₦airaland Forum

The Chartered Institute of Taxation of Nigeria has elected new officers to steer the affairs of the th Institute for the next two years. Following the successful conduct of the 27 Annual General Meeting of the Institute, the leadership baton of the Institute was officially passed on to Dame.
Gladys Olajumoke Moyosoreoluwa Ayinke Simplice, by Chief (Dr.) Cyril Ikemefuna Ede, FCTI, who has immediately taken over the position of the Immediate Past President. Dame Simplice was unanimously elected the 14th President of the Institute at an Extra-Ordinary Council Meeting held at the Secretariat of the Institute. Other elected officers of Council included: Mr. Adesina Adedayo, FCTI – Vice President, Barr. Samuel Olushola Agbeluyi, FCTI – Deputy Vice President and Mr. Innocent Ohagwa, FCTI was elected as the Honorary Treasurer. Dame Gladys Olajumoke Simplice started her academic career at Araromi Baptist School, Moloney, Lagos while her secondary education was at the Methodist Girls High School, Yaba, Lagos and Premier Grammar School, Lafenwa, Abeokuta. She commenced her Higher School Certificate (HSC) with Adeola Odutola College, Ijebu-ode and finished at the Saint Gregory’s College, Obalende, Lagos. Thereafter, she proceeded to Ahmadu Bello University, Samaru, Zaria where she graduated with a B.Sc in Economics. Dame Simplice commenced her tax career with the Federal Inland Revenue Department, (now Federal Inland Revenue Service) and retired after 27 years of a fulfilling and meritorious service. Due to her diligence during her service years, she was given a contract appointment as Head, Channels Management of the Corporate Communication Department of FIRS in 2009. She made a lot of improvement in the Department and initiated the idea of a Revenue Museum which is still a work in progress at FIRS.

Source: Sun News

Governor Muhammad Inuwa Yahaya of Gombe state has approved the appointment of Umar Babagoro Bello as the new Accountant-General of the state with immediate effect. The appointment was contained in a statement issued to newsmen on Monday by Yakubu Mamman, on behalf of the Head of State Civil Service, Alhaji Bappayo Yahaya.
Babagoro, who was a Director for several years at the Treasury House, the office of the Accountant General of the state, was recently promoted to Permanent Secretary by Governor Yahaya. A graduate of Accounting from Kaduna Polytechnic; he previously worked at the National Orthopaedic Hospital, Dala in Kano state and the Federal Medical Centre, Gombe. Babagoro later transferred his services to the state government and joined the treasury department. Meanwhile, the head of service has reshuffled twelve permanent secretaries in the civil service. The affected permanent secretaries are: Barrister Obel Yaji from Ministry of Metropolitan Development to Agriculture; Usman Sambo Abubakar, Deputy Governor’s office to Land and Survey; Mohammed Salisu Waziri, office of the Head of Service to Metropolitan and Urban Development; Adamu Musa Kumo from Special Duties to Information; Laraba Ahmed Kawu from Health to State Pension Bureau and Zainab I. Haruna from State Pension Bureau to Health. Others are: Ibrahim Sulaiman from Ministry for Local Government to Animal Husbandry and Nomadic Affairs; Mohammed Manu Malala from Trade and Industry to Local Government; Sule Bappaji from Rural Development to Education; Musa Umar Sani from Local Government Service Commission to Deputy Governor’s office; Benjamin Wabida from Housing and Transport to Rural Development and Muhammad A Umar from office of the Head of Service to Government House.

Source: Daily trust

A former Minister of Finance, Mrs. Zainab Ahmed, yesterday said the federal government was planning to increase the rate of value-added tax (VAT) to 7.5 per cent from the current five per cent by 2020. This is as the government seeks to shore up falling revenue, according to Bloomberg.
Speaking at the Bloomberg Emerging & Frontier Forum in London, the former minister, whose tenure ended with President Muhammadu Buhari’s first term on May 29, said that her main preoccupation while in office was how to raise government’s revenue with only 55 per cent of targets being met. Buhari, who was re-elected for a second four-year term, is yet to constitute a new cabinet. She said: “We have developed a strategic revenue growth initiative, which we have started to implement. “Our target is to increase revenue to 65 per cent minimum in 2019 so that in the next three years we are able to attain 80-85 per cent of our revenue target.” However, earlier plans by government to increase VAT had been vehemently opposed by Nigerians. In April, following a public backlash, Executive Chairman, Federal Inland Revenue Service ((FIRS), Mr. Babatunde Fowler, refuted reports it had proposed a 50 per cent increase in VAT when he appeared before the National Assembly to defend the agency’s 2019 budget. But Fowler maintained that his position was misrepresented as he actually recommended an increase in the number of Nigerians and companies paying VAT and not the other way around. A statement issued by his media department to debunk the claim stated: “Though he indicated that there should be an increase in the VAT rate by the end of the year, he never for once suggested a 50 per cent hike or any percentage increase at all. “Rather, he promised improved collection in CIT, Petroleum Profits Tax, PPT and VAT in 2019 relative to the collection performance of the service in 2018. “In 2018, FIRS collected the sum of N1.1 trillion in VAT; N1.42 trillion in Companies Income Tax (CIT); and N2.4 trillion in Petroleum Profits Tax (PPT).” Also, Ebonyi State Governor, Chief David Umahi, had further opposed the proposed plan by the federal government to lift Value Added Tax (VAT) from five per cent to 35 per cent, stressing that it would put the country in difficult situations. The governor had said that the plan, which was proposed by the federal government in order to pay workers’ salary with the implementation of the N30,000 minimum wage, was like digging a hole to fill a hole. According to the National Bureau of Statistics (NBS), the federal government generated N1.10 trillion as VAT in 2018, representing a growth of 13.96 per cent (year-on-year) when compared to the N972.34 billion collected in 2017.

Source: Investor King

The Tax Appeal Tribunal, South East Zone, has said that gratuities are tax exempted under the Personal Income Tax Act. The tribunal made the declaration while delivering judgement in the appeal Nigerian Breweries Plc brought against Abia State Board of Internal Revenue, challenging the decision of the Board to tax gratuities paid to its employees.
The Appellant in appeal No. TAT/SEZ/002/17 set out three grounds of appeal, among which are “that Respondent (ASBIR), erred in law when it assessed the Appellant’s employees to tax on gratuities paid by the Appellant.” The Appellant, through its counsel, Moshood Olajide, contended that under the finance (Miscellaneous Taxation Provision) No. 2 Decree 1996 amended section 3(1)(b) of PITA 1993 by deleting gratuities as income chargeable to tax. That by the clear wording of the 1996 Decree, gratuities are no longer taxable, and, therefore, remained the extant position in the PITA 2011 (as amended). He, therefore urged the Tribunal to discharge the assessment notice issued by the Respondent and a declaration that by the virtue of Decree 1996 all gratuities are tax exempt. But the Respondent, through its counsel, Obike Onyemeru, urged the tribunal to dismiss the appeal and sustain the demand notice. While he argued that there was no law expressly exempting gratuity in excess of N100,000 from tax, he contended that item 18(b) of the 3rd schedule to the PITA, CAP P. 8 LFN, 2011 (as amended) “has not been repealed and remains the extant law.”

