₦airaland Forum

Many stakeholders in the Nigerian maritime industry are worried about the import tax imposed on new vessels. They say this may put them at a competitive disadvantage among other African countries in a free market. A former Director General of the Nigerian Maritime Administration and Safety Agency, Mfon Usoro, observes that whereas aircraft brought into Nigeria are registered at zero per cent duty, a shipowner is required to pay 14 per cent of the cost of a new vessel as tax.
According to her, this makes people still patronise a temporary importation route because it is cheaper for them than to pay tax and register their vessels in Nigeria. On AfCFTA, Usoro, who spoke at a public lecture recently, said the fear of operators was that of competitiveness. She said, “If you are charging import tax on a Nigerian flagged vessel at 14 per cent of the cost of the vessel and above, South Africa charges zero import tax. “For the Nigerian flagged ship, there is a multiplier effect on everything that is dependent on that trade or vessel. It means the operational cost in South Africa is low; everything is low. So, they cannot compete with Nigeria who is already setting the shipowner up for failure. “So, we are afraid that the business that should come to us will go to other countries that are competitive.” She added, “The point is not about dumping because there are ways we can stop the goods from coming in. It is competitive pricing. If you want us to buy goods from Nigeria instead of buying from Togo, if your goods are more expensive than those of Togo, why should we buy from you? If your port charges are higher than Togo port charges, how will your goods be competitive?” In addition to this, operators also decry the lack of conducive environment in the maritime sector. The President, Seaports Terminal Operators Association of Nigeria, Mrs Victoria Haastrup, says, “I am suffering; my people are suffering because of the enabling environment that is just not there. “When a ship comes from China, Europe and anywhere in the world, when it berths, you cannot be sure of when it will be able to discharge and go back. And time is of essence to ships. You know what that is costing the importers and the charterers. “In other parts of the world, there is automatic digitisation. Right from the control room, ships are being discharged; you don’t see a single human being. “You sit in your house, log onto the Internet and you can clear your goods without going to the ports. But that cannot happen in Nigeria.” Analysts lament that apart from lack of full automation, the poor condition of roads linking the ports result in trucks spending months on the road trying to access the ports. Stakeholders in the productive sector of the economy had for years reportedly been reluctant to embrace trade pacts that would open the Nigerian market to competition from outside. The high cost of doing business in Nigeria, according to them, is bound to make them vulnerable when pitched against operators in low-cost business environment. Nigeria occupied the 146th position out of 190 countries in the 2018 World Bank Ease of Doing Business rankings. This was even as Ghana, Nigeria’s close neighbour and competitor in the African market, ranked 114, while Cote d’Ivoire ranked 122, Togo ranked 137. Other countries that will compete with Nigeria in the free trade market are Rwanda, which ranked 29; Kenya, 61; Senegal, 141; Egypt, 120; Mozambique, 135 and Jamaica, 75, among others. While reacting to President Muhammadu Buhari’s signing of the pact on July 7, the Director General, Manufacturers Association of Nigeria, Segun Ajayi-Kadir, said, “We shall work together to prevail on the government to do its bit by providing the conducive atmosphere. The infrastructure challenge that constitutes supply constraints should be removed.

Source: Punch

Over the last 12 to 18 months, Sub-Saharan Africa (SSA) has emerged one of the fastest growing financial technology (Fintech) hubs in the world in terms of investments, albeit from a low base. Investment in African fintechs nearly quadrupled in 2018 to $357 million, with startups in Kenya, Nigeria and South Africa accounting for the largest share, trend that continued into 2019, with a number of high-profile deals.
For example, three Nigerian fintech start-ups – Kudi, OneFi and TeamApt, each raised around $5 million in funding during the first half of the year. The Global System for mobile Telecommunications Association (GSMA), which gave the statistics, said huge opportunities await Fintech’s investors, stressing that emerging markets including Nigeria, Kenya, and South Africa hold huge potential for fintech innovations. GSMA further added that 395.7 million registered mobile money accounts now exist in the region and that nearly nine in 10 registered mobile money accounts are in East and West Africa. According to the body, which is in charge of over 800 telecoms companies globally, over the past year, several underserved markets in the region have taken steps to accelerate mobile money adoption and, by extension, financial inclusion among citizens. The body noted that in Nigeria, regulatory reforms introduced in October 2018 allow mobile operators to obtain licences to operate payment service banks (PSBs), while in Ethiopia, an ambitious financial inclusion strategy has been attracting investment into mobile money services. Indeed, reforms in Nigeria have seen MTN getting Super Agent license on Tuesday from the Central Bank of Nigeria, with other telecoms to follow suit. GSMA noted that the Angola’s national bank plans to submit new laws governing payment systems, including mobile payments, to parliament for approval in 2019. The telecoms body said these developments notwithstanding, future growth of mobile money services in the region, will be largely driven by interoperability of mobile money services. Account-to-account (A2A) interoperability gives users the ability to transfer between customer accounts held with different mobile money providers and other financial system players. It also disclosed that Tanzania led the way in 2014, but several countries across the region, including Kenya, Rwanda, Nigeria and Ghana, have now launched interoperability projects and use cases. According to GSMA, mobile money providers’ integration with banks is one particular use case that has significantly increased volumes moving between mobile money and banking systems. The body, while charging Nigeria and other countries, informed that a next step in the interoperability journey will be implementation of innovative solutions to integrate mobile money platforms with the broader financial ecosystem. “A number of options exist around central switching infrastructure for the industry to enable nascent use cases to scale, including merchant payments and efficient connections to domestic and international financial system players. This is already happening at sub-regional levels. “For example, the eight countries11 of the West African Economic Monetary Union (WAEMU) are building an interoperable system that will connect 110 million people to more than 125 banks, dozens of e-money issuers, and more than 600 microfinance institutions. “However, much of the existing bank-focused infrastructure is not optimal for mobile money. In an effort to solve this, MTN and Orange, with the support of the GSMA, launched a joint venture to enable interoperable payments across Africa. “Known as Mowali (‘mobile wallet interoperability’), the service is open to any mobile money provider in Africa, as well as banks, money transfer operators and other financial services providers. “With its pan- African footprint allowing for economies of scale and a cost-recovery commercial model, Mowali has the potential to drive down the price of services offered to lower-income customers. “Additionally, Mowali could shape the future of the mobile money ecosystem in the region by creating a common mobile money acceptance brand with the potential to connect fintechs, banks, merchants and other ecosystem players to nearly 400 million mobile money accounts across Africa,” GSMA stated.

Source: Guardian

Rauf Aregbesola, a former governor of Osun state, has revealed his plans for rich Nigeria if he eventually becomes a minster - Aregbesola, speaking at the Senate screening as a ministerial nominee on Monday, July 29, said that he will impose heavy taxes on wealthy citizens in the country.
The former Osun governor said that this move will help to lift the tax burden on small businesses in Nigeria A former governor of Osun state, Rauf Aregbesola, on Monday, July 29, said that if he is made a minister, he will impose heavy taxes on rich Nigerians. Aregbesola, who is a ministerial nominee for President Muhammadu Buhari's second cabinet, said this as he was responding to questions from Senator Theodore Orji (Abia central) during the screening at the Senate on Monday, The Cable reports. The former Osun state governor said that the present taxation system does not pay much attention to the rich men in the country, and as such allowing them to abandon their responsibility to other citizens. He said that the taxes from wealthy Nigerians would lift the burden on small businesses in the country. Aregbesola said: “So, I am going to pioneer privilege taxes for those who have huge resources or wealth from which Nigerians must tap. "If I go into this, there might be some ill feelings in some quarters, so I won’t go deep into that. I will recommend serious taxation for wealthy people in Nigeria.” Earlier, Legit.ng reported that Aregbesola said on Monday that rumours of owed salaries in Osun during his tenure was due to mischief and ignorance. Aregbesola made this known during his turn for ministerial screening and confirmation before the Senate.

