₦airaland Forum

The Minister of Finance, Mrs Zainab Ahmed on Friday in Abuja, inaugurated a steering committee for ‘Project Lighthouse’ initiative. ‘Project Lighthouse’ is the government’s data mining unit in the Federal Ministry of Finance, saddled with the responsibility of compiling data of tax payers during the implementation of the Voluntary Asset and Income Declaration Scheme.
The Steering Committee is made up of representatives from the Nigerian National Petroleum Corporation, Federal Inland Revenue Service, Joint Tax Board, Nigeria Customs Service, Nigeria Inter-Bank Settlement System Plc, Central Bank of Nigeria, and Security and Exchange Commission. Other members are, Office of the Accountant General of the Federation, Corporate Affairs Commission, Abuja Geographical Information System, Nigerian Financial Intelligence Unit, Special Presidential Initiatives on Recovery of Public Properties, Economic and Financial Crimes Commission, Independent Corrupt Practice and Other Related Offences Commission, Budget Office of the Federation, Revenue Mobilization, Allocation and Fiscal Commission, Department of Petroleum Resources and National Bureau of Statistics. Ahmed while inaugurating the committee said it was part of initiatives targeted at boosting the revenue drive of the nation’s economy.

Source: Punch

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The publisher of National Daily Newspaper, Sylvester Ebodaghe, has questioned the National Assembly on the new guidelines released for the accreditation of journalists. Ebodaghe during an interview on Channels Television’s breakfast programme, Sunrise Daily, said it is not the job of the Parliament to demand a journalist’s tax clearance before authorizing them to cover plenary. “All around the world, we have guidelines. We are not against guidelines; we want you to be clear as to who is coming into your space.
“But to start demanding for tax clearance that you must have a patron or circulation figure verifiable of not less than 40,000, the US Congress is not asking for your patron. They just want to be sure that you are gainfully employed. “And that you will not abuse your privilege of having access to the chambers. And I think that is what we should be looking at. And not necessarily your tax clearance. They are not CAC; they are not FIRS. So it’s not their job to start asking for a tax clearance,” he said. National Assembly Releases Details Of Its 2018 Budget His comment comes two days after the National Assembly released new guidelines for accreditation of media organizations, journalists/correspondents covering the Senate effective June 11, 2019. NASS in a letter signed by its Director of Information, Agada Emmanuel noted that all previous accreditation granted will lapse with the dissolution of the 8th Assembly. Ebodgahe during the interview on Wednesday recalled that when the Senate had issues on the invasion and theft of mace, the media was solidly behind it. He then wondered why the Parliament would issue out such a directive suggesting it may have a problem with media practitioners. “This Assembly when it came under intense pressure during the invasion and all the crisis it has gone through, the best friend the National Assembly had was the media. “So what problem do they possibly have with the media? All the tweets that were reproduced on various platforms, they were enjoying the manage. So it didn’t really matter who was drawing the attention to their plight as it were,” he stated. Meanwhile, Senate President, Bukola Saraki, has said that the leadership of the Eight Assembly are not aware of the new guidelines to journalists reporting the National Assembly. The Speaker, on Tuesday, said the leadership of the legislative arm is committed to the freedom of the press and promised to investigate the allegation promptly.

Source: Channel

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The immediate past National President/Chairman of the Council of Association of Professional Bodies of Nigeria, Mr Gabriel Fasoto, has disabused the minds of many young tax practitioners when he said the practice of taxation as a profession is a distinct discipline from accountancy. The past president, Chartered Institute of Taxation said the clarification was necessary because many people were ignorant of the existing facts.
He spoke at the 40th induction ceremony of the Chartered Institute of Taxation of Nigeria in Lagos where 560 were inducted among whom was an 82-year old man. The guest speaker’s address was titled ‘Can I earn a living with my Chartered Tax Practitioner?’ Fasoto said, “A question that has been bothering many of you is why taxation is a separate profession from Accountancy in Nigeria. Some people have even brainwashed some of us that it is only in Nigeria that this situation exist.” But the guest disagreed with a verifiable fact when he took the participants down the memory lane when he said, “The Institute of Chartered accountants of England and Wales, the oldest Accountancy Institute in the world, was granted the Royal Charter on 11th May, 1880. Going through the Charter, there was no mention of taxation therein.” He explained that before he chose to become a registered member of the CITN and as an existing member of the Institute of Chartered Accountants of Nigeria, he “specifically” went through the Act establishing ICAN and CITN and found out that there was no functions overlapping between the two professional bodies.

Source: Punch 

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The Federal Inland Revenue Service (FIRS) on Tuesday said it will surpass in 2019 the N5.32 trillion it generated in 2018. The N5.32 trillion remains its highest yearly collection so far. In a paper titled: “The imperatives of regulatory processes, procedures and compliance in the Nigerian business sector” presented at a forum organized by the Nigerian-German Business Association in collaboration with The Nation in Lagos, FIRS Chairman Babatunde Fowler said the agency realized N1.6 trillion between January and March.
Before 2018, the highest revenue made by the Service was N5.07 trillion in 2012. Represented by a FIRS Deputy Director, Sunday Okeowo, Fowler said the Service for the first time crossed the N1 trillion threshold in Value Added Tax (VAT) collection in 2018. Another achievement was the e-stamp duties collection, which is also on a steady increase, and a collection of N15.66 billion last year. His words: “Year on year, with the exception of the year 2016, the collection performance of the FIRS grew by an average of 21per cent for the four year period.” According to him, technological initiatives introduced by FIRS in delivering taxpayers services such as e-payment channel, e-receipt among others have contributed immensely to tax collection. Nigerian-German Business Association Director-General Gbenga Adebija said non-compliance to regulations by operators hinders growth in the industry. Against a backdrop of operating concerns, he said Nigerian businesses are being outpaced by their international rivals in terms of revenue and profit growth because of regulatory challenges. Despite this, he said local businesses still spend a great deal of time and money ensuring that they are compliant with commercial, tax, health and safety and environmental laws. He said compliance with regulations would eliminate crisis in the industry and guarantee the long-term viability of the industry. He observed, however, that compliance should not be seen as a burden but as an opportunity to improve business efficiency. Adebija said there was a need for business owners in the country to follow the laid down principles and the guidelines set up the government to end the unstructured and relatively chaotic business environment and erosion of profit margins. National Agency for Food and Drug Administration and Control (NAFDAC) Director-General Prof Mojisola Adeyeye said the enhancing food safety mechanism to make sure food offered for import meets the nation’s food safety requirements. Speaking through her Special Assistant, Prof Adeyeye said there was increased surveillance to keeps out unsafe foods, and effective response when unsafe imported food is found, and that the agency has an effective and efficient food import programme. According to her, enhanced inspections at ports of entry and foreign food facilities, are part of the strategy to improve its oversight of imported foods.

Source: The News Guru

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The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), has commended the decision of the Federal Government to remove Value Added Tax (VAT) from domestically produced Liquefied Petroleum Gas otherwise known as Cooking Gas.
According to the association, the Federal Government signed the approval of VAT removal on LPG and gazetted same, after several pleas by operators for the removal. Meanwhile, the group also appealed for a reduction on import duty on LPG equipment and accessories.“On behalf of the Governing Council and members of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), the President of our association, Nosa Ogieva-Okunbor, wishes to express his profound gratitude and thanks to the Federal Government and all relevant Government agencies for listening to our plea to remove VAT from LPG products sourced locally. “We also want to use this opportunity to thank and appreciate the Department of Petroleum Resources (DPR) for the timely directive stopping the inappropriate and indiscriminate installation of Skid plants in petrol stations. “The directive that all skid plants in filling stations be dismantled and removed was apt considering the huge danger and risk to the public in the operations of LPG Skid plants in filling stations. We, however, appeal for proper and thorough implementation of the directive in all States of the Federation”, the Association said in a statement. The association, however, urged the federal government to create a more conducive and enabling environment for investors in the industry, noting that deepening the consumption of LPG in the country has become a major interest of the Government and marketers towards ensuring the success of the programme. “The increased awareness of LPG usage has seen consumption in Nigeria growing from 50,000MT in 2007 to over 600,000MT in 2018 with more indigenous investments in LPG bottling plants. This thus will ensure that majority of Nigerians enjoy the convenience of the proximity of LPG refill or exchange points. “We implore the Federal and State Governments to initiate a well-funded social welfare programme to expand usage of LPG”, the operators added.

