₦airaland Forum

Ray Parlour, has warned Chelsea striker, Tammy Abraham, against ditching the England national team for the Super Eagles. Abraham has started off the 2019/20 season with Chelsea on a blistering form, scoring four goals in four games, which has attracted interest from Nigeria. The Nigeria Football Federation have been trying to lure the Chelsea striker, who has two non-competitive caps for England to switch allegiance. Speaking on Talk Sport’s programme, The Alan Brazil Sports Breakfast, Parlour said Abraham would get his chance with the Three Lions if he remained patient. “If he keeps scoring goals, he certainly will get into the England squad because Jamie Vardy is obviously retired and they’re lacking a little bit up front,” he told TalkSport. “He’s got an opportunity to be in the squad, but obviously he won’t be in front of Harry Kane.” Parlour, however, believes Abraham should stick with England, having played for them at the age grade levels. “Once you start as a youngster to play for a country, I think you should stick with them,” Parlour added. “It’s up to the player; he’s looking at this situation, looking forward, whether he’ll get an opportunity, but he said no, I want to try and play for this country (England). “It’s a battle, because there are a lot of good players at England, and it’s not easy to get into the squad. “You’ll get a lot more caps if you go elsewhere. If he goes to Nigeria, he will get quite a few caps, lot more than he will get playing for England.” He also called England coach, Gareth Southgate, to give Abraham assurances he has the youngster in his plans. “As a manager, you’d be on the phone straight away saying, ‘You’re in my plans, keep playing as you are, and you’ll get an opportunity’. That’s what I’d be doing if I was Gareth Southgate.” Meanwhile, NFF President, Amaju Pinnick, was quoted as saying the youngster will make a final decision on playing for the Eagles by April 2020.

Source: Punch

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Kenya’s Information Communication and Technology (ICT) ministry is working on completing a new tax scheme. This framework, reports say, will be used to tax foreign online streaming media services such as YouTube and Netflix.
The over-the-top services (OTT) will soon be required to declare the incomes they derive from Kenyan consumers. OTT services include all applications that offer voice, video and messaging services over the internet. Communications Authority Director-General, Francis Wangusi says online content providers exploit the Kenyan industry. Yet, neither the government nor artistes benefit from them. According to Wangusi, “many countries have policies that guide these services and that is where we are heading as a country”. He adds that technologies that will facilitate taxation of OTT services are available.

Source: News Central

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The Oyo State Governor, Mr Seyi Makinde, has pleaded for the support of different stakeholders operating in the state on adequate deductions, prompt remittance of taxes and other levies to fulfil his promises on provision of social amenities, enduring infrastructure, regular payment of government obligations and other amenities.
Makinde stated this during a one-day sensitisation workshop on computations, deductions and remittances for Federal and State Ministries, Departments and Agencies as well as tertiary institutions in the state held at the House of Chiefs, Secretariats, Ibadan. The governor, who was represented by the Executive Chairman, Oyo State Internal Revenue Service, Mr John Adeleke, reiterated that the intention of the present administration was not going to overburden any business enterprise but would ensure government gets its “fair share of eligible tax revenue.” Makinde said, “Presently, the fluctuations and other complex gyrations of the international oil market and the global economy means unstable and often lower revenue from federal allocation. “The need to look inward to generate enough internal revenue to cater for the much societal demand has never been this much. We count on companies and other businesses to ensure they regularly deduct and remit their employees’ PAYE tax to our treasury. “This will ensure mutual reciprocation of right and duties on the part of all parties. I regard such complying institutions, business and contractors as friends of my government and corporate citizens of this state of enduring opportunities.”

Source: Punch

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The National Board of Revenue (NBR) has taken an initiative to introduce a mobile application and software, aiming to check cases of tax evasion and increase the number of taxpayers. The revenue-collecting authority thinks launching of the app and software will bring dynamism into the revenue administration, and help bring a large number of eligible taxpayers under the tax net, an NBR senior official told the news agency.
According to the existing income tax law, any business entity and service-providing person must hang the taxpayer identification number (TIN) in their offices or business organisations. But it is not practised properly, which causes confusion as to whether the business or service-provider have their TINs or not. “That’s why NBR is planning to make it mandatory to hang tax payment certificate,” said the official. He said using the software, all 649 tax circles will be linked to the mobile app. Through this app, anyone will be able to check whether the tax payment certificate is genuine or effective, or an expired one. “With the app, it will even be possible to lodge complaints with the respective tax circle,” he said. The NBR official hoped when businessmen see customers checking whether they have paid taxes or not, they will feel obliged to pay their taxes. “As a result, revenue collection will increase and tax evasion cases will come down,” he said. Through the app, it would be possible to check the status of tax payment and the certificate will automatically be cancelled in absence of regular payment. Ineffective certificate means the particular person or organisation does not pay tax. “There’s no need to provide extra information in this regard,” the NBR official said. He also mentioned that NBR is trying hard to increase the number of taxpayers to one crore within the next two years. As part of the initiative, a tax survey has started. “Enhancing capability in technology will help us bring more dynamism into tax administration,” the official said.

Source: The Daily Star

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The Director, Entrepreneurship and Skills Development Centre at the University of Lagos, Prof Sunday Adebisi, has urged the Federal Government to give start-ups a five-year tax holiday to enable them to survive. He gave this advice on Thursday while presenting a paper titled, ‘Entrepreneurship Mindset, a Solution to the Unemployment Rate in Nigeria’, during the Lagos Chamber of Commerce and Industry’s annual entrepreneurship summit.
“There should be a five-year tax holiday for start-ups to allow them to grow and survive,” he stated. Speaking during the event with the theme, ‘Youth Entrepreneurship and National Development’, Adebisi lamented the high rate of unemployment in Nigeria and stressed that entrepreneurship was the only solution to the trend. He also noted that most of the youths that engaged in kidnapping were the ones that had graduated from school where they were taught logic and science and were applying the knowledge of what they had learned to crime. He called them “educated and smart criminals.” Adebisi advised young people to identify needs in the society that they could provide solution to. He said, “If you create a solution to a problem, somebody will be willing to pay for it. All the problems in Europe have been solved but the ones in Nigeria have not been solved. That is why today, for instance, there are people making millions of dollars through their investment in malaria drugs.” Also speaking, the Chief Operating Officer, A-Mobile, Damilola Oloruntade, said she moved from Europe where she had gone to seek greener pastures back to Nigeria, adding that she decided to invest in sanitation business because of its huge opportunity. She urged the youths to explore opportunities in the Nigerian environment instead of seeking to go out. According to her, refuse litters everywhere and has become big business in Nigeria. She said, “There is plenty of money in dirt. Now, we have moved from picking dirt to recycling and this is the business I started with N25,000. We also have increased the number of people we employ from five to 100.” The President, LCCI, Babatunde Ruwase, said the programme was organised to create awareness among the youths about the essence of entrepreneurship. “It is a way to go, particularly these days where there are little opportunities of getting jobs. They can develop skills, come up with ideas and employ themselves and others,” he stated.

