrote a letter further reminding the company of the demand for remittance of the outstanding tax liability. In an attempt to settle this matter amicably, the plaintiff’s solicitor also invited the defendant to a meeting to discuss the payment of the outstanding tax liabilities highlighted above and other issues arising therefrom by a letter September 19 ,2018.The defendant has refused and neglected to pay its outstanding tax liabilities as assessed by the plaintiff despite all attempts made by the FIRS to ensure the remittance of the company’s Petroleum Profit Tax and Education Tax for the years for the years 2012 and 2013. Consequently, the FIRS, is urging the court to direct Midwestern Oil to pay its outstanding tax liability arising from the Petroleum profit tax and Education tax assessed in the sum of $97,086,985.00. FIRS is also praying the court to direct the company to pay a penalty of N10,000.00 daily as consequence of late payment of the tax due from 1st February, 2015 till the date its tax liabilities are remitted as prescribed by section 51(1) of the Petroleum Profit Tax Act (PPTA) cap P13,Law of the Federation 2004 and Education Tax Act. CapE4, Law of the Federation of Nigeria 2004.Midwestern Oil and Gas Company has not filed any defence. Meanwhile the case has been adjourned till after court vacation for hearing.

Source: Guardian

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The Office of the Senate President has stated how Ahmad Lawan should be addressed officially. It also released his official portrait. An email from the Senate President’s Media Office on Tuesday states,”The attached photograph is the official portrait of the president of the Senate.” Continuing, the email states, “The President of the Senate is to be addressed as: Ahmad Ibrahim Lawan, Ph.D, CON, as indicated on the portrait.”

Source: Punch

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The Executive Director, Rural Women and Youth Development (RUWOYD), Sokoto State, Abudu Yusufu has urged governments to institute effective tax structures to increase the size of national budgets by raising corporate tax payment.
Speaking at a Stakeholders Forum on Tax and Gender-Responsive schools under the ActionAid initiative of ‘Tax Justice & Gender Responsive Public Services and Breaking Barriers’, he said, “Effective tax structures can create incentives to improve governance, strengthen channels of political representations and reducing corruption.” He noted that “fair and effective tax collection is effective for collecting revenue to deliver services that citizens need. It is a powerful tool for redistributing wealth within society to address poverty and inequality. “A functioning state that can meet the basic needs of its people must rely ultimately on its revenue to meet development objectives,” he said. Yusufu said tax is fair when it helps reduce poverty and fulfil human rights, that is, when tax takes little from the poor, more from the rich and when taxes are used to pay for public services. He added: “This means that VAT is low, that tax exemptions exist for basic products that help poor people; that tax is not charged many times on the same thing, and that no huge tax increases happen for poor people year on year.”

Source: daily trust

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Shareholders under the aegis of Ibadan Zone Shareholders Association (IBZSA) have added their voices to calls on the federal government to extend the exemption of Value Added Tax (VAT) charges on transactions on the Nigerian Stock Exchange (NSE), pending when the economy and market fully recovers.
The five-year exemption on brokerage commission and transactions fees charged by Securities and Exchange Commission(SEC), NSE and Central Securities Clearing System(CSCS) Plc the federal government gave in 2014, expired last Wednesday. And the NSE had notified stockbrokers that effective Thursday July 25, 2019, the five per cent VAT would now be charged. Owing to that, some investors had urged the government to extend the exemption. Lending their voices to earlier calls, the IBZSA members said the market was already saturated with various taxes and commission on transactions. IBZSA, in a statement signed by its chairman, Mr. Eric Akinduro and General Secretary, Mr. Ayoola Olufemi said the inclusion of VAT would further send negative signals to the investment community, leading to loss of shareholder value and discourage many investors from investing in the market. “Recent statistics show that return on our investments has been discouraging vis-à-vis capital appreciation. In view of this and on behalf of the entire members of the IBZSA, we do hereby request that the Federal Government of Nigeria should extend the VAT exemption pending the time we have a robust economy,” they said. According to them, the shareholders’ community was of the opinion that, the resumption of VAT charges in the market by the government portrays a bad policy for the growth of the Nigerian capital market considering persistent decline the market has witnessed in recent times. “And, also signalled the insensitive of government to the plight of investors and development of small and medium scale enterprises in Nigeria,” the shareholders added. The shareholders urged government to implement policies that would encourage domestic investors to participate in the market, stressing that foreign investment outflow had outpaced foreign investment inflow every month since January 2019. “In total, foreign investor outflow for the period between January and June 2019 stood at N257.8 billion compared to N214.9 billion in inflows over the same period. “Domestic retail investor investment was N329.6 billion compared to N285 billion June 2019 year to date. It is, however, believed that owing to the fact of low business activity in the market, government should begin to reconsider it stand on VAT or put it on hold, so as to continue to encourage local investors,” they said.

Source: This Days

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Dr. Cyril Ikemefuna Nwobodo Ede the immediate President of the Chartered Institute of Taxation of Nigeria (CITN) For us to be truly seen as making a determined push to diversify the economy away from taxes, what we require is a sustained effort towards investing in critical infrastructure such as power and transportation which impacts greatly on industrial development.
I am delighted that government is gradually taking decisive steps in this direction as evidenced on ongoing rails projects, major road rehabilitation and reconstruction in key arterial roads, investments in power generation and transmission projects etc. When these initiatives are sustained, in no time, the right environment would be created for investors to set up businesses that would operate profitably, conserve foreign exchange, reduce unemployment and pay taxes to government.He spoke to New Fortunes recently on topical issues bordering on the economy, taxation, revenue diversification, financial reporting, among others; and harped on the need for an uptick in Nigeria’s non-oil revenue stream. VAIDS assessment On the whole, I would say the programme was successful, not really in terms of numbers but the awareness generated. The publicity accorded the VAIDS programme impacted on the level of awareness and perception of Nigerians on the need to be tax compliant. Our Institute was involved in the sensitization campaign for the programme and our assessment of the feedback generated supports the fact that the programme lived up to expectations. We can only hope that in future there should be better synergy amongst the tax authorities at the federal and state level towards a successful run. By default, response to any government pronouncement, policy or programme is to shuttle between indifference and skepticism. Only in very few instances have I felt a government programme has a chance of success. But report has shown that in the first four months of implementation, VAIDS delivered N17billion into government coffers. Two months later, an additional N6billion was realised through the scheme.