Source: Guardian

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With the price of oil tumbling drastically to $48.86 per barrel in October 2015, after which it slid further to $44.82 the following month and $37.80 in the last month of the year, the signs were bold that Nigeria was facing a major economic crisis. The implication of the slump in revenue derivable from oil, the major source of funding for country’s infrastructural and human development aspirations, was that the then new administration of President Muhammadu Buhari had flown into the most inclement weather possible. Public expectations of a national boom time were sky-high, but were almost immediately shattered, as government at all levels was hamstrung in the discharge of its responsibilities and obligations. At the state level, government, with the exception of a handful of states, for example, was unable to pay civil servants’ salaries and pensions to retirees let alone develop ideas for life-altering infrastructure projects and human development initiatives. Earlier in August that year, with the Federal Government left with no option than to look internally for revenue, especially from previously neglected sources, President Buhari appointed Mr. Tunde Fowler as chairman of the Federal Inland Revenue Service (FIRS). Fowler’s appointment was widely well received because he had been a consistently vocal voice against the country’s heavy reliance on oil revenue and, more crucially, on account of his headship of the Lagos State Internal Revenue Service (LIRS), during which the internally generated revenue (IGR) rose from a monthly average of N3.6 billion in 2006 to over N20 billion between 2006 and 2015. He met Lagos as a state unable to generate sufficient revenue from the vastness of its economic activities, and reformed revenue collection and administration processes to make Lagos the model of the genre. Yet, there was the question of whether or not he was capable of reprising what he did in Lagos State at the national level. That question, the figures show, has been answered with a resounding “Yes” in four years, a period during which the country slipped into recession. A little over a week ago, it was announced that the country’s taxable population figure was approaching a record 45 million. In 2015, the figure was 10 million, rose to 14 million in 2017, and 19 million in 2018. Last year, the FIRS collected N5.32 trillion, the highest ever in the history of the federal revenue agency. The preceding year, the agency collected N4.02 trillion and, in 2016, N3.3 trillion. The revenue growth, in spite of the country’s economic challenges, has been attributed to a variety of reform initiatives conceived to expand the tax net, block leakages and make tax collection methods more efficient. It has also been helped by enhanced collaboration with other stakeholders such as the Joint Tax Board (JTB) and other government agencies and a virile enforcement strategy, resulting in improved taxpayer compliance and collection of huge tax debts from defaulters, review of the National Tax Policy, amendment of tax laws and use of technology.

Source: the Sun

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The Federal High Court sitting in Lagos, on Tuesday, 21st May 2019, has for the umpteenth time held that only members of the CITN can practice taxation in Nigeria pursuant to the relevant provisions of the CITN Act. This was the outcome of the suit instituted in 2018 by five members of ICAN by way of originating summons challenging the authority of FIRS to recognize the power of CITN to regulate the tax profession in Nigeria in all its ramifications.
The Court further held that Regulation 5 of the Tax Administration (Self-Assessment) Regulations, 2011, which purports to allow members of ICAN, ANAN, and CITN to co-jointly file tax returns on behalf of taxpayers, where taxpayers opt to hire tax agents for reward, was in conflict with the extant provisions of the CITN Act. Consequently, the Court dismissed the suit of the plaintiffs and awarded cost of N200,000 in favor of the defendants. This decision is a re-affirmation of the decisions of the Lagos State High Court in 2007 and the Court of Appeal, Lagos Division, in 2013, re-stating that only CITN can regulate taxation, and only its members can practice taxation in Nigeria. FIRS, therefore, acted legally vide its letter to the CITN of 23rd April 2018, which stated that only CITN stamp and seal will be recognized by FIRS, with effect from 2nd January 2019, for the purpose of filing tax returns in FIRS. The Institute will issue further releases after its legal team obtains the certified true copy of the judgment. This decision has in no way encumbered the about 10,000 ICAN members in CITN from practicing taxation. Its only result is that those ICAN members, who are not members of the CITN, cannot practice taxation or file tax returns until they become chartered CITN members.

Source: Brand spur 

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Stakeholders have rejected plans by the Federal Inland Revenue Service (FIRS) to tax online transactions, saying it will amount to double taxation. Chairman of FIRS, Mr Babatunde Fowler, yesterday, while speaking in New York, told the News Agency of Nigeria (NAN) that the agency will soon begin collection of Value Added Tax (VAT) on online transactions. Fowler said: “Soon, we will ask banks to impose VAT on online transactions for purchases of goods and services. Not that it is something 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 explained that the move was part of measures by FIRS to meet its N8 trillion revenue target for 2019. Fowler said the agency had started taking action against companies and businesses that refused to embrace Federal Government’s tax amnesty programme. According to him, FIRS hopes to generate between N750 billion and N1 trillion from the clampdown, which includes closure of defaulters’ bank accounts. “We are going after everybody. I am sure you have heard that we have placed lien on some accounts of defaulters that have a billion naira turnover annually. “So, certainly, we are not leaving anyone out of the tax net,” he said. Officially known as the Voluntary Asset and Income Declaration Scheme, the tax amnesty programme was launched in 2017. It gave tax defaulters a one-year period of grace to declare and settle their unpaid taxes. There have been complaints by some taxpayers of being wrongly targeted by FIRS in the clampdown. Asked to comment on that, Fowler admitted, blaming it on “administrative error,” arising from the huge number of accounts involved. “Well, there is certainly one or two instances where we made administrative error, but when you are looking at over 50,000 accounts, there is a tendency that sometimes an error might be made. “For those that we made errors on, I wrote them personally apologising and of course, we lifted the lien on their accounts.” However, reacting to the development, head of Tax and Corporate Advisory Services at PwC Nigeria, Taiwo Oyedele, said the Federal Internal Revenue Service does not have the capacity to tax online transactions, which are not already being taxed in the country. Commenting on the statement by the head of the FIRS, that the service will commence imposition of Value Added Tax (VAT) on online transactions in the country, Oyedele, “I don’t know whether they needed to say it. “The reality is that if you go online to make transactions on Jumia or any of these platforms, there is already VAT.
If you book a hotel online in Nigeria, there is already VAT on it, so the online businesses and transactions that are owned by entities in Nigeria, already pay the VAT. The FIRS does not have to impose the VAT on them, it is already being paid. “To book a flight online, you pay VAT. Now, where the difficulty is, is when you do the online service by a provider outside Nigeria, for example if you go on Amazon and you order a product, because Amazon is not a Nigerian company, then there is no Nigerian VAT. “So, the way that is done is that you pay them the full amount and they ship to you in Nigeria, by the time it gets to customs, if the amount is below the threshold where you don’t have to pay, you don’t pay anything. So, the question is how the FIRS would be able to impose VAT. If you want to watch a movie on Netflix, you just go to Netflix to subscribe, you pay and then watch a movie. The ones where they can impose, VAT are already being imposed. The ones where VAT is not currently being charged, the FIRS has no mechanism to be able to do that so it will be interesting to know exactly what they have in mind. “It is not just about Nigeria, it is a global problem that is why we have the global committee on the digital economy and they are trying to fix it because it is not a problem that one country can solve. It is a problem that requires the whole world to come together.” Mr Razack Olaegbe, deputy managing director, eMaginations Limited, advised the FIRS to engage the e-commerce and online companies before carrying out any clampdown action, stating that many of the e-commerce firms are yet to break even. “Clamping down on the companies should not be the first step, FIRS needs to engage them to understand their business model, find out if they are making money. Jumia and Konga, are they profitable? E-commerce is yet to thrive in this country. We shouldn’t use threats of clampdowns arbitrarily as it scares away foreign investors,” he said.

Source: Leadership

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An Ikeja Special Offences Court, Lagos has revoked the bail of a former Managing Director of MainStreet Bank Registrar Limited, Chester Onyeamachi Ukandu who was earlier granted bail on an offence of forgery. Ukandu was arraigned by the Economic and Financial Crimes Commission, EFCC on March 19, 2018 on a three-count charge bordering on forgery and impersonation. Ukandu, who was docked alongside one Mr. Achi George, was alleged by the EFCC to have forged documents purportedly emanating from the Corporate Affairs Commission (C.A.C.)
Justice Olusola Williams however revoked Ukandu’s bail following an express breach in the bail conditions earlier granted him. According to the prosecuting Counsel, A.B.C Ozioko, who filed a motion on Notice dated January 15, 2019, the 1st defendant, Ukandu had breached some of the bail conditions by acting in a manner capable of jeopardizing the course of justice in the case. However, one of the bail conditions by the court included a strict warning to the defendants that the defendants should desist from holding themselves out as officers of the company and other correspondence in that regard, until the final determination of the suit or any other suits in the Federal High Court, pertaining to the ownership of the Mainstreet Bank Registrars Limited. Ozioko, while praying the court to revoke the Ukandu’s bail, said that instead of being sober and face the charges of conspiracy and forgery against him, the 1st defendant continued to write numerous petitions against the prosecution star witness in the matter, seeking to intimidate, harass and embarrass the witness. The prosecutor accused Ukandu of writing a petition to the Nigerian Bar Association (NBA) against a lawyer, who is also a witness in this matter, after he was granted bail. EFCC said Ukandu has taken active steps to interfere with the successful prosecution of the case against him since he was granted bail and urged the court revoke his bail. The court thereafter noted that the defendant acted in a manner capable of jeopardizing the course of justice in the case. Ruling on the application, Justice Williams held that once the court grants a bail to an accused person; it ought not in law revoke such bail, unless there is evidence of some changed circumstances placed before it. “Unfortunately for the 1st defendant, there was ample evidence of changed circumstances, adding that the defendant has been restless. “it appears that the defendant would rather take matters into his own hands instead of leaving the court to determine the suit expeditiously. “I am persuaded that he should be placed in custody so that he does not continue to muddy the waters and disturb the progress of this case. Accordingly, the bail granted to the 1st defendant is hereby revoked”, Justice Williams ruled. The EFCC alleged that sometime between February 6 and 7, 2012, the two defendants conspired and forged the letter head paper of Mainstreet Bank Registrars Limited, with registration number: 613674, claiming that it emanated from Mainstreet Bank’s Registrars Limited. The commission accused the duo of forging a Corporate Affairs Commission (CAC) Form 2A, claiming that it emanated from CAC. The two defendants, who had retired from the company, were alleged to have unlawfully converted the company’s properties and bank account with Skye Bank for personal use.

