₦airaland Forum

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), says on-going monitoring and verification exercise on tax collections by Deposit Money Banks appointed by FIRS and Customs is within its mandate.
It said this in a statement issued by Mr Ibrahim Mohammed, Head, Public Relations, on Sunday in Abuja, adding that the exercise was in order. Mohammed said as contained in Section 6(1) of the RMAFC Act, 2004, the mandate provided that the commission should have powers to among others, monitor accruals to and disbursement of revenue from the Federation Account. NYSC Ogun tasks 2438 Corps members on skills acquisition(Opens in a new browser tab). He said the organisation was not a tax authority but a revenue watchdog that monitored revenue collections by revenue generating entities like the Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service (NCS). Other entities it monitored revenue collections from were the Department of Petroleum Resources (DPR), Nigeria National Petroleum Corporation (NNPC) and others that remited directly into the federation account. Envoy assures diaspora commission of safety of Nigerians in Ghana(Opens in a new browser tab). Mohammed said the revenue streams that accrued into federation account under the watch of RMAFC included tax (Withholding Tax and Value Added Tax) royalties, signature bonuses, customs duties and tariffs among others. According to him, the has clarification is imperative following reports that challenges the legality of the exercise by vested interests. “It is worth clarifying that RMAFC do not deal with individual tax payers directly but monitors collections by collaborating with sister agencies like Central Bank of Nigeria (CBN),NNPC, DPR, Customs and FIRS. “This is to ascertain how much was actually collected and remitted into the federation account to minimise revenue leakages,” he said. He recalled that in an earlier exercise covering January 2008 to June 2012, RMAFC had announced the recovery of N4.2 billion from banks, promising that more recoveries would be made. “Buoyed by the huge success recorded, the commission following the approval of the National Economic Council (NEC) launched the second phase of the exercise covering the period of July 2012 to December 2015 which so far establishes N57.7 billion. “Thus far, N48.7 billion has already been recovered and remitted into federation account while the remaining balance of N9.07 billion which relates to withholding tax on dividend only has been duly released to benefitting states Boards of Internal Revenue (SBIR),” he said. Mohammed, however, said the commission was working to ensure transparency and accountability in revenue generation and remittance with a view to reducing revenue leakages. He added that to achieve that, the commission sought further collaboration and cooperation of revenue generating and regulatory agencies, anti-corruption agencies, Civil Society Organisations (CSOs) and the media. RMAFC was established to monitor accruals into and disbursement of revenue from the federation account, review from time to time, the allocation formula and principles in operation to ensure conformity with changing realities.

Source: Vanguard

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The Chartered Institute of Taxation of Nigeria, CITN, has berated firms and government agencies for tax default. Ikemefuna Ede, President, CITN, expressed concern over an audit report indicting the National Assembly and some government agencies over tax default.
Speaking during the annual general meeting of the institute, Ede said the development was “worrisome” and contradicted government efforts in enforcing compliance from individuals and corporate organisations. “Of momentous concern to the institute was the revelation from an audit report by Auditor-General of the Federation submitted to the National Assembly in 2018 that the Presidency; both chambers of the National Assembly; the Economic and Financial Crimes Commission; and over 100 other ministries, departments and agencies defaulted in remitting various taxes, including VAT and withholding taxes deducted from their contractors and PAYE of their members of staff.” Ede, however, expressed satisfaction at the financial position of the organisation. Samuel Agbetuyi, treasurer, CITN, presented the 2018 financial position at the meeting. The finances showed that the professional tax body grew its total income by 43 percent from N399 million in 2017 to N570 million in 2018. The breakdown showed that the organisation recorded 62 percent increase in membership fees from N167.361 million to N270.6 million, while self-financing programmes had an increase of 40 percent from N172.95 million to N242.566 million between 2017 and 2018 respectively. In the year under review, however, it experienced dip in the money market, especially on treasury bills and fixed deposit, resulting in “significant fall in the investment income representing 33 percent decrease”. The total expenditures for the year under review showed the organisation incurred 28 percent increase over 2017.

Source: Real news Magazine

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President Muhammadu Buhari has given the 36 state governments a mandate to increase revenues in their respective States. Buhari also urged the governors to raise the Value Added Tax (VAT) without necessarily disrupting economic activities.
Buhari, who spoke at the Presidential Villa in Abuja when he inaugurated the National Economic Council (NEC) for its 2019-2023 session on Thursday, also encouraged the governors to focus on providing infrastructure with a keen attention on education, agriculture and health. The NEC chaired by Vice-President Yemi Osinbajo, on behalf of the President, Buhari also advised the governors to work with federal agencies to achieve their targets. He said, “Going forward, states must in the next four years find ways to increase internally generated revenues, improve Value Added Tax collection and increase agricultural output without disrupting business activities. “I also want you to work with the federal agencies and the service providers in ensuring that broadband infrastructure is made available all over the country. Information and Communications Technology is the future of work and we must not allow ourselves to be left behind. “Let me restate the high expectations on NEC as a veritable source of articulating policies and programmes that are expected to drive growth and development, secure our environment and take the country to the next level. Your Excellencies, the challenges that confront us in the next few years, especially in the areas of security, human capital development and employment for our youths are monumental and historic. But we are more than equal to the task.” On security, be noted, “While the Federal Government has primary responsibility for security and will not shy away from it, the states also have a critical role to play; in particular Your Excellencies, as state governors. You can definitely make a difference, not just by assisting the security agencies in your respective states, but also by keenly pursuing policies and programmes that forestall communal, tribal, religious and societal conflicts; policies and programmes that promote education, information, dispute resolution, vocational training and youth employment. “I have no doubt that if these four areas – security, education, health and agriculture – are actively implemented and closely monitored by NEC and the Nigeria Governors’ Forum, we shall in the near future see a more peaceful and prosperous Nigeria.” He encouraged the governors to run an inclusive government which, according to him, would help achieve their goals.

Source: Ripples Nigeria

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The Tax Appeal Tribunal, sitting in Abuja on Wednesday, reversed N29.2 million Federal Inland Revenue Service’s (FIRS) imposed as value added tax on Infinity Trust Mortgage Bank. The bank had challenged FIRS’s imposition of the amount at the tribunal challenging the demand notice.
The tribunal chairman, Alice Iriogbe, delivering judgment, held that FIRS failed to prove that those services carried out by the bank were VATable. She ruled further that the bank was not liable to be taxed on those services according to the VAT Act and Central Bank of Nigeria (CBN) Act, 2011 as amended. Mrs Iriogbe further held that the FIRS Service Information Status number 9, also supports the fact that service by Mortgage Institutions are not VATable. “In this circumstance, the tribunal holds that the VAT assessment dated May 17, 2018, in the sum of N29.2 million and the Respondent’s Demand Notice dated July 5, 2018 are hereby discharged,” the tribunal held. The appellant (the bank) had sought the order of the tribunal for the annulment of the FIRS’s assessment or demand notice dated May 17 and July 6, served on it with penalty at 10 per cent and interest at 15 per cent.