Source: This days

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The Federal Inland Revenue Service (FIRS) has directed the newly inaugurated Technical Tax Policy Drafting Committee to harmonise the various tax and excise law reforms in the proposed Finance Bill. The FIRS Chairman, Mr Babatunde Fowler, gave the directive at the inaugural meeting of the Reconstituted National Tax Policy Implementation Committee (NTPIC) in Abuja on Tuesday.
Fowler appealed to the technical committee to work assiduously to produce a singular set of fiscal measures that would be considered and approved by the reconstituted NTPIC in the next few weeks. He also enjoined them to accelerate the drafting and submission of a draft Finance Bill in good time. “I am charging the chairman and members of this Technical Committee with the responsibility of accelerating the drafting and submission of a draft Finance Bill (and if deemed necessary, any draft Executive Order (s), to harmonise the various tax and excise law reform efforts. “It is our expectation that the Technical Committee will work assiduously over the next few weeks to produce a singular set of fiscal measures that will be considered and approved by NTPIC. “Once agreed, these fiscal measures would be submitted to the Economic Management Team, and Federal Executive Council (FEC) for approval and ultimate transmission to the National Assembly for passage into law. “This will be as part of the efforts to support the 2020 Executive Budget Proposal,’’ he explained. He said that the service under his leadership remained committed to engaging with other tiers and arms of government, particularly the National Assembly to solicit their support on the speedy passage of the bill when presented. The chairman added that when that was done, the revenue enhancement initiatives of the service would have appropriate legislative backing to be fully effective. The chairman of the committee, Mr Adeyemi Dipeolu, thanked FIRS and pledged on behalf of other members to justify the confidence reposed in them. Dipeolu said that the task of the committee had been made known and they would work strictly on the template given. He pledged to engage the organised private sector and other relevant stakeholders to get their inputs in the proposed bill. (NAN)

Source: This days

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The acting Chairman of the Manufacturers Association of Nigeria, Nasarawa State chapter, Mr Alfred Alogana, has expressed the body’s displeasure over the unfavourable tax regime in the state. He made special reference to the Gaseous Emission Tax, which manufacturers and producers of goods are subjected to by various agencies of the state government.
Alogana stated these in an interview with Northern City News in Lafia on Thursday. According to him, the tax in question is outrageous and is adversely affecting the capacity of local manufacturers in the state. He said, “We asked what the Gaseous Emission Tax was all about and they said the generators we use for our business emit gas, which is poisonous, and so we were to pay for it. “We then asked if they were going to clean the gas from the atmosphere, but they could not explain anything, and they still went ahead to enforce the payment. “I don’t really know what they are after; they brought notices to us that we have to pay for gaseous emission. They force us to pay huge amounts. In their letter, it is N24,000 per producer per year.” “I don’t see legality of this. I don’t see anything good in it because it is the government that is supposed to supply electricity, but it is not doing it. So for somebody to get a generator to help himself to do what he is doing and contribute his quota to the state and be charged for it is unfair.” According to him, the Nasarawa State Government, through the state Ministry of Environment and Solid Minerals, has been compelling local manufacturers and producers in the state to pay this tax since 2018. He appealed to the state government to take another look at the tax, because manufacturers in the state were already overburdened by the problems of poor infrastructure, multiple taxation and a harsh business environment. When contacted, the Permanent Secretary, Ministry of Environment and Solid Minerals, Mallam Usman Abu, confirmed the introduction of the Gas Emission Tax, which he said was backed by legal notice No. 6 enacted in 2018.

Source: Punch

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Some investors in the Nigerian capital market have called on the federal government to extend the exemption of Value Added Tax (VAT) charges on transactions on the Nigerian Stock Exchange (NSE) so as to attract more patronage to the market.
The federal government, had in 2014 exempted brokerage commission and transactionsfees charged by Securities and Exchange Commission(SEC), NSE and Central Securities Clearing System(CSCS) Plc from the five per cent VAT. The then Coordinating Minister for the Economy and Minister of Finance, Dr.NgoziOkonjo-Iweala had announced the exemption as part of efforts to resuscitate the market. The exemption was for five years. Following the expiration of the exemption, the NSE has notified stockbrokers that effective Thursday July 25, 2019 (tomorrow) the five per cent VAT would now be charged. In a notification to stockbrokers, signed by Head, Broker/Dealer Regulation, NSE, Mr.Olufemi Shobanjo, said that exemption, which became effective on 25 July 2014 and valid for a period of five years, has expired July 24, 2019. “To that extent, all dealing members of the NSE are to note that effective 25 July 2019, barring any further extensions from the federal government: VAT is to be charged on all commissions applicable to capital market transactions. These are commissions: earned by dealing members on traded values of shares; and payable to the NSE and CSCS. The CSCS will automate the deduction of VAT charged on commissions payable to the NSE and the CSCS; and dealing members are required to resume the deduction of VAT on commissions earned. Consequently, dealing members are required to engage their software vendors for the automation of VAT deductions, and communicate to their clients the above ahead of the effective date. Furthermore, dealing members are reminded to ensure that the VAT charged on the commissions earned are remitted to the Federal Inland Revenue Service (FIRS) as and when due,” the notification said. Speaking to THISDAY on the development, the National Chairman, Progressive Shareholders Association of Nigeria (PSAN), Mr. Boniface Okezie, said VAT charges should not be reintroduced into the market. According to him, there are already many charges in the market that investors are contending with, saying that the resumption of VAT charges would discourage more investors from the market. “In my humble opinion, the government should not allow VAT charges to return to the market. Shareholders are already paying withholding tax on their dividends. Before the declaring dividends, companies pay various taxes, which also reduce the dividend shareholders are getting. Now coming to ask them to pay VAT on transactions on the floor of the exchange, will amount to too much taxation and it will not encourage patronage of the market,” Okezie said. Another investor, Mr. Moses Igbrude of Independent Shareholders Association of Nigeria(ISAN), said given the current state of the market, resuming VAT charges on the market would worsen the situation. “At present the market is very volatile and the bears have remained in control since the beginning of the year. Many investors are not willing to come into the market and if VAT charges are reintroduced, it will further dampen investor confidence. I plead with capital market regulators to prevail on the federal government to extend the exemption so as to attract more investors to the market,” Igbrude said. According to him, while there is no minister of finance now, the regulators should reach out to the Permanent Secretary, who is overseeing the ministry so that the exemption of VAT charges should be continued.