Source: Punch

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Neymar’s decision to join Paris Saint-Germain in 2017 was motivated by a desire to establish himself as the best player in the world, but a troubled time in the French capital has left the Brazilian at risk of wasting the best years of his career. The closure of the transfer window has finally brought to an end the lengthy saga surrounding the future of the world’s most expensive player, who will stay at PSG having failed to get the move back to Barcelona he craved. His former club could not complete a deal to rescue the 27-year-old from his apparent nightmare in Paris, with Neymar so determined to return that sports daily L’Equipe reported he offered to pay 20 million euros ($22 million) from his own pocket towards the fee. PSG paid 222 million euros ($264 million at the time) for his services while committing reported wages of 36 million euros a year. Yet he has not done nearly enough at the Parc des Princes in two seasons marred by injuries and interrupted by off-field distractions. In August 2017, the desperation of PSG’s Qatari owners to win the Champions League appeared to fit with Neymar’s own obsession with emerging from Lionel Messi’s shadow and winning the Ballon d’Or. “I would love for us to meet in two years and see what his value will be compared to today. At least double,” said PSG president Nasser Al-Khelaifi at the time.
– Missing at key moments –
However, since moving to the Parc des Princes, Neymar has appeared in barely half of his club’s matches. When he has played he has frequently been brilliant, scoring 51 goals in 58 games. He has won back-to-back league titles and one Ligue 1 player of the year award. But the Champions League is what really matters, and when it has really mattered in Europe he has been absent. Foot injuries saw him miss three of the four Champions League knockout matches the club have played since his arrival. Without him, they lost in the last 16 to Real Madrid in 2018 and then to Manchester United this year. After suffering a broken foot for the first time in February 2018, Neymar missed the rest of PSG’s season to be ready for the World Cup. Brazil went out in the quarter-finals. In January this year, Neymar fractured the same foot, missing the crunch part of PSG’s season during three more months out. He has since missed the Copa America with an ankle injury and was accused of raping a Brazilian woman at a Paris hotel in May — the case was dismissed in August by a Brazilian judge. Neymar has never learned French and has often appeared too busy with off-field distractions, including throwing lavish birthday parties and making a cameo appearance in his favourite Netflix series.
– Good for the PSG brand? –
He remains one of the biggest sporting celebrities on the planet, but he must put the last few months behind him quickly and deliver, otherwise, there may well be nobody rich enough who is willing to take a chance on buying him next year. PSG supporters have made clear their unhappiness towards Neymar, yet those feelings can still change if he brings success on the pitch. In the boardroom, there is also the realisation of his commercial value — when Neymar arrived, Al-Khelaifi spoke of “a project of two brands: we’re associating the Neymar brand and the PSG brand.” They have since signed major sponsorship and endorsement deals with the likes of Nike, with Neymar’s presence alongside Kylian Mbappe playing a major role. “PSG are a young club who need a big media profile to help them develop. That is what Neymar has brought, just like Zlatan (Ibrahimovic) or (David) Beckham before him,” French sports marketing specialist Jerome Neveu told AFP. Ending the Neymar experiment might have allowed PSG to start afresh, although Mbappe and coach Thomas Tuchel had stated their wish that he stays. “I like Neymar, I want to keep playing with him, with Kylian and with everyone,” said Tuchel recently. Now all eyes will be on Neymar to see if he can put this episode to bed, although his three-game Champions League suspension means it may be some time yet before he makes any genuine impact.

Source; Punch

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Okwudili Ijezie is the Managing Partner/CEO, Okwudili Ijezie &Co. In this interview with Kehinde Olatunji, he urged the Federal Government to drop the idea of increasing the VAT rate until the economy of the country is in good shape. He lamented that many businesses are merely struggling to remain afloat and the increase if effected, could lead to their sudden deaths. He also spoke on the ongoing seminar to train individuals and government agencies on Internal Generated Revenue (IGR), tagged: “Strategies for improving IGR for States in Nigeria.”
The government has always collected taxes. Is there anything it has not been doing well that you think this seminar will correct? May I first thank The Guardian crew for its initiative and resilience on matters that concern the nation. I’m grateful for your persistence in seeking relevant information that will better the lots of the country. Now, to your question, the current happenings in the political and economic environments of the nation demand that all hands must be on deck to take the country to the next level. The major objective of the seminar is to expose participants to alternative strategies and initiatives that will improve transparency, efficiency, and effectiveness of IGR Systems. Participants would equally be equipped with the basic skills for evaluation and appraisal of the existing Revenue Collection Framework and what is happening in other jurisdictions. Also, a fresh awareness will be created for participants on legal and institutional frameworks that are essential in effective revenue collection. The government encourages people to be self-employed yet does not create a conducive atmosphere for them to thrive. Over time, these businesses have been taxed so high that they are being threatened. How can this be addressed? I do not entirely agree with your assertion that the government does not create a conducive atmosphere for self-employed businesses to thrive. The seminar will focus on the current tax policies and there will be suggestions on topical issues. For instance, it will address issues of whether to increase the Value Added Tax rate, which currently is 5 per cent. All aspects of the tax laws will be touched at the seminar, with a view of equipping participants with the current legal and institutional framework for revenue collection. Do we have laws that govern taxation in Nigeria and how can we ensure that the government works within them? Yes, we have Laws that govern taxation in Nigeria. These include: Personal Income Tax Act, Cap P8, LFN 2004 (as amended), Value Added Tax Act, Cap VI, LFN 2004 (as amended), Petroleum Profits Tax Act, Cap P13, LFN 2004 (as amended), Companies Income Tax Act, Cap C21, LFN 2004 (as amended), Tertiary Education Trust Fund (Establishment, Etc) Act 2011, Stamp Duties Act, Cap S8, LFN 2004 (as amended) among others. In order to ensure that government works within the ambit of tax laws, I will advise individuals and corporate organisations to engage the services of tax consultants, with a view to utilizing all the tax incentives embedded in the various tax laws in order to reduce their tax liabilities to the legally acceptable minimum. These tax consultants, who are versed in the tax laws, would ensure that taxpayer’s rights are applied. These rights include: Object to a tax assessment that is not in agreement with business activities as provided by the tax laws, Appeal against a notice of refusal to amend an assessment as specified by the relevant laws Be issued a tax clearance Certificate (TCC) upon settlement of tax liabilities or be given a notice of denial within two weeks of application, TCC itself is free, and be granted refund on excess tax paid after proper auditing with the option of using it to offset future tax liability. Do you think the government is overtaxing people? If not why the outcry about heavy taxes? To be honest, I do not think that the government is overtaxing people. In the same vein, I am not aware of any outcry about heavy taxes. The tax rates, to the best of my knowledge, have not been increased for over two decades. However, I am aware of the outcry by several people and organisations against the proposed increase of Value Added Tax (VAT) rate, from the present rate of 5 per cent to 7.5 per cent. My opinion is that the time is not ripe to effect this increase. I appeal to the Federal Government to drop this idea of increasing the VAT rate until the economy is in finer shape. Many businesses are merely struggling to remain afloat. The increase, if effected, could lead to their sudden deaths. What I will advocate is for the government to strategise and bring more people into the tax net. This is part of the raison d’être of our IGR SEMINAR. May I appeal to the various state governments and the federal government, and even the local governments to utilise this seminar to up their internally generated revenues.