Source: Investor King

The Lagos State Internal Revenue Service (LIRS) on 30 May 2019 issued a Notice informing the public of the new Tax Identification Number (TIN) which will be issued to every individual, registered business and incorporated companies.
The issuance of the new TIN follows the deployment of a new tax administration system by the LIRS called the Lagos State Government Electronic Banking System (LASG-EBS) and the integration of the LASG-EBS Taxpayers Identification Digit (PID) with the Joint Tax Board (JTB) nationwide TIN. The new TIN which will provide individuals and companies access to the LASG-EBS will be biometric based and will also be linked to the Bank Verification Number (BVN) of the individuals or companies.
Benefits
The integration of the LASG-EBS PID with the JTB nationwide TIN and the subsequent issuance of a new TIN is expected to:
• Facilitate seamless sharing of taxpayer's data with the JTB, State Internal Revenue Services and other stakeholders;
• Eliminate multiple payer IDs;
• Simplify registration of taxpayers;
• Encourage ease of doing business; and
• Reduce the cost of compliance borne by the taxpayer and the tax authorities etc.
Requirements For Obtaining New TIN
BVN validation is required for access to the LASG-EBS platform for all transactions including issuance of new TIN, payment of taxes, registration etc. All employers are therefore required to include the BVN of employees on their electronic tax clearance certificate (e-TCC) application forms before submission to the LIRS for processing. All self employed individuals are also required to provide their BVN to the LIRS. This would assist the LIRS in creation of the new TIN.
Legal Basis For BVN Request
Section 47 of the Personal Income Tax Act (PITA) 2011 gives the LIRS the authority to request for any information from any person for the purposes of obtaining full information in respect of his or her income or gain. The LIRS has assured taxpayers of the security of the BVNs in their custody in accordance with Section 48 of PITA 2011 which does not allow the LIRS to disclose such information except:
• In any legal proceeding arising from PITA; or
• To any tax authority ; or
• In accordance with any provision of an arrangement, with respect to taxes, made with any other country.
Effective Date
The LIRS is yet to announce the start date for the issuance of the new TIN as the merging of the LASG-EBS PID with the JTB’s TIN is still ongoing. However, taxpayers are required to start submitting BVNs immediately to the LIRS.
Takeaway
The move towards an integrated TIN is reflective of the government’s desire to ease doing business and also encourage federal and state authorities to collaborate more in order to ensure a more efficient and effective tax administration system in the country. The deployment of the LASG-EBS and the integrated TIN should provide a platform for proper and easy tax administration for the LIRS if properly implemented and will provide both the LIRS and taxpayers’ access to tax records and payments.

Source: Proshare

In line with its commitment to deepen the capacity and growth of businesses in Nigeria, particularly the Small and Medium Scale Enterprises (SMEs), First City Monument Bank (FCMB) will on June 26, 2019 host a seminar on tax matters in Lagos.
The seminar, tagged, ‘’Tax Enforcement and Implications on Businesses in Nigeria’’, is aimed at equipping entrepreneurs with requisite knowledge on taxation by promoting the exchange of ideas between tax regulators and businesses on existing and emerging tax matters to ensure compliance and avoid sanctions. The one-day seminar would have in attendance SMEs operating in various sectors, including, trading, manufacturing, agribusiness, renewable energy, creative industry, digital technology, healthcare, schools and individuals running businesses in their personal names or accounts. The director of enforcement, Federal Inland Revenue Service (FIRS), Emeka Obiagwu would be the guest speaker at the event, the lender said. In a statement, FCMB said topical issues relating to the country’s tax system and laws as well as other fiscal policies that impact on the profitability and overall success of businesses would be discussed at the seminar by the guest speaker and other professionals. It would also provide an opportunity for entrepreneurs to understand their rights and responsibilities, especially as regards taxes, such as withholding tax and value added tax, among others. There will also be a session by FCMB Pensions Limited to enlighten participants on new pension initiatives in the country, the implications for SMEs and the attendant benefits. Responding to inquiries about the seminar, the Executive Director, Business Development of FCMB, Bukola Smith, reiterated that the commitment of the Bank is to go the extra mile in empowering businesses with relevant technical and financial know-how that would boost their performance and contribution to national development. ‘’As the dynamics of taxation continues to change in Nigeria, we recognise that many businesses, especially SMEs, in the country are not equipped with the requisite information and knowledge to discharge their responsibilities in this area appropriately. It is based on this reality that we decided to organise a seminar on tax matters, which will go a long way towards helping SMEs to understand taxation and the processes involved better’’. Smith added: ‘’As an inclusive lender that places a lot of importance on best practices, FCMB considers it imperative to ensure that our customers in the SME space conduct their businesses in a responsible, transparent manner and under full compliance within all applicable laws, rules, regulations and policies’’. First City Monument Bank (FCMB) Limited is a member of FCMB Group Plc, which is one of the leading financial services institutions in Nigeria with subsidiaries that are market leaders in their respective segments. Having successfully transformed to a retail banking and wealth management led group, FCMB expects to continue to distinguish itself through innovation and the delivery of exceptional services.

Source: Punch

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has stated that it has so far recovered the sum of N57.7 billion from Deposit Money Banks (DMBs) in its ongoing monitoring and verification exercise on tax collections by the financial institutions. The banks had been contracted by both the Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service (NCS) to collect revenues on their behalf.
This is as the commission further has insisted that its current verification exercise on tax collections by banks was within its mandate as contained in Section 6(1) of the RMAFC Act, 2004. This section, according to the agency, provides that the commission shall have powers to among others, monitor the accruals to and disbursement of revenue from the Federation Account. The commission had come under criticism from a section of the public over the legality of the exercise. Nevertheless, the commission, in a statement issued by its Head, Public Relations, Ibrahim Mohammed, further explained that the sum of N48.7 billion had already been recovered and remitted into the Federation Account, while the balance of N9.07 billion, which related to withholding tax on dividend had been duly released to the benefitting states Boards of Internal Revenue (SBIR). In its previous exercise covering January 2008 to June 2012, RMAFC had announced the recovery of the sum of N4.2 billion from the banks, and had promised more recoveries. Following the subsequent approval by the National Economic Council (NEC), which launched the second phase of the exercise covering the period July 2012 to December 2015, the sum of N57.7 billion was reportedly recovered from the exercise. According to the statement, “It is worth clarifying that RMAFC does not deal with individual tax payers directly but monitors collections by collaborating with sister agencies like the Central Bank of Nigeria (CBN), Nigerian National Petroleum Corporation (NNPC), Department of Petroleum Resources (DPR), Nigeria Customs, and FIRS to ascertain how much was actually collected and remitted into the Federation Account so as to minimise revenue leakages. “It was not a tax authority but a revenue watchdog that monitors revenue collections by revenue generating entities like the FIRS, Customs, DPR, NNPC and others that remit directly into the Federation Account. The revenue streams that accrue into the federation account under the watch of RMAFC include tax (Withholding Tax and Vat), Royalties, Signature Bonuses, custom duties, tariff.” “In order to ensure transparency and accountability in revenue generation and remittance with a view to reducing revenue leakages, the commission seeks further collaboration and cooperation of revenue generating and regulatory agencies, anti-corruption agencies as well as the civil society and the media,” the agency explained.

Source: This days

The Nigeria Employers Consultative Association (NECA) has called on state governments to engage in an aggressive taxpayer enlightenment as well as expansion of their tax net to increase their Internally Generated Revenue (IGR). The call was made following President Muhammadu Buhari’s advice to State Governments to increase Value Added Tax (VAT) in an attempt to increase their IGR.
NECA said that increasing VAT this time to increase IGR is not only misplaced but will further impoverished citizens that he promised to take out of poverty as well as do more harm to the already burdened private sector. Director-General, NECA, Timothy Olawale, who stated that the President meant well by urging state governments to be innovative in increasing their IGR, and at the same time prudent in their expenditures, also argued that state governments cannot unilaterally increase VAT without the amendment of the VAT Act at the National Assembly. According to him, it is the common man that will definitely be at the receiving end of any increase in VAT. Even if businesses are taxed more through likely illegal levies and rates outside the provisions of the law, they will naturally pass the cost to the customers whose purchasing power is already at the lowest ebb. Proposing a way out, Olawale said both the federal and state government must engage in an aggressive taxpayer enlightenment and expansion of the tax net to capture more citizens, stating that less than 40% of Nigerians are tax compliant.He suggested that the States should put mechanisms in place to eliminate leakages as a large chunk of the IGR realised does not find their way into government coffers. Olawale advised governors on reduction on cost of governance, while several unnecessary retinues of aides kept by them at prohibitive cost to the State are needless. “Besides, ingenious idea of corrupt practices in the name of security votes and frivolous foreign travels by State government functionaries are veritable examples of cuttings in avoidable expenses draining state government purses.”

