Indications emerged on Sunday that the Chief of Staff to President Muhammadu Buhari, Mr. Abba Kyari, has queried the Executive Chairman of the Federal Inland Revenue Service, Mr, Babatunde Fowler, over alleged discrepancies in tax collections from 2015 to 2018.
A letter dated August 8, 2019, and addressed to the FIRS chairman, which was signed by Kyari, asked Fowler to explain reasons for ‘significant’ variances in budgeted collections and actual collections of tax in 2015, 2016, 2017 and 2018. In the concerned years, the actual amount collected as tax fell below the budgeted target. In 2015, actual collection was N3.7tn, while the budgeted target was N4.5tn. A similar shortfall occurred in 2016, when actual collection was N3.307tn, less than the N4.95tn budgeted target. Also, in 2017, the FIRS collected a total of N4.027tn, less than the set target of N4.89tn. In 2018, actual collection was N5.32tn, while the budgeted target was N6.7tn. Fowler was appointed chairman of the FIRS in August 2015, but his appointment was confirmed by the Senate in December of the same year. The query covers the period he has been in office. His tenure is expected to expire at the end of August, going by the date he was appointed, although there are also suggestions that the expiry date could be December, the month his appointment was confirmed.

Source: Punch

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Apple is heading to court next month to fight a 13 billion euro ($14.4 billion) tax bill handed down by the European Union in 2016. Europe's General Court will hear Apple's appeal on Sept. 17 and 18, Bloomberg reported Friday.
The case relates to the bill that the EU Competition Commission ordered Ireland to recoup in August 2016. The commission asserted that the tech giant had an unfair advantage that allowed it pay less tax than it should in Ireland, where its EU headquarters are located. Apple CEO Tim Cook denounced the tax bill as "political crap" and vowed to appeal. The US government tried, but failed, to intervene. Ireland, which has a tax system that attracts many US tech companies to its shores, also disagrees with the EU's decision and will argue alongside Apple in court. Apple has already started repaying some of the money the EU says it owes. The money is currently in an escrow account. The company didn't respond to a request for comment. The case is one of several current appeals against Europe's tax decisions related to multinational companies. A spokeswoman for the Competition Commission declined to comment.

Source: Cnet

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Alexander Zverev slumped to a last-16 defeat at Flushing Meadows on Monday while Rafael Nadal was set to battle Marin Cilic later in a clash of former US Open champions. Sixth seed Zverev rolled through the opening set against Argentina’s Diego Schwartzman under the roof on a rainswept Labor Day at Arthur Ashe Stadium but lost his way to go down 3-6, 6-2, 6-4, 6-3. The German was enjoying his deepest run in New York but committed 17 double faults and 65 unforced errors and received a point penalty for swearing as Schwartzman advanced to a second US Open quarter-final in three years. “Generally my season so far has not been the best,” said Zverev, who has reached just two quarter-finals in 18 Grand Slam appearances. “Grand Slams were not actually worse than my season like they were last year and two years ago. I hope I can attack them next year.” Zverev said he was hindered a “very swollen” back and right hip following a fall in his previous match. “I had a lot of chances which I didn’t use early in the match. He kind of ran away with it.” Zverev lost his serve three times during the second set but appeared to have steadied himself when he moved a break ahead at 3-2 in the third, only for Schwartzman to wrest the momentum back in his favour after a lengthy sixth game. “It was tough because I was feeling I had the chance to win this and I had a few breakpoints I could not take,” Schwartzman said. “He was up a break and then I recovered really quickly and I felt great after that.” Schwartzman, also a quarter-finalist at last year’s French Open, matched his best Grand Slam run and awaits the winner between 18-time major champion Nadal and Croatian 22nd seed Cilic. Nadal, a three-time US Open winner, has spent barely four hours on court in reaching the last 16, having benefited from a walkover in the second round. Cilic, the 2017 Wimbledon finalist, withstood 40 aces from John Isner in round three but has defeated Nadal just twice in eight attempts. “I’ve played quite a few times with Rafa. When you play these top guys you have to come up with your great tennis,” Cilic said.
– Berrettini in the select club –
Matteo Berrettini became just the second Italian man to progress to the US Open quarter-finals, 42 years after Corrado Barazzutti’s run to the last four in New York. Berrettini, the 24th seed, eased to a 6-1, 6-4, 7-6 (8/6) win over Russia’s 43rd-ranked Andrey Rublev to reach the last eight at a Grand Slam for the first time. “It’s something really crazy. I cannot believe it right now. I need a few hours to understand what happened,” said Berrettini, 23, who goes on to play French 13th seed Gael Monfils. “I’m just happy. Seeing my team and family here and crying, for me it’s unbelievable.” Berrettini went one step further than his run to the last 16 at Wimbledon in July, where he was beaten by Roger Federer. The Italian overcame a momentary lapse against Rublev as he dropped serve at 6-5 in the third set but sealed victory after two hours and 11 minutes in a tense tie-break. “I think I did an unbelievable match. I thought Andrey was playing really good and playing with confidence,” Berrettini said. “I was mixing my tennis, using the slice, forehand and serve. I think all my weapons were really good today.” Monfils, a 2016 US Open semi-finalist, crushed the 33-year-old Andujar’s bid to become the oldest player in the Open era to reach his first Grand Slam singles quarter-final with a 6-1, 6-2, 6-2 rout. “I was very good tonight. I’m very happy,” Monfils said. “I felt good and hit the ball very hard and I served good.”