Source: Legit

Mikel Obi is in line to make his debut for Turkish side, Trabzonspor, when they play Sparta Prague in Thursday’s (today) Europa League third round qualifying game, Sports Extra reports. The former Super Eagles captain was among the traveling squad of Trabzonspor to Prague. Fellow international, Anthony Nwakaeme, was also included in the 20-man squad. Ogenyi Onazi is however not part of the party, as he is still recuperating from the injury, which has kept him out of the game for eight months. Mikel joined Trabzonspor during the just concluded Africa Cup of Nations in Egypt. He signed a two-year contract with an option of a one-year extension. He joined as a free agent after seeing off his contract with English Championship side Middlesbrough. Mikel was part of the Chelsea squad which won the Europa League in the 2012/2013 season. Trabzonspor will host the second leg of the game at the Medical Park Stadyumu on August 15.

Source: Punch

Paulo Dybala is reportedly now keen on a move to Tottenham Hotspur, who have agreed a fee of around £69m (€75m) for the Juventus forward. Dybala has already rejected Manchester United and was first thought to be cold on the idea of joining Tottenham. However, Italian journalist Alvise Cagnazzo – writing for The Daily Mail – claims the Argentine is now tempted by working under countryman Mauricio Pochettino and living in London. Cagnazzo explains he has been influenced in part by girlfriend Oriana Sabatini, who has aspirations of breaking through as a model. The only issue would be personal terms as the 26-year-old wants to become Spurs’ highest earner on £300,000 (€326,000) a week, putting him above captain Harry Kane. Juve are desperate to shift the attacker as they look to fund a deal for Manchester United striker Romelu Lukaku. The transfer window for English club closes on Thursday, and it is reported the Champions League finalists are currently offering little over half of Dybala’s demands. With that in mind, Cagnazzo warns Dybala could ‘irreparably damage’ his link with the Old Lady if he cannot agree terms with Tottenham as he risks being ‘frozen out’ by new boss Maurizio Sarri.

Source: Punch

Cost of buying goods online may surge next year as the Federal Inland Revenue Service (FIRS) perfects plans to start charging 5 percent Value Added Tax (VAT) on online transactions. Mr Tunde Fowler, the Chairman, FIRS, gave the hint during an interview in his office in Abuja last week.
The Chairman said payments for online purchases using Nigerian credit cards will attract 5 percent VAT, adding that banks would be instructed to deduct the amount during each transaction. “We will address the issue of the digitalised economy very soon. There is no global solution to a digitalised economy. “Different countries have taken different solutions to address the problem. Nigeria has not taken a position yet. But, we are meeting to see if we can come up with a global solution that we can all adapt to. “With the existing laws in Nigeria, we can appoint the banks as agents. First of all, all those who make payments for purchases online using bank cards and instruct their bankers to pay, we will tell the banks that, going forward, everyone who gives instructions for service for purchase online, they should deduct five per cent VAT,” the Chairman said. “We are thinking that maybe early next year, we will advise banks to start deducting five percent VAT for all online purchases done locally,” he added. While this would help curb foreign purchases and ease pressure on the foreign reserves, it will also increase the cost of goods as several imported products are not being produced locally. Also, this may force Nigerian online shoppers to dump Nigerian cards for foreign prepaid debit cards like Payoneer to avoid paying the 5 percent VAT. Payoneer and other foreign prepaid cards charge zero fees on online transactions. This could increase their Nigerian customers’ base even more and hurt Nigerian banks’ interest and fees charged on transactions, especially profit due to foreign exchange and online transactions. Similarly, with the Central Bank pressuring Nigerian banks to increase loans to the private sector and reduce investments in the fixed income market, this new VAT move would erase an estimated N650 billion in banks’ transactions annually and hurt most of the Nigerian e-commerce startups like DHL Africa eshop. It should be recalled that in 2016, Paypal reported that Nigerian online shoppers spent N128 billion in 2015 and N172 billion in 2016 on Paypal alone. Therefore, if online transactions done with Nigerian cards were to be factored in, that number would be over N650 billion annually. With goods worth N650 billion erased from the economy, consumer prices and other import-dependent sub-sector would suffer.

Source: Investor king

Capital market stakeholders have condemned the federal government directive to return Valued Added Tax (VAT), on all stock market transactions, saying the action is disincentive to investment.
Already, dealing member firms of the Nigerian Stock Exchange (NSE), have been directed to charge VAT on all commissions applicable to market transactions effective July 25.A notice to dealing member (stockbroking) firms by Olufemi Shobanjo, Head, Broker-Dealer Regulation at the NSE, recalled its circular dated October 27, 2014, referenced BDR/CIR/GOI/10/14, on VAT exemption on commissions on stock transactions order. This was granted by then Coordinating Minister for the Economy and Minister of Finance, in 2014, as published in the Government’s Official Gazette No. 95, Vol. 101 issued on July 30, 2014. Shobanjo said the order became effective on July 25, 2014, and valid for a five-year period, and will expire on 24 July 2019, following which dealing members, in the absence of a further extension, are to charge VAT effective July 25, on all commissions applicable to capital market transactions. But stakeholders, who spoke in an interview with The Guardian, argued that the market had suffered unprecedented lull with low patronage in the past five years even with the removal of VAT. According to them, the return of VAT would further dampen investors’ appetite on stocks, trigger migration of investment to money market instruments, and deter foreign participation in stock market. They maintained that transaction cost in the Nigerian capital market is one of the highest in the world, noting that this has made it difficult to attract global investors to the equalities market, thus reducing its capacity to contribute meaningfully to capital formation in Nigeria. Recall that the former Finance Minister and Coordinator of the Economy, Dr. Ngozi Okonjo-Iweala, in approving the elimination of stamp duties and VAT on market transactions, said these were a panacea to reviving the Nigerian bourse, which then struggled to bounce back since its crash during the global recession in 2009. Okonjo-Iweala had noted that a vibrant capital market is, essential to the government’s Economic Transformation Agenda, especially in terms of raising the much-needed long-term financing for critical infrastructure and the housing sector. She had said: “Research (by the IMF and the World Bank) has shown that solid economic growth in any country is closely linked to the joint development of the banking sector and the capital markets. While the banking sector has already been cleaned-up, the capital market needs some intervention. “Taxes on stock exchange transactions fees are as high as 12 percent (five per cent in VAT and up to seven per cent in stamp duties) – much higher than in other jurisdictions, and these constitute a major disincentive to invest in the Nigerian capital market. I will like to announce that the Federal Government has consented to: Waive the 0.075 per cent stamp duties payable on stock exchange transaction fees; and,“Exempt from VAT, commissions: (a) earned on traded values of shares, (b) payable to the Securities and Exchange Commission (SEC), and (c) payable to the Nigerian Stock Exchange (NSE), and the Central Securities Clearing System (CSCS); by including these commissions in the list of VAT-exempt goods and services.” Against this backdrop, stakeholders urged the Federal Government to, as a matter of urgency, abolish the withholding tax, VAT, and contract stamp from the market to enable it contribute meaningfully to capital formation.