Source: Daily sun

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The Rivers State Internal Revenue Service has warned professionals and artisans operating in the state to avoid mistaking their professional fees and dues for state taxes and levies. RIRS Chairman, Mr Adoage Norteh, who issued this warning during a two-day interactive session with professionals and artisans in Port Harcourt, the capital, explained that professional fees and levies were meant for their unions, taxies and levies were meant for the development of the state.
Norteh pointed out that while taxes to the state remained compulsory and defaulters could be arrested and prosecuted, the same could not be said of professional dues that are paid to professional bodies or artisan associations. He also said it was wrong for unions to collect taxes from their members and pay to the RIRS, adding that such act was unacceptable. He said, “Taxes are not union or association dues. When we talk about payment of tax; it is one that is compulsory for everybody that is qualified to pay tax. “There is a big difference between association dues like professional fees and state taxes. We must not mistake one for the other. “Again, some unions want to collect taxes from their members and pay to us, this is not acceptable. The unions and professional bodies are not tax assessors.” Norteh also urged tax payers to avoid paying taxes through anybody, adding that taxes were to be paid into a recognised state account by tax payers. He added, “It is expected that you as a tax payer must find out the source of a tax before you pay. Don’t pay cash to anybody; pay to a recognised account of the state.” The RIRS chairman also dismissed the belief in some quarters that collecting taxes would drive away businesses from the state, adding that habitual tax evaders were always at the forefront of criticising government. He urged those, who were unfairly assessed in the area of tax payment, to object and seek reassessment within 30 days of getting such tax evaluation. In his remark, a professional architect, Mr Asombe Egwuonu, observed that some of the tax demands in the state were high, adding that some persons could decide to operate from their homes if the situation did not change. Egwuonu, however, thanked RIRS for organising the interactive session to sensitise the people to a new tax regime in the state.

Source: Punch

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The Tax Appeal Tribunal, South East Zone yesterday ruled that gratuities are tax exempted under the Personal Income Tax Act (PITA). Nigerian Breweries PLC in 2017 filed an appeal before the tribunal challenging the decision of the Abia State Board Internal Revenue to tax gratuities paid to its employees, contending that the Abia government erred when it assessed its employees to tax on gratuities paid by them.
It argued through its counsel, Moshood Olajide that gratuities were no longer taxable, and therefore, remained the extant position in the PITA 2011 (as amended) and urged the tribunal to discharge the assessment notice issued by the respondent and declare that by virtue of Decree 1996, all gratuities in tax are exempted. But, Abia state government through its counsel, Obike Onyemeru urged the tribunal to dismiss the appeal and sustain the demand notice. Delivering judgment in the appeal, the three-man panel of tribunal agreed with the submissions of the appellant and resolved the three grounds in his favour. Chairman of the tribunal, Chukwuemeka Eze who read the judgment cited the decision of the supreme court which held that “it has been settled principle of statutory interpretation that although schedules of a statute can be useful handmaid in construing the provisions of a statute, they cannot however be interpreted to over-rule the plain words in the body of the statute,” and held that Paragraph 18(b) of the 3rd Schedule to the PITA does not apply to the appellant.

Source: Guardian

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Tax credits are much welcome, and often invaluable additions to any organization’s finances. A tax credit is the amount of money that taxpayers can subtract from their taxes. They differ from tax deductions and exemptions in that while they reduce the amount of your organization’s taxable income, tax credits reduce the actual amount that you owe the government. This guide contains some of the ways you can reduce the amount of tax that your organization pays. Some of these ways require more planning and execution than others, but they can all save your organization a lot of money in the long run.
Claim Specific Tax Credits Relevant To Your Business And Industry
Some tax credits are general to all businesses and organizations. However, some like the alcohol fuels credit are more industry specific. You should find out what tax credits apply to your specific industry, and take advantage of them. Register Your Business Correctly
Businesses registered as sole proprietorships are subject to different tax laws than those registered as Limited Liability Companies (LLC). Sole proprietors have to pay self-employment taxes that LLCs do not, and as a result, your organization could be paying a lot of unnecessary taxes. Registering your organization as an LLC could mean more for you in tax credit, as well as other tax benefits available to LLCs.
Maximize Your Tax Refunds
While on the subject of saving money through taxes, tax credits are not the only way you can get more back from your taxes. Simple ways to get the most refunds on your taxes include itemizing deductions like charitable contributions, unreimbursed business expenses, and casualty loses. If you’re eligible, you could also take advantage of above the line deductions. Above the line deductions are tax deductions that exclude certain expenses like education expenses from your gross income so that you’re only concerned with your adjusted gross income.
Stay Up To Date On Tax Laws
When you’re out to get as much out of your tax as you possibly can, it’s very important to stay up to date on tax laws. Countries all over the world are constantly updating their laws, making it easier for entrepreneurs and businesses to function and thrive. However, you still have to know about these tax laws if you’re going to take advantage of them. For example, in America, the new tax rate for all seven income brackets was reduced. Little bits of knowledge like this can go a long way for your tax credit.
Avoid Taxing Fees
There’s no point in getting tax credits if your organization is just going to lose them paying fees and penalties. One of the common fees people fall victim for is late filing penalties. Depending on your type of business, you could get severe penalties. For example, C corporations can be subject to late payment penalties on unpaid tax dues, while S corporations are subject based on the number of shareholders as well as unpaid tax dues. Since the penalties can be quite costly, it helps to file your taxes on time even if you’re currently unable to pay.

Source: CEO World  

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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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As the Federal Inland Revenue Service (FIRS) prepares to impose Value Added Tax (VAT) on online transactions, the questions on many lips is how can it work in Nigeria?
“What Nigeria (FIRS) needs to do is to first study digital economy; What does it mean? In which different areas do we have it? What are the issues, difficulties in collecting its taxes? What is the best practice that has been adopted around the world? “ So advised Mr Taiwo Oyedele, a partner with PwC on Tax and Regulatory services. “It is difficult to deal with digital economy, e-commerce inclusive. Even the largest and the most powerful economy in the World, the US, is still struggling with this digital economy. But they have gone a little bit ahead of the rest of us. So we can then borrow from some of their initiatives,”Oyedele added. The FIRS Chairman, Mr Babatunde Fowler, in far away New York, USA, recently said FIRS would soon begin collection of VAT on online transactions. According to him, “soon, we will ask banks to impose VAT on online transactions for purchases of goods and services.” He explained that the online transactions tax is something not new. “It actually should be in existence. We will certainly follow up to make sure that every VAT that is due to be collected is collected, ” he stated, adding that the move was part of measures by FIRS to meet its N8 trillion revenue target for 2019. To heed Oyedele’s advice, let’s see how this VAT model is being practised in some climes:
Remote sellers’ tax in US
On June 21, 2018, the United States Supreme Court fundamentally changed the rules for collection of sales tax by Internet-based retailers. According to www.nolo.com, in its decision in South Dakota v. Wayfair Inc., the court stated that individual states can require online sellers to collect state sales tax on their sales. This ruling overturns the court’s 1992 decision in Quill Corporation v. North Dakota. The Quill case prohibited states from requiring a business to collect sales tax unless the business had a physical presence in the state.
Online sales tax in UK
Her Majesty’s Revenue and Customs (HMRC), the tax authority in the United Kingdom, as of 2017, approached sellers (on internet platforms) directly and via the marketplaces such as Amazon and eBay, searching for non-VAT compliant non-UK sellers. According to SimplyVAT.com, quoted by blog.taxJar.com, if you are a non-resident UK business and hold stock in the UK, either in a 3PL centre such as Amazon, you have created a taxable supply and have an obligation to VAT register in the UK. If a seller has been trading in the UK for many years without a UK VAT number, HMRC does want the seller to pay the back taxes. Once a seller registers for VAT and has to catch up on a lot of historical returns , which means they will have a lot of back-dated taxes to pay, HMRC will give the seller time to pay as long as the seller offers a reasonable payment plan.
Likely scenario in Nigeria
In an interview with Daily Sun even before Fowler announced the plan, Oyedele painted a likely scenario in Nigeria this way “Take Amazon for example: if you want to order something from Amazon, you can open your computer now or your phone, just log on to the internet. And you can order. Now let’s say you order handset. The handset in Nigeria is liable to VAT. But Amazon is not a Nigerian company. It is supposed to charge VAT. They don’t even know whether there is VAT in Nigeria and they are not even interested. The phone is $50. They have not put VAT on it.