Source: This days

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Oxfam in Nigeria has called on the federal government to fast-track action on the approved new National Tax Policy in order to tackle corporate crimes. Oxfam Country Director, Constant Tchona, made the call in Abuja at the public unveiling of the ‘Fair Tax Index report and the Commitment to Reducing Inequality Index (CRII)’ report, with the theme ‘West Africa Inequality Crisis: The Fight Against Inequality through Progressive Taxation’ in Abuja.
He said Oxfam had developed policy recommendations and strategies, saying it would be used to advocate for a fairer tax system that helps to redistribute prosperity from the richest in the society to the very poorest. Tchona, explained that a 2015 Oxfam’s report highlighted the inefficiency of Nigeria’s tax incentives where it submitted that the country loses N580 billion annually through tax incentives to multinational corporations. To put this in perspective, he noted that the health budget was only one third of this amount in 2015. The country director added that Nigeria needs to rework its strategies and sets its economic priorities right by investing in agriculture, manufacturing and infrastructure rather than waste its hard-earned resources on unproductive and redundant tax incentives. Tchona explained further that the official Federal Inland Revenue Services (FIRS) numbers suggest that the entire tax system was fraught with crippling challenges of weak enforcement, corruption and outright evasion. According to him, “The records show that about 30 per cent of companies in Nigeria are involved in tax evasion and also 25 per cent of registered companies in the country are not paying tax. “Taxpayers often opt to negotiate with corruption tax administration staff in return for gratifications and reduced sums to the coffers of the government.” Tchona said the fiscal incentives granted with the hope of stimulating investments into the country’s economy were eroded with poor governance and lack of transparency, especially when the central bank had confirmed that there was no cost benefit analysis to justify the exemptions and when there was no check in discretionary powers residing with the Executive in granting exemptions. He stressed that the Voluntary Assets and Income Declaration Scheme (VAIDS) was designed to increase tax revenue by encouraging voluntary disclosure of any previously undisclosed income liable for tax and to bring as many people as possible into the tax net. This, he said resulted in $5 million extra revenue which was about N1.8 billion, but this was only 10 per cent of the expected amount. Tchona, however, called on the federal government to opt for aggressive taxation of the informal sector in order to meet the revenue target. “There is need for the Nigerian government to fast-forward action on the New National Tax Policy approved and clamp down on corporate crimes. “New legislation and rules to cope with current realities should be enacted along with introduction of cutting edge technology. “The National Assembly should enact a law to punish enablers of tax evasion such as lawyers, accountants and bankers and should be made to face fines of up to 100 per cent of tax evaded. “The National Assembly should enact law that will criminalise totally the actions of middlemen- banks, auditors and lawyers that facilitate illicit financial flows. When such professionals act contrary to existing regulations, they should be held accountable in Nigeria. “This can be enforced through strengthened professional association bodies.” While presenting his paper on, ‘Understanding the Impact of Inequality in Nigeria and Policy Recommendations,’ the Country Director of Plan International Nigeria, Dr. Husseini Abdul, said tax was not only about income for government, but one of the best way to tackle inequality According to him, “We can’t have conversation about the development of this country without talking about inequality. The trajectory of development is a problem and economic policies are needed to deal with them.”

Source; Investor king

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The Tax Appeal Tribunal sitting in Abuja, on Tuesday fixed Aug. 16, for Report of Settlement a suit filed by a company, “M FIFTEEN” Consultants against the Federal Inland Revenue Service (FIRS) and one other. The company dragged the FIRS, before the Tax Appeal Tribunal over alleged double taxation.
Also joined in the suit are the Independent Electoral Commission (INEC) and the Nigeria Police. The company, said it was dissatisfied with the FIRS assessments of its Tax Liability. The Chairman of the tribunal, Mrs Alice Iriogbe, fixed the date after the appellant’s counsel, Mr Ifegbunachi Onwo, said parties had started and were currently taking steps to settle out of court. Iriogbe said: “since parties are disposed to settlement, the matter is adjourned until Aug. 16 for Report of settlement or continuation of hearing”. Earlier, Onwo sought for an adjournment to enable parties to meet and cement details. Also, the respondent’s counsel, Mr Adebayo Ogunmola, told the tribunal that there was a partial position as the appellant counsel had called him twice but parties have not been able to meet, he further stated that they were fully disposed to settlement and hoped it would not be a total waste of time. Also, INEC’s counsel, Mr Nnamdi Onyenwu, submitted that he was ready to incorporate the first respondent counsel’s position and was ready to align with the decision of other parties. NAN also reports that the company specifically said that it was dissatisfied with an intent letter by the FIRS imposing a tax liability of N14. 662 million on it without due consideration of all the material and available facts. The company further stated that the N7. 9 million captured as part of the tax liability have already been deducted at source by the FIRS and the police from the contract sum of the appellant. The company argued that it would amount to double taxation if FIRS expected the appellant to pay same again. It therefore sought the order of the tribunal to declare as null and void, the intent letter by FIRS dated April 7, 2014 . The company also sought an order of the tribunal directing INEC and the Police to show evidence of remittances to FIRS of the sums deducted from the payments made by the appellant in respect of contract executed. The appellant also asked the tribunal to direct that credit should be given to the appellant in respect of the tax deductions made on payments due to it from the INEC and the Police totalling N7. 9 million. The company further sought an order directing FIRS to issue it a tax clearance certificate which was withheld for the 2006 to 2011 year of assessment.

Source: Leadership

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Chairman of the Joint Tax Board (JTB), Mr. Babatunde Fowler, has stated that the Tax Identification Number (TIN) Registration System and Consolidated National Taxpayers Database introduced by the JTB will improve the efficiency and output of the entire tax administration process and provide convenience to taxpayers and tax authorities. (From Left):
Mr. Tunde Fowler, Chairman, Joint Tax Board (JTB) and Federal Inland Revenue Service; Lagos State governor, Mr. Babajide Sanwo-olu; Sir Oseni Elamah, Executive Secretary, Joint Tax Board; and Mr. Amidele Zubair; Executive Chairman, Lagos State Inland Revenue Service at the South-west Flag-off ceremony of the new JTB Tax Identification Number Registration System in Lagos on Thursday. Fowler, who is also the Chairman of the Federal Inland Revenue Service (FIRS) stated this in Lagos on Thursday during the South-west Flag-off ceremony of the new system, which was launched in Abuja on 1 July. According to the JTB Chairman, the new system will ensure that taxpayers’ information are available whenever and wherever they need them. The system, said Fowler, possesses the capability to integrate with relevant agencies and leverage on already captured data, deploy analytics to discover underlying and correlating trends and patterns that could lead to increased Internally Generated Revenue (IGR) for all tiers of government. These agencies, he added, include the Corporate Affairs Commission (CAC), Nigeria Customs Service (NCS), Nigeria Immigration Service (NIS), Federal Road Safety Commission (FRSC), Central Bank of Nigeria (CBN) and the Nigeria Inter-Bank Settlement System (NIBSS), Nigeria Identity Management Commission (NIMC) and Nigerian Communications Commission (NCC), “This would significantly reduce the burden of manual taxpayer information management and by extension grossly crash the cost of collection”. “The system is designed in such a manner that each taxpayer is assigned a unique and universal Taxpayer Identification Number (TIN) and it is now possible for any taxpayer to view, retrieve or update his/her tax profile from anywhere 24/7,” said the JTB boss. The new TIN Registration System and its consolidated database of individual and corporate taxpayers’ have been designed to form the foundation upon which the nation’s automated tax administration system is built. In his opening remarks at the event, Executive Secretary, JTB, Sir Oseni Elamah, said the new system is a web-based solution that offers access to authorized users to initiate TIN request from the comfort of their homes/offices real-time online, verify their tax status and print their TIN certificate. “It is a transparent system that assures timely and accurate collection and recording of basic identification data. “It also permits the tax administrator to understand its taxpayer base for effective revenue projections and other planning activities. “By leveraging on existing data from relevant identity management agencies, the new System reduces the burden of multiple registration of taxpayers as well as promoting the ease of doing business and paying taxes. “It also ensures seamless integration and exchange of information amongst the various tax authorities within and outside Nigeria, as well as with other authorized stakeholders via web service,” he explained. Chief host of the ceremony, Mr. Babajide Sanwo-olu, Governor of Lagos State, commended the JTB for initiating the new system, which he said will take tax administration to the next level. Also in attendance was Mr. Dapo Okubadejo, Chief Economic Adviser to the Ogun State government, who represented Governor Dapo Abiodun of Ogun State.