Source: Guardian

The Court of Appeal, Lagos Division, has ordered the Governorship Election Petitions Tribunal in Lagos State to resume hearing in the petitions challenging the election of Governor Babajide Sanwo-Olu of the All Progressives Congress. A five-man appellate court panel held on Tuesday that the tribunal was wrong to have discontinued hearing on the basis that the petitioners, Alliance for Democracy, and its governorship candidate for Lagos State for the March 9, 2019 governorship election, Chief Owolabi Salis, abandoned their petition. “From the records, it is clear that the tribunal was wrong to have declared the petition as an abandoned petition. “The case is to be remitted to the lower court for expeditious hearing of the matter,” the court held. Similarly, the Court of Appeal overturned the decision of the tribunal dismissing the petition filed by Labour Party and its governorship candidate for the election, Ifagbemi Awamaridi. The appellate court ordered the return of the petition to the tribunal for expeditious determination.

Source: punch

The Federal Inland Revenue Service on Wednesday said it generated N5.23tn for the Federal Government in four years, aside from the income from crude oil. The Chairman of the FIRS, Mr Babatunde Fowler, stated this during his visit to the Chief of Army Staff, Lt Gen Tukur Buratai.
He added that the army’s efforts in ensuring nationwide security had created the “environment for the huge revenue generation.” He said, “We are quite aware that unrest brings about poverty, unemployment and instability, which affect the economy. However, in the last four years, the economy has come out of recession and several sectors of the economy are experiencing improved performance. “That is why in the last four years, we have generated in excess of N5.23tn. This is outside oil revenue, which has never happened before. A part of this reason is that the Nigerian Army has done its beat of dealing with situations that would have caused instability and affected an environment conducive to investment. “If there is anything we can do to assist the army in its operations, but not on the war front, we will be willing to show our support.” Fowler announced the FIRS’ donation of 20,000 books and literature on tax education for distribution to the various Army Command Secondary schools and Command Children schools. The army chief, in his response, commended the FIRS for the improvement in the revenue base of the country. He said, “Improving the revenue generation of the country has helped a lot of investments to flourish and the governance will be better for it. We want to assure you that we will remain undaunted in our mandate. It is our constitutional responsibility to protect and defend the territorial integrity of the country. “We do this with the Nigerian Navy, the Nigerian Air Force and other security agencies playing their part. We are ever ready to continue our responsibilities to ensure that we have peace and stability so that the economy will thrive. So, while we do the physical aspect, you will do the financial aspect of ensuring security.”

Source: Lagos Tv

Wayne Rooney could be on his way to Championship side Derby after owner Mel Morris confirmed on Tuesday that the club were attempting to finalize a move for the former England captain. The 33-year-old has been linked with a player-coach role at Pride Park, where his former England teammate Frank Lampard was given his first opportunity in management last year. He is under contract at MLS side DC United until the end of the 2021 season but reports suggest his wife Coleen is homesick and has returned to Britain with their children. Reports of Derby’s interest in the former Manchester United star emerged shortly before the side, under new boss Phillip Cocu, opened their Championship campaign with a 2-1 victory at Huddersfield on Monday. “It’s literally only been a couple of days in the offing,” Derby owner Mel Morris told Talksport. “The starting point was that we understood he (Rooney) was keen to return to the UK and we decided to see if we could do something off the back of that. “It’s never done until it’s done and obviously we are very focused and keen to get this over the line.” Premier League side Burnley and second-tier West Brom have also reportedly declared an interest in Rooney, who is the record goalscorer for England and United. Rooney has engineered an upturn in DC United’s fortunes since he arrived from Everton and teammate Steve Birnbaum said he had had a major impact. “He’s changed everything, he’s changed the culture of the club,” Birnbaum told the Daily Telegraph. “The work ethic he puts in during practice and you guys see it in the games. We have this sort of confidence or swag going into games because of him.” Rooney gave short shrift to questions about his future last week. “Is that what was in the media? That my wife has got her own way?” he told AFP. “Those reports are a bit far-fetched. I’m concentrating on playing for DC United and trying to get them into the playoffs. I haven’t thought about anything beyond that.” Rooney has made no secret of his desire to move into coaching following contemporaries including Ryan Giggs, John Terry, Steven Gerrard and Phil Neville. “Coaching is something which I have thought about for a long time,” Rooney said. “I’m in the process now of going through my badges. It would be a shame for me to finish playing and just walk away from the game. “I have a desire to go into management and hopefully the right opportunity will come up.”

Source: Punch

Swiss prosecutors said Tuesday they had charged three former German Football Association (DFB) officials, including ex-president Theo Zwanziger, with fraud relating to the 2006 World Cup. In a statement the attorney general’s office said the accused “are alleged to have fraudulently misled the members of a supervisory body of the DFB organizing committee for the 2006 World Cup in Germany ” in April 2005 about the true purpose of a payment of around 6.7 million euros. Hors Schmidt, former secretary of the German football federation, has also been charged with fraud — along with the Swiss Urs Linsi, secretary general of FIFA from June 1999 to June 2007. Wolfgang Niersbach, who was a member of the 2006 bid committee and vice-president of the organizing committee, has been charged with complicity in fraud. Charges of money-laundering were dismissed in July, the OAG said. All four have denied the claims. “This whole Swiss campaign is wretched, malicious and will completely fail, because I have nothing to reproach myself for,” Zwanziger told AFP subsidiary SID. “These incompetent investigators are banging their heads against a brick wall, and the wall will always win. The whole thing has long been a judiciary scandal and there has been no truly reproachable behavior on the part of the accused.” Proceedings against Franz Beckenbauer, a football legend in Germany, also implicated in the investigation, have been deferred because of the 1974 World Cup winning captain’s ill health.

Source: punch

The Executive Chairman of the Federal Inland Revenue Service (FIRS) and Chairman of the Joint Tax Board (JTB), Tunde Fowler, has inaugurated a team of tax experts charged with the responsibility for implementation of the National Tax Policy. He also inaugurated a Technical Tax Policy Drafting Committee which began a workshop on National Tax Policy Implementation same day.
The inauguration was important and in line with the Federal Government’s determination to reform Nigeria’s tax system towards effective economic growth, Fowler said in Abuja yesterday. He said he inaugurated the Technical Tax Policy Drafting Committee same day following the importance and urgency of its assignment to national economy. He also charged the Technical Committee to work harmoniously and assiduously in order come up, within a few weeks, with a tax policy document that will address achieving sustainability in revenue generation, identifying new and enhancing the enforcement of existing revenue streams and achieving cohesion in the revenue ecosystem. The Chairman of the Technical Committee, Ambassador Adeyemi Dipeolu said he assured that assured that the team would work hard to achieve a good result.

Source: Punch

The Chairman, Akwa Ibom State Internal Revenue Service, Mr Okon Okon, has said the service will not spare any company, individual or agency found defaulting in payment of tax to the state government.
He said anyone found defaulting in payment of tax would be prosecuted according applicable tax laws. Okon, who stated the new position at a post-board briefing in Uyo, the state capital, said the agency was currently embarking on enforcement and recovery drive throughout the state. Okon said, “We will not hesitate to prosecute any tax defaulter in line with applicable tax laws. “The service is currently embarking on major reinforcement and recovery drive. I, therefore, urge tax defaulters to honour their civic obligations by paying their taxes promptly to avoid being prosecuted in line with the applicable tax laws.” He said even though the service had made appreciable success over the years with a record of N20bn halfway into 2019, it was not going to relax.