Source: Sun News
 
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State gaming regulators have called for a better understanding of their operations, unity of processes and licensing, especially from the lens of the National Lottery Regulatory Commission (NLRC).Under the aegis of Association of State Gaming Regulators in Nigeria (ASGRN), the body also kicked against plans by the Federal Inland Revenue Service (FIRS) to introduce Value Added Tax (VAT) on gaming in Nigeria.
ASGRN added that implementing VAT in gaming could have a devastating effect on the economy.The body, which is however, silent about the “devastating effect”, noted that the constant impasse of the NLRC on their operations needed to be curbed. The body, which rose from a recent meeting, which comprised representatives from states currently regulating all-gaming activities, condemned the lingering issues of rights to regulate the industry between states and the Federal Government’s agency and others. Jointly speaking after the meeting, the chairman of Enugu State Gaming/Lotto Commission, Harrison Ogara, and the Head, Pools and Betting Division of the Ogun State Internal Revenue Service (OGIRS), Felix Fagbohun, flayed the activities of the officials of NLRC, who they said were going from state to state to shut down gaming operators legally licensed by the State Government. ASGRN explained that it was illegal for a national agency, in the mold of NLRC to claim rights to regulate gaming activities clearly under the residual list in the Constitution of the Federal Republic of Nigeria (as amended) adding that such activities are tantamount to eroding the very essence of true federalism. Explaining further, Fagbohun enunciated that while some of its members have regulated the industry under gaming laws promulgated as far back as 1981 and 1991, the NLRC only came into existence in 2005”. Fagbohun stressed that ASGRN is operating from the constitutional realm adding that “for NLRC to assume the roles it is playing now, the Commission must first seek for an amendment of the Constitution of the Federal Republic of Nigeria, because as it is today, gaming regulatory power lies in the states.” While recounting some of their latest issues with NLRC, Ogara said: “When we noticed the obvious infraction on the provisions of our statute, the states were taken aback and surprised by this act, since the NLRC itself had reached out to the states to explore a joint approach to regulations, a development that was warmly embraced and supported by a few states. However, following concerted efforts of some of the states a lot of progress had been made, until this unfortunate act by the NLRC.” Ogara emphasised that the authors of the Constitution gave the regulatory role to states because of the peculiar nature of the industry, states and their religious inclinations. “Nigeria is a Federation where the three tiers of government are expected to act independently together. We are also aware that there are cases in Supreme Court seeking for clarification over who has rights to regulate gaming.” While justifying the right of the state to regulate gaming, the body pointed to the recent Bauchi State Government’s ban on all gaming activities in the State citing several reasons. “This singular realisation that gaming/gambling is prohibited by some religions and other factors led to the placement of gaming regulation in the Residual List of the Constitution. “As such, states that permit gaming have the inherent constitutional right to regulate gaming. ASGRN is therefore calling on NLRC to understand that legally, its regulatory power only covers the ambit of the Federal Capital Territory and setting up a viable National Lottery to challenge what is currently available in other countries along the West African Sub-region.”The body further disclosed that Ghana Lotto for instance is very popular in Nigeria and asked why Nigeria cannot float a similar lottery?” Reacting to the news that the States were making arrangements to float another body charged with the responsibility of issues regarding gaming taxes and licensing of gaming operators, Ogara said: “In fullness of time and after all due diligence and consultations have been concluded, we intend to establish a Joint Gaming Board (JGB) (one of the outcomes of the roundtable discussions between the States and NLRC), whose duty will be to harmonise and design a unified tax regime among the regulating states. On the issue of licenses, we shall leave it for the respective states to decide.”

Source: Guardian

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The Edo State Governor, Mr. Godwin Obaseki, has said the state government’s insistence on the use of technology for tax collection as against non-state actors and consultants was to ensure that traders are protected from harassment and double taxation. He said his administration would strengthen ties with the Tax Appeal Tribunal, South-South Zone, to boost tax compliance in the state, especially with the recent influx of investors into the state.
The governor disclosed this during a courtesy visit by the Chairman of Tax Appeal Tribunal, South-South Zone, Prof. Obehi Odiase-Alegimenlen, to Government House in Benin City. The governor explained that the ban placed on the use of consultants and non-state actors and the introduction of Information and Communication Technologies (ICT) for tax collection is aimed at protecting traders and other taxpayers from harassment and double taxation. “This move has led to a backlash, but we will not go back on that decision taken by this administration,” Obaseki added. Obaseki noted that taxation remains the main source of revenue for most states in the country, adding that any state focused on growing its internal economy must ensure that the people imbibe the culture of paying their taxes and demanding accountability from government. “I appeal that we work together on advocacy, especially in improving the communication mechanism to drive compliance. People ought to know the importance of paying taxes and that it is their civic responsibility,” he added. He said the state has undertaken significant reforms in tax administration and has implemented a series of initiatives in deploying technology for tax collection, which have made the process easier and more transparent. Obaseki explained, “We believe that we can introduce more technologies to drive transparency and make tax collection easier. People don’t want to pay taxes, forgetting that it is their civic responsibility as it helps to develop the economy.” The Chairman of the Tax Appeal Tribunal, South-South Zone, Prof. Obehi Odiase-Alegimenlen said the tribunal was set-up to resolve disputes from clients of tax authorities. “In the advanced world, taxation is a very important aspect of our development finance but not so in Nigeria. The Federal Government is trying to make taxation a relevant aspect of getting finance for developing the country,” he added.

Source: Punch

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Gov. Babajide Sanwo-Olu of Lagos State has tasked the Chartered Institute of Taxation of Nigeria (CITN) to be proactive on deepening taxation practice in Nigeria. The governor gave the advice at the Investiture of the 14th President of CITN, Dame Olajumoke Simplice, on Saturday in Lagos. Represented by Mrs Balogun Olufunmilayo, Permanent Secretary, Ministry of Finance, he said that deepening taxation practice would enhance revenue generation of the state and country.
He said that his administration would partner the Institute to strengthen and encourage taxation system for enhanced economic development of the country. “CITN has immensely contributed to the growth of taxation in Nigeria, but the reward for hard work is more work. “The Institute should not relent on efforts to have an efficient taxation practice as is obtainable in other countries. “Tax is a civic responsibility of every citizen of a country and remains a major medium through which the government can generate funds to fulfill its electoral promises,” he said. The Chairman of the Federal Inland Revenue Service (FIRS), Mr Babatunde Fowler, said that the issue of deepening taxation was a global issue that Nigeria should key into. Fowler, who was a special guest of honour at the Investiture, said taxation was a social contract that enables citizens to play significant roles in raising revenue for government. “By paying taxes, government will similarly have a strong motivation to account for revenues collected and the utilisation of such revenues. “Voluntary compliance by the taxpayers will ensure that revenue is made available for improving on the provision of social amenities and services,” the FIRS boss said. Fowler affirmed that the CITN had advanced to an enviable stage when considered from the level it started operation in Lagos State. In her acceptance speech, Simplice promised to widen the corporate horizon of the Institute through the review of its vision and mission statement. She said the institute would develop and deepen the use of technology by ensuring a full-fledged ICT department as the backbone of its operations. “Our vision to be the leading Institute in training world class Tax Professionals has been driven over the years through various capacity building programmes. “Going forward, it is intended that the Tax Academy will be developed to project this fundamental driving force of our vision. “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,” Simplice said. She congratulated all the newly elected members and encouraged them to take up challenges that would take the Institute to a greater level.