Source: Punch

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Much has been written about the need for African countries to collect more tax revenue from citizens and businesses. The IMF has been imploring sub-Saharan countries, particularly over the last decade, to focus on expanding and diversifying their tax bases.
Some countries have taken heed of the advice. Yet most haven’t moved beyond lip service. When it comes to new taxes, we often see African governments (especially those led by new administrations) setting their sights on commodity players like mining companies and oil multinationals. Now there’s also a growing trend of governments looking to their fastest-growing sector of the past two decades: the mobile phone industry. In most countries, phone companies and mobile operators already pay taxes. The more recent trend is to initiate or raise specific mobile consumer taxes—particularly for devices and transactions. Just over a year ago, Uganda’s regulators introduced a so-called social media tax and a levy on mobile money transactions. Uganda is not alone: Industry research from 2017 shows up to 26% of the taxes paid in the mobile industry in 12 Sub-Saharan countries were industry-specific. Kenya, often highlighted as the leading light of mobile money sector, has also been increasing taxes on transactions and on airtime use, which can result in double taxation—you can’t have a mobile money transaction without already having paid for airtime.

Source: QZ

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P/Harcourt – The Chairman of Rivers State Internal revenue service (RSIRS), Agoage Norteh has said that the agency under his watch was committed to make Rivers State tax friendly.

Source: Independent

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The Corporate Affairs Commission (CAC) has extended by three days the 50 per cent reduction in the registration fee for Business Names with effect from 13th August, 2019.
A statement signed by the Commission’s Head of Public Affairs, Moses Adaguusu, revealed that the fee cut would now end on Friday, 16th August, 2019. “The three day extension is to enable Micro, Small and Medium Enterprises (MSMEs) that could not register their businesses during the promo because of the Sallah holidays to do so,” the statement stated. CAC said registration of their businesses will enable them own corporate accounts with Banks, have access to loans, grants and other government interventions. “Members of the public are enjoined to take advantage of the three Day extension to register their Business Names at the reduced cost of N5,000. Registration can be done online or at any of the Commission’s Offices nationwide,” the statement added.

Source: Daily trust

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Namibia has joined a consortium of over 130 countries seeking to tackle tax avoidance, improve the unity of international tax rules, and ensure a more transparent international tax environment. This was revealed by the Organisation for Economic Cooperation and Development (OECD) last Friday in an announcement made on its website.
Namibia's joining follows the European Union's listing of countries which were non-cooperating in 2017 around the strengthening of local taxation rules in combating tax avoidance, which in certain cases fosters illicit financial flows and money laundering. The EU removed Namibia from the list in 2018 after the government made sufficient commitments to address the taxation concerns. Among the commitments made were subscribing to an inclusive framework, or implementing the base erosion and profit shifting (BEPS) minimum standards. The Namibian reported in June this year that Cabinet had directed the finance ministry to ensure that such commitments were attended to within this year. The BEPS project was founded in 2012 to address tax planning strategies used by multinational enterprises which exploit gaps and mismatches in tax rules to avoid paying tax. "Developing countries' higher reliance on corporate income tax means they suffer from BEPS disproportionately. These practices cost countries US$100-US$240 billion in lost revenue annually", read an explainer on the OECD website. The 15-action plan initiative addresses taxation challenges arising from digitalisation, limitation of interest deductions, harmful tax practices, the prevention of treaty abuse, permanent establishments, transfer pricing and mis-pricing, mutual agreement procedures, as well as multilateral instruments and mandatory disclosure for countries, amongst others. Minister of finance, Calle Schlettwein said in his budget speech this year that his ministry would be working on measures which would ensure tax loopholes costing government are closed off. "Key tax administration reforms will be implemented, such as leveraging regional and international tax cooperation as a mechanism to enhance national technical capacity in various areas of tax administration such as transfer pricing and illicit financial flows," he stated. BENEFITS According to the OECD, the joining of countries such as Namibia ensures inclusiveness and participation in the development of international standards on corporate taxation. "As such, capacity-building support for developing countries is core to the inclusive framework, prioritising active, equal participation in the BEPS process, " the explainer added. Other benefits include the deployment of tax inspectors without borders that aid in building tax audit capacity around the world, as well as assist developing countries to successfully implement their BEPS priorities. The OECD has 130 countries worldwide subscribed to its BEPS inclusive framework, with over 20 African countries such as South Africa, Zambia, Angola, Botswana and Mauritius also involved, while the Global Forum on Transparency and Exchange of Information for Tax Purposes has 154 members.

Source: All Africa


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Real Madrid manager Zinedine Zidane is reportedly still interested in signing Manchester United midfielder Paul Pogba before the European transfer window closes. The French midfielder has been linked with a move to the Spanish capital throughout the summer after talking of his desire for ‘a new challenge’ at the end of last season, but no offer has yet been forthcoming from Los Blancos. However, the Daily Mirror now reports that Zidane is considering making a late move for the 26-year-old, who he sees as potentially being vital to Madrid winning the league title for the first time since 2017. United are believed to want £180m for Pogba, which the Spanish giants may deem too high after spending in excess of £300m already this summer on the likes of Eden Hazard, Luka Jovic and Eder Militao. The report also suggests that any deal for the former Juventus midfielder will hinge on Madrid’s continued pursuit of Neymar, for whom the club feel a deal may be too complicated to get done before next week’s deadline.

Source: Punch


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Jurgen Klopp thinks Liverpool face a daunting task in their bid to retain the Champions League title this season given the “crazy’’ depth of quality in the competition. Klopp has led Liverpool to back-to-back Champions League finals but is adamant that their impressive recent track record does not make them the title favourites. “I will have no problem with it (reaching the final) if it happens again, but at this moment I am not too sure it will,” the German coach told British media. “We have the same chance as everyone else, but that is all, and I don’t see us the English teams dominating. I really think a lot of teams have a good chance.” Liverpool is among the top seeds in Pot One along with Chelsea, Barcelona, Manchester City, Juventus, Bayern Munich, Paris St Germain and Zenit St Petersburg for the Champions’ League group stage draw, which takes place later on Thursday. The quality of teams in the second pot, which includes Real Madrid, Atletico Madrid, Borussia Dortmund has convinced Klopp there is no need to change the format of the competition when the current cycle ends in 2024. “I don’t think there was ever a stronger Pot Two. It is just crazy,” the German added. “They should all be in Pot One, but there is not enough space there. “I don’t think there was ever a stronger Pot Three. If people really think about this kind of Super League, then you don’t need it. That’s it. Then Pot Four you can get RB Leipzig.’’ Klopp expects Liverpool to face stiff competition from a number of heavyweights as they bid for a seventh European crown. While Juventus, Barcelona, PSG and Dortmund looked to fine-tune their squads in the transfer market, Real Madrid and Bayern have recruited heavily. “Look at the squad Borussia Dortmund has and tell me we are stronger than them. That is incredible,” Klopp added. “There are a lot of quality teams: Juventus will be there, PSG will be there. Real Madrid? Do you think they gave up already? “Bayern Munich also brought in (Ivan) Perisic and (Philippe) Coutinho which is a big boost.”