Source: ameh news

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Fowler made this known on Thursday during a speech at the south-west flag-off ceremony of the new Tax Identification Number (TIN) Registration System and Consolidated National Taxpayers Database. The website, which was first launched in Abuja on July 1, allows users to register and get their tax identification numbers (TIN) online.
According to the JTB Chairman, the new system will ensure that taxpayers’ information is available whenever and wherever they need them. The system, said Fowler, will integrate data already captured by other relevant agencies, deploy analytics to discover underlying and correlating trends and patterns that could lead to increased internally generated revenue (IGR) for all tiers of government. He listed the agencies to include the Corporate Affairs Commission (CAC), Nigeria Customs Service (NCS), Nigeria Immigration Service (NIS), Federal Road Safety Commission (FRSC), Central Bank of Nigeria (CBN) and the Nigeria Inter-Bank Settlement System (NIBSS), Nigeria Identity Management Commission (NIMC) and Nigerian Communications Commission (NCC). “This would significantly reduce the burden of manual taxpayer information management and by extension grossly crash the cost of collection,” he said. “The system is designed in such a manner that each taxpayer is assigned a unique and universal Taxpayer Identification Number (TIN) and it is now possible for any taxpayer to view, retrieve or update his/her tax profile from anywhere 24/7. In his opening remarks, Oseni Elamah, executive secretary of the JTB, said the new system is a web-based solution that offers access to authorized users to initiate TIN request from the comfort of their homes/offices real-time online, verify their tax status and print their TIN certificate. “It is a transparent system that assures timely and accurate collection and recording of basic identification data,” he said. “It also permits the tax administrator to understand its taxpayer base for effective revenue projections and other planning activities. “By leveraging on existing data from relevant identity management agencies, the new system reduces the burden of multiple registrations of taxpayers as well as promoting the ease of doing business and paying taxes.”

Source: Seriousmata

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Hearing in a N1.2 billion tax error claims filed by Joseph Daudu, SAN, at the Tax Appeal Tribunal was stalled on Wednesday due to the petitioner’s ill health. Mr Daudu, who is challenging alleged N1.2 billion error in his taxation, sent an affidavit for a motion for an adjournment in order for him to be present for the next proceeding.
The counsel to the appellant, Adedayo Adedeji, orally brought an application in pursuant to Order 11 Rule 2 applied that additional processes which was filed on July 15 and served July 16 as deemed properly filed. The Tribunal chairman, Alice Iriogbe, in her response adopted the processes as deemed properly filed. In the process filed by Mr Adedeji, he sought for the tribunal to look at the document in the intervening period to address some of the issues and possibly enter a judgement in the absence of the appellant. Mrs Iriogbe however said the tribunal had a discretion to do that without the appellant’s presence, but it will nullify his document tendered before the tribunal. Mr Adedeji prayed for an adjournment to enable the appellant appear in court. The chairman in her response, said if the adjournment was granted and the appellant failed to appear on the next adjourned date the tribunal would allow the respondent to take its witness after which the parties will adopt their written addresses. Mr Adedeji told the court that there was need to consult his team before accepting the tribunal decision. Mrs Iriogbe then adjourned the matter until August 16 for mention. News Agency of Nigeria (NAN) reports that the appellant sued the Federal Inland Revenue Service (FIRS) over an allegation of error on assessments of his Withholding Tax (WHT), Personal Income Tax and Value Added Tax (VAT) for the period from 2010 to 2017. Specifically, he expressed dissatisfaction with the decision to assess him with respect to WHT and VAT in the sum of N 1. 2 billion. Mr Adedeji earlier notified the tribunal that the appellant would like to be at the tribunal by himself but he was still not fit, he also presented the medical report to attest for that. He further informed the tribunal that Mr Daudu needed to be in the tribunal because some of the issues were personal which he needed to clear. Mr Daudu claimed that it was a misnomer for him, who operated a law firm as a legal practitioner and did not deal in primary goods, to be assessed on Withholding Tax (WHT). FIRS in its argument said its assessments were not in error and that it was discovered that the appellant did not deduct and remit WHT on some of the expenses and payments made under the period in review. The service, therefore, prayed the Tribunal to declare that the notices of assessments issued on the appellant for 2010 to 2017 assessment was right. It also urged the tribunal for an order mandating Mr Daudu to pay the total sum of N1.2 billion being the appellant’s liability for WHT, Personal income tax and VAT for 2010 to 2017 years of assessment. FIRS stated that it rightly assessed Mr Daudu; acting in accordance with the law and by collaborating with EFCC on non-declaration of income as well as tax evasion.

Source: Premium times

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The Senate on Wednesday urged revenue collecting agencies to ensure timely transfer of funds collected into the Federation Account. President of the Senate, Dr Ahmad Lawan, made the call in Abuja at a meeting with some of the revenue collecting agencies.
Lawan also called for timely disbursement of funds to federal, states and local government councils after monthly allocation meetings. The News Agency of Nigeria (NAN) reports that agencies present at the meeting include Federal Inland Revenue Services (FIRS), Nigerian National Petroleum Corporation (NNPC), Department of Petroleum Resources (DPR) and Nigeria Custom Service (NCS) among others. He said that timely collections and disbursement of funds would determine the attainment of the next levels of agenda of the federal government. He said the senate is committed to passing the 2020 budget before the end of 2019, adding that timely disbursement funds would also facilitate the implementation of the budget. He said the senate would look into factors militating against timely transfer of funds into the federation account. He said that late transfer of funds affect the speedy implementation of the budget and ultimately stall the development of economic activities. Lawan said the senate is determined to serve Nigerians, adding the National Assembly is ready to help resolve challenges affecting the agencies. “We have been voted to make Nigerians feel the impact of government, the economy must work, and it will work when collections and disbursement of funds are made. “But we are going to insist that the right things are done, the right thing is that you transfer the money in good time. “Call FACC meeting at the right time, Federal Ministry of Finance should disburse the resources to the MDAs at the right time,” Lawan said.