Source: Guardians

The Tax Appeal Tribunal, South East Zone, has declared that gratuities payable to pensioners are tax exempted under the Personal Income Tax Act (PITA). The tribunal made the declaration while delivering judgment in appeal brought before it by Nigerian Breweries PLC in 2017, challenging the decision of the Abia State Board of Internal Revenue for taxing gratuities paid to its retirees.
Nigerian Breweries in the suit No. TAT/SEZ/002/17 set out three grounds of appeal. “That Respondent Abia State Board of Internal Revenue (ASBIR), erred in law when it assessed the Appellant’s employees to tax on gratuities paid by the Appellant.” NB through its Counsel Moshood Olajide contended that under the finance (Miscellaneous Taxation Provision) No. 2) Decree 1996 amended section 3(1)(b) of PITA 1993 by deleting gratuities as income chargeable to tax, that by the clear wording of the 1996 Decree, gratuities is no longer taxable, and therefore, remains the extant position in the PITA 2011 (as amended). He therefore urged the Tribunal to discharge the assessment notice issued by the Respondent and a declaration that by virtue of Decree 1996 all gratuity are tax exempt. But, the Respondent through its Counsel, Obike Onyemeru, urged the tribunal to dismiss the appeal and sustain the demand notice. While he argued that there was no law expressly exempted gratuity in excess of N100,000 from tax, he contended that item 18(b) of the 3rd schedule to the PITA, CAP P. 8 LFN, 2011 (as amended) has not been repealed and remains the extant law. Delivering judgement in the appeal the three-man panel of tribunal agreed with the submissions of the Appellant and resolved all three grounds of appeal in its favour. The Chairman of the Tribunal, Chukwuemeka Eze, who read the judgement cited the decision of the Supreme Court which held that “it has been settled principle of statutory interpretation that although schedules of a statute can be useful handmaid in construing the provisions of a statute, they cannot however be interpreted to over-rule the plain words in the body of the statute.” The Tribunal therefore, held that Paragraph 18(b) of the 3rd Schedule to the PITA does not apply to the Appellant. It said: “The stand of the law before the charging section captured in section 3, PITA of 1993 was that gratuities were chargeable under section 3 PITA. That PITA of 1993 did not provide for exemption of gratuities from personal income tax. The remedy provided by PITA 2004 was the deletion of gratuities from the charging section of PITA of 1993 in order to cure the mischief. “So, by applying the mischief rule of interpretation, the same result ensues, that is: gratuities are tax exempt under the extant Personal Income Tax. Therefore, the Tribunal is resolved in favour of the Appellant. “Consequently, an order is hereby made discharging the revised assessment notice issued by the Respondent to the Appellant on April 24, 2017.”

Source: Today

As part of efforts to strategically sanitize and coordinate the tax system of the third tier of Government in Uyo, the Chairman of Uyo Local Government Council, Elder Imoh Okon, on Wednesday, June 18, took to Akpan Andem Market to interact with Market Women. The Chairman, Uyo Local Government Council, Elder Imoh Okon, with traders.
The council boss who was in the company of the Chairman of Akwa Ibom State Environmental Protection and Waste Management Agency, Mr Prince Ukim, and Council Supervisors: Hon Mfon Asuquo, Hon Linus Effiong among others, said that the interaction became necessary as a result of the feedback that have trickled in lately from a cross section of the occupants of the market about irregularities in toll payments. He further added that his administration is still committed to the placement of maximum premium on sanitation as it was when he took over office in December 2017, and advised the shop owners to make provision for waste bins and to ensure proper disposal of their baggage. In a related development, Elder Okon pledged to make a roster of every toll payable to the council coffers as a reference in the event of discrepancy. “I have spoken with a number of traders in this market in the last two hours of touring this market, and what is common in your speech is the sea of inconsistent figures as toll payment of which some have not shown evidence in form of receipts. I have taken note of the different categories of payment including security, sanitation and electric power tariff, and I will ensure that they are well gazetted and hung at every entrance of this market in a bid to completely tame the tide of conflicting figures in this tax system.” Speaking earlier, traders in the market took turns to eulogize Elder Okon’s developmental blueprint, describing it as a square peg in a square hole. The Local Government Chairman also gave out cash gifts to men, women and youths in the market.

Source: platinum

Rivers State Internal Revenue Service (RIRS) has set July 1, 2019 as a final plan and rollout date for the rollout of the state’s much-talked about informal sector tax drive. The state has also completed tax delineation of the state into tax zones.
The executive chairman of the RIRS, Adoage Norteh, who broke the news weekend at a full meeting with stakeholders at the Hotel Presidential, Port Harcourt, said the Nyesom Wike administration had made it clear in launching the tax drive in the informal sector. The executive chairman said he was determined to make Rivers State move into informal tax regime without violence and chaos. He announced the formation of a committee to join the RIRS and review the policy and make suggestions. Speaking at the meeting, Norteh told the over 300 tax group leaders that the market and business unions would help to make the drive seamless and without rancour. He said the members would represent the opinions of the informal business people and may help in collection by submitting list of their members. He announced that the union leaders might get some commission for their effort instead of giving the money to tax consultants. He however made it clear that the RIRS would not concede the task of tax assessment and collection to touts or untrained groups. He asked for collaboration instead. The RIRS at the meeting forged an alliance with trade groups to fight touts. Norteh said he was determined to reduce or eliminate revenue touting in the state. He marvelled at the lamentations of groups who recounted encounters with touts that had since printed RIRS receipts and collected money in the name of the government using youth bodies, councillors and others. He educated them once again on critical issues that bring friction between the tax authority and taxpayers. He said directors of tax were only on salaries and not the profit made by the company, which must be taxed too. He warned against under-declaration of income, saying there were many other ways of discovering the truth because of red flags, and made it clear that though religious houses do not pay tax but their operators must be taxed for incomes they personally take home. Some stakeholders made contributions but many urged RIRS to continue the tax education. Speaking, the president of the Port Harcourt Chamber of Commerce, Industries, Mines and Agriculture (PHCCIMA), the chief, Nabil Saleh, said Norteh has done exactly what has been lacking. Youths made presentations and demanded to be involved in the drive but the RIRS boss explained that the agency raises money which the state government spends to develop the state.

Source: Business day

The Institute of Chartered Accountants of Nigeria has again accredited the Accounting/ Accountancy programme of Moshood Abiola Polytechnic, Abeokuta (MAPOLY). ICAN certificate dated 10th May, 2019 which was presented to the Rector of the Polytechnic, Dr. Samson Adeola Odedina, certified that MAPOLY has fulfilled all the requirements by the Institute for the accreditation of Accounting / Accountancy programmes in the tertiary institution.
According to the Director, School of Business and Management Studies, MAPOLY, Dr. Oluwakemi Oyefesobi who led the Head of Department and other lecturers in the department to present the certificate to the Rector said the accreditation, which is for three sessions, was based on adequate teaching facilities and qualified lecturers mostly fellows of the ICAN who are in the ranks of the academic staff of the Polytechnic. By this accreditation, graduates of Accounting from Moshood Abiola Polytechnic, Abeokuta (MAPOLY) will only have to sit for two instead of four stages of the ICAN professional examinations. In the same vein, three students of Accountancy Department of the Polytechnic; Osifola Stella Tolulope, Imoleayo Michael Joseph and Udeh Emmanuella Ijeh were qualified as Chartered Accountants in the final year of their studentship in the last diet. The Director, SBMS, confirmed that it has been the culture of the department to produce Chartered Accountants at every diet of ICAN professional examination. The Rector, on behalf of the Management, has since congratulated the the students for their success in the professional examination and wish them well in their future endeavours.