Source: Punch

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The Edo State Governor, Mr. Godwin Obaseki, has said that the state government will partner with the Chartered Institute of Taxation of Nigeria (CITN) to drive advocacy campaigns so as to widen the tax net in the state. Obaseki said this during a courtesy call by members of the Benin District Society of the CITN, at Government House in Benin City.
He explained that the collaboration will help the state government deepen advocacy programmes to sensitise members of the public on their civic responsibility as regards taxation. The governor noted that the state government needs to expand its tax net so it could sustain its developmental strides, adding that focus in the past was corporate organisations while neglecting about 70 per cent of the employed labour force and those who operate small and medium enterprises (SMEs) in the state. “Government relies on the economic activities of its citizens for sustenance. This is done through taxation. We need to emphasise the need for citizens to develop a habit of paying tax. We also need to tweak the system so that owners of SMEs will be conscious of the fact that they need to pay taxes,” he added. Obaseki also noted that people who earn more in the society should pay more taxes while urging political leaders to pay stipulated taxes based on their income. He assured members of the institute of government’s support and promised that the state would allocate a parcel of land for the institute to build its Benin Secretariat. Earlier, the President of the institute, Dame Gladys Olajumoke Simplice, commended the performance of the Obaseki-led administration in setting-up industrial clusters in the state to encourage production. She noted that the institute was ready to partner with the Edo State Government in its initiative to improve revenue collection, urging the state to support some of its programmes, which includes exchange programmes and study tours.

Source: The Nation

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If next year’s target for the kick-off of the tax or levy on online transactions sails through, there certainly would be interesting figures and government would be smiling to the banks for fat Cheques.
On the other hand, there is an expectation of corresponding reactions, coupled with intuitiveness by many Nigerians, who would be plotting its evasion or avoidance. But most possible, there would be continued agitation for alleged “over tax” of the citizenry without corresponding evidence of adequate utilisation. Indeed, beyond the quest for the expanded fiscal regime and business of revenue mobilisation for acclaimed national development, it would be another period of putting to test the country’s level of compliance with the non-negotiable social contract, as inequality takes new height, while poverty level gets global reckoning. Of course, if there is one thing that the current administration under President Muhammadu Buhari had consistently done in the last four years, it is majorly tax project – from reforms, awareness, and enforcement to the creation of new ones. But there is still raging argument over the motives, save for the dwindling fortunes of the crude oil prices and its attendant effects on the country’s fiscal performance. There have been inventions and invocations of laws as a necessity, under which the ongoing hunt for whatever is called revenue in the face of dwindling economic fortunes is unavoidable. The volatility in oil prices — the country’s major revenue and foreign exchange earner, has been used as excuse. To cover the tottering revenue profile, three things have become outstanding and more pronounced, as well as recurring over these years, with similar historic pattern. They are “Diversification”, “Stamp Duties Act” and “Treasury Single Account (TSA)”. Almost, if not all the administrations, have played around them. In the last one year, the Value Added Tax (VAT) has been on the front burner, with a back and forth movement in respect of what should be included in the regime and what the percent should be. The rate consideration is currently rested. The latest in the discourse, is the plan to introduce a five per cent charge on online transactions with effect from 2020, entangled in not only its acceptance by the citizenry, given the biting economic challenges and disputations over government’s accountability, but also the observed misunderstanding of whether the charge is VAT on the transactions itself or levy on the medium of the transactions. Or whether it is the product to be purchased that will deserve the VAT. According to the National Bureau of Statistics (NBS), Web transactions in the first quarter of 2019, were estimated at 20.38 million, with a value of N107.64 billion. If the operations of eBillsPay and Remita, both found in the quarterly statistics of the agency, currently with a volume of 316,534 and 1.46 million, valued at N141.65 billion andN19.25 billion respectively, qualifies as online transaction, then there would be more to feast on by government. The Executive Chairman of the Federal Inland Revenue Service (FIRS), Babatunde Fowler, had recently said that the agency is currently tinkering on ways to bring the rising digital economy under the tax net, even though it been a difficult task.“We will address the issue of the digitalised economy very soon. Nigeria has not taken a position yet. But, we are meeting to see if we can come up with a global solution that we can all adapt to,” he said. But since the unveiling of the plan to effect the five per cent VAT on all online purchases from next year, it has not only been a mixed feeling, but major reactions from Nigerians are tilting towards outright rejection.The New Tax; THE Partner/Head of Tax and Corporate Advisory Services at PwC Nigeria, Taiwo Oyedele, said the proposal is part of measures being introduced to address issues bothering on the digital economy, generally believed that huge economic activities are being conducted without the payment of commensurate taxes.In an exclusive chat with The Guardian, the tax expert also said that the overriding objective of the latest move is to shore up government’s revenue. “The proposal is to charge VAT on all online transactions carried out by individuals and companies based in Nigeria regardless of whether the transactions are sourced from Nigeria or outside the country.“The intention is to appoint payment settlement institutions such as banks, credit and debit cards providers as agents of the FIRS for the purpose of charging and accounting for VAT on online transactions. “The VAT will apply on all online transactions that are liable to VAT, including goods and services. In principle, VAT is already being charged and collected on online purchase of goods. In the case of products supplied within Nigeria, the sellers would already charge VAT on the goods failing which they can be audited by the FIRS. “In the case of goods ordered from foreign online suppliers like Amazon, the applicable VAT should normally be collected by customs upon importation except where the goods are VAT exempt or below the chattel exemption threshold. “There is also no problem with online services provided by suppliers based in Nigeria such as Multichoice since FIRS can enforce VAT on their sales where applicable.“The major challenge is therefore with respect to online services and purchases relating to intellectual property from foreign suppliers such as Netflix and Facebook,” he said.

Source: Guardian

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An Antoine Griezmann double allowed FC Barcelona to return to winning ways with an emphatic 5-2 La Liga win over Real Betis on Sunday. After the champions were surprisingly beaten 1-0 by Athletic Bilbao in their opening match of the season last week, they rebounded in style on Sunday. Strikes from Carles Perez, Jordi Alba and Arturo Vidal completed a memorable day for the Catalans as they marked defender Gerard Pique’s 500th appearance for the club. Barca, who were without injured forward Lionel Messi, started on the back foot and fell behind when Nabil Fekir netted with a sublime angled strike in the 15th minute. Griezmann, who joined Barca last month from rivals Atletico Madrid, scored four minutes before half-timeto level the scores. The French 2018 World Cup winner’s maiden goal for the club proved to be the catalyst the Spanish champions needed on the night. They went on to score four more unanswered goals in 27 second half minutes. Griezmann curled in from the edge of the box five minutes after the restart, while Perez made it 3-1 after 56 minutes before Alba struck on the hour from close range. Substitute Vidal then finished off a wonderful team move 13 minutes from the end. Loren netted a stunning consolation strike from 25 metres for the visitors following an errant pass from Griezmann two minutes later. Coach Ernesto Valverde was able to bring on academy player Ansu Fati, who at 16 years and 298 days is the second youngest player in FC Barcelona’s history, late on. The Catalans have three points from two La Liga games, while Real Betis have lost both of their games this season.