Source: Pulse  

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Summary
On 18 June 2019, the Tax Appeal Tribunal (TAT or Tribunal) held that the Lagos State Internal Revenue Service (LIRS) could not hold employers accountable for taxes arising from withdrawals of Voluntary Pension Contribution (VPC) of their employees. This decision was reached in the case between Nexen Petroleum Nigeria Limited (Nexen or the Company) v Lagos State Internal Revenue Service (LIRS). According to the Tribunal, VPCs are tax-exempt under the law except when withdrawn within five years from the date of contribution.
The Court further held that employers are not under any obligation to monitor the withdrawal of VPCs within the period and thus should not be accountable for any taxes arising therefrom.
Details
In 2018, the LIRS issued additional notices of assessment to Nexen following a tax audit of the Company's 2013 and 2014 Years of Assessment (YOAs). Nexen objected to the additional assessment notices and upon receipt of a Notice of Refusal to Amend (NORA) from the LIRS, the Company instituted an action at the TAT. The crux of the issues before the TAT was whether Nexen was liable to remit tax arising from the operations of its employees' VPCs to the LIRS. Nexen contended that pension contributions are tax exempt under the law and it had discharged its statutory duty to the LIRS by deducting, remitting and filing PAYE tax returns of its employees. Nexen further argued that the responsibility to recover any additional income tax from its employees should automatically revert to the LIRS. On the other hand, the LIRS posited that as long as the employees' VPCs arise from part of the emolument of the employees, the obligation to deduct and remit taxes arising from the VPCs withdrawn remains with the employer. The TAT, however, ruled in favour of Nexen that the Company is a statutory agent of the LIRS with the obligation to deduct, remit and file PAYE returns of its employees. Thus, the Tribunal stated that Nexen had fulfilled all its statutory obligations and was not under any additional obligations to account for its employees' further dealings with their VPCs. In addition, the Tribunal held that the responsibility to deduct any further tax on the income of employees no longer lies with Nexen after the initial deduction and remittance from the employees' emolument. The Tribunal, in interpreting Section 10(4) of the Pension Reform Act (PRA) and Section 20(1) of Personal Income Tax Act (PITA) stated that VPCs are exempt from tax. However, this exemption does not apply where such VPCs are withdrawn within five years from the date of contribution.
Implication
This ruling implies that the LIRS cannot hold employers accountable for any taxes arising from subsequent VPC withdrawals of their employees. In 2017, the LIRS had communicated in its Circular on "Tax Relief on Voluntary Pension Contribution", that it would rely on Section 81(2) of the PITA to recover such taxes on VPCs from employers. However, there have been some concerns as to the legality of this approach. Until the Federal High Court reaches a contrary decision, it would be unlawful for the LIRS to assess employers for VPCs withdrawn within 5 years. Instead, the LIRS would be expected to assess the employees in Nigeria. This decision is also in line with the provisions of Section 10(4) of the PRA that VPCs are to be entirely exempt from tax at the point of withdrawal, except such withdrawal is made within five years from the date of contribution.

Source: Mondaq

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More than one year after the pronouncement for Value Added Tax to be removed from air transport, the Federal Government has failed to implement the order. Findings by our correspondent showed that domestic airlines still pay VAT,
charged as five per cent on every flight ticket sold and remitted to the Federal Government. The Media and Communications Manager, Dana Air, Mr Kingsley Ezenwa, said nothing had been said after the pronouncement made by President Muhammadu Buhari last year. President Buhari recently stated that the decision to remove VAT from domestic air transport was in line with global best practices and would make air travel more affordable and subsequently lead to the creation of jobs by the air transport service value chain as well as increase revenue for the government. But airline sources said they had only heard about the order but had yet to see it implemented. The Chairman and Chief Executive Officer, Air Peace, Mr Allen Onyema, said there had been the implementation of zero duty on spare parts but not on VAT. “We have been having back and forth with the Federal Inland Revenue Service. The Federal Government has pronounced it but the FIRS insists there is no gazzete. But they are implementing the zero duty on parts,” he said. According to him, aviation is a tough business and domestic carriers need support from the government. The Airline Operators of Nigeria, the umbrella body for airlines in the country, had estimated that its members were paying over N10bn as taxes annually. The Chairman of AON, Capt. Nogie Meggison, had recently stated that the situation was threatening airline operations. Shortly before the Executive Order, the AON had threatened that its members would no longer pay VAT with effect from June 14, 2018, saying that VAT remittance was unfair, as only domestic airlines were made to pay, while foreign airlines were exempted. The AON had lamented that air travel was also the only mode of transportation that was subjected to the payment of VAT, which had resulted in airlines not being able to optimally utilise their aircraft assets. The FIRS had been mute on the development, describing the order as a policy issue. The Director of Air Transport Regulations, Nigerian Civil Aviation Authority and member of the Presidential Committee on Airlines’ Taxes and Charges, Group Capt. Edem Oyo-Ita (retd.), said no reason had been given for the delay.

Source: Punch

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The Federal Government says, it has paid N135 billion of all outstanding PAYE tax liabilities owed by Federal Ministries, Departments and Agencies (MDAs) for 14 years to various states government. The Chairman of Joint Tax Board, Mr Tunde Fowler, said this at a programme tagged; “Go-Live’’ for the New National Tax Identification Number (TIN) Registration System in Abuja on Monday.
The outstanding liabilities of the MDAs paid by the Federal Government covered 2002 to 2016. He urged the states government to emulate and promptly remit all withholding taxes, including Value Added Tax due to the federation account: “It is not only important that these records are available, it is equally necessary that the records are credible and reliable and that they are accessible under a secured environment, and online real-time. “The role data plays in today’s world cannot be overemphasized; and for the revenue potential of the country to be maximally harnessed, it is essential that credible and reliable data is available for use. “Such record is also important to facilitate the Ease of Doing Business and for the nation to achieve its economic objectives in line with the Economic Recovery and Growth Plan (ERGP).’’ Fowler expressed confidence that the new system would add value to tax-revenue administration in the country, not only in terms of processes and procedures, but in terms of efficiency and ensuring a co-ordinated and systematic approach. According to him, the new TIN system will limit the incidence of double taxation which is also a prerequisite for a number of transactions such as sale and purchase of immoveable property, registration of vehicles and application of plots of lands. The chairman commended its partners, especially some Federal Government agencies for their support in having the new TIN system in place.

Source: VAN

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The Lagos Internal Revenue Service (LIRS) following a tax audit for 2013 and 2014 years of assessment issued a Notice of Refusal to Amend (NORA) to Nexen Petroleum Nigeria Limited (“the company”). The LIRS assessed the company to additional liabilities on the grounds that the company had under remitted Pay As You Earn (PAYE) tax by taking statutory tax relief for Voluntary Pension Contributions (VPCs) made by its employees to pension fund administrators (PFA).
Pension The Tax Appeal Tribunal's decision addressed the following key issues:
That all pension contributions, including voluntary pension contributions without any limit, are tax deductible
There is no requirement for the employer to ensure that VPC was not withdrawn by the employee within a period of time to qualify for tax deduction on the contribution. That the agency responsibility of an employer to deduct and remit PAYE does not extend to any tax that may become payable upon withdrawal of voluntary pension contributions by an employee from the PFA. This implies that where any withdrawal of voluntary pension is taxable, it is the employee who will be responsible for the tax. It does not however preclude the tax authority from appointing a valid agent (including the employer) for future deduction of any applicable tax on such withdrawal.