Source: The News

President Muhammadu Buhari on Thursday asked the governors of the 36 states to raise their internally generated revenues and the Value Added Tax in the next four years. The President said this was to help the states to meet the challenges of providing infrastructure and the funding needed to provide equipment for fighting insecurity.
However, the President told the governors to raise the taxes in such a way that there would be no disruptions to business operations. Buhari, who spoke at the Presidential Villa in Abuja when he inaugurated the National Economic Council for its 2019-2023 session, also advised the governors to pay adequate attention to education, agriculture and health. But the Nigeria Employers’ Consultative Association, Lagos Chamber of Commerce and Industry, Association of Telecommunication Companies of Nigeria and the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture have cautioned the government against increasing tax and VAT, saying it would add to Nigerians’ burden. They advised the government to strike a balance between its desire to raise IGR and VAT with job creation. Rather than contemplating VAT and tax increases across the board, the Federal Government should increase the tax of the rich and politicians. But at the NEC chaired by Vice-President Yemi Osinbajo, on behalf of the President, Buhari insisted that without IGR and VAT increment, it would be difficult for the state governments to meet their needs. He said, “Going forward, states must in the next four years find ways to increase internally generated revenues, improve Value Added Tax collection and increase agricultural output without disrupting business activities. “I also want you to work with the federal agencies and the service providers in ensuring that broadband infrastructure is made available all over the country. Information and Communications Technology is the future of work and we must not allow ourselves to be left behind. “Let me restate the high expectations on NEC as a veritable source of articulating policies and programmes that are expected to drive growth and development, secure our environment and take the country to the next level. Your Excellencies, the challenges that confront us in the next few years, especially in the areas of security, human capital development and employment for our youths are monumental and historic. But we are more than equal to the task.” The punch recalls that as of 2015, many states could hardly afford to pay salaries to their workers, resulting in backlogs of uncleared wages. The Federal Government had to intervene through the offer of bailouts to the states, restructuring of loans and Paris Club Refund, totalling N2tn to reflate the economies of the states. The financial situation in many of the states today is said to be worse than the case in 2015, amid dwindling revenue shares from the Federation Account. On security, the President called for collaboration between the Federal Government and the states, while he also told the governors to focus more on education, health and agriculture in the years ahead. Buhari added, “While the Federal Government has primary responsibility for security and will not shy away from it, the states also have a critical role to play; in particular Your Excellencies, as state governors. You can definitely make a difference, not just by assisting the security agencies in your respective states, but also by keenly pursuing policies and programmes that forestall communal, tribal, religious and societal conflicts; policies and programmes that promote education, information, dispute resolution, vocational training and youth employment. “I have no doubt that if these four areas – security, education, health and agriculture – are actively implemented and closely monitored by NEC and the Nigeria Governors’ Forum, we shall in the near future see a more peaceful and prosperous Nigeria.” The President also asked the governors to run an inclusive government, irrespective of the political party in control of power in their respective domains.

Source: Punch

The Ebonyi State Government has ordered the sealing off of the popular building materials’ market, on Afikpo Road, Abakaliki, the state capital. The order to seal off the market, which was given by Governor David Umahi, followed the refusal of the traders to pay income tax.
Umahi, who directed the Secretary to the State Government to liaise with the committee on building materials and the Abakpa Market, ordered the immediate relocation of the traders to the International Market. “Work with the committee on building materials and the Abakpa Market. I want them (traders) to relocate to the International Market. The building materials’ market should be sealed off. They (traders) have refused to pay income tax,” Umahi stated. Investigation by Southern City News revealed that there were plans by the state government to relocate the traders to another place. It was gathered that the state government had earmarked the site of the building materials’ market for the building of an interstate polo park, even as the planned relocation had not gone down well with the traders. Efforts to get the reaction of the Chairman of the Abakaliki Building Materials’ Market, Ifeanyi Nwudele, were unsuccessful as he refused to comment on the matter. He simply said, “There is nothing happening.” On the relocation order, a trader, Mr Nweke Chinwendu, told our correspondent that the state government had provided a place for the traders at the International Market and commended it for the plan, saying they were paying exorbitant rents at their present location.

Source: Punch

In line with its commitment to deepen the capacity and growth of businesses in Nigeria, particularly Small and Medium Scale Enterprises (SMEs), First City Monument Bank (FCMB) will next week in Lagos, host a seminar on tax matters. The seminar, tagged, “Tax Enforcement and Implications on Businesses in Nigeria,” is aimed at equipping entrepreneurs with requisite knowledge on taxation by promoting the exchange of ideas between tax regulators and businesses on existing and emerging tax matters to ensure compliance and avoid sanctions.
The one-day seminar would have in attendance SMEs operating in various sectors, including, trading, manufacturing, agribusiness, renewable energy, creative industry, digital technology, healthcare, schools and individuals running businesses in their personal names or accounts. The Guest Speaker is the Director of Enforcement, Federal Inland Revenue Service (FIRS), Mr. Emeka Obiagwu. In a statement, FCMB said topical issues relating to the country’s tax system and laws as well as other fiscal policies that impact on the profitability and overall success of businesses would be discussed at the seminar by the guest speaker and other professionals. It would also provide an opportunity for entrepreneurs to understand their rights and responsibilities, especially as regards taxes, such as withholding tax and value added tax, among others. There would also be a session by FCMB Pensions Limited to enlighten participants on new pension initiatives in the country, the implications for SMEs and the attendant benefits. Responding to inquiries about the seminar, the Executive Director, Business Development of FCMB, Mrs. Bukola Smith, was quoted to have reiterated the commitment of the bank to go the extra mile to empower businesses with relevant technical and financial know-how that would boost their performance and contribution to national development. According to her: “As the dynamics of taxation continues to change in Nigeria, we recognise that many businesses, especially SMEs, in the country are not equipped with the requisite information and knowledge to discharge their responsibilities in this area appropriately. “It is based on this reality that we decided to organise a seminar on tax matters, which will go a long way towards helping SMEs to understand taxation and the processes involved better.”

Source: Thisdays

The Chartered Institute of Taxation of Nigeria (CITN), has said the non-remittance of taxes by some Federal Government agencies is frustrating efforts in enforcing compliance from individuals and corporate organisations. CITN, which argued that the development is worrisome, accused such agencies of not showing good example in compliance processes.
The Institute is particularly worried about the revelation in an audit report by the Auditor-General for the Federation, submitted to the National Assembly in 2018. The report showed the Presidency; both chambers of the National Assembly; the Economic and Financial Crimes Commission (EFCC); and over 100 other ministries, departments and agencies (MDAs) defaulted in remitting various taxes, including Value Added Tax (VAT), and withholding taxes deducted from their contractors and PAYE of their staff. To curb such unwholesome practice, CITN at it 2019 yearly general meeting, argued that tax units should be created in government agencies and MDAs, and such units should be manned by qualified tax professionals to handle tax matters professionally, and in line with relevant tax laws. President of CITN, Cyril Ede, who, in his welcome address gave an overview of the operating environment during the period, said the delay in approving the 2018 budget affected implementation and increased fiscal uncertainty by pushing the bulk spending to the second half of the year. He, however, said increased earnings from oil, and the impact of various reforms in tax administration, including the tax amnesty programme resulted in a narrowed fiscal deficit. Ede said sustained engagement with the relevant government institutions towards giving greater value to CITN’s certificate, stamp and seal is also yielding results. On membership strength, Ede said the Institute would devote efforts towards increasing its value offerings to members and stakeholders, and to make CITN a brand of choice and influence in the comity of professional bodies in Nigeria. At the meeting, election was held where Ms. Gladys Simplice emerged as the new president.