Source: Punch

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The Corporate Affairs Commission, CAC, has announced on Monday that it has extended the 50 percent reduction in registration fee for business names in Nigeria. The programme launched under CAC’s Business Incentive Strategy allows intending business owners to pay N5, 000 less of the original fee.
However, the discount window will end on Friday, August 16, after which payment for registration of business names will revert to the original fee. The commission, in a statement released in Abuja through its Head of Public Affairs, Moses Adagusuu, said that the commission has successfully registered 220,773 Micro, Small and Medium Enterprises, MSMEs, in the space of ten months. The CAC said that the MSMEs were registered between October 2018 and July 31, this year. Adaguusu said, “From when the BIS started in October 2018 to July 31, the commission gathered at least 220,773 MSMEs under the BIS window. The list is growing day by day.” It also reminded Micro, Small and Medium Enterprises about the benefits of registering their business names with the commission. Adaguusu revealed that “Registration of their businesses will enable them own corporate accounts with banks, have access to loans, grants and other government interventions.” The commission clarified that the three-day extension of the cut in registration fee was to allow MSMEs that could not register due to the Id-el-Kabir Islamic celebration to take advantage of the opportunity at the reduced cost of N5, 000. It also revealed that MSMEs could register their business names through the online registration porter ( services.cac.gov.ng or cac.gov.ng ) or offline at the Commission’s offices, nationwide.

Source: Investor King

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The Benue state Board of Internal Revenue Service (BIRS) Sunday said it will clamp down on illegal tax collectors. BIRS also stated that it has arrested one Aga Peter for impersonating as a staff of the revenue Board.
Chairman of the board, Andrew Ayaban in a statement issued Sunday said the suspect, Mr Peter was arrested with the assistance of the Police at an illegal check point at Tor Mkar in Konshisha local government area of Benue state, collecting illegal taxes from unsuspecting members of the public. He said the impersonator at the time of arrest was found in possession of a fake BIRS identity card and illegal receipts with which he defrauded unsuspecting victims. He said the board under his leadership was committed to end the regime of illegal tax activities adding that the gesture has already started yielding results. Ayabam said, in order to reposition the revenue board, he abolished all revenue check points and terminated the contracts by underperforming tax consultants.

Source: Blueprint

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Tobacco-Free Club (TFC), University of Abuja chapter, has called on the Federal Government to increase tobacco tax to 70 per cent of the commodity’s retail price. Mr Izang Lawrence, former President of the Club, made the call on Monday at a campaign to enlighten Nigerians on the national tobacco control act of 2015, in Abuja.
“The government must significantly increase tobacco tax to be at par with the World Health Organisation (WHO) recommended level of 70 per cent of the retail price over the next five years,” he said. He recalled that in October 2005, Nigeria ratified the World Health Organisation Framework Convention on Tobacco Control (FCTC). “The framework recommended many effective ways of controlling tobacco in its various stages and protecting public health. “Till date, a lot of the recommendations of the FCTC, which Nigeria is a signatory to are yet to be implemented by government,” Izang said. According to him, one of the recommendations of the FCTC is about 70 per cent tax increase. But in Nigeria, it is currently around 20 per cent. Izang also called for stiffer laws to prohibit the sale of tobacco to minors and smoking in public places. “We want the prohibition of sale of tobacco products to and by anyone below age 18 and ban on sale of cigarettes in single sticks. “Our tobacco control group will never be tired of asking the government to significantly increase tobacco tax. “The present tax regime is insignificant and insufficient to lead to price increases and will definitely not reduce consumption. “We want prohibition of smoking anywhere on the premises of a child care facility, educational facility and health facility; and other prohibited areas for smoking include playground, amusement parks and other public spaces. “We also want prohibition of tobacco advertising, promotion and sponsorship of any kind,” he said. He urged the Federal Government to begin the process of earmarking a significant fraction of tobacco tax and levies for tobacco control and to educate smokers of the dangers of smoking. Izang described earmarking a fraction of the revenue accruable from tobacco taxes and levies as one of the best practices effective for the promotion of public health. He added that the National Tobacco Control Act 2015 provided for the setting up of the Tobacco Control Fund to implement the National Tobacco Control Regulations. “Nigeria has approved the tobacco control regulations, which will make it possible for the Federal Ministry of Health to implement and enforce the Nigeria Tobacco Control Act of 2015. “We ask that the Federal Government to start the process of earmarking a significant fraction of tobacco taxes and levies for tobacco control and national health coverage,” he said. According to him, the National Tobacco Control Act 2015 provides for the setting up of the tobacco control fund and up till now it has not been implemented. Kenneth Amah, President, TFC, University of Abuja, stressed the need to create more awareness on the dangers of tobacco smoking. Amah said that government had reviewed the standard for cigarettes to include the complete ban on cigarettes with characterizing favour, including menthol.