Source: Mondaq

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The Executive Chairman, Federal Inland Revenue Service (FIRS), Mr. Babatunde Fowler, has projected that in the next three years, Nigeria’s non-oil revenue will be at about 75 per cent.
He also anticipated that within same period, the number of tax payers in the country would have risen to over 60 million. Fowler, said this during an interview on Arise Television, that “If you look at where we are coming from and where we are right now, last year we did N5.3 trillion out of which the non-oil sector accounted for 53.6 per cent and that of course was the highest revenue generated in the history of Nigeria.” He also spoke on the recent inauguration of the Joint Tax Board identification number registration system, explaining that it was basically the same thing as the Tax Identification Number. “What we have now is a Consolidated Tax Data base. All tax payers within the country and corporate organisations have the tax information residing in one data base. “Prior to this, in line with the constitution, every state has a right to have a tax identification number for its residents. So if you have a transaction for example, in Lagos and you reside in Kano, the Kano Revenue Service will issue you a tax payer certificate which you would bring to Lagos. “Lagos will now manually confirm that the certificate is genuine and also access the tax based on the transaction you want to carry out in Lagos and at time, this takes a while. “Also, if they believe your taxes paid in Kano were not sufficient, they would ask you to pay additional tax but now at the touch of a button, your tax history can be seen by tax officials in Lagos and you can carry out your business seamlessly or if you want to do a government contract, and part of the requirements is that you show evidence of a tax clearing certificate, at the touch of a button, that official would see your tax status “This system also keeps accurate records of all payments to the government so if you want to check your payments from about three to five years ago, you would be able to access your tax information and adequate records of all your transactions. “It makes business much easier and also improves transparency and accountability and all these can be done 24/7 online, anywhere in the world.”

Source: Investor King
 
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The Manufacturers Association of Nigeria has called on the Federal Government to jettison the idea of increasing the Value Added Tax by 50 per cent. MAN President, Mansur Ahmed, made this call on Wednesday, during the 35th Annual General Meeting of the Rivers/Bayelsa Branch of the association, held in Port Harcourt.
Ahmed explained that the insistence on upward review of VAT would be counterproductive, especially in the light of the non-implementation of the long-awaited minimum wage. He also said that MAN had discussed with the Federal Inland Revenue Service with a view to addressing the numerous challenges in the tax system, adding that the result of such engagement was currently being felt in the nation’s business environment. ‘’We have advised the government to jettison the idea of increasing VAT by 50 percent as recommended by the Federal Ministry of Finance. We have clearly stated that such move will be counterproductive especially in the light of the still awaited minimum wage,’’ he stressed. The MAN president lauded President Muhammadu Buhari for consulting widely before signing the African Continental Free Trade Area Agreement in Niamey, Niger Republic. Ahmed assured MAN members that the Federal Government was committed to enhancing the capacity of Nigeria’s manufacturing sector to take advantage of the opportunities inherent in the continental free trade area and to mitigate the numerous risks. Earlier in his remarks, the MAN Chairman, Rivers/Bayelsa Branch, Senator Adawari Pepple, observed that the manufacturing sector was going through many challenges, including poor electricity supply and double taxation. Pepple explained that the theme of the AGM; ‘Redeeming our Economic Potential through Manufacturing’, was necessitated by the fact that manufacturing had continued to be the key driver of rapid economic growth and the creation of employment. He expressed the need for the country to revamp its critical industries, saying, “If we ignore the role of manufacturing in Nigeria as a tool for redeeming our economic potential, such act will be at our own peril. “However, the role of manufacturing in stimulating employment, directly or indirectly, is complex and requires careful analysis. Manufacturing plays an irreplaceable role in driving growth and economic development.’’ Explaining that the solution to unemployment lies in manufacturing, Pepple urged government at all levels to always reach out to MAN when policies with direct bearing on the manufacturing sector and the economy were being designed.

Source: Investor King

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President Muhammadu Buhari has directed all business data generating agencies in the country to furnish the Joint Tax Board (JTB) with all vital information necessary for its activities. This is as the Federal Inland Revenue Service (FIRS) plans to get 45 million Nigerians into the tax net by September.
Vice President Yemi Osinbajo, who dropped the order yesterday in Abuja, listed the agencies concerned as Corporate Affairs Commission (CAC), Nigeria Customs Service (NCS), Nigeria Immigration Service (NIS), Federal Road Safety Corps (FRSC), Central Bank of Nigeria (CBN), Nigeria Inter-Bank Settlement System (NIBSS), Nigeria Identity Management Commission (NIMC) and Nigerian Communications Commission (NCC). He disclosed this after launching the JTB for Tax Identification Number (TIN) Registration System. “All the agencies involved with generation of business data have been directed by the president to immediately collaborate with the JTB with the provision of necessary information to enable it capture accurate tax database of Nigeria. “This has become necessary because the new TIN registration system is in line with the Economic Recovery and Growth Plan (ERGP) of this administration. “There is a tendency that foreign investors would not have implicit confidence in your own economy, if the level of domestic investment is not encouraging. That is why the new TIN registration system has been introduced to help tax-payers and other stakeholders easily verify their TIN online. The service also enables tax-payers to print their TIN certificate or send it to their emails,” Prof. Osinbajo stated. Earlier, the JTB chairman, who is also chairman of the Federal Inland Revenue Service (FIRS), Babatunde Fowler, had declared that with the launch of the new TIN registration system, the service would, before the end of the third quarter, raise the tax base to 45 million. “We believe that with the new TIN registration system, we will be reinforcing the laudable efforts of this administration towards building a robust tax revenue administration system, promoting a tax-friendly environment and ensuring a sustainable and inclusive economy for all Nigerians. “During the first tenure of this government, we expanded the tax base from 10 million to 20 million with the potential for an increase to 45 million before the end of the third quarter of 2019,” Fowler said. According to him, for the first time in history, the federal government paid all outstanding Pay As You Earn (PAYE) tax liabilities owed by federal Ministries, Departments and Agencies (MDAs) from 2002 to 2016, totalling N135.8 billion to the various state governments. “We hope that this gesture will encourage state governments to also promptly remit all withholding taxes and Value Added Tax (VAT) due to the federation account.”

Source: Guardian

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A Federal High Court,in Lagos south west Nigeria, Presided over by Justice Chuka Obiozor, today ordered four multinational Oil companies, namely Shell Nigeria Exploration and Production Company Limited, Esso Exploration and Production Nigeria( DEEPWATER) Limited, Nigeria Agip Exploration Limited, and Total E&P Nigeria Limited to pay a total sum of $17,900,484.80., as penalty and interest respectively on the imposed education tax of $75,381,332.00.
The judgement of the court was as as a result of appeal filed before the court by Federal Inland Revenue Service, FIRS, against the judgement of the Tax Appeal Tribunal that set aside the demand notice, including penalty and interest and ruled in favour the oil companies. Dissatisfied with the judgement of the tribunal, FIRS filed an appeal before the Federal High Court. In a notice of appeal filed and argued before the court, by Ladipo Ojo, the appellant contended that FIRS issued a notice of assessment and serve it on Shell Petroleum Company, following which the company raised objection that the basis period used was incorrect. FIRS responded by withdrawing the assessment and re-issue same and inform the companies, the observed Error and corrections was over the proper basis period and the parties whose names it should be addressed to and that the error to be corrected were never the amount of $75,381,332.00. It said the error in the original assessment notice did not preclude the Tax Payer from discharging its Tax obligations arising thereof, which in this case should have been the payment on due date of the tax liability owed. The companies were not only privy to the amount involved in the assessment but also wilfully held on to Government Revenue for almost two years. Ojo further submitted that FRIS had therefore discharged its obligation to serve the assessment on the representative of the contract area in tax matters pursuant to section 39 of the Petroleum profit Tax Act. Consequently, he said the demand notice for the penalty and interest were valid, therefore the appeal should be allowed while the judgement of the Tribunal should be set aside, and also uphold the FIRS demand note. In his judgement, Justice Obiozor upheld the submission of Ladipo and allow the appeal.