Source: Tribune

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The League of Anambra Media Practitioners (LAMP), a body of journalists of Anambra state origin, practicing in Abuja, has called on President Muhammadu Buhari, to as a matter of urgency; confirm the appointment of the acting Registrar General of the Corporate Affairs Commission (CAC), Lady Azuka Azinge, as the substantive Registrar General.
LAMP in a press statement by its Convener, Mr Williams Orji, Monday in Abuja, regretted that Lady Azinge, who has transformed the commission since she assumed office, over a year ago, was still in acting capacity despite numerous transformations on easy of doing business she introduced to the commission. Orji said the acting registrar also has to her credit, among others: “the abolition of proficiency certificate requirement; the increment of number of small scale business registration through a new federal government policy; the reduction of the number of hours spent to conduct a search from days to just four hours, while the registration services can be done now within 24 hours, through online.”
Similar news Anambra worries over motor park touts, miscreants. The group wondered why, having done so much in reinvigorating and repositioning CAC to its current state, which has attracted more businesses to the country, confirmation of the appointment of the brain behind such feat was being delayed. “…the achievement she has brought to CAC shows that no previous registrar general has surpassed her feat. She has brought professionalism and efficiency in the running of the once moribund commission, where it can now boast of making more money for the federal government. “Therefore, we beseech Mr. President, to speedily confirm her appointment, as a way of motivating her for more hard work and innovations in line with the present administration’s economic revival,” the body said in the statement.

Source: Blueprints

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The Institute of Chartered Accountants of Nigeria (ICAN) has issued certificate of recognition to Abubakar Tatari Ali Polytechnic (ATAP) Bauchi for its National Diploma and Higher National programmes in Accountancy. The Dean, School of Management Studies of the polytechnic Dr Hafiz Baba made the disclosure on Tuesday while speaking with newsmen in his office.
With this development, according to Dr Hafiz national diploma and higher national diploma students of Accountancy of the institution can now enjoy a waiver while registering for ICAN examination. The Dean said ATAP is now in consultation with the ICAN headquarters in Lagos for the opening of a center in Bauchi where students can sit for the professional examination. Similar news Gov Bello pledges human capital Devt, youth empowerment in second term Dr Hafiz Baba said following the accreditation of professional courses in the polytechnic, many professional bodies like Nigeria Society of Engineers, Institute of Quantity Surveyors, Nigeria Institute of Accountancy and ICAN have all visited the polytechnic to give their final professional accreditation and identify themselves with the institution. He further disclosed that the polytechnic had been accredited to run National Diploma in Taxation after certifying all the requirements of professional bodies. Dr Hafiz commended the Rector of the polytechnic Dr Suleman Muhammed Lame for his efforts towards uplifting the institution to greater heights. According to him, the polytechnic now runs 46 fully accredited National Diploma and Higher National Diploma courses, 18 NCE courses and 8 degree programmes in affiliation with ATBU Bauchi.

Source: Blueprints

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Indigenous airlines have been told to take the prompt payment of their charges to respective aviation agencies as a top priority in order for the industry to witness the expected growth. Grp. Capt. John Ojikutu (rtd), the Chief Executive Officer (CEO) of Centurion Aviation Securities in an interview with our correspondent in Lagos, said that aeronautic charges and payment of Value Added Tax (VAT) were not the challenges hindering growth of the airlines as claimed in some quarters.
Rather, he said that most of the airline operators did not prepare sufficiently for the financial commitment of their business and responsibility before venturing into the sector. Onjikutu posited that the manner of their entries, exits and lifespan showed that many of them did not include in their business plan, the aeronautical charges and taxes as contained in the economic regulation of the Nigerian Civil Aviation Regulations (NCARs). He explained that none of the airlines in the sector airlifts passengers on credit and wonder why they could not remit to the appropriate authorities sums collected from passengers on behalf of the agencies. “Generally, they sell cash and carry tickets not on credits, but owe recurring debts to the services providers and staff salaries in multiple arrears. There were records of some of the airlines collapsing within five years of their entry into operation. “Some others had to appeal for government intervention funds to bail them out of debts from bank loans and recurring, debts from the various aviation services providers. “Many did not plan their flight operations beyond five airports, but were operating to 10 airports or even more without including the costs into their expected earnings. Others expanded their operations to airports that are not sufficiently equipped to support flight operations beyond daylight or sunset.” He insisted that the issue of multiple taxes as claimed by the airlines were spurious as they were not taxes only, but charges, which were not imposed on the airlines alone, but also on other operators, services providers, allied businesses and the passengers. He explained that there were about 38 taxes and charges, but only 11 of these were charges on the airlines. He emphasized that for the airlines, only VAT was a tax; four were statutory charges, two were non-statutory charges, while four others were operational support or services charges. He added that two out of these were optional, while the remaining 27 were charges on other operators not the airlines.

Source: Independent

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The Executive Chairman, Federal Inland Revenue Service (FIRS), Mr. Babatunde Fowler, has restated the agency’s commitment to eliminating multiple taxation in the country.

Fowler said this at a tax breakfast seminar with the theme: “Tax Controversy and Dispute Resolution,’ organized by KPMG Nigeria in Lagos, recently.
According to him, one thing the FIRS did when it initiated the ongoing tax reform was to sign a memorandum of understanding (MoU) with the State Internal Revenue Agencies to streamline tax payments. He explained: “We see things changing this year and I hope that the corporate body would take advantage of this opportunity.

“This simply says that if you have businesses operating in more than one state, instead of having five State Internal Revenue Services and FIRS coming to check your books, you can do it at one stop. “You inform the committee, they look at your books and each state would get what is due them and of course the FIRS. He listed some of the issues that cause dispute in terms of tax payment to include income tax, Value Added Tax holding tax in the country.

According to him, defaulting in tax payment is one of the reasons for controversies and dispute. He said the decision by the agency to place a lien on defaulting taxpayers with bank accounts with turnover of N100 million and above annually, for over three years was in order. “I don’t really think there should be much concern when you are talking about disputes in this respect. That is because 99 per cent of all these accounts do not even have a tax identity. Without a tax ID at the FIRS level, you can’t make tax payments. “These businesses had collected VAT, they had deducted withholding tax and didn’t file any returns nor did they make any tax payment. So, when we are talking about a dispute here, I think it is an open and closed case,” he added.

Continuing, Fowler said: “Some of the reasons for these controversies basically might be wrong computation of taxes, misinterpretation of some section of tax laws and audits and the issue of double taxation. “On the issue of double taxation, politically, the states believe that they have the right to impose sales tax, whereas some people feel VAT should be a federal tax, which the states do share from that revenue. And i think that was the only area in Nigeria where we had an issue of double taxation.” Fowler further noted that one of the reasons for low tax collections, not just in Nigeria, but the entire Africa, was the over-reliance on income from natural resources over the years. “If you look at Nigeria as a country, nobody has been sent to jail for criminal charges when it comes to taxation, because when you file the return which is four times it becomes a criminal case at the same time at the state level the same applies.

Source: https://www.thisdaylive.com/index.php/2019/05/15/firs-vows-to-eliminate-multiple-taxation/

All On, which is a seeded company of Shell, has advised Nigeria to initiate and implement a graduated and weighty tax system on the production, assemblage and importation of power generating sets that use diesel and petrol. This, it stated would buoy growth of off-grid renewable energy power sources in the country. All On also asked the country to set a timeline of three years to kick out generators in the country and transit from using such fossil fuel generating sets to clean energy sources such as solar.
In a new report titled: ‘Strategic Fiscal Incentives to Unlock the Off-Grid Clean Energy Sector in Nigeria: Opportunities and Recommendations,’ the firm argued that raising duties on petrol and diesel generators would enable the growth of clean energy sources mostly in off-grid communities. All On, however, stated that industries located in off-grid communities could be exempted from the proposed regulation provided they are able to satisfy certain conditions which could include taking into account of the location of the industry in comparison to available grid power or the viability of renewable energy in the particular context. The report, it explained was to stimulate the growth of the clean off-grid energy sector by designing strategic incentives to promote the sector. It noted that it identified existing regulations in the sector as well as made recommendations on how they could become significantly improved on to guarantee the growth of the sector. It added: “To discourage the importation, production and assembly of diesel/petrol generators and encourage the use of clean energy and energy efficient off-grid equipment, we recommend that the import duty levied on wholly petrol and diesel generators be increased by an additional 2.5 per cent every two years from the start date of the regulation imposing the additional levy.” It further said: “We propose that the regulation provides for a transition period of three years to facilitate the switch from diesel/petrol generators to clean energy sources for off-grid electricity generation. “The importation of generators may also be discouraged by the introduction of additional levies in the form of Import Adjustment Tax (IAT). Currently, IAT ranging from 15 per cent to 35 per cent is applicable to varying categories of generating sets. However, we propose that the IAT rate be increased to 50 per cent.” “Industries using this equipment can however be exempted from these duties and taxes where certain conditions are met. The conditions can take account of the location of the industry in comparison to available grid power/gas or the viability of renewable energy in the particular context,” it added while stating that the proposed increase in import duties on generators will not apply to generate sets powered by clean energy sources such as gas, solar, wind and hybrid generating sets. All On also explained that it wanted Nigeria to introduce Value Added Tax (VAT) exemptions on qualified goods and services deployed for generating off-grid energy.

Source: Brandspurng

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A former president of the Institute of Chartered Accountants of Nigeria (ICAN), Otunba Abdul Lateef Owoyemi, has called on the Central Bank of Nigeria (CBN) to devise strategies to reduce interest rate in the country, adding that the cost of accessing facilities in the country was too high. Speaking on second term given to Mr Godwin Emefiele as CBN governor, the accountancy guru said that the interest rate in the country is too high to allow people to engage in productive activities.
Speaking in an interview with at the weekend, Owoyemi, who is also the chief executive officer of LOP Consultants, said that only those who want to engage in short-term and speculative business can afford to take facilities at the prevailing rate in the country. According to him, “In countries where productivity is taken seriously, the interest rate is one or two percent and this allows small business owners and others who want to engage in productive ventures to do so. In Nigeria, the interest rate is so high that only a few productive activities can take place. What do we want to do with the money? We should be interested in what money can do for the economy in the interest of Nigerians,” he said. Owoyemi argued that if the interest rate were brought down, manufacturers and others would be able to borrow money for productive ventures, adding that the country would be a better place for it.