Source: Punch

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The new Edo State House of Assembly was inaugurated on Monday, with nine members electing Frank Okiye as Speaker. The Assembly has 24 members-elect. A statement by the Special Adviser to the Governor on Media and Strategy, Crusoe Osagie, said the new Assembly was inaugurated at 3pm. However, sources told our correspondent that the inauguration was performed by the Clerk of the House, Alhaji Audu Omogbai, at about 9.30pm. The statement read, “The much-anticipated inauguration of the Edo State House of Assembly took place in Benin around 3pm on Monday, June 17, 2019. “The Clerk of the Edo House of Assembly, Alhaji Audu Omogbai, ushered the members-elect into the chamber and read out the letter of proclamation transmitted to the Office of the Clerk by the Governor of Edo State, Mr Godwin Obaseki. “After reading the letter, the Clerk proclaimed the House and the members-elect began the process of electing the House leadership, with Frank Okiye of Esan North-East Constituency I emerging as Speaker, while Yekini Idiaye of Akoko Edo Constituency I was elected as Deputy Speaker. “Upon completion of the process of swearing-in, Okiye took charge of proceedings.” According to the statement, Nosa Okunbor, Henry Okuarobo, Uyi Ekhosuehi, Marcus Onobun, Ephraim Anehbosele, Roland Asoro and Eric Okaka were other lawmakers present on the occasion. Meanwhile, youths suspected to be loyal to Obaseki on Tuesday took over the Assembly complex to support the inauguration. Addressing reporters, the alleged leader of the group, Kelly Okungbowa, said, “We are here to inform the world that what happened yesterday (Monday) is a welcome development. We want to use this opportunity to urge the rest of the elected members to follow suit.”

Source: Punch

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Marta secured her place among the legends of football on Tuesday after the Brazilian become the World Cup’s all-time leading scorer in the 1-0 win against Italy in Valenciennes. “This record doesn’t belong to me, it belongs to all of us,” said the 33-year-old after crashing home a penalty with 16 minutes left to score her 17th World Cup goal. “I share it with anyone fighting for more equality.” Brazil set up a knockout stage clash with either host France or Germany after the 74th-minute strike moved Marta one goal ahead of the German Miroslav Klose in the record books. “Do you think he’ll change his mind about retiring and play at the next World Cup?” Marta joked. Brazil finished third on goal difference in Group C behind Italy and Australia — who beat Jamaica 4-1 — after all three ended level on six points. Marta wasn’t fazed by the possibility of facing France, who topped Group A with a perfect nine points after scraping past Nigeria on Monday. “To play against the host nation would be a privilege. The stadium would be full of fans singing,” she said. “I love playing in front of a big crowd whether it’s supporting me or is against me. I just want there to be fans who are watching us.” Marta is widely considered the greatest player in the history of the women’s game and was hailed by her teammates as an inspiration for others wanting to take up the male-dominated sport. “She is like an icon for us and I think every year she is breaking records and that’s not just important for us but for all of the women’s soccer. I’m so happy she is Brazilian,” said centre-back Monica. Fellow defender Tamires added: “We have a lot of young players coming up and I hope they look to her and how she plays, what makes her so special and so incredible and follow her.”
– Four-star Kerr –
The defeat wasn’t enough to dislodge Italy from the top spot and a match with one of the four best third-placed finishers. “It’s a shame about the result because we didn’t want to lose but we played well enough to have drawn it,” said Juventus attacker Babara Bonansea, who twice went close for Italy before Marta claimed her record goal. “We knew that today was going to be difficult but we were good. Let’s see who our next match is with.” Marta’s winner overshadowed another historic feat for Sam Kerr, who became the first Australian to score a World Cup hat-trick as she crashed four past eliminated Jamaica in Grenoble. “It’s one to tell my kids about,” Kerr said. “Any time you break a record, especially for your country, it is an amazing feeling.” The Matildas will play Norway in Nice in the last 16 on Saturday. England needs a point against Japan on Wednesday to ensure they top Group D and avoid a potential last-16 clash with European champions the Netherlands. Topping the group would, however, also put them on the same side of the draw as both France and potentially the World Cup holders USA. Coach Phil Neville said Tuesday admitted there were “pitfalls in finishing first and second” as he reported that his squad was fully fit with striker Toni Duggan available after missing the wins over Scotland and Argentina.

Source: punch

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Pioneer chief executive of the Asset Management Corporation of Nigeria (AMCON), Mustafa Chike-Obi, on Monday in Lagos reiterated the need for the Federal Government to harness the huge economic potentials inherent in taxation to raise revenue and effectively diversifying the economy from crude oil. This, he said, is possible if the tax net is expanded such that much more people attracted into the tax net, thereby reducing the burden on the few that faithfully pay, a situation he expects will reduce tax rate in the country from the current 30%, the highest in the world today.
Chike-Obi, Executive Vice Chairman, Alpha African Advisory, who spoke on the theme: Repositioning Nigerian Economy for Sustainable Growth,” at the Finance Correspondents Association of Nigeria (FICAN) Bi-Monthly Forum, an event meant to set economic agenda for second four-year term of the Muhammadu Buhari administration, while addressing key economic issues, challenged government to discourage multiple taxations, as part of efforts to enhance voluntary compliance. Speaking on the plethora of intervention funds and why adequate infrastructure is needed to stimulate the economy instead, also noted the need for a lower interest rate of between 12 to 15% per annum. For him, “all these intervention funds don’t work… Let me tell you why they don’t work. If you lend to a farmer at 5% you think you are helping him, but everything around him is at 26%. So, he gets a little bit of relief on his financing, but he doesn’t get reliefs on his supplies, diesel, food, employees… So, at the end of the day, those things he gets at 26% invades his 5%.” Chike-Obi said intervention funds also don’t work because “the default rates are as high as default rates of non-intervention funds. So, they don’t work. They are not very efficient”. What Nigeria’s economic managers should do in the new dispensation is to provide capital at reasonable interest rates that work for everyone. “There must be access to capital at a reasonable price. With a 26% interest rate, you cannot do business successfully. So, we must find a way to provide interest rate to everybody at a reasonable rate. We must have an interest rate that will support our economy. And it cannot be much higher to the borrower at 12 to 15%. Every Nigerian should be able to borrow money at between 12 to 15%… So, we must have capital available.” He also spoke on what foreign lenders look out for when lending to developed markets, warning that borrowing in US$ may not be cheaper on the long-run than the Naira as widely believed in some official quarters. For example, he stressed, even the country borrows in US$ at 8%, creditors are concerned with the exchange at the time of repayment, as it is unlikely to remain at N360/$, just as the foreign creditors consider borrowers with a capacity to generate needed funds for repayment of such loans. “The reason why they are lending money at 8%, instead of 16%, is because they know that by the time that money matures, your Naira will not be exchanging at N360/$. This is because the Naira always depreciated by approximately 50% every five years,” Chike-Obi argued.

Source: Invest Data

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The founder of Perez Chapel International, Bishop Charles Agyinasare, has blamed the collapse of Ghanaian businesses on the immediate tax imposed on them by the government. Preaching at a Sunday service on 2 June 2019 at the Perez Chapel International at the Perez Dome in Accra, Bishop Agyinasare wondered why foreign-owned businesses are given tax exemptions to the detriment of indigenous ones.As a result, he said, the majority of the mega businesses in Ghana are not owned by Ghanaians.
Bishop Agyinasare told his congregation that: “Do you know that in Ghana we don’t even have businesses? We like foreign businesses, we don’t have businesses, all our shops are foreign-owned – from Melcom to Shoprite to our restaurants; the Papayes, all the telecom companies, we don’t own any of them, from Vodafone to MTN to [Airtel/]Tigo, we don’t own anything.“We say we do chocolate but Nestle doesn’t belong to us, Unilever Brothers doesn’t belong to us, we don’t own anything.“When a foreign company wants to come and do business in Ghana, we’ll give them a 10 per cent tax exemption for them to settle within the period. A Ghanaian businessman starts the same business and from day one, he has to pay tax and, so, our businesses are collapsing.“When a Ghanaian businessman starts a furniture company today, he has to pay tax, a foreign company starts a furniture company, he claims he’s exporting the thing then they export the thing and it still gets back here and the Ghanaian man who has started is paying taxes and so our businesses don’t succeed”.Last year, the President of the African Centre for Economic Transformation, (ACET), Dr K. Y. Amoako said tax holidays for foreign companies is undermining Africa’s growth.He bemoaned the lack of stringent measures by the government to mobilise taxes from international firms who are investing in African countries.Dr Amoako said this in an interview with the media on the sidelines of the opening session of the 2018 African Transformation Forum held in Accra.