Source: Punch

Investors and dealers are now required to pay Value-Added Tax (VAT) for transactions carried out on the Nigerian Stock Exchange (NSE), following the expiration of a five-year exemption. The previous order on exemption of the tax was enforced by former Finance Minister, Ngozi Okonjo-Iweala.
During her tenure, the minister exempted VAT deductions from commissions earned on the traded value of shares, commissions payable to the Securities and Exchange Commission (SEC), and commissions payable to the Central Securities Clearing System (CSCS). The move to exempt VAT at that time was aimed at reducing the cost of transactions for investors and to encourage investments in the Nigerian capital market. The five-year exemption became effective on Friday, July 25, 2014, and thus ceased on Wednesday, July 24, 2019. In a circular issued by the Nigerian Stock Exchange (NSE), Head of Broker-Dealer Regulation, Olufemi Shobanjo, stated that barring any further extensions from the federal government, VAT was to be charged on all commissions applicable to capital market transactions effective July 25, 2019. Thus, dealing members are required to resume the deduction of VAT on commissions earned. Specifically, the commissions on which the tax is applicable include those earned by dealers on traded values of shares as well as those payable to the NSE and CSCS. Also, the exchange revealed that CSCS would automate the deduction of VAT charged. Consequently, dealing members are to engage their software vendors for the automation of VAT deductions. Furthermore, the NSE directed all dealing members to ensure that the VAT charged on the commissions earned are remitted to the Federal Inland Revenue Service (FIRS) as and at when due; and that the corresponding evidence of remittance is retained for future reference. A Value-Added Tax is an indirect tax which is borne by the final consumer. In relation to capital market transactions, any VAT charged on commissions is passed on to issuers and investors, as the case may be. With the expiry of the exemption, it is expected that capital market transaction costs for retail investors, stockbrokers and institutions will rise. The development also means an increase in compliance costs for operators such as stockbrokers and the regulators in accounting and remitting VAT to the FIRS.

Source: Ventures Africa

The re-introduction of Value Added Tax charges on transactions in the Nigerian capital market takes effect from today, July 25, 2019. The VAT charges on transactions in the capital market were suspended in 2014 by the then Minister of Finance, Dr Ngozi Okonjo-Iweala, to encourage increased trading activities in the market.
Okonjo-Iweala had set up a committee to revive activities on the Nigerian Stock Exchange, following the financial crisis and extended periods of negative market sentiments recorded on the bourse in previous years. The committee reached a decision to waive the 0.075 per cent stamp duties payable on stock exchange transaction fees and exempt from VAT commissions earned on traded values of shares, commissions payable to the Securities and Exchange Commission and commissions payable to the Nigerian Stock Exchange, the Central Securities Clearing System and the NASD OTC Securities Exchange. While stakeholders in the capital market have called for an extension of the waiver period, the NSE and the NASD are set to resume deduction of VAT on commissions applicable to capital market transactions referred, while awaiting further directives emanating from ongoing engagements with the Federal Government on the issue. The NASD said, “We shall notify the market of any new developments, but in the absence of none, kindly take this as a notice to resume deduction of VAT on commissions applicable as this will ensure a smoother and more transparent OTC market.”

Source: Investor king

A law firm, SimmonsCooper Partners, alleged by a newspaper report to be associated with or involved in a N100 billion tax evasion scandal with Alpha Beta Consulting Limited, has refuted the allegations and given the newspaper 72 hours to retract the accusation or face legal actions for defamation and malicious falsehood. The report alleged the law firm, formerly headed by Prof. Yemi Osinbajo SAN, before he was elected the Vice President of Nigeria, served as Company Secretary to Alpha Beta Consulting Ltd.
In a statement signed by the Managing Partner of SimmonsCooper Partners, Mr Dapo Akinosun, yesterday, the law firm refuted the story, stating that it is not involved neither does it have a link with the alleged tax evasion. He further stated that the firm has never been retained by Ocean Trust Limited to offer secretarial services as alleged by the newspaper report. “As is custom with filings as Company Secretary, there is no acceptance letter by the firm consenting to the purported appointment, or any other filing undertaken by the firm as Company Secretary at the registry of the Corporate Affairs Commission”, he said. Akinosun acknowledged Osinbajo as a “one-time senior partner” of the law firm who resigned from the firm upon his election as Vice President of Nigeria, in line with international best practices. “SimmonsCooper Partners is a product of the combination of her members’ intellectual capital, industry and integrity garnered for several years. We are proud that Osinbajo continues to epitomize these values even in public service. “SimmonsCooper Partners intends to seek redress to the fullest extent available in law and has requested the newspaper to do all of the following: Remove from publication in their entirety the defamatory publication and all online threads to prevent further harm to the firm’s business; produce an apology and a declaration that the allegations referred to are false and defamatory and cause such apology to be published in each of the forums which have given or could give reason for our complaint; make proposals for the payment to us of damages for the harm caused to our reputation; and undertake to actively monitor and delete any newly published defamatory content relating to the firm. “If the defamatory publication and threads are not permanently removed and the above undertakings are not complied within the stipulated period, SimmonsCooper Partners reserves the right to undertake further action as appropriate.”

Source: guardian

The Joint Tax Board (JTB) Chairman, Mr. Tunde Fowler, on Thursday, expressed optimism that 45 million Nigerians would be within the taxpayers’ net before the end of the third quarter of 2019. Fowler disclosed this at the inauguration ceremony of the new South West Regional National Taxpayer Identification Number (TIN) registration system and consolidated national taxpayers’ database in Lagos.
Fowler, who is also the Executive Chairman, Federal Inland Revenue Service (FIRS), explained that the new system would promote a tax-friendly environment. He noted that the last four years had seen the expansion of the tax base from 10 million to 20 million tax payers with the potential for an increase of up to 45 million before the end of the third quarter. The JTB boss added that there had been growth in the Internal Generated Revenue of states by 46.11 per cent from N800.02 billion in 2016 to N1.16 trillion in 2018. According to him, growth in FIRS collections increased by 53.81 per cent from N3.30 trillion in 2016 to N5.32 trillion in 2018; with the 2018 total collection of N5.32 trillion being the highest collection ever in the history of FIRS. He said non-oil revenue accounted for 54 per cent with a collection of N2.85 trillion during the period. “We hope that this gesture will encourage state governments to also promptly remit all Withholding Taxes and VAT due to the Federation Account,” Fowler stated. Fowler said the new system would reinforce the laudable efforts of the present administration towards building a robust tax-revenue system, promoting a tax-friendly environment. He added that the system will also ensure a sustainable and inclusive economy for all Nigerians. Fowler noted that the new tax system, while improving the efficiency and output of the entire tax administration process, was meant to provide convenience to both the taxpayers and the tax administrator. He said the new system guaranteed that each taxpayer’s details were readily available to them at their fingertips all times. Fowler stated that the South West Geopolitical Zone was the largest contributor to total IGR collection at the sub-national level with 45.6 per cent contribution in 2018. He added that Lagos State had continued to carve a niche for itself in terms of innovation and dynamism in tax administration. Fowler said the new system would consolidate the efficiency and effectiveness of the tax administration process. The JTB Executive Secretary, Mr Oseni Elamah, said the dynamics of change globally, especially as it related to information and communications technology had made it imperative that domestic tax-revenue the administration met up with emerging trends. Elamah said the new TIN Registration System and its consolidated database of individual and corporate taxpayers’ had been designed to form the foundation upon which the nation’s automated tax administration system was built. “The new system is a web-based solution that offers access to authorised users to initiate a TIN request from the comfort of their homes/offices real-time online, verify their tax status and print their TIN certificate. “It is a transparent system that assures timely and accurate collection and recording of basic identification data. “It also permits the tax administrator to understand its taxpayer base for effective revenue projections and other planning activities. “By leveraging on existing data from relevant identity management agencies, the new system reduces the burden of multiple registrations of taxpayers as well as promoting the ease of doing business and paying taxes,” Elamah said. Also speaking, Lagos State Governor, Mr. Babajide Sanwo-Olu, said identity management (IM) had been a major challenge in virtually all spheres of activities in the country and tax administration was no exception. Sanwo-Olu stated that the new JTB National TIN Registration System was a welcome addition to reforms focused on taking identity management and tax administration in Nigeria to the next level. He agreed that Nigeria’s tax revenues continued to underperform their actual potential, and that Nigeria tax-to-GDP ratio was one of the lowest in the world at less than seven per cent. The governor commended JTB for rising up to the challenge with the introduction of a smart, innovative and technology-driven the solution that was credible and had the added benefit of universal acceptability.