Source: Independent

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Corporate Affairs Commission (CAC) announced this in a statement by available to newsmen in Abuja on Sunday.
According to the statement, the decision is to assist Micro, Small and Medium Enterprises (MSMEs) to formalize their businesses which will enable them own corporate account with Banks, have access to loans, grants, and other government interventions.
To this end, management of CAC enjoined members of the public to take advantage of the extended window to register their businesses. “Following the directive of the Vice President, HE Prof. Yemi Osinbajo, SAN, GCON the Corporate Affairs Commission (CAC) wishes to inform the general public that the 50% reduction in registration fee for Business Names window has been further extended for 90 days effective 13th May, to 13th August, 2019. “The extension is to assist Micro, Small and Medium Enterprises (MSMEs) to formalize their businesses which will enable them own corporate account with Banks, have access to loans, grants and other government interventions. “Members of the public are enjoined to take advantage of this extension to register their Business Names at the reduced cost of N5000” reads the statement.

Source: Independent

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The Executive chairman, Federal Inland Revenue Services leader (FIRS), Babatunde Fowler, has described tax education as a key factor to reducing the incessant tax controversies between the government and tax payers in Nigeria. This was even as he called on individuals and corporate bodies to always consult tax experts for professional guidance in every issue relating to individual or corporate taxation.
Delivering a keynote presentation at a Tax Breakfast Seminar and the launch of the Tax Mobile App put together by KPMG Nigeria in Lagos over the weekend, Fowler who spoke on the theme: Tax Controversy and Dispute Resolution, said the cause of incessant tax controversies between the government and the tax payers are majorly as a result of ignorance of tax administration on the side of tax payers. He therefore enjoined persons and corporate bodies to take advantage of tax education which FIRS is embarking on across the country using different communications media. He also charged tax payers to query the source, and any observed errors or omissions in tax letters/statements from Tax authority, saying that no one has the right to bully any tax payers in any circumstance. “We have our Joint Tax Board (JTB) across states whose rectification with any organization is binding by other tax boards across the federation. So to avoid multiplicity of tax charges, one must know the law permitting such tax and an individual is even free to decline an invitation for Joint Tax Audit, still it is better you even go to Tax Appeal Tribunal (TAT) where necessary.” Fowler stressed. Speaking for KPMG, the Assistant Manager, Tax Regulatory & People Services, Peter Nwaobi, said the KPMG Tax Mobile App is a one- stop -shop launched to address all tax related issues, adding that anyone can lodge in a question or complaint via the App and get response within 48-hours. Nwaobi said the Tax App is free of charge and open to all and sundry who pays tax, saying that it is easier to use most especially in computing Personal Income Tax (PIT). “with this App one can know if one’s employer is prudent in managing one’s PIT or otherwise, it contains tax decided cases and it’s been updated daily with tax and finance information.

Source: The Sun

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Julius Berger Nigeria Plc financial report for 2018 has shown an impressive performance in its revenue generation, taxes and returns to shareholders. Details of the company’s outing announced by the financial director, Mr. Martin Brack, showed that the Group’s revenue in 2018 increased by 37 per cent and profit – before- tax rose by 173 per cent, while the total comprehensive income increased by 47 per cent.
Brack told the business community at the company’s Investors’ Forum in Lagos that earnings per share increased by 47 per cent, while the shareholders’ equity rose to N35 billion during the year. Also, the company’s managing director, Dr. Lars Richter, told the forum that the progress Julius Berger had made at the Second Niger Bridge reflected its continued commitment to the timely completion of the project.

Source: Leadership

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About 55 life and non-life underwriting companies in the country have paid N36.5 billion as tax to the government through the Federal Inland Revenue Service (FIRS) in the last five years.The Guardian reliably gathered that between 2013 and 2017 financial years, these underwriters generated N100.4 billion as Profit Before Tax (PBT) and were left with Profit After Tax (PAT) of N63.9 billion, having paid N36.5 billion as tax to the government. The tax paid translates to about 35 per cent of the profit made within this period.
A data sourced from the Nigerian Insurers Association (NIA) showed that insurance companies made N9.8 billion as PBT, which was reduced to N4.9 billion after tax, having paid N4.8 billion as tax in 2013 financial year, while the industry recorded N6.3 billion PBT in 2014, which went into a negative of N691 million, after the operators paid about N7 billion as tax. In 2015, insurers made N11.3 billion profit, but the profit reduced to N6.1 billion, after paying N5.2 billion tax in that financial year. In 2016, the companies paid N11 billion as taxes from PBT of N29.4 billion declared and were left with PAT of N18.3 billion. Similarly, the insurers made a profit before tax of N43.8 billion in 2017 financial year and paid N8.3 billion tax to the government, leaving a profit after tax of N35.5 billion. Although, tax paid to government by insurance companies in 2018 financial year remains sketchy, as they are just releasing their financial accounts, there are indications that the tax could rise above N10 billion, given government’s plans to generate more revenue locally to finance the 2019 national budget Apart from paying tax on management expenses, short term lending, among others, insurers were also mandated to pay tax on claims, which is the core business of underwriting, meaning that the higher the claims paid by an underwriter, the higher the tax to be paid on such claims. The federal, state and local governments had embarked on aggressive revenue hunt, picking on corporate bodies like insurance companies, as a major part of the tax drive. Enforcement of these taxes reached an alarming rate last year with some insurance companies shut down by the Federal Inland Revenue Services (FIRS), until they were made to clear off their outstanding taxes. While the situation has a negative implication on the books of some struggling insurers, some had their little profit cut short by these taxes, while the big underwriters were not exempted from the impact of these taxes. NIA, under the leadership of its past Chairman, Eddie Efekoha, had complained that insurance industry is being subjected to multiple taxation that is gradually eroding the profits of insurance companies, thereby, affecting their ability to give good returns on investment to shareholders as well as stakeholders. Efekoha, however, believes the permanent solution lies in amending the tax code, which takes some times to be amended, as it has to go through legislative processes at the National Assembly. “Giving returns on investment to shareholders and stakeholders has a lot to do with how much you make as profit, but in a scenario like ours, where we are subjected to multiple taxation, it becomes difficult to pay dividend to shareholders. “The more tax we pay, the more the returns to our stakeholders diminish. If you are to pay tax on claims and on management expenses, what this means is that you have little or nothing left to pay dividend to shareholders,” he said. However, there was an ongoing discussion between NIA and FIRS to try to address this challenge. Last year, the General Manager, Retail Life, AIICO Insurance Plc, Sola Ajayi, said the tax code in Nigeria is too hard on both life and non-life insurance companies, as they were not allowed to take advantage of deferred tax, especially, for life business. “We cannot take advantage of those taxed assets because of Section 33 and Section 16 of the tax code. Section 33 is saying, we must pay minimum tax, while Section 16 is saying, even when you have a tax exempt income, you must pay something. “So, you cannot exempt paying tax on the life business where some are even incurring losses and you cannot fully take advantage of all your reliefs,” he said. For non-life business, he said, the tax code does not recognise the whole claims paid as expense, noting that, no matter the claims you paid, you can only relief 25 per cent of it. According to him, “if you pay claims of any amount, the law does not allow claims as expenses, it only allow 25 per cent of it. So, why are we in operation? Is it not to pay claims?”

Source: Guardian

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In 2017, the World Economic Forum (WEF) ranked Nigeria 125 out of 137 countries in its Global Competitiveness Report. The WEF survey found that Nigeria’s potential for structural change was impeded by inadequate investment in infrastructure, technology, higher education and innovation. Nigeria has long depended on oil as its economic mainstay with paltry attempts at diversification over the years. But a recent Bloomberg report finds that this one-source revenue base is unsustainable. Moreover, Nigeria is yet to regain its economic bearings following the 2014 crash in global oil prices. Experts find a viable alternative in the non-oil sector and available statistics from the Federal Inland Revenue Service (FIRS) justify this. At a tax-related interactive session with the Manufacturers Association of Nigeria (MAN) held in February, FIRS Chairman Babatunde Fowler disclosed that the non-oil sector outpaced the oil sector with a significant 54% contribution to the N5.32 trillion revenue generated in 2018. “Moving the government’s revenue away from oil dominated foreign earnings to more predictable sources have the potential to accelerate the country’s economic growth,” he said.
But making the switch is not as easy as it sounds, thanks to Nigeria’s abysmal tax compliance levels. Fowler reinforced this when he argued that most businesses in the country charge customers Value Added Tax (VAT) for products supplied or services rendered but do not remit same to the government as statutorily required. As such, government lacks the incentive to deliver on capital projects that will fast-track the economic growth collectively envisaged.
A Legacy of Tax Evasion
In 2014, then Coordinating Minister of the Economy, Dr. Ngozi Okonjo-Iweala, disclosed that 65% of companies in Nigeria had declined to forward their tax returns and a whopping 75% were not in the FIRS tax net. During the FIRS Stakeholders Engagement Forum organised in Lagos at the time, she maintained that the much vaunted case for economic diversification would gain little traction without a steady pipeline of alternative income sources such as taxation: “We have engaged in a process of increasing our non-oil taxes. Every Nigerian wants to see us depend less on oil, and more on the other resources of the economy.” But by 2015, the situation was no different. Chairman of the Edo State Internal Revenue Service (EIRS) argued that 80% of taxable Nigerians had no Tax Identification Number (TIN) and were therefore out of the tax net. At the Annual Tax Conference (ATC) organised by the Chartered Institute of Taxation (CITN) in Abuja at the time, he reportedly said this state of affairs was denying Nigeria lots of revenue that could ordinarily be invested in economic development. “When you calculate the tax income revenues Nigeria ought to have made and deduct it from the amount realised, we will all understand Nigeria is missing much,” he said. Year 2017 saw only 214 people in populous Nigeria paying taxes above N20 million. During a parley focused on economic growth jointly organised by the Nigerian Stock Exchange (NSE) and Bloomberg, then Minister of Finance Kemi Adeosun emphasised that Nigeria’s infrastructural deficit could only be addressed through a national culture of consistent tax payment: “We have just 40 million active tax payers out of an estimated 69.9 million…and of that 40 million, majority are PAYE, those who have their taxes deducted at source.” She disclosed the government’s plans to recruit 7,500 community tax officers tasked with educating the citizenry about the significance of tax compliance. If statistics from 2018 are anything to go by, Ms Adeosun’s community engagement did little more than skim the surface. FIRS disclosed that over 6,772 billionaires do not pay tax. This category of individuals have between N1billion and N5 billion in their accounts, but no Tax Identification Number (TIN) with which they can file the statutory percentage of tax returns on their income.