Source; Afroinsider

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Summary
Recently, the Lagos State Internal Revenue Service (LIRS) issued a Public Notice (PN) disclosing its intention to integrate the LIRS’ Personal Identification Digit (PID) for taxpayers with the national Tax Identification Number (TIN) system using taxpayers’ Bank Verification Numbers (BVN). The PID, which is also known as the Lagos State Government Electronic Banking System (LASG-EBS) Taxpayers Identification Digit, is a unique taxpayer identity code issued by the LIRS to taxpayers in Lagos State while the TIN is a national identification number for individuals or corporate entities for the purpose of tax remittance. According to the PN, the integration will facilitate seamless sharing of taxpayers’ information between tax authorities and other relevant stakeholders.
Details
The PN provides that the integration is designed to be biometric-based and the LIRS intends to employ the existing BVNs to achieve the planned integration. Furthermore, the PN states that access to the LASG-EBS platform for all transactions such as registration and creation of payer ID for new taxpayers, payments of taxes and validation of taxpayers’ profile etc. will now require taxpayers’ BVN. Accordingly, the PN requires all self-employed individuals to provide their BVNs to the LIRS in order to assist in the creation of their unique PID. Corporate Organizations are also required to ensure that their employees who qualify for tax clearance certificate (TCC) include their BVN in their individual e-TCC forms. The LIRS, in the PN, also assured taxpayers of the safety and security of all data and information in its custody.
Implications
We expect that the proposed integration of the PID into the TIN would provide the tax authorities with more reliable taxpayers’ information to enable them track down tax defaulters and combat tax evasion. However, it is important that the tax authorities safeguard all data and information of taxpayers, which may be obtained from the integration process to boost taxpayers’ confidence in the system. Thus, taxpayers should engage their tax consultants as soon as possible to obtain professional guidance in complying with the directives under the Notice.

Source: Andersen Tax

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The new President, Association of National Accountants of Nigeria (ANAN), Prof. Muhammad Mainoma, has urged the Federal Government to improve the pace of implementing the Economic Recovery and Growth Plan (ERGP), as the country’s full recovery from recession rests on this.
Mainoma, who said during his inauguration as the11th President and Chairman of Council of ANAN, recently, expressed optimism that with the favourable outlook in 2019, resulting from the rising crude oil price, growth in external reserves, declining inflation, and GDP growth, there is hope that these would translate to sustainable economic development. Using his name as an acronym, the new president said it was with a determination to consolidate on the attainments by Making Accountants in Nigeria Ordinarily More Attractive (MAINOMA). He equally urged ANAN members to exhibit characters of proficiency, respect, objectivity, fairness, education, selflessness, service and integrity, organisation, networking, ability, learning, image, standardisation and methodological, which he termed as Professionalism. Under his watch, Mainoma said the council would work with other professional accounting organisations (PAOs) to form a joint accounting body, as formidable platform for advising the government, noting that the Federal Government’s National Anti-Corruption Strategy (NACS) needs the support of PAOs in Nigeria. “PAOs must work alongside government, regulators, law enforcement and international bodies to combat corruption, tax evasion, money laundering and to strengthen transparency and accountability programmes,” he said. While commending efforts in institutional and governance reforms, he said ANAN would partner with the three tiers of government to enhance fiscal transparency and accountability governance. During the ceremony, a new ANAN logo as well as its training arm, Nigerian College of Accountancy (NCA) Jos, was unveiled. In his valedictory address, the immediate past president, Shehu Ladan, listed some progress made to uplift the association and its members.

Source: Guardian

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Experts say there are steps required to start a successful business. Take one step at a time, and you will be on your way to successful small business ownership. Step 1: Do Your Research Most likely you have already identified a business idea, so now is the time to balance it with a little reality. Does your idea have the potential to succeed? You will need to run your business idea through a validation process before you go any further.
A brand strategist Lanre Philips says you don’t go into a business just because you have an idea but because you want to solve a problem. “In order for a small business to be successful, it must solve a problem, fulfill a need or offer something the market wants”. Author of ‘Starting a Successful Business’, Mrs Ekatte Umoh also corroborated this. “Simply find a need and fill it. There is always a gap in the market, recognize that gap and provide a solution.” There are a number of ways you can identify this need, including research and even trial and error. As you explore the market, some of the questions you should answer include: Is there a need for your anticipated products/services? Who needs it? Are there other companies offering similar products/services now? What is the competition like? Step 2: Make a Plan You need a plan in order to make your business idea a reality. A business plan is a blueprint that will guide your business from the start-up phase through establishment and eventually business growth. Experts say a business plan is a must-have for all new businesses. Step 3: Plan Your Finances Starting a small business does not always require a lot of money, but it will involve some initial investment as well as the ability to cover ongoing expenses before you are turning a profit. Anticipate what you will need to keep your business running for at least 12 months, like rent, marketing, supplies, employee salaries, your own salary and so on. Step 4: Choose a Business Structure Your small business can be a sole proprietorship, a partnership, a limited liability company (LLC) or a corporation. The business entity you choose will impact many factors from your business name and to your liability. You may choose an initial business structure, and then re-evaluate and change your structure as your business grows and needs change. Step 5: Pick and Register Your Business Name Your business name plays a role in almost every aspect of your business, so you want it to be a good one. Make sure you think through all of the potential implications as you explore your options and choose a business name. You can register a business name with the Corporate Affairs Commission (CAC) for N5, 000. The federal government reduced the rate from 10,000 to enable small business register their business names.

Source: Daily Trust

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The Lagos State Internal Revenue Service (LIRS) issued a Public Notice on 4 June 2019 informing taxpayers of its intention to integrate the existing Taxpayers Identification Digit (PID) into the nationwide Tax Identification Number (TIN) system with the Joint Tax Board. The LIRS intends to leverage the existing Bank Verification Number (BVN) operations to achieve this objective. Consequently, access to LIRS electronic platform for all transactions, such as registration and creation of Payer ID for new taxpayers, payment of taxes and validation of taxpayers’ profile will compulsorily require BVN validation.
The Public Notice further requires every self-employed individual to provide their BVN to the LIRS for creation of their unique PID, while corporate organisations are to ensure that their employees provide their BVNs for processing of their tax clearance certificates (TCCs).
Matters arising
1. The BVN is a very sensitive confidential information which is personal to individual bank customers. The operation of BVN in Nigeria is regulated by the Central Bank of Nigeria (CBN) through the Regulatory Framework for Bank Verification Number Operations and Watch-list for the Nigerian Financial System (“the Framework”). The CBN recognizes the importance of protecting bank customers’ data and has made access to BVN information by any party subject to a valid court order and its approval. This implies that access to BVN information is restricted and will only be conditionally released on case-by-case basis.
2. While the Personal Income Tax (PIT) Act (as amended) empowers relevant tax authorities to request taxpayers to provide books, documents and information for the purpose of establishing their income or gain earned, the power must be carefully exercised especially where sensitive personal information, such as BVN is involved. This is necessary to avoid security risks to taxpayers. Hence, such power should not be interpreted to grant unfettered access to sensitive taxpayer’s data, such as BVN, except in the event of criminal investigation.
3. While the data integration exercise by the LIRS may be desirable, the question is whether a BVN is necessarily required for the exercise. There is no question that a TIN can be issued without BVN and if personal identification is required at all for TIN to be issued, there are other less invasive means of identification, such as national identity card, driver licence, international passport, etc., that can be used for this purpose. The LIRS should be happy to see new taxpayers register for tax purpose upon presenting any valid identity card rather than introducing another layer of requirement for this purpose. The less the hurdles taxpayers have to cross the better. It is instructive that the Federal Inland Revenue Service has successfully registered several companies for tax purpose and issued TIN to them without requiring the BVNs of their directors. The LIRS should take a cue from this.
4. The LIRS’ requirement for provision of BVN before taxpayers can be issued TCCs, when a TCC is only a confirmation of tax paid by a taxpayer is very concerning, especially after a taxpayer has discharged his civic duty. There is no reason to put another constraint on taxpayers when they should be given the freedom to print the document online as and when required. In the final analysis, as taxpayers may not have a choice but oblige the LIRS, it is important for the LIRS to put foolproof measures in place to ensure data privacy and protection of taxpayers.