Source: punch

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Mesut Ozil’s Arsenal future is in doubt after missing out on the defeat by Liverpool on Saturday, despite being fit and available for selection. Ozil and team-mate Sead Kolasinac both missed the start of the season following further threats to their security in the aftermath of a failed carjacking attempt. The German midfielder returned to training ahead of the Gunners win over Burnley last week but was overlooked due to illness, while Kolasinac made an appearance from the bench. Ozil was fit and available for the Liverpool clash at Anfield on Saturday but he did not make the squad and was left behind in London. Kolasinac, meanwhile, was on the bench. Poignantly, coach Unai Emery said of his matchday squad, ‘The players here are the ones we think were the best physically to play today.’ The fact that Ozil could not even make the bench for Arsenal will again put a huge question mark against his career at the Emirates. The Germany international is the highest wage earner at the club, on a £350,000 a week. His salary will be a significant stumbling block to any
permanent transfer but a loan deal for a fee is a possibility – similar to the agreement have with Real Madrid for Dan Ceballos who will cost Arsenal £15m for the season. If Arsenal agree to subsidise his wages, Ozil could be on his way out with clubs in Italy, Spain and possibly Germany on alert. The likes of Inter Milan, Borussia Dortmund and Valencia could all be keen to move for the playmaker if Arsenal decide to let him go.

Source: Punch

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Zlatan Ibrahimovic scored twice as Los Angeles Galaxy held runaway Major League Soccer Western Conference leaders Los Angeles FC to a 3-3 draw in their city derby on Sunday. Former Sweden and Manchester United striker Ibrahimovic netted a brace in a dramatic opening spell at LAFC’s Banc of California Stadium in Los Angeles that saw the Galaxy take a 3-1 lead early on. Ibrahimovic opened the scoring for the visitors after only two minutes, when new Galaxy loan signing Cristian Pavon surged forward from near halfway. The former Boca Juniors midfielder burst into space before splitting the LAFC defence with a superb pass for Ibrahimovic, who shot first time into the bottom left hand corner to make it 1-0. LAFC, however, were on level terms in the 12th minute when Diego Rossi’s header across the face of goal was met by Latif Blessing who bundled home for 1-1. The Galaxy, however, were back in front within three minutes when Ibrahimovic again sprang the offside trap before rounding LAFC goalkeeper Tyler Miller and tapping into an empty net. It got better moments later when Argentine midfielder Pavon again punished slack LAFC defending, cutting in from the left all too easily and rifling a low shot past Miller at the near post for 3-1. Blessing added a second in stoppage time at the end of the first half when a shot from Carlos Vela deflected into his path inside the penalty area, gifting the Ghanaian forward a simple finish. The second half was only eight minutes old before Mexico striker Vela equalised for LAFC, collecting a deft pass from Mark Anthony Kaye to finish past David Bingham. LAFC, who had already assured themselves of a place in the playoffs, are now 19 points clear at the top of the Western Conference standings, with 62 points from 26 games. The Galaxy are fifth in the standings with 42 points from 26 games.

Source: Punch

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Chief Akintola Williams, the first African to qualify as a chartered accountant, clocked 100 years yesterday, putting family, friends and well-wishers in celebration mood. Akintola Williams was born on August 9, 1919 into the family of Thomas Ekundayo Williams, a clerk in the colonial service, who later trained as a legal practitioner in London and set up his practice in Lagos.
In 2009, he lost his wife of 60 years, Mabel Efuntiloye Williams with whom he had two children, Tokunbo and Seni. The young Williams had his education in the early 1930s at Olowogbowo Methodist Primary School, Bankole street, Apongbon, Lagos Island, Lagos, and CMS Grammar School, also in Lagos. The bright young man then went to Yaba Higher College on scholarship of UAC, and obtained a diploma in commerce. He moved overseas to England in 1944 to studied Banking and Finance at the University of London where he graduated in 1946 with a Bachelor of Commerce. He qualified as a chartered accountant in England in 1949. Akintola Williams returned to Nigeria in 1950, and served with the Inland Revenue as an assessment officer until March 1952, when he left the civil service and founded his firm, Akintola Williams & Co. in Lagos. Records show that the company was the first indigenous chartered accounting firm in Africa. In those days, the accountancy business was said to be dominated by five large foreign firms, with a few small local firms that were certified but not chartered accountants. Regardless, he had good business with indigenous companies like Nnamdi Azikiwe’s West African Pilot, K. O. Mbadiwe’s African Insurance Company, Fawehinmi Furniture and Ojukwu Transport. He also provided services to the new state-owned corporations, including the Electricity Corporation of Nigeria, the Western Nigeria Development Corporation, the Eastern Nigeria Development Corporation, the Nigerian Railway Corporation and the Nigerian Ports Authority. The growth path of the company became set with its first partner, Charles S. Sankey appointed in 1957, followed by a Cameroonian, Mr. Njoh Litumbe, who contributed to the firm’s expansion. Litumbe opened branch offices in Port Harcourt and Enugu, and later led the firm’s expansion overseas in 1964, opening a branch in the Cameroons, followed by branches in Côte d’Ivoire and Swaziland, and affiliates in Ghana, Egypt and Kenya. By March 1992, the company had 19 partners and 535 staff. Demand grew as a result of the Companies Act of 1968, which required that companies operating in Nigeria formed locally incorporated subsidiaries and published audited annual accounts. The drive in the early 1970s to encourage indigenous ownership of businesses also increased demand. The company acquired a computer service company and a secretarial service, and in 1977, the company entered into an agreement with Touche Ross International based on profit sharing. Williams was also a board member and major shareholder in a number of other companies. He retired in 1983. Between April 1999 and May 2004, Akintola Williams & Co. merged with two other accounting firms to create Akintola Williams Deloitte (now known as Deloitte & Touche), the largest professional services firm in Nigeria with a staff of over 600. Williams has deep roots in the development and growth of financial and other institutions in the country. He participated in founding the Nigerian Stock Exchange and the Institute of Chartered Accountants of Nigeria, where he was the first president. This was a projection of a leading role he played in 1960 in establishing the Association of Accountants in Nigeria, which goal was to train accountants. He was also the association’s first president. Regardless of old age, he never lost touch with these organisations. At a stock exchange ceremony in May 2011, he called on operators to protect the market and ensure there was no scandal. He said that, if needed, market operators should not hesitate to seek his advice on resolving any problem. Williams served Nigeria in several positions, including Chairman of the Federal Income Tax Appeal Commissioners (1958–68); member of the Coker Commission of Inquiry into the Statutory Corporations of the former Western Region of Nigeria (1962); member of the board of Trustees of the Commonwealth Foundation (1966–1975); Chairman of the Lagos State Government Revenue Collection Panel (1973) and Chairman of the Public Service Review Panel to correct the anomalies in the Udoji Salary Review Commission (1975). He also served in other spheres of human endeavor, including as President of the Metropolitan Club in Victoria Island, Lagos, Founder and Council member of the Nigerian Conservation Foundation. The Akintola Williams Arboretum at the Nigerian Conservation Foundation headquarters in Lagos is named in his honour. He was Founder and chairman of the board of Trustees of the Musical Society of Nigeria.