Source: Vanguard

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Maybe, you know the poem, “For want of a nail, the shoe was lost; for want of a shoe, the horse was lost; for want of a horse, the rider was lost; for want of a rider, the battle was lost; for want of a battle, the freedom was lost; and all for the loss of a horse shoe nail.” If so, you might appreciate the disincentive that may be inflicted on the Federal Government’s export promotion drives if delays in the processing of the Export Expansion Grant available to a certain category of exporters continue. Qualified beneficiaries get a Debt Management Office promissory note of a maximum of 15 per cent of the value of their exports, which they can use “to pay all taxes, (including company tax, and value added tax, but excluding personal income tax), (and) offset government loans (from government agencies like Bank of Industry, Central Bank of Nigeria, and the Nigeria Export-Import Bank).”
The EEG promissory note can also be applied “to buy government bonds; (and settle indebtedness to the Federal Government’s) Assets Management Company of Nigeria.” A beneficiary can take 100 per cent of the grant at a go. To qualify for this rebate, beneficiaries must have “registered with (both) the Corporate Affairs Commission and the Nigeria Export Promotion Council; exported Nigeria-originated products or services; and carried out formal exports with repatriation of proceeds into (a) Nigerian bank account with confirmation by the CBN.” The intention of this scheme is to cushion the effect of infrastructure deficits which tend to increase overall unit costs of manufactures in Nigeria. It is a non-cash scheme that is operated via the Negotiable Duty Credit Certificate, or promissory note. The advantage of non-cash promissory note that is acceptable to government agencies is that, whereas government will not have to pay cash, the promissory note can be used to offset payments, like tax, due to government. The note is negotiable because it is transferable to third parties. So, beneficiaries can assign the instrument to their creditors, who can also use it to offset statutory payments to government agencies. When used to offset tax, it becomes a fiscal policy. It is truly a win-win for government, the beneficiaries, and the economy. Another advantage of the scheme is increased foreign exchange earnings, which translate to conservation of Nigeria’s foreign reserves. The EEG was introduced in 1986, via the Export Incentives and Miscellaneous Act, to diversify Nigeria’s export base from crude oil, to non-oil products, especially in the agricultural and allied sub-sector of the economy. Maybe, as a result of abuse, the scheme was suspended by the President Goodluck Jonathan government in 2014. But the President Muhammadu Buhari Administration reinstated it to diversify the export base of Nigeria. There are allegations that there are challenges in granting rebates that the National Assembly has approved for qualified exporters and beneficiaries of the statutory EEG that is domiciled in the Nigeria Export Promotion Council. In the manner of a man finding the easiest way to take a bull round a china shop without breaking the wares, Segun Awolowo, Executive Director of NEPC, noted that the National Assembly approved the first batch of promissory notes for the export grant in January 2019. He then tippy-toed to find a nice, non-threatening, way to appeal to the DMO “to ensure the completion of the programme within the shortest possible time,” before the next batch of authorizations is processed for approval by the National Assembly. He revealed that the claims cover “backlogs of 10 years (2007 to 2016) for 270 companies, with a total value of… N195,089,234,808.64, (which he believes), will bring succor to the export sector in particular, and the economy in general.” The estimated amount outstanding is N1.3trn. Awolowo added that Pre-Shipment Inspection Agency and Nigerian Bureau of Statistics figures indicate that “there was a growth of 48.43% from $1.204billion in 2016 to $1.787billion in 2017, (in Nigeria’s export business, and) it further went up by 27.22% equivalent to $2.274billion in 2018.” He is hoping “that exports for 2019 will grow by about 40 per cent,” if promissory note settlements are done early enough. But it looks as if something or somebody is holding up the process. The DMO is allegedly shifting the goalpost of the EEG by introducing what it calls Reverse Auction, which simply means that the beneficiaries have to yield a discount on their accumulated promissory note rebates. Traditionally, Reverse Auction occurs when several sellers submit increasingly lower bids to one buyer, instead of the other way round, where several buyers submit increasingly higher bids to one seller. This was not originally on the cards, and the beneficiaries claim that the Reversed Auction will affect their cash flows, and compromise their capacity to service debts incurred in the export transactions. Some tax experts regard this as an indirect tax, and added to the multiple taxation suffered by Nigerian businesses.

Source: Punch

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Prof Muhammad Mainoma has been inaugurated as the 11th president of the Association of National Accountants of Nigeria. During his inauguration as the association’s president and unveiling of new logos of ANAN and its training arm, the Nigerian College of Accountancy, Jos, Mainoma said he was determined to consolidate on the attainments by making accountancy in Nigeria more attractive.
In a statement, he commended the founding fathers, past presidents, fellows and members of the association for their commitment and resilience in building a strong professional accounting organisation in the country. The new president said that the membership of ANAN as individuals must build professionalism comprising proficiency, respect, objectivity, fairness, education, selflessness, service and integrity. He also mentioned the relevance of organisation, networking, ability, learning, image, and standardisation. He said, “Under my leadership as the 11th president and chairman of council, the association shall work on ‘accounting,’ advancing the profession, college development, capacity building, opportunity creation and unity of purpose. “It will focus on networking globally, technical support, innovation and consolidation, new knowledge and technology and global brand building. “Greater collaboration is required among professional accounting organisations in Nigeria on national issues. “The council shall be working with other PAOs to form a joint accounting body as formidable platform for advancing government.” He said that the Federal Government’s national Anti-Corruption Strategy needed 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,’’ Mainoma said. On the economy, Mainoma said the macroeconomic performance of the Nigerian economy had largely reflected the role of the global economy. Nigeria’s economic recovery from recession benefitted from Federal Government’s commitment to the implementation of the Economic Recovery and Growth Plan, he stated.