Source: Pro share

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The Tax Club, University of Lagos clinched the first (1st) prize at the 2019 National Tax Quiz Competition held at the recently concluded Annual Tax Conference organized by the Chartered Institute of Taxation of Nigeria in Kado, Abuja. The Competition was an integral part of the Conference which was held between April 23 and 26, 2019,
About 200 undergraduates from across Nigeria participated in the Competition. Out of these, six finalists were selected through a Four Stage Computer Based Test on different areas of Taxation. The Conference came to a crescendo with Orimijupa Olukunle David of the Faculty of Law, University of Lagos emerging winner of the Quiz Competition. The Vice Chancellor, Professor Oluwatoyin T. Ogundipe, FAS, on behalf of Management, Senate, staff, students and other members of the University community congratulates Orimijupa Olukunle David and members of the Tax Club, University of Lagos on this feat.

Source: Unilag

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Top G20 finance officials agreed Saturday there was an urgent need to find a global system to tax internet giants such as Google, Facebook, Amazon and Apple, but clashed on the best way to do it. The G20 has tasked the Organisation for Economic Cooperation and Development to fix an international tax system that has seen some internet heavyweights take advantage of low-tax jurisdictions in places like Ireland and pay next to nothing in other countries where they make huge profits.
OECD chief Angel Gurria presented G20 finance ministers and central bank chiefs meeting over the weekend in the western Japanese city of Fukuoka with a “roadmap”, already signed off by 129 countries, in a bid to clinch a long-term solution by 2020. “We have to hurry up,” stressed French Finance Minister Bruno Le Maire during a panel discussion of top policymakers before the G20 meeting officially opened. Le Maire called for a more ambitious time frame to forge a global consensus, saying: “The right schedule is to find a compromise by the end of this year.” British finance minister Philip Hammond said taxing internet giants fairly was a response to something that is “perceived by our population to be a gross injustice in our tax system.” Ministers are weighing a new tax policy based on the amount of business a company does in a country, not where it is headquartered. But there are rival proposals in the mix, including a wider US-led approach that could affect European and Asian multinationals in other sectors than technology. US Treasury Secretary Steven Mnuchin took a blunt view of policies in Britain and France, which have already introduced their own taxes on digital players, given a lack of global consensus. “I would say the US has significant concerns with the two current taxes that are being proposed by France and the UK but let me give them some good credit for proposing them in the sense (that) they have created an urgency to deal with this issue,” said Mnuchin. “Although I don’t like them, I do appreciate the impetus for these issues,” added the top US finance official.

Source: PM News Nigeria

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MAZI Nnamdi Okwuadigbo has emerged the 55th president of the Institute of Chartered Accountants of Nigeria, ICAN, pledging to support government at all levels with recommendations that would facilitate the process of economic growth and development, especially in the management of public resources.
Speaking at his investiture in Lagos, Okwuadigbo who until his appointment was the immediate past vice president of the association, said ICAN is a key player in the country’s economic value chain which is why it would not shy away from lending its voice to critical social, economic, educational and professional issues that would emerge in the country in the course of the year. He said: “We shall continue to provide robust contributions to various relevant bills from the National Assembly. We shall engage governments at all levels intensively on pertinent burning national issues. “As a profession and an institute, we will continue to offer constructive advice to all tiers of government in our efforts to promote the culture of professionalism in the management of public resources, thereby facilitating the process of economic growth and development. “However, as seasoned professionals who are relied upon by players in the economy in their business decision-making processes, we must raise the profile of our contributions to public policy processes beyond the submission of solicited or unsolicited memoranda to the various arms of government. “We shall sustain with vigor of the Accountability Index (AI) project. Initial feedback has shown the remarkable impact of the project to national governance. “As seasoned professionals, we must, in words and actions, remain the foe of deceits and champion of honesty. We must be prepared to support our members to ensure that they continually render value-laden services to clients, employers and the society at large in strict conformity with the ethics of our profession.

Source: Vanguard

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Eden Hazard will become the highest-paid player at Real Madrid, when he completes his £130million move from Chelsea in the coming days, the Evening Standard reports.

Hazard’s salary will be doubled to £400,000, automatically making him one of the highest earners with the Spanish giants.

The 28-year-old will leapfrog some of the big names, who have been part of the Los Blancos squad for the last trophy-laden decade.

Bale previously led the way, with an eye-watering £346,000 per-week salary or £18million a year, after tax.

Toni Kroos and captain Sergio Ramos both pocket £200,000 a week with Madrid, while Luka Modric takes home a weekly £180,000.

REAL MADRID’S TOP EARNERS
Eden Hazard – £400k
Gareth Bale – £346k
Toni Kroos – £200k
Sergio Ramos – £200k
Luka Modric – £180k
Karim Benzema – £150k

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The National Bureau of Statistics (NBS) says Nigeria generated N289.04 billion from value-added Tax (VAT) in the first quarter of 2019, representing a decline N9billion from the N298.01 billion generated in Q4 2018. This is contained in a Sectoral Distribution of VAT report for the first quarter 2019 released by the bureau.
This, it said, represented a 3.01 per cent decrease quarter-on-quarter and 7.13per cent increase year-on-year. 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. According to the report, the manufacturing sector generated the highest amount of N31.42 billion. It was followed by professional services with N24.31 billion, while commercial and trading generated N14.92 billion. NBS further said the mining sector generated the least amount of N59.88 million, with pharmaceuticals raking in N201.58 million, while the chemicals and allied industry generated N298.14 million. The report noted that N137.06 billion was generated as non-import VAT locally, while N98.97 billion was generated as non-import VAT for foreign items in the quarter under review. According to the bureau, N5.01 billion was generated as Nigeria Customs import VAT within the period under review.

Source: The Sun

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The Peoples Democratic Party in Lagos State has warned Governor Babajide Sanwo-Olu against victimizing his predecessor, Akinwunmi Ambode. The PDP said in a statement by its Publicity Secretary, Taofik Gani, that Sanwo-Olu should rather focus on surpassing the achievements of Ambode. The statement read in part, “The Lagos State chapter of the PDP has counseled the new Lagos State Governor, Mr Babajide Sanwo-Olu, to adopt positivism and eschew any iota of vendetta pursuit if he must succeed as a governor.” According to Lagos PDP, “the undoing of Mr Sanwo-Olu will be for him to attempt unnecessarily going after his immediate predecessor and or opposition interests, rather than concentrating on his programmes to better the living conditions of Lagosians.” The opposition party, which described Ambode as the best governor in Lagos since 1999, added that he would be remembered for good. The PDP urged the new governor to appoint professionals into his cabinet and not quacks. The statement added, “The Lagos State PDP attests to the unparalleled achievements of former Governor Ambode in developing the state, especially compared to the performances of former governors Bola Tinubu and Babatunde Fashola. “The PDP thus counsels Sanwo-Olu to rather look into how to surpass Ambode’s legacies instead of attempt to victimize any perceived opponents before and after his emergence. The PDP thus further posits that in the interest of worthy services to Lagosians, Mr Sanwo-Olu should make up a cabinet of competent hands and not mediocre persons in the name of partisanship.” The PDP lamented that it had not been allowed to rule Lagos since 1999. The party said the state would have witnessed unprecedented changes had it been allowed to rule in the last 20 years.