Source: Daily times

An aggressive tax drive through tech-driven process will wean federating States from overdependence on federal allocations, Lagos State Governor, Mr. Babajide Sanwo-Olu, has said. Lagos, Sanwo-Olu said, understood the challenges associated with overdependence on federal handouts early enough, prompting the State to pursue an inclusive revenue generation push to achieve financial autonomy and reduce its reliance on crude oil earnings.
The Governor spoke on Thursday when he officially flagged off the new National Taxpayers Identification Number (TIN) Registration System and Consolidated National Taxpayers Database in the Southwest region. The new TIN was introduced by Joint Tax Board (JTB) – a body headed by the Executive Chairman of Federal Inland Revenue Service (FIRS), Mr. Babatunde Fowler. Sanwo-Olu said the sustenance of Lagos’ tax collection drive in the last 20 years had helped to insulate the state from the effects of decline in revenue derived from Federal Account Allocation Committee (FAAC), arising from the 2014 crash of global crude oil prices. He said: “With improved tax revenues, governments of the federating states can begin to wean themselves from an overdependence on crude oil earnings. In Lagos, we very much understood the importance of this early enough. “The overwhelming success of our tax collection drive over the last 20 years has helped, in no small measure, to insulate Lagos from the worst effects of the decline in FAAC allocations resulting from the 2014 crash of global crude oil prices. Many other states in the federation were not as fortunate.” To achieve improved revenue generation, the Governor said there was need to pursue efficient tax compliance among the citizens, pointing out that an improved tax collection and tax compliance drive would be a win-win policy for the government and the people. He said: “We know that as the level of tax compliance rises, citizens are more inclined to hold their governments accountable and demand a higher quality of governance and service. “Citizens everywhere in the world are constantly seeking easier ways of engaging with their governments and fulfilling their civic responsibilities. It is the duty of governments to respond to this need by removing barriers that inhibit compliance.” How would the government achieve higher tax compliance? “It is through technology,” Sanwo-Olu declared, adding that a tech-driven process remained the vital tool that should be leveraged by the government to actualise the purpose. He said: “This new Taxpayer Identification Number Registration System demonstrates the transformative power of technology as a significant contributor to the ease of doing business reforms, both at the national and sub-national levels. More critically, this also aligns with our agenda of leveraging technology to drive change across various economic sectors. “I believe there is still a lot of room for improvement on the progress made but this laudable initiative we are flagging off today will go a long way in bridging tax deficit by capturing eligible tax payers within the tax net.” The Governor praised the JTB and FIRS for the introduction of “a smart, innovative and technology-driven solution” in achieving higher tax compliance. Sanwo-Olu urged the media to play its role in educating the public on the importance and benefits of the new tax collection approach. Fowler, in his remark, said it was instructive Lagos was picked as suitable location for the flag-off of the new TIN Registration System in the Southwest, noting that first-ever tax transformation effort started in the state in 1999. The FIRS boss said the Southwest was the largest contributor to the tax generated in 2018 among sub-national zones. This, he said, was as a result of vibrancy in economic activities in the zone. He said the new TIN Registration System would not only improve the efficiency of tax administration system, but would also reduce the cost and challenges associated with tax collection process. JTB Executive Secretary, Mr. Oseni Elamah, said the new registration system had addressed the challenges of multiple registrations previously experienced, adding that it had also strengthened transparency in collection process.

Source: Ecomium

Background
Section 19 of the Companies Income Tax Act (CITA) imposes tax at 30% on a company where it declares and pays dividends in excess of its total profit. The relevant total profit is the profit of the year from which the dividend was declared and not the profit of the year in which the dividend was paid.
The tax imposed by section 19 is generally referred to as Excess Dividend Tax [EDT]. Previous decisions of the Tax Appeal Tribunal [TAT], Federal High Court [FHC] and Court of Appeal [CoA] on section 19 have all been against the taxpayers.
Facts of the appeal
The company involved in this case declared and paid dividends to its shareholders in financial year 2014 even though it had no taxable profits for the year. Based on the audited financial statements, the dividends paid were from retained earnings which had suffered tax in previous accounting years.
Taxpayer's position
The company's arguments are:
Section 19 is an anti-avoidance provision introduced to curb tax avoidance schemes where a company pays dividends out of accounting profits or distributable reserves without paying any tax on such distributions. As an anti-avoidance provision, section 19 must be applied to cure tax avoidance schemes only. In the instant appeal FIRS' application resulted in double taxation since the retained earnings from which the dividends were paid had already been subject to tax in previous years, the mischief rule as opposed to the literal rule should be applied to achieve the objective of section 19. before section 19 is applied, FIRS must be able to establish that a taxpayer had carried out a tax avoidance scheme. The company also asked the Tribunal to distinguish the earlier decisions because in this case, there was uncontroverted evidence before the TAT that the taxpayer had not carried out any tax avoidance scheme.
FIRS's position The FIRS's position was that section 19 should be interpreted literally. It argued that in applying the section, two things should be considered: the year of assessment in which the dividend was paid; the total (taxable) profit of the company for that year. Where the dividend exceeds the taxable profit or there is no taxable profit, the excess should be deemed as profit and subject to tax.
The decision The TAT, following previous decisions, applied the four-step test established in those decisions, ruled against the taxpayer. The TAT refused to distinguish the appeals even though there was evidence that the taxpayer paid tax in previous years on the profits from which the dividend was paid.

Source: Mondaq

Bayern Munich coach Niko Kovac is adamant their pursuit of Manchester City winger Leroy Sane is still on. BILD says Bayern have re-engaged with City over a fee for the Germany international – and have received a positive response. “Our managers have shown a clear plan, which is agreed. We are very focused and goal-oriented. Leroy knows what to expect here. If a player with such capacity moves to FC Bayern, he knows his duties,” said Kovac. “You can see that the transfer is not easy. But I know that our people work very hard to make it work. We will do everything to realise this transfer. We all know that Leroy Sané is our dream player. The public knows that, we know that.”

Source: Punch

The French government is to impose a tax of up to 18 euros ($20) on plane tickets for all flights from airports in France to fund less-polluting transportation projects, a minister said Tuesday.
The move, which will take effect from 2020, will see a tax of 1.5 euros imposed on economy-class tickets on internal flights and those within Europe, with the highest tariff applied to business-class travellers flying outside the bloc, Transport Minister Elisabeth Borne said.