Source: Punch

The two labour unions at the Federal Inland Revenue Service have reassured Nigerians, the Federal Government and FIRS management that they will ensure that the N8.8 trillion revenue target for 2019 is realised. Comrade Okere Samson, Chairman, FIRS chapter of the Association of Senior Civil Servants of Nigeria, and Comrade Idris Hassan of the Nigerian Civil Service Union, (FIRS chapter), gave the assurance during the week after their meetings with FIRS Chairman, Tunde Fowler.
According to public notices circulated by the unions to FIRS staff, the FIRS Chairman has raised the level of staff welfare and unfolded a slew of pro-staff decisions that will enable staff to realise their individual and organisational goals. Fowler jerked up subsistence allowance from 20 per cent to 30 per cent (it was 10 per cent before the Chairman’s appointment in 2015), pegged payment of Key Performance Indicators at 70 per cent instead of 80 per cent for non-oil tax receipts, directed expedited payment of first 28 Days Movement Allowances to staff on transfer, approved meal, children education and maintenance grants – once staff meet target and attain some consensus on the vacancies for 2018 and 2019 promotion exercises. Apart from increase of subsistence allowance, staff have also been paid wardrobe allowances, while quarterly bonus on met or exceeded target in revenue collection, 13th month salary and payment of equity contribution to benefiting staff of the FIRS Mass Housing Scheme have also been approved. An amount has been provided in the 2019 budget for to this effect. In the two documents circulated to all staff, titled: “Update on Staff Matters, signed by Comrade Samson, and another co- signed by Comrades Hassan and Jimoh Idowu, the two unions rededicated their commitment and that of their members to the realisation of the N8.8 trillion target of the Service. The documents detailed staff welfare issues discussed at a meeting between the two unions and FIRS Management held on June 6 and another on June 10, 2019 as well as resolutions reached. Comrade Hassan said: “This is to inform FIRS Staff that following continuous engagement between Nigeria Civil Service Union, (NCSU) and Management of the FIRS, Management has been able to address most of the issues raised like increment of subsistence allowance to 30%, reduction of KPI (Key Performance Indicators) benchmark from 80% to 70% of non-oil, and payment of terminal benefits to staff among others.” In another document titled: “Matters Arising from the NCSU Meeting with Management,” Comrade Hassan said: “Based on the above, the Union hereby implores all staff to be of good behaviour, remain dedicated and hardworking in order to achieve the set revenue target for the Service. We, the Executive of NCSU assure our members and entire staff of the Service of our support and also continue to engage Management for better welfare and reward hard work. We equally assure Management of our continuous support as partners in progress towards the actualisation of the goals and objectives of the Service.” The Chairman of ASCSN counselled the staff to work harder towards ensuring that the Service realises its 2019 revenue target, while the union keeps engaging the Management to always appreciate and reward staff for hard work. On proposed staff grants such as meal subsidies, children’s education and furniture maintenance grants, Samson said that the FIRS Chairman has directed the Director Human Capital to implement the payment of the grants once the FIRS attains 70 per cent of its non-oil revenue target after the third quarter of the year. All outstanding severance benefits to retired staff have been approved for payment to staff that exited the Service since November 2018, while the FIRS Chairman directed that more working tools such as printers, laptops and furniture be provided by Directors in charge of Facility and Efficiency to ensure timely distribution of such tools to field offices. On the 2018 and 2019 promotion exercise, Fowler, stated Samson, directed the association to meet with the Director, Human Capital Management Department for a review of the promotion vacancies and revert to the Management for approval. Specifically on those who passed but were not accommodated on account of vacancies, the NCSU Chairman, Comrade Idris Hassan, said: “Chairman (Fowler) directed the Union to liaise with the Director Human Capital and Director, Legal to work out modality on how to resolve the issues within the ambit and provisions of the laws and the HRPP, (Human Resources Policies and Processes).” Fowler assured staff that all outstanding severance benefits to retired staff have been approved for payment to staff that exited the Service since November 2018.

Source: Punch

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The Tax Appeal Tribunal sitting in Abuja on Wednesday fixed June 19, to deliver judgment in an appeal of N29. 2 million remittance on Value Added Tax (VAT) filed by Infinity Trust Mortgage Bank. The bank is challenging the Federal Inland Revenue Service (FIRS) for imposing the amount.
The tribunal headed by Alice Iriogbe fixed the date after parties in the suit adopted their final written addresses. The appellant is seeking the order of the tribunal for the annulment of the FIRS’s assessment or demand notice dated May 17 and July 6, served on it with penalty at 10 per cent and interest at 15 per cent. Responding, FIRS stated that the letter of reviewed and audited accounts were valid and issued in accordance with the relevant provisions of the law. FIRS sought the tribunal to declare that the VAT demand served on the Bank was valid and made in accordance with the law. The respondent further sought for a declaration that the VAT transaction by the appellant outside the main objectives of its business, is liable to VAT. FIRS further sought for an order compelling the appellant to pay to the respondent the sum of N29. 2 million being its VAT liability for the period of 2015 to 2016 as contained in the demand letter. At the resumed sitting , Mr Olumide Olujimi, counsel for the appellant in adopting his address, urged the tribunal to uphold the appeal and the reliefs sought. Mr Thiwhi Dauda, counsel for FIRS also urged the tribunal to discountenance the appeal and order the appellant to pay.

Source: Punch

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West Ham completed the signing of promising Spanish international midfielder Pablo Fornals on Friday from Villarreal for a reported fee of £24 million ($30 million). “Fornals, who becomes the second-most-expensive signing in the club’s history behind Felipe Anderson, has signed a five-year contract, with an option of a further year,” said West Ham in a statement. The 23-year-old scored nine goals in 96 appearances for Villarreal, including a memorable late winner away to Real Madrid in January 2018, but is best known for his threat as a creator from midfield. “He is a player we have monitored closely for some time, having seen him make excellent progress as a young midfielder in one of the best leagues in the world,” said West Ham director of football Mario Husillos, who previously worked with Fornals at Malaga. “I personally have followed his career since he was a youth player with me at Malaga, and I know we have signed an incredible professional and an incredible character.” Fornals joins an array of attacking talent at the London Stadium, including Anderson, Marko Arnautovic and Andriy Yarmolenko and admitted that the chance to work with a former Malaga and Villarreal manager in Manuel Pellegrini helped convince him to move to the Hammers. He told the club’s website: “Manuel was a big influence because in the end, he is one of the best coaches in the world and who doesn’t want to work with people like that? “I feel very good, very happy and very grateful for the opportunity that has been provided to me.” West Ham finished 10th in the Premier League in Pellegrini’s first season in charge.