Source: Punch

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A former Deputy Governor of the Central Bank of Nigeria, Obadiah Mailafia, has said that the Lagos State Government is using corrupt consultants to collect tax from the people. Mailafia, who described the act as daylight robbery, called on the people of Lagos to rise against such extortion and corruption. The former CBN deputy governor said this during an interview on Channels Television’s Sunrise Daily on Tuesday.
Mailafa, who praised Lagos for being able to increase its Internally Generated Revenue, said there was room for doing things in a better, transparent and more effective manner. He lamented that tax consultants in Lagos receive as high as 20 per cent commission in some instances which was against the norm in other advanced climes. Mailafia said when the people see that their taxes are being put to good use, they would be willing to pay more hence the spike in IGR during the administration of former Governor Babatunde Fashola. The former CBN deputy governor said, “Lagos which was the poster child for success in internally generated revenue, still has a lot of issues there. I love Lagos but of course, Lagosians were very reluctant to pay more tax but when they realized Fashola was doing a lot of work, they were more than happy to pay. “But there is a problem. The cost of extracting this taxation is one of the highest in the world. They have invited very dubious consultants who keep between 15 to 20 per cent of this tax. I think it is a form of iniquity and I don’t know why for the life of me, Lagosians tolerate that nonsense. “It is their money and it is daylight robbery. Employ people, train them; let the government collect the tax, not private consultants. In France, there are schools dedicated to training people in public finance and tax administration. These are the people you should set about to collect your taxes, not some iniquitous and corrupt private consultants.” Several petitions have been submitted to the Economic and Financial Crimes Commission in the past detailing alleged fraud by some tax consultants in Lagos State. However, the EFCC has failed to invite anyone including the petitioners.

Source: Punch

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A national consensus seems to have emerged that increasing the Value Added Tax (VAT) rate at this point will deepen the economic misery of the average Nigerian already overburdened by the yoke of broken social infrastructure. For the hard-pressed workers, such proposition will only mean that the government is desirous of retrieving with the left hand what it just gave out, albeit grudgingly, with the right hand by way of the recently approved minimum wage which many states may not even be able to pay. Besides, government, at all levels, has failed to discharge their obligation in the social contract as can easily be seen in collapsed social infrastructure and worsening insecurity across the land.
Given the foregoing, the only reasonable idea on the table is to widen the tax net. The idea becomes more plausible against the background of the latest reports by the Federal Inland Revenue Service (FIRS) that it has captured the identities of 45 million individual and corporate entities. The milestone was made possible by the resolve of the federal tax authorities to shift focus this year by putting more energy into the enumeration of taxpayers through TIN (Tax Identification Number) registration exercise. To achieve this feat, the FIRS had to synergies with other government agencies like the Corporate Affairs Commission (CAC), Nigeria Inter-Bank Settlement System (NIBSS), Nigeria Identity Management Commission (NIMC), Federal Road Safety Commission (FRSC), among others. This is partly a fulfillment of the original promise of the idea of having an integrated national database. Indeed, the imperative of having to explore other revenue sources cannot be overstated considering the perennial volatility of the oil price in the international market and the necessity to wean the nation of overdependence on oil revenue for sustenance. The urgency of this need will surely become even more manifest in the times ahead as the already financially stressed federal authorities grapple with the challenge of seeking funds to deliver on the approved N8.9 trillion budget for 2019 and the state governments having to shoulder additional financial burden arising from the new minimum wage of N30,000. It is commendable that the FIRS has been able to improve on its performance by automating its processes to not only cut operational costs but also curtail abuses, leakages and wastes in line with international best practices. We see this as one of the reasons for the steady growth in the national tax revenue in the past few years: from N3.3 trillion in 2016 to N4 trillion in 2017 and N5.3 trillion in 2018. What makes the rising graph quite significant is that it happened when the national economy was supposed to be contracting on account of the deleterious effects of the recession that hit the nation, from which it only began to show signs of slight recovery in the last quarter of 2017 after two years.
With a unified database, we can only hope that the FIRS will address widespread complaints from the public against multiple taxation and arbitrariness of some of its officials. Added to this is an ethical issue. There have been complaints also by high net worth individuals of being slapped with arbitrary tax demands based on information obtained clandestinely from their bankers. Such complaints are quite legitimate. It is important that FIRS is mindful of such ethical issues while seeking to mobilize revenue for government to fund growth and development. According to the Manufacturers Association of Nigeria (MAN), widening the tax net will reduce the huge burden placed on the narrow tax compliant segments of the populace and corporate entities, many of whom are manufacturers.

Source: This days

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When the ongoing integration of different bio metric databases in Nigeria is completed, it is anticipated that the figure on the taxpayer database will grow to 45 million individuals, inclusive of corporate payers. In essence, the taxpayer database has expanded from 10 million that was inherited by President Buhari in 2015 to 35 million as at the end of 2018. Disclosing this at the quarterly world press conference held in Abuja, Mrs. Zainab S. Ahmed, Honorable Minister of Finance, said that through reforms at the Federal Inland Revenue Services (FIRS) and the Joint Tax Board (JTB), government have been able to harmonize the Tax Identity Number (TIN) database to cover Federal, States and LGs to establish a unified identity number system for uniquely identifying tax payers.
Considering that revenue growth is a strategic priority for the Ministry of Finance, Ahmed further said that the Strategic Revenue Growth Initiative (SRGI), which was launched in Abuja Wednesday, January 23, 2019, is a key aspect of government strategy to improve Non-oil revenue through fiscal buffers, and ultimately improve the Revenue to Debt Service Ratio and to improve the ratio of Non-oil revenue to Non-oil GDP. “A set of initiatives have been itemized in the SRGI to increase the country’s revenues across all revenue types. This is to ensure that the whole of government is focused on revenue generation,” she stated. Among the initiatives in the SRGI is the National Single Window (NSW) which is expected to significantly improve the revenue performance of the Nigeria Customs Service (NCS) when implemented. Speaking further in an interactive session, the Honorable Minister said: “Four to five years after implementation we expect NCS revenue to double. This will come from the blocking of the leakages, improvement in the efficiencies in our ports and borders, the rehabilitation of scanners as well as the infusion of new scanners in the ports trading ecosystem, and it would also be due to increased rate of physical examination, reducing the physical examination to fasten the business of the ports.” The single window, according to her, would also help to bring to the barest minimum the issues of trade sim-invoicing, which is not only a drain on customs revenue but also a drain on tax revenues.

Source: Independent

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The European Union (EU) Support to Federal Government Reform Programme (EU-SUFEGOR) spent a whooping €20m on varieties of reforms to deepen good governance in Nigeria. The Team Leader of the EU-SUFEGOR, Prof. Olaseni Akintola-Bello, said this in Abuja at the formal winding off of the five-year project.
According to him, the Treasury Single Account (TSA), Integrated Personnel and Payroll Information System (IPPIS) and Bank Verification Numbers (BVN) among other policies are positive developments the country must strengthen and consolidate with others policies and strategies. He said the project was mostly implemented with the Bureau of Public Service Reforms (BPSR), Ministry of Budget and National Planning (MBNP), Office of the Head of Civil Service of the Federation (OHoCSF), Federal Inland Revenue Service (FIRS) and National Bureau of Statistics (NBS) under varieties of sub-projects. On her part, the Head of Section -Economic Cooperation and Energy, EU, Ms. Nadia Cannata, said the project has achieved high-level policy meeting on effective policy monitoring and evaluation for the development of a policy framework checklist. “There is the development of the medium term sector strategy (MTSS) through the provision of trainers, analysis of sector wide approaches in Africa and production of a citizen’s guide to the budget,” Cannata said. She said there was also the training of over 300 public servants in ICT capacity building. On his part the Acting Director-General, Bureau of Public Service Reforms (BPSR), Mr. Dasuki Arabi, represented by Head, Internal Audit of the bureau, Mr. Fola Ibn Aliu, said part of the achievement of the project was the production of up to date Compendium of Public Service Reforms for easy references for policy makers, apart from trainings and capacity building for over 600 public service officials. “It has also financed the production of an on-line self-assessment tool which has been found useful for assessing the management and organizational performance of public agencies,” Arabi said.