Source: This days  

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The Nasarawa State Government has expressed its readiness to collaborate with Tax Appeal Tribunal towards enhancing tax payment by educating and enlightening the public on its civic responsibility. The governor of the state, Abdullahi Sule, stated this when he received a delegation of the Tax Appeal Tribunal led by the Zonal Chairman, Richard Bala, in Lafia, the Nasarawa State capital.
The Tax Appeal Tribunal was established in pursuant to Section 59 of the Federal Inland Revenue Service Establishment Act 2007 with the mandate to settle dispute between aggrieved taxpayers and tax authorities as part of the ongoing reforms in the tax administration. It has powers to adjudicate cases arising from company income tax, personal income tax, petroleum profit tax, value added tax and capital gain tax, among others. The governor called on the team to carry on with the awareness campaign and work with the Nasarawa State Internal Revenue Service to ensure the continuity of awareness in the state. The leader of the delegation and Chairman, Tax Appeal Tribunal for North Central, Richard Bala, explained that their mission in the state was to enlighten tax payers on the role of the tribunal as a way of encouraging them to pay their tax. He said, “The importance of tax appeal as component of effective tax administration cannot be overemphasized considering the fact that an ideal tax system should offer a multi-layer objection and appeal process that compels the complainant to go through a mechanism before gaining access to the regular court.”

Source: Punch

Taxpayers in Rivers State are regarded and treated as development partners, so declared the Rivers State Internal Revenue Service (RIRS). The Executive Chairman of the Board, Adoage Norteh, who disclosed this in Port Harcourt, said this is the reason why taxpayers were made to be part of the process in the informal sector tax initiative being rolled out in Rivers State this month. Norteh told BusinessDay in an exclusive interview that the regard shown to the taxpayers informed the decision to set up a joint committee of tax paying groups and the RIRS which recently submitted a resolution on taxes that would be paid and applicable rates, a resolution aimed at calming tensions to promote ease of doing business in Rivers State.
The RIRS had made the private sector to lead the discourse as chairman and secretary, thus removing all fears that the committee was rather a rubber stamp. This is expected to send positive signals to the entire taxpaying community in Rivers State that an acceptable and peaceful tax collection system is born. Other states having chaotic informal sector tax collection systems could also borrow a leaf, sources said. The presumptive tax committee consisted of the chairman of the Rivers State Joint Committee on Implementation of Informal Sector Tax Collection, Uba Obasi, who represented the Manufacturers Association of Nigeria (MAN) in the state, backed by the secretary of the committee, representing the Nigeria Bar Association, Port Harcourt Branch and Clement Akanibo from the organized private sector and member of the Port Harcourt Chamber of Commerce. Other members include: National Association of Small Scale Industrialists, Pillars of Association, Rivers State Drivers Cooperative, National Union of Road Transport Workers, Tricycle Operators and Traders Union, among others. Obasi, representing MAN as chairman of the committee said the objective was to look into how the RIRS could capture the revenue of the informal sector in the state. He told newsmen that it was also to eliminate multiple taxes and usher in peace in the tax collection process. He stated: “We have just endorsed the report we fashioned out and it would be forwarded to the Executive Chairman of the RIRS. If approved, it would bring to an end the problems bedeviling tax collection mechanism in the informal sector tax collection in the state. We need the information to spread to all taxpayers in Rivers State in order to protect the tax process from touts and ensure that collections made get to the coffers of Government. However, the Revenue Board has agreed on how to collect taxes from the informal sector which is expected to take off this August.” Explaining the significance of the historic resolutions, the RIRS boss reminded taxpayers that the Rivers infrastructural development and facilities can only be sustained through their collaboration and cooperation. It is noteworthy that Rivers IGR did not crash when other aspects of the national economy faced challenges and when many businesses collapsed. Instead, the IGR of the state recorded modest increases. According to sources, IGR rose from an average of 5.5Bn per month in 2016 to about 10Bn monthly in 2017 when the present tax administration took over. This is expected to further rise given these Informal Sector tax initiatives. Norteh observed that the beauty of it all is that the state’s IGR increases were achieved without fracas and without street wars, but rather with an engendered friendly tax atmosphere. This atmosphere has been capped with historic tax resolutions reached last week in Port Harcourt between the RIRS and private sector leaders. This first-ever resolution is expected to form the bedrock of the roll-out of the informal sector tax drive after many months of consultations, conferences and stakeholder sessions in Port Harcourt. The RIRS admitted that the engagement processes and conference series may have caused long delays and cost huge resources but that it remains the best strategy that could meet the cardinal objective of taxation in the state. Gov. Wike had given a clear mandate that taxes must not be collected with chaos, violence or tension in Rivers State. In order to achieve this objective, the RIRS undertook to engage stakeholders in organised conferences and meetings to get everyone on board for a seamless process. Norteh said; “Taxes are a creation of the law; however, it should not be approached from a punitive perspective. Though it is mandatory by law to pay taxes, taxpayers should be made to see it as not only a requirement of the law but also a demonstration of responsibility. Taxes hold numerous benefits; besides, it should be seen as a duty and from responsibility standpoint.”
Norteh explained that it is for this reason that the RIRS hopes to host a National Tax Roundtable in Port Harcourt to deepen the state’s new tax engagement processes that have engendered peace in tax collection. Experts said it is time the state positioned Port Harcourt as a tax-friendly city; a city of tax collection creativity and tax ideas. “We think it’s time we changed the Rivers narrative that will address the positives of taxation.”
He stated: “I was able to create the engagement process with support of taxpayers as we prepared to roll out the informal sector tax drive because I am not more a tax administrator than I am a taxpayer.”

Source: Business day

MTN has engaged the services of the KPMG to handle the demand for the payment of tax on the N330bn ($1.1bn) fine it paid to the government, investigation has shown. The company had confirmed having a technical disagreement with Federal Internal Revenue Service regarding tax deductions from the fine.
Sources close to the company confirmed that the telco had to hire the KPMG because it needed a professional firm conversant with Nigerian tax matters to handle the dispute with the competence required. The Nigerian tax tribunal is looking into the disagreement between the telco and the FIRS on whether the fine paid by the company to the government should be subjected to tax. It was gathered that the tax in dispute was being held in an escrow account pending the ruling of the tribunal. It was also learnt that the tribunal had been on the case for about one year. MTN, which is Nigeria’ largest network operator, was fined N1.04tn by the Nigerian Communications Commission for not meeting the deadline for deactivation of more than five million unregistered SIM cards in 2015. It, however, negotiated a reduced fine on condition that it would list on Nigerian Stock Exchange. After four years, the telco completed the payment of the fine in line with a structured payment plan on May 31 and also listed on the country’s bourse on May 16 in fulfilment of the agreement. The network operator had said it took the disagreement on tax payment to a tribunal set up by FIRS Chairman, Babatunde Fowler, and a former Minister of Finance. The telco in a statement issued last week said, “MTN remains fully compliant with Nigerian tax laws and will abide by the findings of the tribunal. The company is committed to meeting its fiscal responsibilities and contributing to the social and economic development of Nigeria.” The company added that it would abide by the ruling of the tribunal whose decision is being awaited by the concerned parties.