Source: Punch

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Luxury goods should be subjected to hefty tax, argues Babafemi Ojudu. On my page I posted a while ago a contribution by Prof Familoni to the debate on whether or not to increase Value Added Tax (VAT). I love and appreciate his contribution and the clarity he has brought to it, which is retain the five per cent being charged now for the essential consumer items while you increase to 15 per cent the value added tax for luxury items , which is otherwise known as vanity items. I will even go further to advocate more than 15 per cent for the vanity imported items.
There are quite a lot of things we don’t need in this country for which quite lot of people expend money on. Of what use used is a gold toilet bath and bowl? Of what use are gold cutleries? If you must use that, it is all well and good. It is your right to buy whatever your means can purchase. These items consume our foreign exchange earnings and add no value to the growth and development of our country. The pressure of foreign exchange mean we all pay more in inflation and have lower quality of life. Recouping the funds by way of taxation will not only discourage the importation of these items but also create jobs locally, while providing funds to ameliorate short term downsides of inflation and decreased purchasing power occasioned by luxury item importation. You however must be ready to pay dearly for it so that those who could not access the means for bare existence could be provided for by the state. This is equity. This is how a just society is run. Progressive tax systems were how welfare societies in the West, which we envy today were built. The United States emerged as a world power from the World War and thereafter, building the interstate highways and funding the space programme by charging her wealthy citizens as high as 80 per cent tax rate! Indeed, “the highest marginal tax rate for individuals for U.S. federal income tax purposes for tax years 1952 and 1953 was 92%”. If we must build a fairer, and more equitable society where the rich and poor can thrive, and the rich especially can go to bed with their eyes closed then we must demand the fortunate pay more. Some years ago I went on a trip to China to visit a Chinese friend, a billionaire who manufactures keyboards and computer mouse. One evening he drove to the hotel to pick me and two of my friends to the rich peoples club for a night of heavenly SPA experience. As we drive in his luxury BMW, he told us he was not supposed to be driving that car if he were not vain. Yes, vain, he said. I asked him why. He said the amount he paid to acquire it was simply ridiculous. When he told me how much in Chinese currency I quickly whipped out my phone and went for the calculator. The car we drove in was worth, as at the time, a whopping sum of N250 million. The same car you could buy then for less than N30 million in Nigeria. Asked why it was so expensive he said that was Chinese government policy of discouraging imports and encouraging local manufacturing which will in return provide employment for the locals and good tax income for the government. He said that policy does two things. If you have a taste for foreign luxuries you have to cough out unusual amount to maintain and service your taste. If the manufacturers of such items believe there is a huge market for their products in China but it became unaffordable because of the huge tax put on it, it behaves on them to come and open a factory for same in China. This will ensure technology transfer, create employment for the locals as well as generate tax income for the government. Just imagine Toyota, Mazda, Mercedes and BMW have plants in Nigeria today. Do you know how many jobs that will generate? Can you imagine how much in tax that will bring to government coffers? Some years ago I and three other colleagues in the Senate visited a governor. He hosted us to lunch. As we were eating he called his Filipino chef to bring a particular champagne, the name of which I can’t remember now. As he unlocked it with relish and pride he told us gleefully how much it costs. One million, two hundred thousand naira. I almost fell off my seat! A bottle of champagne for that much? How many of that did he keep in his cellar to entertain his guest and massage his own ego? Each of us got a glass of it and you can imagine how much each glass we gulped in less than 30 minutes cost. Imagine that this was cost price, the poor child in this governor’s state that cannot afford three square meals was denied a bite at the pie, which may discourage such vain consumption by our governor! How I wish he or she got a VAT on that Champagne to even the playing field! Let’s be clear, the Value Added Tax is a unique revenue stream in Nigeria that is disproportionately allocated to states over the federal government. It funds education, basic healthcare and rural roads. It will make states more solvent to pay increased minimum wage, and also incentivize shift of consumption to locally produced goods and spur manufacturing. Local non-luxury goods should be exempted just to be clear, and enforcement should be strict and encompassing. The kind of luxury good consumption by the governor I referenced above is what we need to tax heavily. If he has to pay N10 million for this he will perhaps think twice before buying it or at least purchase less or seek local alternatives. If the manufacturers know there is a big market for this in Nigeria, and the heavy tax is making people run away from it then they may have to establish a local factory here. If they have a factory here they will of course not only pay tax, they will provide employment. It will be a win-win situation for the government and the people of Nigeria. Some have asked how do you define luxury items? My retort will be, “who do not know what luxury items are”? They are the things you consume which without you can still maintain a good life. They are the non-essentials. The essentials will certainly not come under this category, therefore the poor need not panic. If you have to bring in a private jet or a yacht here you should be ready to pay through your nose. If you must use a gold bath, a wrist watch worth N25 million, a lighting system that reacts to your mood et al, you must be willing to pay heavily for it. Buses transporting the poor from one point to the other do not come under luxury items but the Rolls Royce, Bentleys and similar luxury vehicles that are toys for the rich do. Luxury items especially those imported must be subjected to consumption tax to bridge our budget deficit and stop transferring our current liabilities occasioned by booming population and tax gap to the next generation in debt. It is simply a departure from the first republic mantra of “let’s boycott all the boycottables” as propagated by one of the nationalists Mazi Mbonu Ojike. I think Mahatma Ghandi and the fathers of Indian independence struggle also adopted the measure of boycotting foreign goods. We need not do that now as some among us have developed special tastes for them and we won’t want to deny them the good things of life. Rather than go this route, let us tax all the non-essential items that we do not produce in our country. More tax revenue will mean more accountability and incremental resources to provide that which we cannot individually provide, while reducing the debt overhang. The time to act is now. Senator Ojudu is the Special Adviser on Political Matters to the President.

Source: This days

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The nation’s tax system has been agog, at least in the last three years, than it has ever been in more than 10 years past. Riding on the back of the country’s fiscal crisis, the present administration, like “hunting without barriers,” raved up the campaign for honour to civil obligations. Granted, the campaign is yielding more positive results, according to experts, but they said there are cases of regulatory flip-flop, need for review of laws, leakages, lack of transparency in governance and fiscal indiscipline.
The Chartered Institute of Taxation of Nigeria (CITN), at its just concluded yearly tax forum, outlined series of outstanding issues in the country’s tax system to be resolved in the week-long brainstorming sessions. Prominent among them were the unending dependence on oil and raging controversies over tax increase, expansion of tax net and introduction of new ones. The President and Chairman of Council, CITN, Chief Cyril Ede, in his welcome address, said the institute’s yearly conference was part of its contributions to resolving topical tax issues in the country, advance taxation as an essential tool for promoting macroeconomic goals of achieving full employment, income redistribution and competitive environment for businesses. “The role of taxation in the development and sustenance discourse cannot be emphasized enough. We are happy to engage this subject every time an opportunity presents itself, more so as we believe in its vast potential to deliver economic prosperity for our great country. “It is imperative to establish the fact that Nigeria still relies principally on oil revenue, which also accounts for a substantial part of our foreign exchange earnings. We owe it ourselves and generations unborn, to break away from this un-dimensional approach, which comes with its harvest of false affluence…” he said. Earlier in the conference, the Pioneer Chairperson of the Society of Women in Taxation (SWIT), Justina Okoror, had raised concerns over the lopsided developments in the pursuit of tax revenue, which put 70 per cent of the N5.2 trillion of the taxes collected in 2018 to Lagos State alone. The development, which is not only an indication that the four-year tax reforms and campaign have less impact in the remaining 35 states, with huge untapped potential, but a clear assessment that most of the states are not in tune with the message of taxation. “For instance, out of the trillions of naira generated by the Federal Inland Revenue Service (FIRS), 70 per cent came from Lagos, which means that 35 states and the Federal Capital Territory contributed only 30 per cent. “That also means that there are so many states with nearly no productive activities happening in them and by implications, are not paying tax. So, if Lagos decides to become a sovereign state, Nigeria will not be able to generate any revenue from tax,” she said. Stressing the need to expand tax base, she said that with some states mining gold, diamond and other natural resources, there is an urgent need for government to go into the hinterland and increase their revenue base, especially from private companies. “Government must take seriously tax revenue generation just like what is being done with crude oil. They should go into these places with natural resources and make it another revenue base,” she said. But the incoming National Chairperson of SWIT, Kudiirat Abdulhamid, queried government’s increased borrowing, when potential revenue generation is lying idly, saying the increasing obligations is tying the nation’s resources to payment and servicing of the loan that is being taken. She maintained that revenue generation through taxation is more sustainable, especially when such resources are judiciously tailored towards development projects that would benefit the people. “I agree with people complaining over government borrowing, but if citizens pay taxes and it is judiciously utilized for provision of this services, people will be eager to pay more. But when government borrows money without providing infrastructures, citizens would become angry,” she said. But transparency and governance issues were resonated, as President Muhammadu Buhari, admitted that government was aware that the challenges faced in achieving voluntary tax compliance was due to alleged lack of transparency and accountability in the management of revenue. Represented by the Permanent Secretary, Ministry of Finance, Mahmood Isa-Dutse, he said his government was committed to changing the narrative by ensuring judicious use of funds through the strict enforcement of Treasury Single Account policy and zero tolerance for corruption. He stressed that for Nigeria’s tax system to be dynamic and respond to the ever-evolving commercial landscape and increased technology-driven business model, he called for the support of the institute and other major stakeholders in widening the tax base for improved revenue collection and voluntary compliance. He also expressed concern over abysmal low level of tax to the Gross Domestic Product (GDP), reiterating government’s stance in setting aggressive target for increased tax collection in the country. According to him, tax collection supposed to grow in line with growth in the economy but that has not been the case in the country, attributing it to low-level compliance and in some cases, underpayment of the effective tax rate paid by those that are complaint. But the Chairman of United Bank of Africa, Tony Elumelu, asked government to expand its double taxation treaties with foreign missions, as part of efforts to increase its revenue base. Nigeria, according to him, has only 14 double taxation treaties despite the numerous foreign missions, embassies, high commissions in almost all the countries of the world, when South Africa has 80 taxation treaties. Elumelu said that government does not understand the benefit and implications of the treaties for national development, pointing out that to achieve a progressive, efficient and effective tax regime, there was need for government to take a second look into the double taxation treaties with other countries. But he lamented that most multinational companies are relocating from Nigeria to Ghana and companies that want to move into the country are discouraged because an average business in Nigeria provides for itself water, electricity, handles waste disposals, security, among others. He said that another recent study revealed that 75 per cent of Nigerians believe it is their responsibility to pay tax, but because they provide everything for themselves, they see no reason to pay tax. But other tax experts at the conference warned government to tread cautiously in its plan to increase the Value Added Tax (VAT), advising it to consider the expansion of the informal sector tax base as alternative, particularly the electronic sector, which still remains untapped in VAT collections. The past President of CITN, J. K Naiyeju, noted that Nigerias’s VAT is as unique as Nigeria itself, affirming that any increase at the moment would send an uproar to the business community and a negative effect on the economy. “If I may advise, it must not be increased now. The reason is that the poverty level of those who really engage in consumption would be increased. The increase must be very minimal and it should not be done when the economy is down and people are hungry and suffering,” he said. Naiyeju said it was political negligence that made Nigeria suffer over the years, giving instance that UK started with four per cent, but today they are between 17-20 per cent. The Executive Director of the Kano State Inland Revenue Service, Sani Abdulkadri Dambo, said that the issue of VAT increment must be one of “give and take”, wherein the consumption income tax and the company income tax are reduced, while VAT is increased, so that the public can be easily convinced.