Source: PM News

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In a Statement of Defence filed before a Federal High Court, Abuja, FIRS said that it received from First Bank a compact disc containing evidence that the indigenous company received a cash flow of over 6.8 million dollar.
Executive Chairman of Nigeria's Federal Inland Revenue Service (FIRS), Mr Tunde Fowler Executive Chairman of Nigeria's Federal Inland Revenue Service (FIRS), Mr Tunde Fowler. The Federal Inland Revenue Service (FIRS) has said that it received from First Bank PLC, purported over-bloated turnover of account of a company, Biatemp Ventures Ltd, seeking redress for alleged manipulation of its account. In a Statement of Defence filed before a Federal High Court, Abuja, FIRS said that it received from First Bank a compact disc containing evidence that the indigenous company received a cash flow of over 6.8 million dollar. The company had sued First Bank and FIRS demanding N25 billion special and general damages over alleged manipulation of its domiciliary account and illegal withholding of its tax clearance certificate. Biantemp alleged that First Bank manipulated its domiciliary account with over-bloated turnover of over 6.8 million dollar (about N2.4 billion) whereas the deposit made to the account within the period was only 22,475 dollar (about N786,000) The company claimed that the alleged manipulation of its account and the delay in issuing its tax clearance certificate impeded it from participating in bids for several business opportunities leading to severe economic losses and huge embarrassment. In the statement of defence filed on behalf of FIRS by Messrs N.J. Kalu and Co. the federal revenue collection agency said it acted based on the information provided by the bank. Specifically, Mr Oyerogba Kehinde, a Senior Manager (Tax) with FIRS deposed that: “the second defendant (FIRS) was only performing her statutory function based on the information received from the first defendant (First Bank)” “That First Bank in compliance with the statutory provision, forwarded a compact disc (CD) to FIRS which contained evidence that plaintiff received a cash flow of ($6,861,618.00) into its account domiciled with the bank. “At the trial, FIRS shall rely and found on a letter dated Jan. 4, 2018 forwarding the said CD. ”FIRS shall also rely on a copy of printout from her database, showing the dollar inflow into the plaintiffs account with the bank. “FIRS only acted on the information and facts willingly provided to her by First Bank. ”That the bank has never written her to deny the fact she forwarded the compact disc containing information and evidence showing that the plaintiff received a cash flow of $6,861,618:00 on the 28th of November 2018 “At the trial, FIRS shall rely on the printout from her data base on returns filed by banks including the first defendant” The deponent denied allegation of collaboration to manipulate the plaintiff’s account and deliberate withhold of the company’s tax clearance certificate. He also stated that the plaintiff had not shown that it suffered colossal loss as a result of any action taken by the FIRS and urged the court to dismiss the suit against the service with cost. In the suit filed on behalf of the plaintiff by Adegboyega Awomolo, SAN, chamber, the company alleged that First Bank manipulated its domiciliary account with a purported turnover of 6.8 million dollar (about N2.4 billion) leading to the withhold of its 2018 tax clearance by FIRS. The company said the deposit made to its domiciliary account within the period was only 22,475 Dollar (about N786,000) being consultancy fee paid by its client, Forte Upstream Services Ltd. It stated that the said deposit of 22,475 dollar was actually withdrawn by its Chief Executive Officer (CEO) in about four respective transaction. “The alleged huge multiple cash dollar withdrawal seen to be made by the plaintiff’s Director between 7th and 21st December 2017 as captured by the FIRS were also enlarged mirrors of actual dollar withdrawals made by the plaintiff’s director” The plaintiff said when it obtained its statement of account from First Bank the inflow and outflow of fund was in complete variance with the record made available by the FIRS. The plaintiff therefore alleged that the acclaimed deposit and withdrawal of over 6.8 million dollar were enlarged mirror of the 22,475 dollar deposited into its account by its client for consultancy services and withdrawn by its CEO. First Bank in its statement of defence had denied the allegations that it manipulated the account of the plaintiff, collaborated or conspired in anyway with the FIRS. The defence filed by its lawyer, S.M. Jimmy Esq. the bank stressed that “the plaintiff’s account was never at any point in time tampered with, let alone manipulated”. “There is no time that First Bank, as a well known and reputable bank in Nigeria engage in such irresponsible and scandalous act”. It urged the court to declare that the plaintiff was not entitled to any of the reliefs sought. The bank also asked the court to declare the case as ‘frivolous, abuse of court process, gold digging exercise and should be dismissed with substantial cost”. Meanwhile, Justice Binta Murtala-Nyako has adjourned the case until Oct. 28 for further hearing.

Source: Pulse

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The Nigerian Communications Commission (NCC) has said multiple taxation and regulation of the telecoms industry discourage investments and deny government of long-term revenues as well as destroy the foundations for future growth.
The Executive Commissioner (Stakeholder Management) of the NCC, Sunday Dare, disclosed this on Thursday during the South-East edition of the NCC Stakeholders’ Parliament themed: “Optimizing The Benefits of Telecoms Infrastructure in Nigeria” held in Enugu. He emphasized that it was a matter of great worry that at this point in Nigeria’s history, “we are still talking about protecting telecoms infrastructure from interference by agencies of government, or from multiple taxation and regulations, when all levels of government should actually be the ones encouraging and incentivizing operators to build infrastructure in their domains.” Represented at the occasion by Mr. Alkassim Umar, Head, Compliance Monitoring at NCC, Dare said that in essence, “this is why we must all work towards win-win solutions that enable operators roll-out fast and efficient networks which create opportunities for our citizens and develop our economies.” He said the NCC must take a long-term view of the need to provide a conducive environment for the spread of telecoms infrastructure, “be they BTS sites or fibre infrastructure.” He, however, stressed that the current “practice of imposing heavy sector-specific taxes and charges on telecoms infrastructure; levying huge Right-of-Way charges and decreeing onerous regulations may appear to bring immediate revenues to the coffers of the state.” Dare said the NCC must always insist that all “our licensees must comply with all legitimate tax and other obligations binding on them anywhere they operate. “Section 135 of the Nigerian Communications Act is very clear on this point, and it is one of the key elements of the NCC’s Code of Corporate Governance for the Telecoms Industry.” He further said: “We must all appreciate that the growth and seamless operations of telecoms infrastructure is critical to the social and economic growth of our states and communities. “This is why they are called “Critical National Infrastructure”, and this is why both the Criminal Justice (Miscellaneous Provisions) Act, and the Cybercrime Act of 2015 both prescribe heavy penalties (including terms of imprisonment) for those who tamper with such infrastructure.” In his speech titled “Legal Framework For Telecommunications Infrastructure Rollout,” the National Chairman, Nigeria Bar Association (NBA), Paul Usoro (SAN), said some of the challenges plaguing the telecoms infrastructure included multiple taxation and duplicated regulations. He said these challenges were major hindrances to telecoms infrastructure rollout and broadband penetration. “Multiple levies by governments are major disincentive to investors and threaten investment opportunities. It subdues telecoms infrastructure rollout and expansion,” said Usoro, ably represented by Chinedu Anyaso. However, a tax expert and Professor of Commercial Law at the University of Lagos, Prof. Abiola Sanni, described telecoms sector as the bedrock for economic growth in the country, explaining that the main problem bedevilling the sector was the abuse of regulatory power by the agencies. He advised stakeholders to sustain the advocacy for curbing exorbitant, arbitrary and oppressive charges by government ministries, departments and agencies.” The stakeholders who attended the parliament were drawn the telecom operators and state government agencies related to telecoms industry.