Source: Punch

The Toronto Raptors captured their first NBA crown on Thursday, defeating Golden State 114-110 to become the first league champion from outside the United States by dethroning the defending titleholders. Kyle Lowry and Pascal Siakam each scored 26 points while Kawhi Leonard and reserve Fred VanVleet each added 22 as Toronto won the best-of-seven series four games to two. Leonard was named the NBA Finals Most Valuable Player for the second time in his career after the first in 2014 with San Antonio, which traded him to Toronto last July. “Last summer I was going through a lot. I just kept working hard and had my mind set on this goal right here,” Leonard said. “This is why I play basketball. This is what I work hard for. I’m glad to see it all pay off.” The Raptors became the first Canadian club to win a major North American sports title since the 1993 Toronto Blue Jays captured Major League Baseball’s World Series. Klay Thompson scored 30 points to lead the Warriors but left the game with a left knee injury late in the third quarter after landing awkwardly on his left leg. Injury-hit Golden State was already without two-time NBA Finals Most Valuable Player Kevin Durant, who returned in game five Monday after being sidelined for a month only to suffer a ruptured right Achilles tendon. Andre Iguodala added 22 points for the Warriors, Stephen Curry had 21 and Draymond Green contributed 11 points, 18 rebounds and 13 assists. “Everybody on this team played with a lot of heart,” Green said. “We just came up a little short.” Golden State had a final shot to win trailing 111-110 but Curry missed a 3-pointer and Green called a timeout when the team had none, setting up three final free throws by Leonard to seal the victory. Leonard was named the NBA Finals Most Valuable Player for the second time in his career after the first in 2014 with San Antonio. The Raptors spoiled the Warriors’ farewell appearance at Oracle Arena. Golden State’s home since 1971 will be replaced by a new $1 billion venue in San Francisco next season. Toronto’s triumph made this first NBA Finals where road teams won five consecutive games. Lowry scored 21 points in the first half to give Toronto a 60-57 lead, hitting 7-of-10 shots from the floor and 4-of-5 from 3-point range. Thompson led the Warriors with 18 first-half points.

Source: Punch

When Brazil forward Marta scored a landmark 16th World Cup goal, she took the opportunity to promote gender equality with a special celebration. After netting the opener from the penalty spot in Brazil’s 3-2 defeat by Australia on Thursday, the 33-year-old pointed to her boots, which sported a pink and blue symbol to represent equality. Her boot sponsorship deal expired last year and the veteran striker has since refused to sign a new one. Martha said brands were not offering deals on a par with male soccer players. Marta, a United Nations goodwill ambassador for women and girls in sport, instead opted to highlight the disparity on the international stage. The goal made her the first player to score at five different World Cups, while her tally of 16 means she now shares the record for most World Cup goals alongside German Miroslav Klose. “It’s one more detail written in the history of women’s football,” she said of the milestone goal. “I am honoured, but there’s more to do at this tournament.”

Source: Punch

Ugonna Ozurigbo, the member-elect for Nkwerre/Nwangele/Isu/Njaba of Imo State, who was sacked by the Owerri Federal High Court over alleged illegitimate nomination process has insisted that he would be part of the members of the ninth Assembly, who would be sworn in on June 11. Ozurigbo, in a statement issued in Owerri on Thursday by his media aide, Philip Dike, said that there was no truth in the speculation that the Court of appeal in Owerri had ordered the Independent National Electoral Commission to issue the Peoples Democratic Party, Kingsley Echendu, with a certificate of Return. He said that until his appeal is heard, he remained the member-elect for the federal constituency. Ozurigbo said the Court of Appeal in Owerri did not strike out the Motion for Stay of Execution of the Judgement of Owerri Federal High Court which he filed. The case was heard on Thursday. He explained that the court advised that the parties involved in the suit be put on notice. The statement partly read “Contrary to insinuations and the news being spread by haters and hirelings of Kingsley Echendu,(PDP), the Court of Appeal sitting in Owerri this Thursday morning, 6th June, 2019, did not strike out the Motion for Stay of Execution of the Judgement procured from the Federal High Court also in Owerri, rather the court advised that the parties involved should be put on notice. “However, any lawyer or learned individual should understand that the court cannot in a matter it has not heard order that the PDP candidate, Mr. Echendu Kingsley be sworn in. “Until the Appeal is heard and disposed of on its merits, Rt. Hon. Ugonna Ozurigbo remains the candidate to be inaugurated. All followers and well-wishers of Ugonna Ozurigbo are hereby urged to go ahead with their preparations for the inauguration ceremony on the 11th of June, 2019 and give no ear to the childish rumours from the political neophytes across the line.”

Source: Punch

The Osun State government has said that introduction of an automated technology known as “Omoluabi Card” for collection of taxes from taxable Osun residents was designed to boost the state’s revenue base. Supervisor for Finance Mr. Bola Oyebamiji, at a weekly meeting of the Ministry of Finance, said with the automated technology, all taxable adults in the state will be captured.
He maintained that the new system would afford the Ministry of Finance to have an accurate data of every taxable resident and monitor the Internally Generated Revenue (IGR) drive of the state effortlessly. Oyebamiji, who is also the supervisor in charge of the Ministry of Commerce, Cooperatives and Industries, explained further that the new technology would help the state to get the required tax and levies from any taxable adult without any stress. He added: “Those who have paid their taxes will be seen at a glance and those who are yet to pay through the database, making it difficult for any official to embezzle such government fund.” He noted that most advanced countries are able to collect taxes from their citizens because of their efficient automated system. He said: “If we want to achieve new results, we need to stop doing things the old way. The idea of the ‘Omoluabi Card’, which we have been trying to implement, will go a long way in assisting the state in a lot of positive ways.

Source: Today

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More than 160 countries around the world use value-added tax, nevertheless most commonly found in the European Union are not without controversy. It was in 2018 implemented in United Arab Emirate, the first in Middle-east countries to introduce VAT.
Most of these countries; if not all get value for any tax paid by citizens and the process will not be skewed to favor the poor nor the rich. However, Nigeria has joined other European nations to implement VAT collection on goods purchased in the markets but has recently proposed extension of its VAT net by including the newly ‘Online Transactions’ known as e-commerce, which the CBN fashioned to promote cashless economy. People were discouraged from carrying cash rather shop online to reduce the pressure on paper money and other factors alike. Recently, the Federal Inland Revenue Services, FIRS, through the Chairman, Mr. Babatunde Folwer ,whose agency is the Federal Government’s dependable organ for the steady accretion of non-oil, tax-based revenue to service the Federation Account ,most done at the citizen’s expense. It is very good to collect VAT as it has generated so much money for the federal government but extending it to online products which was still in a tutelage as long Nigeria is concerned is something that should be looked into because in the course of generating more money for government, it might defeat whatever objectives cashless policy portends. However, economic experts say, there are other means of generating revenue without frustrating the efforts of the citizens striving to make ends meet, in a fragile economic nation. Critics opined that VAT charges on online transaction are essentially a regressive tax that places an increased economic strain on lower-income earners, and also adds bureaucratic burdens for businesses. Experts have lamented that collecting VAT for online transaction might shut down the emerging online business which serves as a rescuer for the country unemployed young citizens. However, stakeholders have rejected plans by the Federal Inland Revenue Service, FIRS, to tax online transactions, saying it will amount to double taxation. Chairman of FIRS, Mr. Babatunde Fowler, while speaking in New York, said that the agency will soon begin collection of Value Added Tax, VAT, on online transactions. Fowler said: “Soon, we will ask banks to impose VAT on online transactions for purchases of goods and services. Not that it is something new; it actually should be in existence. “We will certainly follow up to make sure that every VAT that is due to be collected is collected.” He explained that the move was part of measures by FIRS to meet its N8 trillion revenue target for 2019. Fowler said the agency had started taking action against companies and businesses that refused to embrace federal government economic policies. According to him, FIRS hopes to generate between N750 billion and N1 trillion from the clampdown, which includes the closure of defaulters’ bank accounts. “We are going after everybody. I am sure you have heard that we have placed a lien on some accounts of defaulters that have a billion naira turnover annually. “So, certainly, we are not leaving anyone out of the tax net,” he said. Officially known as the Voluntary Asset and Income Declaration Scheme, the tax amnesty program me was launched in 2017. It gave tax defaulters a one-year period of grace to declare and settle their unpaid taxes. There have been complaints by some taxpayers of being wrongly targeted by FIRS in the clampdown. Commenting on that, Fowler admitted, blaming it on “administrative error,” arising from the huge number of accounts involved. “Well, there is certainly one or two instances where we made an administrative error, but when you are looking at over 50,000 accounts, there is a tendency that sometimes an error might be made. “For those that we made errors on, I wrote them personally apologizing and of course, we lifted the lien on their accounts.” Reacting, the Head of Tax and Corporate Advisory Services at PwC Nigeria, Taiwo Oyedele, said the Federal Internal Revenue Service, FIRS, does not have the capacity to tax online transactions, which are already being taxed in the country.