Source: Sun News

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The Corporate Affairs Commission on Monday announced that it registered 220,773 Micro, Small and Medium Enterprises in the last 10 months. The CAC said in a statement issued by the commission’s Head of Public Affairs, Moses Adaguusu, in Abuja.
It said that the MSMEs were registered between October 2018 and July 31, adding that it had also extended by three days, the 50 per cent reduction in the registration fee for business names window, under its Business Incentive Strategy. The commission said with the extension, the promotional reduction fee would now end on Friday, August 16. It explained that the three-day extension was to enable micro, small and medium enterprises that could not register their businesses during the promo because of the Sallah holidays to do so. Adaguusu said, “From when the BIS started in October 2018 to July 31, the commission registered at least 220,773 MSMEs under the BIS window. The list is growing day by day. “Registration of their businesses will enable them own corporate accounts with banks, have access to loans, grants and other government interventions.” The commission urged members of the public to take advantage of the three-day extension to register their business names at the reduced cost of N5, 000. It said registration could be done online or at any of the commission’s offices nationwide.

Source: Punch

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The Corporate Affairs Commission on Monday announced that it registered 220,773 Micro, Small and Medium Enterprises in the last 10 months. The CAC said in a statement issued by the commission’s Head of Public Affairs, Moses Adaguusu, in Abuja.
It said that the MSMEs were registered between October 2018 and July 31, adding that it had also extended by three days, the 50 per cent reduction in the registration fee for business names window, under its Business Incentive Strategy. The commission said with the extension, the promotional reduction fee would now end on Friday, August 16. It explained that the three-day extension was to enable micro, small and medium enterprises that could not register their businesses during the promo because of the Sallah holidays to do so. Adaguusu said, “From when the BIS started in October 2018 to July 31, the commission registered at least 220,773 MSMEs under the BIS window. The list is growing day by day. “Registration of their businesses will enable them own corporate accounts with banks, have access to loans, grants and other government interventions.” The commission urged members of the public to take advantage of the three-day extension to register their business names at the reduced cost of N5, 000. It said registration could be done online or at any of the commission’s offices nationwide.

Source: Punch

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Serena Williams withstood a “rough and rowdy” challenge from 17-year-old American wildcard Caty McNally at the US Open on Wednesday to keep her bid for a record-equalling 24th Grand Slam title intact. Williams, a six-time champion in New York, recovered from dropping the opening set to prevail 5-7, 6-3, 6-1 and set up a third-round showdown with either 29th seed Hsieh Su-Wei or Karolina Muchova. “I had to stop making errors. I made so many errors in the first two sets. I was just too many. You can’t win tournaments making that many errors. I knew I had to play better, and I knew I could,” Williams said. “I want to be able to win matches where I’m not playing my best, play players who are playing great, be able to come through. I need to be tested, I guess.” McNally, who hadn’t been born when Williams won her first Slam at the 1999 US Open, threatened a struggling Williams from the start before the 37-year-old won nine of the last 11 games to escape under the roof at Arthur Ashe Stadium. “I survived tonight. I’m not too pleased with the way I played at all,” Williams said. “I’d rather not be tested in every match. But that doesn’t happen, so it’s important for me to have those, like, really rough, rowdy matches. That helps a lot.” Eighth seed Williams is seeking to match Margaret Court’s all-time record of 24 Grand Slam crowns and needed to gather her thoughts after a first set littered with 15 unforced errors. “I definitely treasure it because it’s important to have,” Williams said of her ability to regroup. “I’ve won so many Grand Slams because of it. “Obviously I would be so lying if I said I enjoy the tough matches more. But I think looking back years later, I enjoy the tough matches more. But at the moment, in the weeks after, it’s definitely a different feeling.”

Source: Punch
 

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A new contract is looming for Poland forward Robert Lewandowski, who will be carrying the hopes of a second straight league win for Bayern Munich when the champions host Mainz 05 on Saturday. The Bavarians have sprung to action in recent weeks on the transfer market, signing Croatian World Cup finalist Ivan Perisic, Brazil playmaker Philippe Coutinho and France youth international Mickael Cuisance. But it has been 31-year-sold Lewandowski – at Bayern since 2014 – who has scored all five of their league goals, a brace in their 2-2 season opener against Hertha Berlin and a hat-trick to beat Schalke 04 last week. With his contract running out in 2021, the striker hinted a new deal was close to being finalised. “There is a lot in favour of an extension,” he told Sport Bild magazine this week. “From my side, it is only about finalising some details. I feel good in Munich, the club has the same goals as me. To win titles, including the Champions League.” Lewandowski has already become the most prolific foreign scorer in the history of the league with 207 Bundesliga goals in 292 matches for both Borussia Dortmund and Bayern. But he shows no sign of slowing down, also winning last year’s top Bundesliga scorer award for the fourth time in the last six seasons. “He is sensationally good. He has been doing that in the last five, six, seven years in the Bundesliga,” Bayern coach Niko Kovac told reporters. “He is the best striker with his efficiency and coolness. I hope he continues like that for the coming months.” Bayern will need his goals more than in past seasons, with Dortmund, who are top of the standings on six points, set to present the biggest obstacle en route to a record-extending eighth successive league title for the reigning champions. Lewandowski is rarely out of form and it is even rarer for him to miss a game through injury, prompting former Germany and Bayern captain Lothar Matthaeus to demand a salary hike for him. “The amazing thing is that he has played 96 per cent of all competitive matches for Bayern since arriving,” Matthaeus told Sky. “That leads me to the conclusion that he earns too little for such an unbelievable statistic. A player with such appearance quota, apart from his goals, should be earning more than someone who only plays 50-60 per cent of possible games.”