Source: Guardian

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A Rivers State High Court has ruled that the Niger Delta Development Commission (NDDC) is indebted to the Rivers State Board of Internal Revenue to the tune of N50billion for refusing legal taxes between 2012 and 2017. Ruling on SUIT NO. OHC/23/2019, Justice Sobere Biambo of Rivers State High Court, Omoku approved the sealing of the NDDC Office and other legal actions that will lead to the recovery of the N50billion debt. The Court ruled: “The respondent is indebted to the applicant to the tune of N50,000,000,0000 (Fifty Billion Naira) only being outstanding tax liability owed the Government of Rivers State by the Respondent with respect to PAYE, Withholding Tax (WHT) and other taxes unpaid for the period, 2012 – 2017;
” A warrant be and is hereby issued authorizing the applicant to levy distress and distrain any land and or any other property howsoever described belonging to the respondent and to execute same in order to recover the said some of N50,000,000,000 (Fifty Billion Naira) only owed Government of Rivers State by the respondent”. In an interview on the ruling and sealing up of NDDC, Chairman of the Rivers State Board of Internal Revenue Service, Mr Adoage Norte explained that the Revenue Agency is following due process to recover the said funds. He argued that there is no political undertone in the move to recover the debts as all necessary actions were taken, while the NDDC has refused to respond. Norte said: “That tax we are talking about here is not profit tax, it is not that they made profit and they should pay tax, it is not that they are given allocation and they should pay tax,this is tax they already deducted from their own staff who are working and residing in Rivers State as well as tax they deducted from contractors and vendors. “These taxes they have collected on behalf of the Rivers state government is what we are asking for. NDDC has never opened their books, anytime you come there, they will tell you their auditor general of the federation is doing records, is doing book and all of that. Out of this frustration, we decided to send them a BOJ assessment, BOJ assessment means that since we are not able to get the assessment, I am now as a tax administrator saying I assume they are owing so much. If you know it is too much, open your record let us examine it . “And if you are also going to object to that N50b which the law also allows you to, your objection must meet a threshold. For example, we are not owing N50b , we owe only so much and here is how we arrived at that so much. You must back it up with evidence”.

Source: Puoreports

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Chairman of Heirs Holdings, Mr Tony Elumelu, hinted that the Nigerian government can generate more revenue, up to $40 billion from tax. He said government must executive reaching tax reforms, while the National Assembly must urgently pass the Executive Tax bill into law for the country to experience economic transformation. Mr Elumelu, who was a guest speaker at the 21st Annual Tax Conference of the Chartered Institute of Taxation of Nigeria (CITN) titled National Development: Unlocking the Potentials of Taxation, said the present tax system was killing small business owners.
Quoting a young entrepreneur beneficiary of the Tony Elumelu Foundation, Mr Elumelu said, “The average business owner in Nigeria is a local government authority on his own because he caters for his own electricity with generators, he builds his own borehole, handles his own waste disposal, and the government can make his life easier by creating favourable tax policies that support SMEs.” The Chairman of United Bank for Africa (UBA) Plc said, “The average number of taxes businesses pay in Nigeria is 48, compared to 33 in other Sub-Saharan countries. In Hong Kong, it’s just 3. Multiple taxation remains a significant burden for SMEs and corporates operating in the country.” Continuing, he noted that, “With a population of close to 200 million people in Nigeria, we have only 75,000 registered SMEs in the country. No one needs to tell us that people are avoiding tax or refusing to be a part of the system.” He said with high cost of compliance, complex and costly business registration processes, many SMEs are choosing to remain informal, which in turn results in a low tax base and low tax contribution to GDP. “Nigeria’s tax to GDP ratio is only circa 6%, compared to far smaller populations like Rwanda at 16%. Imagine the economic transformation we can achieve as a country if we can move our Tax to GDP ratio by 10%. We will raise an additional $40billion in government revenue – identical to the sum of our foreign reserves,” Mr Elumelu explained. He advised government to educate, inform and raise tax awareness, saying, “Government should drive mass mobilisation of citizens – let citizens know why they need to pay taxes and give them the assurance that their tax will be properly utilised.” In addition he stated that, “government should employ the use of smart tax incentives to attract and incentivise local and foreign investors.” Mr Elumelu also tasked the country’s ambassadors and embassies with a two year timeline to increase the number of double tax treaties between host countries and Nigeria. “Nigeria has 14 taxation treaties while a country like South Africa has 79 double taxation treaties, and we are the largest economy in Africa. Our embassies should adopt a target in the next two years to sign tax treaties with our top 100 trading partners in the world,” he said. Speaking as the leading proponent of entrepreneurship in Africa and an advocate for entrepreneurs, Mr Elumelu charged government to put in place tax systems to encourage SMEs-— the engine for job creation in the economy. “Until there is a reduction in what SMEs pay as tax, elimination of multiple taxation, abolition of minimum income tax and excess dividend tax, it will be difficult for us to expand the tax base. It will be difficult for us to attract investors into this country, and it will be difficult for us to retain the ones already in the country. It will be difficult for us to mobilise our SMEs to help create employment that we need so much in this country. It will be difficult for us to have the citizens hold leaders accountable.” In conclusion, he reminded the National Assembly members of their mandate in office, “We must encourage government to pass the Executive Bill immediately. Let’s get the National Assembly to fulfil their obligation to society and pass the bill immediately, so we can start making progress”. Speaking in response to the presentation, Former President of the Chartered Institute of Taxation in Nigeria, Chief Mark Anthony Dike emphasized the urgency for the Executive Tax bill to be passed into law. He said: “Every year during the military regime, there was a Finance Miscellaneous Provision Decree aimed at looking at what has happened and review the areas that need to be amended. As they say, the taste of the pudding is in the eating. We may conceptualise, but in order to know the efficacy of a theory, we have to test it. Until the provision of the Executive order is tested, we cannot know how efficacious it will be.” Also present at the event were Dr Ikemefuna Nwobodo, President, Chartered Institute of Taxation in Nigeria, Permanent Secretary, Ministry of Finance, Dr Mahmud Isa-Dutse, Mr Babatunde Fowler, Executive Chairman, Federal Internal Revenue Service, Mr Ayo Subair, Chairman, Lagos Internal Revenue Services, Members of the council of CITN and the Auditor General of the Federation, Mr Anthony Ayine.

Source: Business News

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If you approach the presence of the boss of the Federal Inland Revenue Service, Babatunde Fowler, be prepared to be bathed in a rain of glee. Joy unrestrained oozes from the former Lagos tax don like an opened dam, watering the surrounding, drought-weary land. These days, the stars have aligned for Fowler as everything he touches turns into gold.
It was just a few days ago that Fowler happily walked the apple of his eyes, Funke, down the aisle of matrimonial bliss. And not to a man of mean significance either. Funke’s handsome groom was none other than Aigbovbioise Aig-Imoukhuede, the younger brother of Aig Imoukhuede, the former MD of Access Bank. Those who attended the star-studded wedding could not help being awed and a little intimidated by the sheer opulence on display. It was a grand three-day affair that made mockery of many so-called high octane shindigs. This was true class and aristocracy in action as everything from guests to venue to scale to decoration was top notch. The exclusive traditional wedding took place at the Fowler family residence in Park view Estate, Ikoyi with the matriarch of the house, Chief (Mrs) Leila Apinke Fowler, dazzling everybody in her role as chief hostess. It was more of the same at the grand wedding held at the Oriental Hotels, Victoria Island, Lagos. It was like the Fowlers and Aig-Imoukhuedes conspired to display the full extent of their considerable connections. So great was the number of celebrities on display as the who’s who of high society filled the spacious wedding hall from corner to corner. For Babatunde Fowler, it was like suddenly happening about an oasis of abundant water in the Sahara. Relief filled his features as joy filled his heart. He had been agonizing about Funke, who had remained single ever since her first marriage to Abby Kuku, son of the late Ogbeni Oja Bayo Kuku hit the rocks barely two years after a wedding that turned the city of Lagos upside down. But every cloud has a silver lining as Funke and the younger Aig seem destined for unbreakable bliss. That is not the only thing Tunde Fowler is excited about. Ever since he assumed the huge responsibility of being in charge of the nation’s tax collection, Tunde has been breaking records like no man’s business. Whether it is monthly, quarterly or annual tax returns, the FIRS under his leadership, is poised to scale new heights. In fact, with his stellar performance, the powers that be are more than happy to leave Tunde alone as he keeps on fighting the good fight of revenue collection. While other agency bosses at the federal level are jittery as the inauguration looms large, Tunde, one of the best performers around, is a picture of contentment and fulfillment.