Source: Aljazeera

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The Federal Inland Revenue Service (FIRS) has said it will spend N160 million to sew uniforms for its 850 drivers. Babatunde Fowler, chairman of the agency, disclosed this on Monday while defending their budget at the House of Representatives, noting that the uniforms are part of the efforts to make the drivers fit properly into the structure.
The budget implies that the FIRS will be spending about N188,000 to sew each driver’s uniform. The service also budgeted N825 million for refreshment and N250 million for security vote. The committee had said the cost was outrageous but the FIRS chairman justified it, saying security vote, for instance, was meant to attend to some “security issues.” “The achievement of 2019 budget will be driven by increase oil and non-oil revenue tax collection,” he said. “The service in realization of this responsibility and challenges of doing manual collection will continue to implement automated tax collection for the critical sectors of the economy notably telecommunications, airlines and financial institutions. “The deployment of these platforms is at no cost to the service and the consultants will only be rewarded on increased revenue generation. “There will be increased enforcement activities nationwide to bring more tax payers into the tax net and increase compliance level.”

Source: General News

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Minister of Finance, Mrs Zainab Ahmed: Nigeria’s tax to GDP ratio of 6.1 % believed to be rooted in corruption, says IMF The costs of corruption run deep. Your taxpayer dollars are lost in different ways, siphoned off from schools, roads, and hospitals to line the pockets of people up to no good, the International Monetary Fund said in a blog on Tuesday.
Equally damaging is the way it corrodes the government’s ability to help grow the economy in a way that benefits all citizens. And no country is immune to corruption. According to an IMF Chart based on the Fiscal Monitor analyzes of more than 180 countries, more corrupt countries collect fewer taxes, as people pay bribes to avoid them, including through tax loopholes designed in exchange for kickbacks. Also, when taxpayers believe their governments are corrupt, they are more likely to evade paying taxes. The chart shows that overall, the least corrupt governments collect 4 percent of GDP more in tax revenues than countries at the same level of economic development with the highest levels of corruption. A few countries’ reforms generated even higher revenues. Georgia, for example, reduced corruption significantly and tax revenues more than doubled, rising by 13 percentage points of GDP between 2003 and 2008. Rwanda’s reforms to fight corruption since the mid-1990s bore fruit, and tax revenues increased by 6 percentage points of GDP. These are just two examples that demonstrate that political will to build strong and transparent institutions can turn the tide against corruption. The Fiscal Monitor shines a light on fiscal institutions and policies, like tax administration or procurement practices, and show how they can fight corruption. Nigeria’s tax to GDP ratio of 6.1 per cent is one of the lowest in Africa. The tax to GDP in Lesotho is 42.9%, in Ghana 20.8%, South Africa 26.9%, Kenya 18.4%. The costs of corruption run deep. Where there is political will, there is a way. Fighting corruption requires political will to create strong fiscal institutions that promote integrity and accountability throughout the public sector. Based on the research, here are some lessons for countries to help them build effective institutions that curb vulnerabilities to corruption: Invest in high levels of transparency and independent external scrutiny. This allows audit agencies and the public at large to provide effective oversight. For example, Colombia, Costa Rica, and Paraguay are using an online platform that allows citizens to monitor the physical and financial progress of investment projects. Norway has developed a high standard of transparency to manage its natural resources. Our analysis also shows that a free press enhances the benefits of fiscal transparency. In Brazil, the results of audits impacted the reelection prospects of officials suspected of misuse of public money, but the impact was greater in areas with local radio stations. Reform institutions. The chances for success are greater when countries design reforms to tackle corruption from all angles. For example, reforms to tax administration will have a greater payoff if tax laws are simpler and they reduce officials’ scope for discretion. To help countries, the IMF has built comprehensive diagnostics on the quality of fiscal institutions, including public investment management, revenue administration, and fiscal transparency. Build a professional civil service. Transparent, merit-based hiring and pay reduce the opportunities for corruption. The heads of agencies, ministries, and public enterprises must promote ethical behavior by setting a clear tone at the top. Keep pace with new challenges as technology and opportunities for wrongdoing evolve. Focus on areas of higher risk—such as procurement, revenue administration, and management of natural resources—as well as effective internal controls. In Chile and Korea, for example, electronic procurement systems have been powerful tools to curtail corruption by promoting transparency and improving competition. More cooperation to fight corruption. Countries can also join efforts to make it harder for corruption to cross borders. For example, more than 40 countries have already made it a crime for their companies to pay bribes to gain business abroad under the OECD anti-corruption convention. Countries can also aggressively pursue anti–money laundering activities and reduce transnational opportunities to hide corrupt money in opaque financial centers. Curbing corruption is a challenge that requires persevering on many fronts, but one that pays huge dividends. It starts with political will, continuously strengthening institutions to promote integrity and accountability, and global cooperation.

Source: PM News

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The Federal Government says it will grant tax incentives to private companies willing to fund the construction of major road projects in the six geo-political zones of the country. The Minister of Finance, Mrs Zainab Ahmed said this on Tuesday at the Public Presentation of the Approved 2019 Budget in Abuja.
Ahmed, who spoke on some of the government’s Public Private Partnership initiatives, said any company who funds road construction will get tax credit or reduction equal to the amount invested in the projects. “The current government has undertaken several initiatives to partner with the public. “One of them is the Road Infrastructure Tax Credit Scheme, where if any private sector build any road with their own resources, they can recover the investment made through tax credit. “Also, the federal government is automating the process of acquiring waivers or import duties. Right now, the process is extremely cumbersome and has proven to be a drain on our resources. “We have just advanced process for the project and we believe that once it’s automated, the process will be more transparent and efficient,’’ she said. Ahmed also said that the Federal Government had introduced the Strategic Revenue Growth Initiative for sustainable revenue generation in all sectors of the economy. She said the initiative also seeks to improve monitoring collections by all revenue generation agencies. Meanwhile, the 2019 Budget Breakdown shows that the Ministry of Interior has the highest recurrent allocation of N564.22 billion, which covers salaries, overheads and other running costs in the Ministry. President Muhammadu Buhari had on Monday signed the 2019 appropriation bill into law, signaling beginning of the implementation of the 2019 fiscal calendar. The Statutory Transfer stood at N502 billion, Fiscal Deficit, N1.92 trillion, Special Intervention N500 billion, Recurrent Expenditure N4.07 trillion, Capital Expenditure, N2.09 trillion and Deficit to Gross Domestic Product (GDP) of 1.37 per cent. The non-oil revenue is estimated at N3.31 trillion while the oil revenue is estimated at N3.69 trillion. (NAN)

Source: Daily trust

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CASH-STRAPPED councils should consider clobbering Brits with a local income tax to plug their multi-billion pound funding black hole, a respected think-tank today says. The Institute for Fiscal Studies said English town halls have had their funding slashed by a fifth in the past decade. The Institute for Fiscal Studies says local councils will face a funding gap of £2billion a year for social adult care by 2025.
Council bosses have lopped 50 per cent of their housing and culture budgets as they scramble to slash costs. But they face a fresh crisis and a funding gap of £2billion a year for adult social care alone by 2025, the IFS said. The think-tank said ministers must consider handing councils new powers to levy their own, local income tax to stave off the crisis. IFS researcher David Phillips told The Sun: “Ministers can give councils a slice of the income tax they raise, then the central government would have to find new ways of raising revenue to make up the difference, like increasing National Insurance Contributions. “Or they can give councils the power to levy their own income tax.” He said different councils could set the tax at different rates, and offer different services. Some town halls could decide to set it low and offer no-thrills basic services to their residents like the airline easy jet. He said: “You could get so-called easy councils, which could set the tax rate low and offer only basic services. “And you could get some councils that decide to set higher taxes so they can deliver more services.” But this could create a postcode lottery for services, he warned. The IFS said ministers face a big choice. Either they must give the green light to hiking taxes so councils get the cash they need. Or Brits must accept their councils will massively scale back what they do.