Source: punch

Some economic experts at the weekend expressed doubts over the ability of the Federal Inland Revenue Service (FIRS), to meet its N8.2 trillion revenue target for 2019 FIRS is the main agency of the Federal Government charged with responsibility of accessing, collecting and accounting for tax and other revenues accruing to the Nigerian authority.
According to those who reviewed the Service’s rather ambitious target for the current financial year, relying on the improved collection recorded in the past few years to index tax collection for the year under review would only amount to an illusion given the current parlous state of the nation’s economy. They observed’ “Although the economy has tremendously recorded improvement and increase in tax collection due to some reforms being carried out by FIRS to boost tax administration in the country, the dream of the FIRS to meet the N8.2 trillion revenue target may be a tall order in the face of excruciating financial downturn on the part of businesses in the country.” Going by the revenue target figures reeled out by the Executive Chairman of FIRS, Babatunde Fowler, on the sidelines of a high-level meeting on illicit financial flows hosted by the UN General Assembly in New York recently, about N1.5 trillion revenue had been collected between January to May 15, 2019. The amount realised between January and the middle of May represents a paltry 18.7 per cent of the set target by FIRS. NAN which did the analysis noted that its effort to get an updated report covering the first and second quarter of the year proved abortive. But available statistics showed that FIRS generated N12.62 trillion revenue from tax over the last three years. A breakdown of the amount indicated that N3.3 trillion was generated in 2016, N4.02 trillion in 2017 and N5.32 trillion was realised in 2018, making it the highest revenue generated so far. Reacting to the said target, a financial expert, Mr. Akinsanya Niyi, described the proposed collection of N8.2 trillion as ‘a tall order’ meant to spur performances by the personnel of the service, but not necessarily to be achieved. Akinsanya explained that the tax law allows companies to pay for taxes of previous years up till the month of June of the successive years. He, however, said that there was tendency for more taxes to be collected as companies prepared for the new national budget cycle. He explained that many organisations would want to ensure compliance with tax laws so as to position themselves for job bidding. According to him, there is the need for FIRS to ensure continuous sensitisation of the general public to the importance of tax payment as well as the need for strict implementation of some provisions of the laws to boost tax collection.

Source: The Sun

When taking a fresh look at new technology capabilities and related operating models, chief financial officers (CFOs) may find that they can have it all – a high performing, efficient tax department that’s tightly integrated with finance and the rest of the organisation.
By Mark Freer, digital leader for Deloitte Africa Tax & Legal. An unprecedented number of regulatory and tax policy changes are underway around the globe, presenting organisations with significant challenges–and opportunities–for tapping tax earlier and more often when key business decisions have to be made. Failure to modernise may not only leave a company lagging when it comes to compliance, it may also see the organisation outpaced by nimbler, tech-savvy competitors. Yet, many tax professionals tell us their companies are simply not set up for this new reality with finance leaders continuing to respond in predictable ways. They are hiring more people, sourcing temporary help, adding point technology solutions and outsourcing parts of the process. While this has worked in the past, the evolving digital economy is continuously unleashing new competition and innovative business models, both of which can create significant tax planning pressures, but also opportunities. With 50 percent fewer tax accounting graduates and a big chunk of the tax workforce nearing retirement, there aren’t nearly enough experienced tax experts in the market today. Deloitte’s Crunch Time 9: Tax in a Digital World guide shares insights on how new data modelling tools make it possible to deliver valuable tax insights on differing financial scenarios in real time. This essentially means that business leaders will receive the benefits of these insights before they have to make their decisions. Before this can happen however, tax needs to modernise along with the rest of the enterprise. Companies need cognitive tools, bots as well as other technologies (or service providers deploying those solutions) to assist with improving efficiencies in their work and that requires investment that will lead to new ways of working for future relevance. Modernised tax is a move from being mostly a compliance function to a high-value planning and reporting function. Digital tools and talent churn through scores, or even hundreds of scenario models, to determine their after-tax financial implications. This type of data modelling combines the organisation’s own real-time financial information with the latest tax laws and regulations to guide decision-makers through the best options for action. The guide suggests three things that will be visible in an organisation once the shift to a modernised tax department occurs. They are reimagined processes; redefined talent and technology enablers. We see reimagined processes when reconciliations are automated and managed on an exceptions basis. Tax analyses and evaluates the discrepancies while optimising the reconciliation of source data to the general ledger. Touchless automation removes manual reconciliation and accounts payable clerks no longer have to key in tax codes manually or make tax determinations on the fly. Redefined talent leads to tax staff being freed up to focus on tax planning and other high value-add activities. Tax managers generate targeted business insights rather than generic ones, while staff monitor data quality as a key performance indicator. Tax modernisation is also about risk management. In the face of growing complexity, technology enablers such as automation and advanced analytics assist tax teams to efficiently grind through the data and scenarios required for effective tax planning and reporting. Real-time layers of data proactively identify rule exceptions, improving reliability with machine learning. Visualisation and analytics from an integrated tax data warehouse enhance the indirect tax process. The business case for tax modernisation is easy to make for almost any global enterprise. Implemented correctly, it enables better management of the global effective tax rates and with automation, you may be able to effectively apply for tax rebates and reduce cash leakages, such as VAT overpayments. Yet even with a clear business case, your tax department may not push for needed investment as aggressively as other functions might. Tax departments are busier than ever, and many are falling behind, with little bandwidth to consider these improvements. If you’re the CFO, nudge tax along. Even when there’s a great tax leader in place, CFOs need to champion modernisation.

Source: IT Online

Peter Nwaobi, a tax expert at KPMG, said the proposed 5% VAT on online purchase is not a double tax and there were no initial charges on purchases.
Nwaobi explained that for every online transaction, there is always a 5% VAT on every item. "Before now, for every time you get online, the merchant already charged 5% VAT on it, either you see it on slip or not. it is there." He said the fee is what the FIRS is running after as majority of the funds have not been captured in the tax net. "This idea will allow the merchant to remit the 5% they have charged to the bank (acting an agent in this instance)." The government said it is planning to introduce the policy in 2020. The Ministry of Industry, Trade and Investment projected the Nigerian digital sector to generate $88 billion and create 3 million new jobs over the next few years.

Source: Pulse

Oyo State government has promised that it will not increase tax on small and medium scale enterprises, SMEs, as a means of boosting its revenue base.
Giving this assurance, the Chairman, Oyo State Board of Internal Revenue, BIR, Aremo John Adeleke, in a chat with newsmen at his office in Ibadan, stated that the State would re-visit the State’s tax net and capture areas not already captured in order to improve internally generated revenue. He added that Governor Seyi Makinde’s government would seek for ways to build and nurture the growth of SMEs in the State rather than to burden them with heavy tax that could drive them out of business. Adeleke stated, “It is in line with the promise of governor Seyi Makinde to empower small scale businesses in the State to propel growth in our economy. As he works assiduously to attract foreign and domestic investments to the State, he is also working to establish and sustain small and medium scale industries in Oyo State. So the idea of tax increament on businesses is not even to be discussed here. We will rather nurture them to grow and be self-sustaining than to over-burden them with tax”. “The government nonetheless expects all SMEs to comply with all extant tax laws, especially the ones on personal assessment of business proprietors, withholding tax and VAT payable to the State”, he added. Aremo Adeleke enjoined commercial vehicle owners and drivers as well as motorcycle riders and owners to collect necessary documents from approved agencies and tax stations under Oyo State internal Revenue Services instead of doing same in neighboring States. He said “We assure everyone of quick turnaround time of registering or renewing vehicle documents. We also promise all our patrons quick availability of number plates for all categories of vehicles.” Adeleke used the occasion to call on the staff of the board of internal revenue to be quick, responsive and work with utmost integrity and professionalism which he said was the best way to support the present administration in its drive for improved internally generated revenue.