Source: Punch

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At least seven people were killed Wednesday when a river burst its banks and flooded a village football pitch where a game was being played in south Morocco, local authorities said. The victims included a 17-year-old boy and six elderly men attending the match in the village of Tizert, in Taroudant region. Searchers had rescued one man who was injured by the flood and was looking for another missing person, officials said. The river overflowed and submerged the pitch where an amateur football tournament was underway, a resident told AFP. Eight men who took refuge in the changing rooms were swept away by the floodwaters, the witness, speaking on condition of anonymity, said. “We’re in shock. I’m 64 years old and I’ve never seen such a downpour,” the witness said. Photographs and videos shared on social media showed muddy waters carrying away people who had clambered on top of a building flattened by the flooding. Morocco’s national weather service had warned of the risk of stormy rains on Wednesday afternoon in several provinces. The heavy downpour followed a dry spell, making the floods more violent, local media reported. Floods are common in Morocco. In late July, 15 people died in a landslide caused by flash floods on a road south of Marrakesh. In 2014, floods killed around 50 people and caused considerable damage in the south of the country. A study published in 2015 pointed to multiple failures in infrastructure maintenance, prevention, warning and emergency management.

Source: punch

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The Akwa Ibom State Internal Revenue Service on Friday sealed off all the zonal offices of Ecobank and Union Bank in the state for allegedly evading state taxes. Our correspondent learnt that the agency’s action followed an exparte order it obtained from the Akwa Ibom State High Court, Uyo Division directing that the premises be sealed off.
The debts were said to run into millions of naira The notice indicated that the affected organisations “have not been remitting the actual tax deductible from their employees’ salaries and other relevant taxes due to the state; hence, failed to comply with the provisions of relevant tax laws.” The Executive Director, Enforcement and Recovery of the agency, Mr Leo Umanah, who spoke to journalists in Uyo, the state capital, said the revenue service had written to the affected banks on a number of occasions, inviting them for reconciliation and negotiation. He said the banks failed to honour the invitations or reply its letters, adding that the agency was left with no option than to get the court order to recover the state revenue. Umanah stated that by the order, all branches of Ecobank and Union Bank in the state were expected. He noted that the banks had 14 days to negotiate with AKIRS to vacate the order, adding, “After 14 days of non-compliance, we have the mandate of the court to sell the property and recover the tax owed the state.” Umanah added that over 200 business outfits had evaded state taxes running into billions of naira. He said with the ongoing enforcement drive, the tax authority was poised on recovering all outstanding revenues that would help the state government complete its projects.

Source: Punch

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Enyimba International Football Club on Sunday advanced to the second preliminary round of the 2019/2020 CAF Champions League after a 5-0 win over Rahimo FC of Burkina Faso in Aba. The News Agency of Nigeria (NAN) reports that the Aba-based side qualified 5-1 aggregate after having lost the first leg tie 0-1 about a fortnight earlier. A brace each from Reuben Bala and Stanley Okorom saw the hosts ease past Rahimo of Burkina Faso in the return leg match. There were early signs of danger for the Burkinabe champions when their numerical strength was reduced nine minutes after the kick-off, after Zonon Issouf was sent off. The scorer of the first leg game’s lone goal earned a straight red card by the referee for stamping his foot on Enyimba’s Ghanaian defender Emmanuel Ampia. Enyimba tried to make their numerical advantage count as they mounted constant pressure on the defence of the visitors. However, still buoyed by their first leg 1-0 advantage, Rahimo defended stoutly, with virtually every player falling behind the ball time and again with occasional counter-attacks. Enyimba thought they had gotten the breakthrough in the 24th minute when captain Godwin Abalogun expertly planted his left-foot shot into the top far corner. But the goal was ruled out by the second assistant referee’s flag, who adjudged Stanley Dimgba who provided the assist to have been in an offside position. The breakthrough for the hosts eventually came a minute past the half hour mark when Bala fired an incredible free-kick into the far corner past goalkeeper Traore Moussa. The goal cancelled out Enyimba’s first leg deficit and provided the much-needed soothing relief for the two-times African champions to comeback into their dominant fashion. The visitors came close to drawing level in the 38th minute when a cross from the left was not properly dealt with by defender Nelson Ogbonnaya. It provided Cisse Mody with a glorious opportunity to test goalkeeper Afelokhai from close range. The Nigerian goalkeeper however reacted brilliantly with a fingertip save, pushing the ball over the bar. The People’s Elephant went into the half-time break one goal up, with both teams tied 1-1 on aggregate. Before the restart for the second period, Enyimba introduced Okorom in place of Emmanuel Ampia, a decision necessitated by the pains inflicted by Issouf’s stamping on his lower abdomen.