Source: Punch

The Lagos State Internal Revenue Service (LIRS), on Wednesday, shut down the premises of Debonairs Pizza and thirteen other companies (including several hospitality firms), over alleged failure to fulfill tax obligations.
According to the Director of Legal Services for the Lagos State tax agency, Mr Seyi Alade, the exercise was initially suspended, but will now be pursued until full compliance is met. “Now, the service has resumed sealing of firms particularly the hospitality firms; it is committed to continuing the exercise until full compliance to tax payment and remittance are achieved.” What is capital allowance. Mr Alade also added, with dismay, that less than 65% of the corporate organisations in Lagos pay tax. The remaining percentage of companies in the state go about their various businesses without paying taxes to the Lagos State Government. Meantime, the other companies that were sealed off, according to theLIRS’ Head of Distrain Unit of the LIRS, Mrs Ajibike Oshodi-Sholola, include;
Piccolomondo Restaurant,
Virgin Rose Resorts,
Precinct Comfort Services,
Villa Angelia Hotel, Allied Management Ltd.,
Ocean Suites,
Sabitex Hotel,
LCCI Hall,
Extended Stay Hotel,
Monarch Gardens Ltd.,
La Maison Hospitality Ltd., and
Villa Toscana Hotel.
Furthermore, Mrs Oshodi-Sholola explained that the companies were audited for 2014 to 2016, after which it was discovered that they were yet to remit their taxes for the period. She said that letters of intent to distrain were sent to the management of the companies. While some of them paid up their taxes and an extra N250,000 as the cost of distraint, others did nothing about it; hence the move. “Before LIRS embarks on sealing, it must send two letters to the management of the affected firm, reminding it of tax liabilities. Both the demand notice and letter of intent to distrain were sent to the management of hospitality firms but they failed to act.”

Source: Nairamatric

The Rivers State Board of Internal Revenue has urged the Rivers State High Court sitting in Omoku to jail the acting Managing Director of the Niger Delta Development Commission, Prof. Nelson Brambaifa, and three other officials of the commission for alleged disobedience to a court order.
The RSBIR accused Brambaifa and the other alleged contemnors of acting contrary to an April 17, 2019 order of the court, which directed the commission to pay the state N50bn “being outstanding tax liabilities owed the Government of Rivers State by the respondent (NDDC).” According to the RSBIR, the court further ordered the NDDC to pay an additional N20bn “as cost incidental to the recovery of the amount owed.” The agency said in a bid to enforce the April 17 court order, it sealed off the premises of the NDDC on April 23. It, however, said officials of the NDDC, without any court order, went ahead to unseal the commission’s premises on May 6 “and repossessed same and it (NDDC) is in use of same.” The RSBIR admitted that the NDDC had appealed against the April 17 court order directing it to pay the state N50bn and another N20m. It, however, noted that the application for the stay of execution of the order which the NDDC filed came after the RSBIR had already executed the court order. As a result, the RSBIR is urging the court to commit Brambaifa and three others to prison for alleged contempt. Apart from Brambaifa, others whom the RSBIR urged the court to jail are Mr Chris Amadi, Mr Adjogbe Samuel and Mr Kaltungo Moljengo.

Source: Punch

The Chartered Institute of Taxation of Nigeria says it is supporting the proposed plan by the Federal Government to introduce Value Added Tax on online transactions.
A statement quoted the newly elected 14th and third female President/Chairman of Council, CITN, Gladys Simplice, as saying this after her investiture recently in Lagos. Simplice was also inaugurated as the second female president of the West Africa Union of Tax Institutes. She said the plan should have been introduced to the economy long ago as the same practice was obtainable in other climes, because the nation was losing a significant amount of revenue due to that. She said, “The amount of money we are losing because we are not tracking these online transactions is huge. Even if we are not getting it fully right at the beginning, let’s talk about it, let’s bring it into our conversation and let’s put it into action. “In some climes, as you are transferring money, it is being taxed; even invisible trades are being tracked. So, when taxable incomes are earned, they must be taxed. I support it.” Her presidency came to fruition following the successful conduct of the 27th Annual General Meeting of the institute where Simplice was unanimously elected president of the CITN. Other elected officers of council include Mr Adesina Adedayo as vice- president; Samuel Agbeluyi as deputy vice- president, and Mr Innocent Ohagwa was elected as the honorary treasurer. She explained that the new executives, under her leadership, would strictly adhere to the CITN’s mission in taking ownership of taxation in the country, noting that they were going to address development needs of all tax practitioners in terms of capacity building. “We will embark on the education of taxpayers; we are going to partner with the government and international bodies. At the moment, we have received an international invitation for partnership talk,” Simplice added. While praising the leadership of the FIRS, she said, “The chairman of Federal Inland Revenue Service, Babatunde Fowler, has taken the right steps. You would have noticed that everybody is talking about taxation now. In this country, FIRS has brought taxation to the consciousness of Nigerians. No one can claim ignorance of taxation: we have been educated. No one has an authentic reason to evade tax.”

Source: Punch

The Joint Tax Board (JTB) has launched a new national registration system that would enable Nigerians to obtain their taxpayer identification number (TIN) online.
The new system launched in Abuja is also targeted at tracking all eligible taxpayers in the country. Launching the new platform, Vice-President Yemi Osinbajo expressed hope it would go a long way in reforming Nigeria’s tax system while ensuring better service delivery for citizens. Tunde Fowler, JTB chairman, said the new system will provide a unique identity to the taxpayer and facilitate ease of compliance. He said its main objective is to leverage already captured data of eligible taxpayers by relevant government institutions to discover hidden trends and patterns that could lead to better visibility and revenue generation for the government.

Source: Governance news

Tunde Fowler, Chairman, Federal Inland Revenue Service (FIRS) has announced the possibility of the agency to increase the country’s tax base by over 100 percent to 45 million before the end of Q3 2019, a target which would hopefully expand the country’s low tax revenues. Nigeria’s has a low tax base currently put at about 20 million with its tax to GDP one of the world’s lowest at 7 percent, according to official figures.
Fowler speaking at the official flag off of the new National Taxpayer Identification Number (TIN) Registration System on Monday in Abuja, said that the tax-revenue administration has evolved into a Systematic and deliberate process that is underpinned by the availability of accurate and reliable data and would now help expand the database of the taxpayers He said “The new tax revenue administration system entails deliberate and strategic planning initiatives with the potential for an increase of up to 45 million before the end of the third quarter of 2019”. The chairman explained that the new reality drives the desire by the Joint Tax Board to ensure that the identification of individuals and corporate bodies in Nigeria is achievable adding access to credible and reliable data is essential to ensure that the revenue potentials of the country is maximally harnessed. “The role that data plays in today’s world cannot be overemphasized, and for the revenue potentials of the country to be maximally harnessed, it is also essential to facilitate the ease of doing business and for the nation to achieve its overarching economic objectives in line with the Economic Recovery and Growth Plan (ERGP)”. “We are confident that the new system will add immense value to tax-revenue administration in the country, not only in terms of processes and procedures, but in terms of efficiency and ensuring a coordinated and systematic approach towards managing revenue generation as well as tax information sharing between and among tax authorities both within and outside the country”, he added. Fowler speaking further stressed that the new system also provides lmménse benefits to the taxpayers as it provides consolidated database as well as facilitates ease of compliance and limits the incidence of double taxation and is a prerequisite for a number of transactions such as sale and purchase of immoveable property, registration of vehicles’ applications for plot of land. “While we are yet to take delivery of taxpayer data from some of the organizations such as the Central Bank of Nigeria (CBN) via the Nigeria InterBank Settlement System (NIBBS), and the National Identity Management Commission (NIMC), we believe that today’s ceremony will reinforce the need for us to work together as one to promote the Economic and Recovery Growth Plan of the President”, he said. He noted the achievements made so far said the agency has recorded expansion of the tax base from 10 million to 20 million taxpayers in 2018, as well as growth in the IGR of States by over 46.11% from N800.02 billion in 2016 to 141.16 trillion in 2018 and growth of FIRS collections from N3.30 trillion in 2016 to N5.32 trillion in 2018; with the 2018 total collection of N5.32 trillion being the highest collection ever In the history of the FIRS. In the Tax Administration Section of World Bank ‘Ease of Doing Business’, Nigeria moved up positively by 25 points during the period and it is expected that the country would further move up the rankings by the time the review for 2019 is published. “Today’s event which has brought together all Tax Authorities with a common vision and goal, is poised to change the financial profile of Nigeria and particularly, lay a strong financial foundation to fund government at all tiers beyond aid, grants and borrowing”