Source: This Days

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THE Tax Appeal Tribunal sitting in Abuja, on Wednesday, fixed May 14 for definite hearing in a suit filed by a company, “M FIFTEEN” Consultants against the Federal Inland Revenue Service (FIRS). The company also dragged the FIRS, before the Tax Appeal Tribunal sitting in Abuja 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 it’s Tax Liability. The tribunal presided over by Mrs Alice Iriogbe, adjourned after the appellant counsel, Mr Chike Adaka informed the tribunal that his witness took ill and could not be in court.
The counsel to FIRS Mr Ade Ogunmola told the tribunal that while the respondent sympathizes with the appellant’s witness but objected to what he called ‘sheer display of unseriousness of the appellant. Ogunmola, the counsel ought to have notified both the court and the respondent and there was no medical report against that before the tribunal. He further told the tribunal that in view of that he would ask for a cost of N50, 000 which the tribunal rejected saying that it does not award costs for now. NAN 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 totaling 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. (NAN)

Source: Real news

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Chairman, Heirs Holdings and Founder, Tony Elumelu Foundation, Tony O. Elumelu has called for far reaching Tax reforms and for the National Assembly to urgently pass the Executive Tax bill into law. Elumelu made this statement as he delivered the keynote address at the 21st Annual Tax Conference of the Chartered Institute of Taxation of Nigeria (CITN), titled, “National Development: Unlocking the Potentials of Taxation”. Mr. Tony O. Elumelu CON, delivers keynote address at the 21st Annual Tax Conference of the Chartered Institute of Taxation of Nigeria (CITN), titled, “National Development: Unlocking the Potentials of Taxation.
Speaking on the challenges that stifle small businesses, Elumelu quoted a young entrepreneur beneficiary of the Tony Elumelu Foundation, “The average business owner in Nigeria is a local government authority on his own because he caters for his own electricity with generators, he builds his own borehole, handles his own waste disposal, and the government can make his life easier by creating favourable tax policies that support SMEs.” Elumelu also lamented the plight of SMEs at the mercy of the tax system revealing, “The average number of taxes businesses pay in Nigeria is 48, compared to 33 in other Sub-Saharan countries. In Hong Kong, it's just 3. Multiple taxation remains a significant burden for SMEs and corporates operating in the country.” Elumelu continued: “With a population of close to 200 million people in Nigeria, we have only 75,000 registered SMEs in the country. No one needs to tell us that people are avoiding tax or refusing to be a part of the system,” he said. Permanent Secretary, Ministry of Finance, Dr. Mahmud Isa-Dutse; President, Chartered Institute of Taxation in Nigeria, Dr. Ikemefuna Nwobodo; Executive Chairman, Federal Internal Revenue Service, Babatunde Fowler; Keynote Speaker and Founder, Tony Elumelu Foundation, Mr. Tony O. Elumelu CON; and Chairman, Lagos Internal Revenue Services, Ayo Subair. With high cost of compliance, complex and costly business registration processes, many SMEs are choosing to remain informal, which in turn results in a low tax base and low tax contribution to GDP. “Nigeria’s tax to GDP ratio is only circa 6%, compared to far smaller populations like Rwanda at 16%. Imagine the economic transformation we can achieve as a country if we can move our Tax to GDP ratio by 10%. We will raise an additional $40billion in government revenue - identical to the sum of our foreign reserves,” Elumelu explained. But it won’t be easy. Elumelu advised government to educate, inform and raise tax awareness, “Government should drive mass mobilisation of citizens - let citizens know why they need to pay taxes and give them the assurance that their tax will be properly utilised.” In addition he stated that, “government should employ the use of smart tax incentives to attract and incentivise local and foreign investors.” Elumelu also tasked the country’s ambassadors and embassies with a two year timeline to increase the number of double tax treaties between host countries and Nigeria. “Nigeria has 14 taxation treaties while a country like South Africa has 79 double taxation treaties, and we are the largest economy in Africa. Our embassies should adopt a target in the next two years to sign Tax treaties with our top 100 trading partners in the world.” Speaking as the leading proponent of entrepreneurship in Africa and an advocate for entrepreneurs, Elumelu charged government to put in place tax systems to encourage SMEs-— the engine for job creation in the economy. “Until there is a reduction in what SMEs pay as tax, elimination of multiple taxation, abolition of minimum income tax and excess dividend tax, it will be difficult for us to expand the tax base. It will be difficult for us to attract investors into this country, and it will be difficult for us to retain the ones already in the country. It will be difficult for us to mobilise our SMEs to help create employment that we need so much in this country. It will be difficult for us to have the citizens hold leaders accountable.” In conclusion, he reminded the National Assembly members of their mandate in office, “We must encourage government to pass the Executive Bill immediately. Let’s get the National Assembly to fulfil their obligation to society and pass the bill immediately, so we can start making progress”. Speaking in response to the presentation, Former President of the Chartered Institute of Taxation in Nigeria, Chief Mark Anthony Dike emphasized the urgency for the Executive Tax bill to be passed into law. He said: “Every year during the military regime, there was a Finance Miscellaneous Provision Decree aimed at looking at what has happened and review the areas that need to be amended. As they say, the taste of the pudding is in the eating. We may conceptualise, but in order to know the efficacy of a theory, we have to test it. Until the provision of the Executive order is tested, we cannot know how efficacious it will be.” Also present at the event were Dr. Ikemefuna Nwobodo, President, Chartered Institute of Taxation in Nigeria, Permanent Secretary, Ministry of Finance, Dr. Mahmud Isa-Dutse, Babatunde Fowler, Executive Chairman, Federal Internal Revenue Service, Ayo Subair, Chairman, Lagos Internal Revenue Services, Members of the council of CITN and the Auditor General of the Federation, Mr. Anthony Ayine.

Source: Proshare

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The Nigeria Labour Congress (NLC) President, Ayuba Wabba, has warned the Federal Government against any attempt or means to increase the Value Added Tax (VAT). Wabba, represented by NLC Deputy National President and President of Nigeria Union of Teachers (NUT), Dr. Nasiru Idris and Ibrahim Walama, stated this yesterday at the 11th state delegates’ congresses of Kano and Kaduna chapters of the NLC. He vowed that any move by government to mull such policy would be rejected.
He also urged immediate implementation of new minimum wage of N30,000. In a related vein, experts at the ongoing yearly conference of the Chartered Institute of Taxation of Nigeria (CITN) have urged the Federal Government to tread cautiously in its plan to increase VAT, urging it to look into expanding its tax base to the informal sector. The experts, who spoke yesterday in Abuja, said the informal and electronic sector still remained untapped and it could triple the current VAT collection. A tax expert, J. K. Eniayeju, the past president of CITN, said that increase in VAT at the present time would send an uproar to the business community and it would have a negative effect on Nigeria’s economy. But the Executive Director of the Kano State Inland Revenue Service, Sani Abdulkadri Dambo, said the issue of VAT increment must be give and take wherein the consumption income tax and the company income tax are reduced and the VAT is increased, saying that by so doing, the public can be easily convinced. Other participants urged the government that rather than increase VAT, the economy should be stimulated to attract investors. Meanwhile, Governor Samuel Ortom of Benue State, his Plateau State counterpart, Simon Bako Lalong, Abdullahi Umar Ganduje of Kano State and Governor Oluwarotimi Akeredolu of Ondo State have pledged to pay the new national minimum wage of N30,000 recently assented to by President Muhammadu Buhari. The governors, who spoke at the NLC delegates’ conference, noted that the workers constitute the backbone of government who should be encouraged in their duty. Ortom and Akeredolu urged the government to review the revenue allocation sharing formula in favour of states to facilitate the smooth implementation of the new minimum wage. Lalong, who spoke at the NLC delegates’ conference in Jos, represented by his Special Adviser on Labour, who also was the immediate past chairman of NLC, Jibrin Bancir, noted that the workers constitute the backbone of government who should be encouraged in their duty.

Source: Guardian

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The Rivers State Internal Revenue Service has sealed off the corporate headquarters of the Niger Delta Development Commission in Port Harcourt over unpaid withholding tax allegedly running into N50bn. This is as the NDDC insisted that its records had indicated that they were not indebted to the state government to the tune of N50bn in unpaid taxes, adding that the sealing of its office on Tuesday did not follow due process.
Speaking with our correspondent on Wednesday, the Chairman of RIRS, Adoage Norteh, said the NDDC premises were sealed off because the commission refused to make their (NDDC) financial records available for audit. Norteh said, “The place is sealed off; we got a court order to seal off the place. We had gone to court to say that we are frustrated by the antics of NDDC. They had assessed themselves last year and admitted that they were indebted to the tune of N671m, but they did not pay. “When we now seal the office (last year), they then paid. We told them that we are going to audit their books, but since last year to this time, they (NDDC) has refused to allow us have access to its books. “The N50bn that is being talked about is our best of judgement; that is the amount we assessed because they refused to open their books. That they did not object to it means that it is the amount they owe. If they have nothing to hide, why would they not show us their records; for many years, these people have refused to open their books.” The RIRS chairman, however, explained that the agency had opened talks with the Commission with a view to resolving the feud over unpaid tax. “We are talking with them now; they are asking that we should come and do the audit now and that whatever we come up with, they will pay. I am reluctant because we have gone past that process; we have got a court order. “We would not have gone to court if they had done the needful. But if they say it is not N50bn, how much do they owe? We are not interested in sentiments, we are interested in the records,” Norteh said. But a statement from the NDDC maintained that it had not defaulted in meeting its tax obligation to the RIRS, even as it expressed surprise that the state revenue agency claimed the Commission owed N50bn. The statement issued on Tuesday by the Commission’s Director of Corporate Affairs, Charles Odili, read, “It is rather curious that the RIRS would rush to seal the gates of the Commission, disrupting activities at its headquarters, without any form of notification. “We have had cause to discuss our tax obligations with officials of the RIRS in the past and all the grey areas were resolved amicably. It is, therefore, an act of bad faith for the revenue agency to begin to take actions that impugn on the reputation of an interventionist agency that is serving the people of the Niger Delta region. “For the avoidance of doubt, the Commission has as recently as January this year settled its outstanding tax obligations to the RIRS. We have cleared all withholding tax on enterprises and Pay as You Earn up to March 2019, including arrears.” The NDDC, however, called on the RIRS to remove the sealing order on its premises to enable both parties to enter into dialogue and resolve their differences. “If there is any other issue of outstanding tax obligation (underpayment), it will only come up after reconciliation. Until then, we cannot establish or determine under payment or over payment. And our books are open for audit or reconciliation. “We can under the circumstances safely say that the RIRS came to seal off our premises without due process. As the notice of non-compliance was neither issued nor served on NDDC before the RIRS action,” the statement read.

Source: Punch

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