Source: Daily trust

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Mrs Zainab Ahmed, former minister of finance, says the federal govt is planning to increase VAT from the current five percent to 7.5 percent by 2020 - The development comes amidst reports that the government is seeking to shore up falling revenue - Ahmed said the government had developed a strategic revenue growth initiative which was being implemented.
The federal government is planning to increase the rate of value-added tax to 7.5 percent from the current five percent by 2020, says the former finance minister, Mrs Zainab Ahmed. The ex minister made the disclosure on Tuesday, June 25 at the Bloomberg Emerging & Frontier Forum in London, ThisDay reports. The development comes as Bloomberg reported that the government is seeking to shore up falling revenue. Nigerians had previously opposed earlier plans by the federal government to increase VAT. Ahmed, whose tenure ended with President Muhammadu Buhari’s first term on May 29, said that her main preoccupation while in office was how to raise government’s revenue with only 55 percent of targets being met. She said: “We have developed a strategic revenue growth initiative, which we have started to implement. “Our target is to increase revenue to 65 percent minimum in 2019 so that in the next three years we are able to attain 80-85 percent of our revenue target.” Recall that Legit.ng previously reported that the Federal Inland Revenue Service (FIRS) on Wednesday, March 20, refuted reports of a planned increment of Value Added Tax (VAT) by 50 percent to meet up payment of the newly proposed minimum wage. The head, Communication and Servicom Department, Wahab Gbadamosi, made this known in a statement in Abuja. He said that contrary to reports in the media, the FIRS chairman called for a reduction in Companies Income Tax (CIT) rate for small businesses so as to improve compliance.

Source: Legit

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The Manufacturers Association of Nigeria has called on the Federal Government to jettison the idea of increasing the Value Added Tax by 50 per cent. MAN President, Mansur Ahmed, made this call on Wednesday, during the 35th Annual General Meeting of the Rivers/Bayelsa Branch of the association, held in Port Harcourt.
Ahmed explained that the insistence on upward review of VAT would be counterproductive, especially in the light of the non-implementation of the long-awaited minimum wage. He also said that MAN had discussed with the Federal Inland Revenue Service with a view to addressing the numerous challenges in the tax system, adding that the result of such engagement was currently being felt in the nation’s business environment. ‘’We have advised the government to jettison the idea of increasing VAT by 50 percent as recommended by the Federal Ministry of Finance. We have clearly stated that such move will be counterproductive especially in the light of the still awaited minimum wage,’’ he stressed. The MAN president lauded President Muhammadu Buhari for consulting widely before signing the African Continental Free Trade Area Agreement in Niamey, Niger Republic. Ahmed assured MAN members that the Federal Government was committed to enhancing the capacity of Nigeria’s manufacturing sector to take advantage of the opportunities inherent in the continental free trade area and to mitigate the numerous risks. Earlier in his remarks, the MAN Chairman, Rivers/Bayelsa Branch, Senator Adawari Pepple, observed that the manufacturing sector was going through many challenges, including poor electricity supply and double taxation. Pepple explained that the theme of the AGM; ‘Redeeming our Economic Potential through Manufacturing’, was necessitated by the fact that manufacturing had continued to be the key driver of rapid economic growth and the creation of employment. He expressed the need for the country to revamp its critical industries, saying, “If we ignore the role of manufacturing in Nigeria as a tool for redeeming our economic potential, such act will be at our own peril. “However, the role of manufacturing in stimulating employment, directly or indirectly, is complex and requires careful analysis. Manufacturing plays an irreplaceable role in driving growth and economic development.’’ Explaining that the solution to unemployment lies in manufacturing, Pepple urged government at all levels to always reach out to MAN when policies with direct bearing on the manufacturing sector and the economy were being designed.

Source: Investor King

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The Nigeria Employers’ Consultative Association (NECA) has rejected calls by President Muhammadu Buhari to state governments to increase Value Added Tax (VAT) in order to increase their Internally Generated Revenue (IGR). The group said, yesterday, that such move would do more harm to the already burdened private sector.
Speaking in Geneva, capital of Switzerland, where the International Labour Organisation (ILO) conference is holding, NECA Director-General, Mr. Timothy Olawale, stated that though the president meant well by urging state governments to increase their Internally Generated Revenue (IGR), considering the reported over N2 trillion in bailout funds to many of the states, increase in VAT or any other form of tax as a way to increase IGR at this time is not only misplaced, but will do more harm to the already burdened private sector and further impoverish the citizens that the president promised to take out of poverty. Olawale e said that state governments cannot unilaterally increase VAT without amendment to the Value Added Tax Act by the National Assembly. The NECA boss averred that “the common man will definitely be at the receiving end of any increase in VAT. Even if businesses are taxed more through likely illegal levies and rates outside the provisions of the law, they will naturally pass the cost to the customers whose purchasing power is already at the lowest ebb.” While proposing a way out for the state governments, he noted that “what needed to be done by the governments and indeed the Federal Government in an aggressive taxpayer enlightenment and expansion of the tax net to capture more citizens as has been posited, arguably as less than 40% of Nigerians are tax compliant.” “Secondly the states should put mechanisms in place to eliminate leakages as a large chunk of the IGR realised does not find its way into government coffers.” “Finally as reiterated over and over again they should drastically cut the cost of governance. Several unnecessary retinues of aides kept by them at prohibitive cost to the state are needless. Besides, ingenious idea of corrupt practices in the name of security votes and frivolous foreign travels by state government functionaries are veritable examples of cuttings in avoidable expenses draining state government purses,” Olawale said.

Source: Daily trust

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