Source: Business day

The new national Taxpayer Identification Number (TIN) registration system and consolidated tax database will ensure value addition to tax revenue administration and facilitate the ease of doing business, the Federal Inland Revenue Service (FIRS) has said.
The system, which consolidates individual and corporate taxpayers’ records, provides a unique identity to the taxpayer as the foundation of the country’s automated tax administration system. The Chairman of FIRS, Tunde Fowler, said the system is a web-based solution offering access to authorised users to initiate TIN request from the comfort of their homes/offices real-time online, verify tax status and print TIN certificates. Mr Fowler said the system assures timely and accurate collection and recording of basic identification data. It also permits the tax administrator to understand its taxpayer base for effective revenue projections and planning, he added. He was speaking at the official launch of the new system by Vice President Yemi Osinbajo on Monday in Abuja. The FIRS Chairman, who is also the Chairman of the Joint Tax Board, said with tax administration in the 21st century evolving into a systematic and deliberate process based on availability of accurate and reliable data, the new system will ensure the identification of individuals and businesses. He said available tax records through the system would not only be credible and reliable, “they would be readily accessible under a secure environment, online and real time”. “For the revenue potentials of the country to be maximally harnessed, it is essential that credible and reliable data is available for use,” he said. Ease of doing business. Such records, he said, are essential to facilitate the ease of doing business and to help Nigeria achieve its economic objectives in line with the Economic Recovery and Growth Plan (ERGP). RIPAN Campaign AD. Other benefits of the new system, Mr Fowler said, include boosting efficiency and ensuring coordinated and systematic approach towards managing revenue generation and tax information sharing between tax authorities in and outside the country. He said the consolidated database limits the incidences of double taxation. It also serves as a prerequisite for the sale and purchase of immovable property, registration of vehicles, applications for plots of land, import and export licence, registration as a contractor, and entry visas. Mr Fowler said the system has potentials to help the FIRS increase its tax base from the current 20 million taxpayers to about 45 million before the end of the third quarter of 2019. Leverage, synergy. The Executive Secretary, JTB, Oseni Elamah, said the new system leverages on existing data from relevant identity management agencies to reduce the burden of multiple registration of taxpayers, ensure seamless integration and exchange of information among the various tax authorities. Mr Elamah said the new system will ensure the process of domestic tax-revenue administration meets up with the developing trends in information and communication technology.

Source: Premium Time

The Peoples Democratic Party and the Coalition of United Political Parties on Saturday criticised President Muhammadu Buhari for asking the governors of the 36 states to increase Value Added Tax in the next four years. Buhari had, while inaugurating the National Economic Council for its 2019-2023 session at the Presidential Villa in Abuja, told the governors to raise their internally generated revenue and VAT in the next four years.
He told the governors to increase the taxes in such a manner that there would be no disruptions to business operations. But the National Publicity Secretary of the PDP, Mr Kola Ologbondiyan, in an interview with our correspondent in Abuja, said VAT increment would further impoverish the already traumatised Nigerians. He urged Buhari to rather explore more revenue generation platforms by harnessing the abundant natural resources and investment opportunities in the country than inflicting more taxes on Nigerians. According to him, PDP will never support VAT increment. Ologbondiyan said, “How can we support VAT increment? It will further traumatise the people. We cannot support it. There are several opportunities for government to get money and deliver dividends of democracy to the people that have not been explored in this country. “What is the government doing about opening more frontiers for investments in our nation? It is not just going after the people and increasing taxation at the slightest opportunity. That is not governance. PDP can never support increase in VAT.” The CUPP spokesman, Mr Imo Ugochinyere, said it would be insensitive to increase VAT. He accused Buhari of not managing national resources at his disposal very well, adding that Buhari should close up all avenues for revenue leakages. According to him, VAT increase will collapse many businesses and worsen unemployment in the country. Ugochinyere said, “This matter came up during the election and we said clearly that the timing was wrong. It is the height of insensitivity. The little resources that have been available, the President has not shown judicious use of them. He has not taken control of the government. There has been a lot of waste. He still has about N2bn or N3bn for feeding in Aso Rock. “They should close all the loopholes that have been taking our money. He can save a lot. The economy is not stable for you to start taxing people the more. By doing that, more businesses will close and unemployment will increase. “This is not the right time to increase VAT. They should first of all stabilise the economy and secure the country.”

Source: Punch

Mr. Babatunde Fowler, Chairman, Joint Tax Board (JTB) and Federal Inland Revenue Service (FIRS), explains to select journalists, how the new tax identification number registration system, scheduled for launch on Monday, will bring convenience to the taxpayer, boost tax compliance and revenue collection. Olaoluwakitan Babatunde was there There is a plan by the Joint Tax Board, which you chair, to introduce a new a New Tax Identification Number (TIN) Registration system. What is this about?
We call it a new TIN Registration process and will be launched by the Vice President on 1 July. Before now, we have had people undergoing training on how to utilise this. And what this system basically does is to take information already in our system plus what we have in our national tax database. So once it is launched, we have to run it and have it come on the national database for the whole nation, both for companies and individuals. What this implies is that if you have a tax clearance in Kano State, for example, and you are coming to Lagos for transaction, instead of the man in Lagos confirming your tax clearance documents that you brought from Kano, he only needs to click the button and everything shows live. That is what the system does. The system brings innovation, convenience and transparency to tax authorities and taxpayers by enabling tax authorities efficiently manage their taxpayer base, while enabling taxpayers to view, retrieve and update their tax profiles at the comfort of their homes or offices. The new JTB TIN will be universal throughout the country and can be used by taxpayers to pay for any tax type. This reduces the burden of having to register for multiple TIN numbers from different tax authorities and states, as it lever ages on the biometrics we’ve got on BVN, from tax agencies, the Corporate Affairs Commission (CAC) and National Identity Management Commission (NIMC). So it brings in all onto a common platform. It also notifies taxpayer through a robust and secure system-to-system integration. What are the benefits to tax authorities? Clearly, the benefit would be convenience and transparency. If you are resident in one state and you go to transact business in another state, say, quote for a contract, it is in the law that part of the criteria is to have a tax clearance certificate. Immediately, an officer in the ministry will check if the individual name or your company name and your tax data are clearly are available. On the other side, if you have underpaid, like you paid a N100, 000 in Ogun State and you want to buy a property in Lagos for N10 million, the man clicks the button and asks how you can afford a N10 million property in Lagos based on the income on which you paid a tax of N100,000. So basically, it is a situation that is open and provides the taxpayer and the tax administrator with the same knowledge. So, it is not a matter of you trying to tell the tax official I pay adequate tax or for the tax official to demand inducement for tax clearance. How much trust can the taxpayer have in this new system and does it completely remove the need to physically visit tax offices? You don’t have to because we do all these things online. Now when you talk about trust, basically what the system does is to keep all your tax payments. And that currently operates in Lagos, which is one of the few states where it operates. Any payment in Lagos State, for example, over the last five years or six years, is available at the click of a button. This is what we have done with this new system. So even for some states that do not have the capacity of the financial muscle to do it, we have put it all together in one place. So, once you key into that system, you have the same benefit as the taxpayer.