Source: Punch

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Pogba was supported online by Manchester United team-mates Harry Maguire and Marcus Rashford Manchester United midfielder Paul Pogba says racist abuse “can only make me stronger and motivate me to fight for the next generation”. The France World Cup winner was racially abused on social media after his penalty miss at Wolves on Monday. Several of Pogba’s team mates criticised the abuse, while England women’s manager Phil Neville called for footballers to “boycott” social media. “Racist insults are ignorance,” said 26-year-old Pogba. In a message on Twitter, accompanied by a photograph showing him holding his baby alongside portraits of his late father Fassou Antoine and civil rights activist Martin Luther King, he added, “My ancestors and my parents suffered for my generation to be free today, to work, to take the bus, to play football.” It was the first time Pogba had tweeted since July. On Saturday, United manager Ole Gunnar Solskjaer said people who post racist abuse on social media “hide behind fake identities”. Pogba’s team-mate Marcus Rashford was targeted online after missing a penalty in United’s shock home Premier League defeat by Crystal Palace on Saturday. It’s the fourth racism incident in two weeks – Chelsea striker Tammy Abraham and Reading’s Yakou Meite both received racist messages online after missing penalties in their teams’ most recent matches. Twitter said it will meet any stakeholders to show the “proactive work” being done to tackle abuse.

Source: punch

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Antoine Griezmann copied Lionel Messi for the goal and LeBron James for the celebration but it was his night for Barcelona on Sunday after he scored twice in a 5-2 win over Real Betis. Griezmann imitated the basketball superstar by tossing confetti into the air to celebrate his second at Camp Nou, a curling effort into the corner that he said was inspired by watching Messi. “I saw Leo do this in training, so I tried to copy him,” said Griezmann. “And for the celebration, I like the ritual that LeBron did so we tried to do it as well.” Yet Griezmann was the star, if only for the night with Messi in the stands, the Argentinian still short of fitness following a calf injury. A brilliant Barcelona performance also delivered a resounding response to the doubts arising from their defeat by Athletic Bilbao last weekend, among them a reliance on Messi, the need for Neymar and the future of Ernesto Valverde as coach. But as Carles Perez, Jordi Alba and Arturo Vidal made it three, four and five, the gloom was forgotten, along with Nabil Fekir’s opener in the 15th minute, that had Betis level at half-time. “After a defeat, there is always a big reaction,” Griezmann said. “We really wanted to play another game and when so many players are missing, the team steps up.” Loren slowpoke slammed a late strike into the top corner for Betis but by then the game was up as Barca ensured no further ground was lost on Atletico Madrid, who beat Leganes 1-0 earlier on Sunday, or Real Madrid, who were held to a 1-1 draw on Saturday by Real Valladolid.

Source: Punch

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Taxes are a greater drag on net investment returns than expenses and fees, according to a study by Rob Arnott of Research Affiliates. Most investors leave a lot of money on the table by overlooking important tax tricks of funds and focusing on taxes only near the end of the year.
Don’t let that happen to you. Review these simple rules about mutual fund taxes and keep them in mind all year. As markets change, consider tax-wise actions to take with your funds. You want to own the right assets in the right accounts when possible. Owning the right investments for you comes first. To the extent you can, own the assets in the most tax efficient accounts for them. If most of your money is in an IRA or 401(k), you might not be able to have all the right assets in the right accounts. That’s one reason I recommend tax diversification. It’s a good idea to have taxable accounts, tax-deferred accounts and tax-free accounts. A good general rule for putting the right assets in the right accounts is to hold assets that already receive tax advantages in taxable accounts. Stocks, mutual funds and other assets you’ll hold for more than a year should be in taxable accounts to take advantage of long-term capital gains. Stocks that pay qualified dividends usually should be in taxable accounts. Tax-deferred accounts should hold assets that earn short-term capital gains and taxable interest. Tax-free accounts, such as Roth IRAs, also should own these types of assets. Real estate investment trusts (REITs) are a hybrid but generally should be held in tax-deferred or tax-free accounts. You might want to hold treasury bonds or treasury-only mutual funds in taxable accounts, because their interest is exempt from state income taxes. Those are general rules. Let’s move beyond those basics to a higher level of mutual fund tax planning. You know that a mutual fund avoids income taxes by distributing to shareholders most of its net interest, dividends and capital gains. Only the shareholders are taxed on the income. Shareholders on the date of the distribution pay the taxes. If you buy shares in a taxable account the day before a distribution, the distribution will be included in your income for the year, though it really is a return of your investment. The net asset value of the shares is reduced by the amount of the distribution. When you’re investing or considering an investment in a mutual fund, know its regular distribution dates. You want to make new investments just after, not before, a distribution.

Source: Investor king

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The Special Presidential Investigation Panel for the Recovery of Public Property (SPIP) is to panel with the Federal Inland Revenue Service (FIRS), to recover tax revenues from companies who hitherto have been evading payment.
Ms Lucie-Ann Laha, the panel spokesperson in a statement issued in Abuja on Friday, said that the Panel Chairman, Mr Okoi Obono-Obla, made this known when he received Mr Tunde Fowler, the FIRS Chairman on a visit. Obono-Obla urged the FIRS to work with the panel to recover taxes and royalties owed the Federal Government by several oil companies amounting to billions of dollars. He informed Fowler that the panel had uncovered about 1,500 properties in Dubai, UAE, owned by Nigerians for which due taxes were not being paid to the Nigerian government. The FIRS Chairman confirmed that both agencies had indeed been working together in the past. Fowler said that the deployment of ICT to the FIRS operations had among other things, reinforced internal controls which also helped to reduce fraud and bottlenecks in tax administration.