Source: Punch

Naomi Osaka holds on to the top of the WTA rankings on Monday despite injury and elimination from the Cincinnati Masters. The Japanese lost to 20th placed Sofia Kenin in the quarter-finals on Sunday due to a knee injury. Her participation at the US Open is still uncertain. Madison Keys jumped eight spots and is ranked 10th after she won Cincinnati on Sunday. Also on the rise in an otherwise unchanged top 10 is Elina Svitolina who moved up two spots to fifth, a career-high for Ukrainian. Sloane Stephens was robbed of her 10th spot in the rankings and sits at 11th after her defeat to Svetlana Kuznetsova in Cincinnati’s third round. Meanwhile, Kiki Bertens took two steps back to 7th place and Johanna Konta was demoted to 16th.

Source: Punch

Withholding tax is an advance payment of income tax – Companies Income Tax (CIT) and Personal Income Tax (PIT). Withholding tax is deducted at source when payments are made to companies or individuals. Tax withheld from payments to a company or an individual is a tax credit or withholding tax credit, which is used to reduce the tax liability of a company or an individual when the final tax liability is determined.
Payments to companies exempted from income tax are not liable to withholding tax deductions. Tax withheld from payments to companies not exempted from income tax are paid to the Federal Inland Revenue Service (FIRS). Tax withheld from payments made to individuals or individuals trading as business name, ventures or enterprises – legal firms, accounting firms, partnerships, etc., are paid to the Tax Authority of the State where they reside. Transactions liable to withholding tax deductions include payments for contracts, professional fees, consultancy fee, directors fee, management fee, legal fee, commission, royalty, rent, interest and dividend. The due date for filing withholding tax returns is on or before the 21st day of every month. The penalty for non-compliance is 10% of amount not withheld or not remitted plus interest at the commercial lending rate.

Source: insight

The Oyo State government has expressed its determination not to increase tax on small and medium scale enterprises (SMEs) in its drive to increase its revenue base.
The Chairman, Oyo State Board of Internal Revenue (BIR) John Adeleke, who made the disclosure while speaking with journalists in Ibadan weekend, also said the government would rather look into areas that were not captured in the tax net in the state to improve internally generated revenue (IGR). Adeleke said the plans of the administration of Governor Seyi Makinde is to build and nurture the growth of SMEs in the state and not to burden them with heavy tax that could drive them out of business. According to him, “It is in line with the promise of Governor Seyi Makinde to empower small scale businesses in the state to propel growth in our economy. “As he works assiduously to attract foreign and domestic investments to the state, he is also working to establish and sustain small and medium scale industries in Oyo State. So the idea of tax increment on businesses is not even to be discussed here. We will rather nurture them to grow and be self-sustaining than to overburden them with tax. “The government nonetheless expects all SMEs to comply with all extant tax laws, especially the ones on personal assessment of business proprietors, withholding tax and VAT payable to the state.” Adeleke however enjoined commercial vehicle owners and drivers as well as motorcycle riders and owners to collect necessary documents from approved agencies and tax stations under the state internal revenue services instead of doing same in neighbouring states. “We assure everyone of quick turnaround time of registering or renewing vehicle documents. We also promise all our patrons quick availability of number plates for all categories of vehicles,” he said. Adeleke also called on members of staff of the board to be quick, responsive and work with utmost integrity and professionalism, which he said, was the best way to support the present administration in its drive for improved internally generated revenue.

Source: This days

Individuals and business owners who make profits from businesses, but refuse to pay taxes, are criminals and economic saboteurs, the Chairman of the Federal Inland Revenue Service (FIRS), Tunde Fowler, has said.
The FIRS Chairman was reacting to insinuations that the FIRS’ decision to place a lien on peoples’ accounts for refusing to take advantage of the amnesty window provided by the Voluntary Assets and Income Assessment Scheme (VAIDS) was highhanded. Mr Fowler disagreed with those holding the view, saying the FIRS did not apply the full provision of the law on the issue.
What the law provides
“What the law actually says is that the agency should put a lien on the account and based on the amount the FIRS has specified, it should be credited straight to the government’s account at the Central Bank Nigeria. “The FIRS did not even follow that all through. It just said: put a lien and leave the money in their accounts. When they come and show us their records, we now know how much they are owing. “If they want to pay in installments, they will draw up an installment payment account. So, it’s not being highhanded at all,” he said. According to him, since the lien was placed of defaulters’ accounts, between 2,500 and 2,600 corporate and individual accounts have paid about N72 billion within 75 days, with over 40,000 still left “If N72 billion is shared among the 36 states of the federation, plus the FCT, and ask them to buy the Sunday-Sunday malaria medicine (Daraprim) for N2,000 for their hospitals, it will cure every child between one and five years of malaria fever. If you allow children to die of malaria, because of people who refuse to pay taxes and there were no such money to buy the drugs, that is a crime against society. “For people to operate within the society, make money from the services they provide to us through their businesses and they refuse to pay tax, is criminal. It’s not highhanded. These people are criminals,” Mr Fowler said.
Strategies to boost revenue generation
On what the agency is doing to boost revenue generation and bring every eligible taxpayer into the tax net, Mr Fowler said the lien on people’s accounts began with accounts with about N1 billion balance and above. He said later, the figure was lowered to N100 million and above, which realised about 7,793 accounts initially. According to him, 418 people reached an agreement with FIRS by coming forward to make some payments of about N31.7 billion. Also, those with N100 million to N1 billion were 34,943, with a total of 2,148 paying N40.8 billion in the last two and a half months, he said. On suggestions for the prosecution of those who failed to take advantage of the VAIDS window regularise their tax status, Mr Fowler said he did not consider that a viable strategy ”than the one they are currently adopting”. “How many cases can the FIRS have in court? How many prisons can we have? We are looking at close to 40,000 business accounts that are not doing the right thing. You take them to court? “But, how many cases can the FIRS go to court over from the 40,000? Without any attempt to talk negatively about our legal system, if you go to court, you can be there for one year or more. “But, within 75 days, we have collected over N72 billion, without going to court, by closing their accounts. If we decided to go to court, I am sure even the courts can’t handle up to 20,000 cases of this nature,” he said.

Source: Premium time

Intel-owned Altera Corp. received more industry backing as some of the biggest names in tech and tax urged the Ninth Circuit to review a cross-border tax case with potentially billions of dollars at stake.
In multiple briefs, the giants urged the U.S. Court of Appeals for the Ninth Circuit to hold an en banc rehearing after a panel upheld Treasury regulations affecting taxes on certain transfers within multinational companies. The companies behind the Aug. 1 briefs include Google LLC, Apple Inc., Facebook Inc., PepsiCo Inc., PwC, Deloitte Tax LLP, KPMG LLP, and the National Association of Manufacturers. Altera wants the Ninth Circuit to review the June 7 ruling that Treasury acted lawfully in requiring related parties—such as entities within a multinational company—to share the costs of stock-option compensation in qualified cost-sharing agreements. These are agreements to share the costs of developing property in exchange for sharing income generated by the property.

Source: Bloomberg