Source: This day

All over the world, taxation is the means of funding government businesses. The fiscal and monetary policies of any government are essentially the use of taxation in combination with other policies to regulate the economy. But taxation policy of government is not only to raise funds, it is also to grow the economy.
Taxation can also be used as an instrument to redistribute incomes. Taxation is therefore a handy tool for variety of uses. Taxation is a double edged sword. If correctly used, could boost the economy. Its wrong uses has grave consequences for the government, the people and the business environment. Kogi State seems not to have got its tax policy right. It is very sad to note that while other states use taxation policy to generate funds and correct imbalances in their economies, Kogi State is using its own tax policy to fast track and catalyze the killings of micro, small and medium scale businesses in its domains. It is even sadder to note that those who stole government monies to build sudden business empires in the State are not taxed, while the tax authority is running after the ‘Mama Alakara’, ‘Mama alata’, ‘Mama oniyo’, ‘Mama oniru’ and slamming them with outrageous taxes. The effect of this regressive and oppressive tax system is that many of the businesses which are the engine of growth of the State are beginning to close shops. A case of killing the goose that lays the golden eggs. The problem is that the tax officials don’t want to know whether a business is making profit or losses before giving them unbearable tax burdens. The tax people keep taxing the capitals of these businesses rather than their profits. They capitalised on the fact that these poor people hardly know how to keep any accounting records for the purpose of taxation. Many of them have hardly started a business for a month before they were admitted to taxes. And since they know little about the operating laws of taxes, they yield to defeat. Those who understand the laws head for the Court. Today, there are so many tax cases against Kogi Government in various courts. Nobody is against taxes. Taxes are legitimate but government must first encourage the buildings of the businesses such that will encourage regular tax payments by the owners. The real problem is that many of these small, small businesses were established from LAPO or some forms of cooperative loans. The businesses die soon after because of regressive tax system of the government that makes payment of these loans impossible. The most painful aspect is that many of the businesses killed by government tax system are owned by some very old pensioners, who hoped to operate there businesses for survival since their pensions and gratuities were never forthcoming. So while this category of people could not access their pensions, the small businesses they place hope on for survival were forced to close down by heavy taxes. What a vicious circle The tax people know where to get real taxes but they will not go there. Drive round the city of Lokoja and other places and you will see huge houses, huge petrol stations, huge hotels, event centres, shopping malls etc. These businesses were being hurriedly put together by emergency billionaires who are stealing our money on regular basis without paying taxes. Let us look at a typical case of the State regressive tax policy. Recently, the Tax authority has asked all private schools’ operators in Kogi State to start paying about N350k as tax or risk being closed down. I am sure this will mark the end of many private schools in the State. And this is a State where public school system has collapsed completely. The new tax system on the education sector may collapse an era of good education in the State. I also know some transporters that relocated from Kogi because of excessive taxes. Many hotels in the State are closing down for the same reason. In effect, many more workers are being laid off because of inappropriate tax policy of the Government. If you go to the stalls of some provision stores, you can count on your finger tips the number of item there. Yet, these businesses are the focus of the tax drive of Government. The rural areas are also not spared of this regressive tax policy. Kogi can operate a good tax system without killing the businesses. All they need to do is to pay salaries of workers fully and regularly. These monies become the purchasing power by which the business environments thrive and are able to pay taxes regularly and with ease. At the moment, the government of Kogi prides itself on increased revenue accruing to the State from IGR. But I bet, this will be short lived. Except Government builds and sustains taxable persons and taxable businesses, it will soon have nothing to tax. Government must provide conducive environment for progressive taxation otherwise the present exploitative tax system can only last for a while. For very soon, there will be nothing left to tax.

Source: Kogi Report

The Chairman of the Federal Inland Revenue Service (FIRS), Babatunde Fowler, has said the Voluntary Assets and Income Declaration Scheme (VAIDS) generated N93 billion at the end of the exercise. Fowler, who disclosed this while speaking with Daily Trust, yesterday on the side-line of an official assignment in Lagos, said: “We realised a little over N93 billion.
Out of which about N66 billion has been paid. It also helped increase the numbers of tax payers in the country.” Speaking on the next line of action, Fowler said, part of the conditions was that those believed to have been honest in their dealings will not require further audit. He said a few others did not provide sufficient information and the service had contacted them to bring forward more information failure of which will lead the FIRS to take the normal cause of action. Fowler further disclosed that in the last two years, FIRS had a 100 per cent increase in terms of the number of tax payers: from 10 million to 20 million. “We already have machinery in place right now and we believe that if we get the required cooperation, that number should go to 45 million before the end of July,” he added. He said FIRS is set to launch the new Tax Identification Number process. “We call it a new TIN (TAX identification number) registration process. That is going to be launched by the vice president, Yemi Osinbajo, on the first of July. Prior to now, we have people undergoing training on how to utilise it. “What this system basically does is that, it takes the information already in a system plus what we have in our national tax data base. Once launched, we have one tax data base for the whole nation, both for corporates and individuals. “What that implies is that, if you have a tax clearance in Kano State and you are coming to Lagos for a transaction, instead of the man in Lagos confirming your physical tax clearance paper, he just hits a button and your tax history will show life,” Fowler stated. He further noted that the system also helps with the capacity to capture biometrics from individuals’ BVN or those captured from the Corporate Affairs Commission. He argued that the benefit will be convenient and transparency. “If you have a resident who goes to transact business in another state, immediately, your tax position is shown. If you are going to bid for a government contract in line with the law, part of the criteria is to have a tax clearance certificate,” he added. He disclosed that the information from the data base will be made available to all revenue collection agencies and government agencies where one has to transact business and it will improve revenue generation. “Even for politicians, they require tax certificate. So INEC will have access to it and can tell if the politicians have tax certificate,” he also said. Speaking on meeting the N8 trillion target for 2019, he said “As at today, we are on course, but our high months of collection are June, July, August and September.

Source: Daily Trust

Nigeria have moved two places up the FIFA Women’s rankings, following their first Round of 16 appearance at the FIFA Women’s World Cup in 20 years. The rankings were released on FIFA’s website on Friday. The African champions are now ranked in the 36th position with 1643 points, but they remain the continent’s top placed team. The News Agency of Nigeria (NAN) reports that the exploits of the U.S. at the tournament see them retain their top spot as the world’s best. Jill Ellis team strengthened their hold after defeating four fellow top-six nations in the process to extend their lead to 121 points over Germany who are second. The world champions amassed 2180 points against 2059 by the German side, who lost to Sweden in the quarter-finals. This has become the largest gap in the ranking’s history. The Netherlands, who were runners-up at the World Cup in France, moved five places up to the third position and are the biggest movers within the top 10. After their Cinderella run to the final in what was only their second ever participation in the world finals, the Dutch’s third place ranking is the country’s best-ever position. For the African teams, Cameroon who alongside Nigeria reached the Round of 16, rose five places up with 1552 points in the 41st position to become Africa’s second best team. Debutants South Africa retain their 49th spot in the world and are third on the continent’s list. Also, Gabon returned to the ranking for the first time since August 2016, placed 124th, after their impressive away win over Congo in the 2020 Olympics qualifiers. Sweden’s bronze-medal finish at France 2019 sees them make the second-highest move within the top 10. They moved from the ninth to sixth position and return to the top six for the first time in over two years. The ranking itself reached a new milestone with the number of teams increasing from 155 to 158. This means no team needed to be removed due to prolonged inactivity, which is an all-time record. The next FIFA/Coca-Cola Women’s World Ranking will be published on Sept. 27.

Source: Punch