Source: P.M news

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Group Managing Director of Dangote Cement, Joseph Makoju, has revealed why many investors will not put large amount of money into the manufacturing industry. Apart from the long gestation period before invested funds could be recouped, he said non-availability of low-interest loans was discouraging many investors from injecting huge capital into the manufacturing industry. He also identified harsh business environment and multiple taxes as other hindrances against the growth of the sector.
Speaking in Osogbo, Osun State capital, shortly after he presented a car prize to the winner of Dangote Bag of Goodies Promo, Alhaja Limota Adetoro, a petty trader from Ikirun, Makoju however called on government and stakeholders to address the challenges for steady growth of the sector. He said, “There are many challenges facing the manufacturing sector in the country. The environment recently has been quite difficult. The issue of low-interest funding for the manufacturing sector is still a big challenge. You will find out that the gestation period to recover investments is long. “With that, you cannot put large capital into starting such industry. Banks in Nigeria today are still not in a position to give special low-interest loans. To me, that is one of the biggest challenges.” “In terms of the operating environment, it is getting a bit harsher; my concern is for the small-scale industries facing the issue of multiple taxes.” He also said, “There is proliferation of taxes, ranging from local government to state government taxes. I quite agree that we need to improve tax collection but not to the point of destroying the sectors of the economy that would create the wealth you will tax. If you overtax, these industries would not grow and our economy would be underdeveloped.” Commenting on the promo, Makoju said it was in line with the philanthropic gesture of Alhaji Aliko Dangote, meant essentially to motivate consumers at the grass roots. Reacting, the winner of the star prize, Alhaja Adetoro, commended the transparency of the management of Dangote Group in handling the promo.

Source: Punch

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Value added Tax (VAT) generated from Nigeria’s transport and Haulage service sector soared by 205 percent in Q2 2019m, according to figures released monday by the National bureau of Statistics (NBS).
According to the report, the sector’s VAT rose to N7.43 billion from N2.43 billion recorded in the previous quarter. The sum of N311.94billion was generated as total VAT in second quarter 2019 as against N289.04billion generated in Q1 2019 and N269.79bn generated in Q2 2018 representing 7.92 percent increase QoQ and 16.95percent increase YoY. Other manufacturing generated the highest amount of VAT with N34.43bn generated and closely followed by Professional Services generating N29.58bn, Commercial and Trading generating N16.27bn while Mining generated the least and closely followed by Pharmaceutical, Soaps & Toiletries and Textile and Garment Industry with N50.60million, N250.09mln and N316.91mln generated respectively. According to the report, out of the total amounted generated in Q2 2019, N151.56bn was generated as Non-Import VAT locally while N94.90bn was generated as Non-Import VAT for foreign. The balance of N65.48bn was generated as NCS-Import VAT.

Source: Business day

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

Source: Punch

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German champions, Bayern Munich, are hoping their fans’ enthusiasm with the arrival of Brazilian midfielder, Philippe Coutinho, this week will spill over onto the pitch when they travel to Schalke 04 on Saturday. Defeat in the German Super Cup to Borussia Dortmund and a 2-2 home draw with Hertha Berlin in their Bundesliga opener last week made for a disappointing start to the season for the Bavarians. Another slip-up at Schalke would set the alarm bells ringing at Bayern, who have won the last seven league titles. With title rivals Dortmund wrapping up most of their signings by May, Bayern fans were less than impressed with the club’s lack of activity in the transfer market but that changed last week. After missing out on several over the last couple of months, Bayern completed loan deals for Inter Milan forward, Ivan Perisic and Barcelona’s Coutinho, and signed France youth international, Mickael Cuisance. The transfer window in Germany shuts next week. Coutinho, who joined Barcelona from Liverpool in January last year for about $170 million, was the third most expensive transfer in history but has failed to hit the same heights at the Camp Nou as he did at Anfield. Bayern forward Robert Lewandowski, who had repeatedly called for reinforcements if the club were to remain competitive, said Coutinho was a game-changer. “Players like him can decide whether you win the game or not,” said Lewandowski. “With such a player one can play together with no problems from the very first game.” It is still unclear whether Coutinho will get to play at Schalke but he was described as being in top condition after passing his medical on Sunday. Both coach Niko Kovac and the player know that he needs to deliver quickly if the move is to benefit both of them. Bayern struck a deal for a loan fee of 8.5 million euros ($9.44 million) plus his wages but they know the move will essentially only have been a success if at the end of the season they make the deal permanent for a fee of 120 million euros.

Source: punch

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Juventus star Cristiano Ronaldo has revealed that ‘I could end my career next year, but I could also play until I’m 40, 41.’ Ronaldo had just helped fire Real Madrid to a third consecutive Champions League when he joined Juve last summer, but the No 7 admits he was becoming too ‘comfortable’ in the Spanish capital. “I don’t need football to live well, I’m fine financially,” he told TVI. “What I need are attractive projects and Juve’s is one of them. I’ve always liked this team, they’re the best in Italy and one of the best in the world. “They’ve always fought to establish themselves in Europe. And after winning in England and Spain, I also won in Italy and I’m happy to be here. “Everyone wants to win the Champions League, us included, but we mustn’t treat it as an obsession. “We must things take their course and go step by step. After that, we must remember that money doesn’t make the teams great. Look at how many years Barcelona, Bayern or PSG haven’t won the Champions League.”