Source: The Sun

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Gov. Samuel Ortom of Benue has called on Benue residents to support his administration by always paying their taxes as and at when due. Ortom made the call on Wednesday in Makurdi during his second term inauguration. He said that funds generated from the payment of taxes would be channeled to the development of the state.
The governor disclosed that his administration had introduced Treasury Single Account (TSA) in the state as one of the ways to block revenue leakages and improve on Internally Generated Revenue (IGR). He further promised to provide adequate security to ensure safety of lives and property. The governor and called on security operatives in the state to nip kidnapping and other crimes in the state in the bud. He also urged traditional rulers to cooperate with the security agencies and prevent kidnappers from operating in their domains. ”The state Chief Judge and the judiciary should not take the call for the elimination of kidnapping and other crimes in the state for granted. “The offenders should be dealt with decisively in accordance with the law,” he said. Ortom said that he would ensure that the security and welfare of the people living in the state are guaranteed provided they respected the laws of the state. He promised to be governor to both the rich and the poor, the Fulani herdsmen, the farmers and other ethnic nationalities living in the state.

Source: PM News

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The Niger Delta Budget Monitoring Group and Oxfam International have urged the federal and state governments to intensify efforts in the collection of taxes from citizens. During a multi-stakeholder dialogue in Lagos, the Program me Officer, Public-Private Sector Transparency and Accountability Officer, Oxfam International, Henry Ushie, said that the government, both at the federal and state levels, had been soft on wealthy people in the society.
In a statement, he said, “In retrieving taxes, I think the government has been soft on the rich but that is not the same with the poor. These rich people, including the multinationals, always find a way within the law to evade tax. “Our system also allows these big companies to operate for some years without paying a dime. It will not be wrong to say the government has not been proactive on tax collection.” While noting that the government had yet to explore all the avenues to retrieve taxes, he stated, “We have only explored 20 per cent of those who are taxable, which means 80 per cent is still untaxed. We should be able to bring these people into the tax net.” Ushie argued that if a person spoke with the Lagos State Internal Revenue Service or Federal Internal Revenue Service, it might say it did not have the manpower to go after people who evaded taxes. “But if we can harmonize our scattered database systems, we can track everyone who is taxable through their Bank Verification Number or other means,” he added. The Chief Executive Officer, NDEBUMOG, George Anthony, stated that it was the civic responsibility of every citizen to pay tax, regardless of how terrible a government could be. He explained, “Paying tax is the responsibility of every responsible citizen but people don’t have an interest in it due to the poor social amenities and the state of the economy. However, when you pay your tax, you have the moral right to demand effective service and accountability from the government.”

Source: Punch

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As the world business organization, the International Chamber of Commerce (ICC) promotes international trade, responsible business conduct, and a global approach to regulation. In today’s interconnected global economy, value added tax (VAT) has become an increasingly important source of revenue for countries worldwide. With more and more countries implementing or reforming existing VAT regimes, ICC has published the ICC International Best Practices and Guidance on Value Added Tax Implementation to provide a common roadmap for tax administrations and business before, during, and after VAT implementation.
Above all, the ICC guidance stipulates that an efficient VAT regime ensures certainty, neutrality, simplicity, and cost effectiveness for both business and tax administrations. The consistency of national VAT laws with regional and global VAT regimes can help facilitate cross-border transactions and foster economic growth. By adhering to consistent standards, countries will safeguard VAT revenues for tax administrations and ensure a level playing field for business operating within their borders. The first part of the ICC guidance outlines general recommendations for government representatives involved in the design and implementation of VAT regimes. In particular, ICC calls upon government representatives to establish a collaborative partnership between tax administrations and business. This collaborative partnership involves establishing an ongoing dialogue between stakeholders working together throughout the whole design and implementation phase. ICC recommends strong communication measures, such as public consultations, as well as question and answer sections related to VAT regimes on tax administration websites. The ICC guidance also outlines key features associated with efficient VAT regimes, such as VAT refunds, VAT exemptions, registration for non-established entities, and free trade zones. With regard to importers and exporters, the ICC guidance provides specific recommendations for effective VAT processing. In particular, “the import of goods should be subject to postponed accounting with payment on the VAT return, rather than at the point of entry,” according to the ICC guidance. Other key features of an efficient VAT regime include registration for non-established entities and specific considerations for digital services.
After considering the role of government, the ICC guidance also offers a VAT implementation roadmap for business representatives. From the perspective of business, the ICC guidance stresses that project planning, especially budgetary considerations, must be given early attention in order to secure the appropriate resources for VAT implementation. ICC emphasizes that proactive business engagement and involvement from the outset is essential. Based upon the nature of a transaction-based tax, VAT regime has a significant effect on organizations – all business functions are impacted. As part of the preparation process, the ICC guidance recommends that business conducts a detailed review of incoming and outgoing business flows, considers the legal implications of long-term contracts, and reviews employee benefits. By considering these aspects, business can adequately prepare for the implementation of VAT regime and institute a project plan. Given the wide organizational impact of VAT, the ICC guidance recommends that business create a well-defined step-by-step project plan to ensure adherence and avoid disruption. ICC considers VAT implementation to be a journey. There are many unknowns when the journey first begins, therefore preparations must start early in time to overcome later challenges and complexities. As more countries continue to consider VAT regimes, ICC will continue to review and update this guidance to provide government and business representatives with helpful recommendations for before, during, and after implementation.

Source: ICCWB

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The Managing Director of Bet9ja, Ayo Ojuroye, has argued that lottery business can boost Nigeria’s revenue. In a statement made available to newsmen, Ojuroye stated that the Nigerian State is already benefiting from lottery companies through the taxes and other levies paid to the government.
To exemplify, he explained that Bet9ja pays all its taxes and levies because of its organizational belief in prompt compliance with every federal and state laws, as well as its adherence to international best practices when it comes to best corporate governance practice. Ojuroye maintained that for any country to grow, it must be able to generate income internally. This is important because it enables the government to meet its civic obligation of providing infrastructure such as roads, electricity, and water, among others, as well as meeting recurrent expenditure. Apparently, not only does the lottery business contribute to the Government’s revenue generation objective, it also “invariably contributes to curbing unemployment as opportunities exist in gaming such as odds makers, analysts, security, and cashiers, among others,” Ojuroye added. Government’s Taxation of Lottery Business: Recently, the Federal Inland Revenue Service disclosed plans to charge VAT on gaming activities, as well as automate VAT collection from lottery operators in Nigeria. According to FIRS’ Chairman, Mr Babatunde Fowler, the plan will see customers of betting customers pay five percent VAT on every transaction they make. This, therefore, suggests that not only would the Government be charging betting companies alone, it would also be charging its customer; thereby getting more revenue from the industry. Based on the foregoing, it may not be erroneous to conclude that the Government could be aiming to drive the country’s revenue generation through lottery.

Source: Naira metric

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