Source: Daily trust

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Trouble is brewing for recalcitrant tax evaders in Nigeria, as the Minister of Finance, Mrs Zainab, Shamsuna Ahmed, on Friday inaugurated the Steering Committee for “Project Lighthouse” in line with government’s blueprint to aggressively collect more taxes and grow its non-oil revenue base. Project Lighthouse is an initiative which entails using advanced data mining and analytics techniques to identify tax defaulters, establish their tax liabilities and send notifications to appropriate authorities for necessary action.
As at June 2018, the initiative, which aggregates data from multiple sources such as bank accounts, land registry records, company registration data, tax filings, Customs records and asset ownership records, has identified a batch of over 130,000 high net worth individuals and companies whose tax records are not up to date due to detected underpayments. Speaking at the inauguration, the Minister said she would Chair the Committee, while the Deputy-chair will be the Permanent Secretary, Special Duties at the Ministry, Dr Mohammed Kyari Dikwa. She added that the Presidential Initiatives for Continuous Audit (PICA) and Department of Technical Services at the Ministry of Finance will serve as the Secretariat of Project Lighthouse. The Minister, in her address, regretted that despite living in a technologically-charged and data-centric world, Nigeria has not developed a culture of using data and information to guide the formulation, implementation and impact assessment of various initiatives and policies or even in carrying out its mandate as a Ministry. She said: “You will recall that one of the key economic policy objectives of the current administration, as contained in the Economic Recovery and Growth Plan (ERGP), is improving overall Federal Government revenues by targeting and increasing revenues from non-oil revenue sources. “You will also recall that in the last few months, major steps have been taken to address our chronic revenue challenges. One of such steps is the launch of the Strategic Revenue Growth Initiatives (SRGI), which some of you have been participating in. “Following the ratification of Project Lighthouse at Federal Executive (FEC) on Wednesday 9th May, 2019, the Federal Ministry of Finance is entering in a post-VAIDS or Phase 2 of the Project. “However, this time around, Project Lighthouse is being positioned as a single source of truth for revenue and tax-related intelligence that will support the Ministry, its agencies, revenue agencies, tax authorities and other stakeholders to be better positioned to address the revenue challenges we are facing.” Ahmed stressed that in the first phase of Project Lighthouse, “we will be using Big Data analytics, date sciences and related technologies to gather and analyze financial data and revenue related data from multiple but related sources. We would also use the sophisticated date analysis tools to ‘connect the dots’ between different data sets. The terms of reference of the Steering Committee include, provide strategic direction for the Project; serve as the source of the data required to populate the Project Lighthouse Platform; assist the Federal Ministry of Finance with relevant data/information on mining of information of tax payers and revenue value chain; review of technical aspects of the Project and report on the progress of the project to relevant stakeholders. While urging stakeholders to put in their best to ensure the successful implementation of the initiative, the Minister said, “we can drastically change our revenue story by fully and innovatively exploiting the great power of Big Data Analytics, Data Science and related technologies.”
Earlier, the Permanent Secretary Special Duties at the Ministry, Dr Dikwa, who will also serve as the Deputy Chairman of the Committee, in his opening remarks, said Project Lighthouse, was part of the strategic revenue growth initiatives, which are measures to boost revenues in line with the provisions of the Constitution, the Fiscal Responsibility Act and other associated laws. He noted further that Project Lighthouse will be a platform that will help the Ministry gather information from both the formal and informal sectors for the purpose of boosting internally generated revenues to adequately fund the budget. Members of the Steering Committee include, Nigerian National Petroleum Corporation (NNPC), Federal Inland Revenue Service (FIRS), Joint Tax Board (JTB), Nigeria Customs Service (NCS), Nigeria Inter-Bank Settlement System Plc (NIBSS), Central Bank of Nigeria (CBN), Security and Exchange Commission (SEC). Other members are, Office of the Accountant General of the Federation (OAGF), Corporate Affairs Commission (CAC), Abuja Geographical Information System (AGIS), Nigerian Financial Intelligence Unit (NFIU), Special Presidential Initiatives on Recovery of Public Properties (SPIRPP), Permanent Secretary Finance (PSF), Economic and Financial Crimes Commission (EFCC), Independent Corrupt Practice and Other Related Offenses Commission (ICPC), Budget Office of the Federation (BOF), Revenue Mobilization Allocation and Fiscal Commission (RMAFC), Department of Petroleum Resources (DPR) and National Bureau of Statistics (NBS).

Source: The Sun

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Chartered Institute of Taxation of Nigeria (CITN), and the Association of Chartered Certified Accountants (ACCA), have signed a Memorandum of Understanding (MoU), on professional curriculum exchange and membership recognition between the two institutions. The pact will define how CITN and ACCA would collaborate to develop ACCA’s tax and law variants for Nigeria, and the basis of membership exchange between the two bodies. Speaking at a brief ceremony recently in Lagos, President and Chairman of Council, CITN, Cyril Ede, said the partnership would help the Institute and ACCA to understand the intricacies in taxation and accounting professions.
Ede noted that the collaboration would look at areas of common interest, and would place CITN on an international sphere whereby knowledge of international tax and associated issues would be gained. “ACCA is a worldwide recognized body, not only in accounting but also in business matters. Our relationship with ACCA would be very beneficial to our members and also beneficial to ACCA.“We have pursued this matter vigorously since 2017 because this relationship would help us to widen the knowledge of taxation for more people to be involved in tax payment. Our main focus is to widen the people’s knowledge on taxation to know that it’s a compulsory responsibility,” he said. In his remarks, the Head, ACCA Nigeria, Thomas Isibor, noted that the collaboration between the two bodies was a milestone, as it shows the importance attached to partnership development. He said the partnership would aid the development of capacity in Nigeria’s the finance sector, as CITN and ACCA will bring together resources and help in building the sector. He said: “The benefit of this is on three layers: first is national, which is country wide, in terms of how we can support in developing the economy and wellbeing of Nigerians and also developing the professionals in the taxation and accountancy profession and also for members value. Meanwhile, the CITN has called on the government to put the right policies in place that will enhance investments in Nigeria’s economy, and promote voluntary tax compliance. Speaking at the 40th induction ceremony, Ede, said an inclusive economic growth of about five per cent yearly can be achieved by providing five million new jobs against the current unemployment trajectory. He maintained that the nation’s budget should detail a plan of action beyond the statement of incomes and expenditures, and fund infrastructural gap to boost Public Private Partnerships (PPPs), and concession arrangements for the proper operation and maintenance of public infrastructure. He charged the 560 inductees to uphold professionalism in their practice of taxation to avoid sanctions by CITN, and comply with the provisions of the charter, bear true allegiance, and promote the image of the institute. In his remarks, Chief Executive Officer, Gabe Fasoto and Co, Gabriel Fasoto, said taxation has always been a distinct profession from accountancy, and charged the inductees to maintain excellence in taxation practice and administration. “Taxation is not settlement; you need to equip yourself technically. Know the tax laws, jurisprudence, and global tax practice, and expand the frontier of tax knowledge rather than only the pecuniary interest,” he admonished.

Source: Guardian

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