Source: Punch

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Forte Oil Plc hereby notifies the Nigerian Stock Exchange that it has received the Corporate Affairs Commission’s approval for the extension of time to convene Its 40th Annual General Meetings (AGM).
The extension was sought pursuant to S.213(1) of the Companies and Allied Matters Act Cap C20 LFN 2004. The Exchange will be notified of the date for the AGM.

Source: proshare

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The tax exemption benefit given to industrial units inside the economic zones has created disparity between factories outside the industrial enclaves, raising fears of uneven competition among firms producing the same products. The National Board of Revenue in 2015 declared tax benefit on income of businesses inside the economic zones for 10 years based on recommendation from the Bangladesh Economic Zones Authority (Beza) to promote investment and industrialisation in the country in an organised manner.
Tax exemption would be applicable on incomes from all sorts of goods and services to be generated from investment inside the economic zones. Since then, the Beza approved 10 private economic zones apart from developing sites by itself. In the private economic zones, a number of factories churning out edible oil, cement, motorcycles and leather goods has been set up. In government-owned sites, entrepreneurs have shown interest to set up food and agro-processing factories, textile, leather, pharma-ceuticals, steel, ceramic, chemical and paint plants, according to Beza. As the factories inside the economic zones will enjoy tax breaks, especially waiver from paying advance income tax (AIT) and advance tax (AT) during raw material import, they will be at an advantageous position in terms of cost compared with firms outside the zones, said Md Shafiul Ather Taslim, director for finance and operations at TK Group. “Cost to make the same product will be different because of producing in two different premises. It will be tough for small firms to sustain in the competition,” he added. TK, one of the major commodity importers and processors, and some other firms shared their concerns with the NBR last month after two major commodity suppliers -- Meghna Group of Industries and City Group of Industries -- started processing edible oil by establishing plants in their respective economic zones. Later, the NBR sat in a meeting in the middle of last month. At the meeting, NBR Chairman Md Mosharraf Hossain Bhuiyan said economic zones are required for industrialisation but because of tax incentives unequal competition has been created within the same industry, according to the meeting minutes. Industry insiders said the difference in tax benefits will not only create uneven competition among firms in the commodity market but also in other sectors. The meeting decided to send the proposal to Beza to change the rule regarding tax incentive to commodities. However, Beza said the tax benefit have been offered to encourage planned industrialisation, encourage compliant and environment-friendly production as well as discourage scattered development of factories. Beza Executive Chairman Paban Chowdhury acknowledged that there are some differences in income tax and without incentives investors will not feel encouraged to set up factories in the zones. “We want all large industries to come to one place. The government will not have to provide gas, electricity and water everywhere to facilitate industrialisation. It will be able to provide all services in a cost-effective, regulated manner.” There is also the issue of establishing effluent treatment plants. “There are some incentives in economic zones and those who will establish industries here, levels of their compliance will be high because of regulation. The issue of compliance is also equally important,” Chowdhury added. Beza said all factories will eventually have to relocate to EZs as per law. Mostafa Kamal, chairman of Meghna Group of Industries (MGI), said his group has cement factory outside the economic zone but it is not questioning the tax benefits enjoyed by Aman Cement Mills set up in the Aman Economic Zone, another private economic zone. The government offers tax benefits to promote industrialisation in regions that are lagging behind. “It is the global norm to give tax holiday when investment is made in underdeveloped areas. None will invest there unless incentives are given.” Kamal said the major steel makers are planning to set up steel mills inside the economic zones. “What will happen then? Should those who have mills outside say that steel mills cannot be established in economic zones,” he said, adding that no one would go for huge investment unless there are incentives. Chowdhury said there are bound to be some impact with any change. “But ultimately all industries will be benefited,” he said.

Source: The daily  

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The German Environment Agency has advocated making cars with high carbon dioxide emissions more expensive given the boom in the purchase of sport utility vehicles in the country.
“We must find measures to promote climate friendly transport, Federal Environment Agency president, Maria Krautzberger, told dpa on Tuesday. A proposal from the agency is an income neutral bonus penalty system for new vehicles. A penalty would be levied on cars with high CO2 emissions through a tax increase over several years. Also, bonus would be paid through targeted promotion of cars with low CO2 emissions. The agency made the comments after sales of SUVs increased sharply again in July.

Source: Punch

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Sudan’s deposed military ruler Omar al-Bashir has admitted to receiving $90 million in cash from Saudi royals, an investigator told a Khartoum court on Monday. Police Brigadier Ahmed Ali said at the opening of Bashir’s corruption trial, which an AFP correspondent attended, that the former president told him that the latest payment was “delivered by some of Mohammed bin Salman’s envoys”. Bashir, whose military Islamist regime ruled Sudan for 30 years, arrived at the Judicial and Legal Science Institute where the trial is taking place in a huge military convoy. Inside the courtroom, he was sitting in a metal cage, unshaven and wearing a white traditional gown. His relatives in the courtroom chanted “Allahu Akbar” (God is greatest), to which he responded with the same words. The former strongman was forced from power on April 11 after months of protests. A transitional constitution meant to guide Sudan towards civilian rule was officially signed on Saturday. Bashir faces a raft of charges of war crimes, crimes against humanity and genocide from the International Criminal Court over his role in the war in Sudan’s western Darfur region. However, the jailed leader appeared in court Monday on charges of receiving and possessing foreign funds illegally. The police investigator told the court that nearly seven million euros ($7.8 million) were found at Bashir’s residence, as well as smaller amounts in US dollars and Sudanese pounds. “The accused told us that the money was part of a sum of $25 million sent to him by Prince Mohammed bin Salman to be used outside of the state budget,” Ahmed Ali said. The investigator said Bashir had said he also received two previous payments of $35 million and $30 million from Saudi’s King Abdullah, who died in 2015. The investigator said Bashir had said the Saudi money was exchanged and spent and that he could not remember how nor did he have documents providing further details.

Source: Punch

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The board of telecommunications giant- MTN Nigeria Communications Plc, on Friday, hinted the Nigerian Stock Exchange (NSE) of its pending “technical disagreement” with the Federal Inland Revenue Service (FIRS) on whether it ought to pay corporate tax on a N330bn (about $1.1bn) fine.
The matter, according to a statement by Uto Ukpanah, its company secretary, is now before a Tax Tribunal for adjudication. The tribunal, the brainchild of FIRS Chairman, Babatunde Fowler, and former Minister of Finance, Mrs. Kemi Adeosun, is to determine whether MTNN ought to pay taxes on the 2015 fine imposed by the National Communications Commission (NCC). Notwithstanding the disagreement, MTNN said, “the monies (disputed tax) have been paid to FIRS. Reuters, however, quoted MTN Nigeria’s spokesman as saying however that government cannot access the money, given that the case is “with the tax tribunal the government can’t access the money. “We believe that the fine should be treated as part of the cost of running the business but the FIRS thinks otherwise,” he stressed. MTNN, in the statement to the NSE, assured of its readiness to abide by the decision of the tribunal, assuring of the company’s readiness to continue complying with the Nigerian tax laws, as well as meeting its fiscal responsibilities and contributing to the social and economic development of the country. MTNN recalled that since incorporation in 2001, it has invested over N2tr into the nation’s economy, besides paying over “N1.7tr in taxes, levies, and other regulatory fees.” Recall that the company was originally fined N1.04tr for failing to deactivate more than five million unregistered SIM cards, but this was negotiated downward, clearing its path to list on the Nigerian Stock Exchange earlier this year. The MTN spokesman said the group was waiting for the tribunal’s decision, as it could set a precedent for how penalties are treated by companies registered in Nigeria.

Source: invest data

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

Source: Premium time

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MTN Nigeria Communications LTD has been accused by Babatunde Fowler, chairman of the Federal Inland Revenue Service (FIRS), of deducting tax from the N330 billion fine it paid to the Nigerian Communications Commission (NCC). The penalty was imposed in 2015 over SIM card registration infractions.
Fowler maintained that fines and penalties for regulatory infractions are revenues paid to the Federal Government and should not be subjected to any tax deduction. “The MTN took a position that the fine or penalty should be tax-deductible. But the FIRS said that does not make sense. One cannot be given a penalty or fine, which is a punitive measure, and the company is saying it is tax-deductible so that it will get a tax credit on that,” the FIRS boss added. The NCC had in October 2015 imposed a fine of N1.04 trillion on the telecommunications giants for non-compliance with a deadline set by the Commission to disconnect all unregistered SIM cards. The move by NCC followed accusations by mobile phone users that the regulator had failed to bring operators to account for poor services to subscribers. The regulator later reduced the fine to N780 billion in December 2015, having taken into consideration the stability of the telecommunication sector. The fine was further reduced to N330 billion after MTN agreed to be listed on the Nigeria Stock Exchange (NSE). The agreements have now been fulfilled by MTN, including the listing of 20.3 billion shares in May this year.

Source: Sahara

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MTN Nigeria, on Friday, admitted to a technical disagreement between it and the Federal Inland Revenue Service on how the 2015 fine should be treated for tax purposes. Mr Onome Okwah, Manager, Public Relations and Protocol, Corporate Affairs/Corporate Relations, MTN, disclosed this in a statement in Lagos.
According to him, the organisation’s attention has been drawn to media reports regarding the status of taxes relating to the 2015 fine imposed on MTN. He, however, added that while the monies had been paid to FIRS, MTN had taken the disagreement to the Tax Tribunal set up by the FIRS Chairman and Minister of Finance and were awaiting its decision. “MTN remains fully compliant with the Nigerian tax laws and will abide by the findings of the tribunal. “The company is committed to meeting its fiscal responsibilities and contributing to the social and economic development of Nigeria. “Since incorporation in 2001, MTN has invested more than N2 trillion in the Nigerian economy and has paid more than N1.7 trillion in taxes, levies and other regulatory fees. The News Agency of Nigeria reports that Mr Babatunde Fowler, Chairman, FIRS, recently accused MTN of deducting tax from the N330 billion fine it paid to the Nigerian Communications Commission. Fowler maintained that fines and penalties for regulatory infractions were revenues paid to the Federal Government and should not be subjected to any tax deduction. NCC had in October 2015 imposed a N1.04 trillion fine on the telecommunications giant for alleged non-compliance with the deadline set by the commission to disconnect all unregistered SIM cards. The regulator reduced the fine to N780 billion in December 2015, having taken into consideration the stability of the telecommunication sector. The fine was further reduced to N330 billion after MTN had agreed to be listed on the Nigerian Stock Exchange.

Source: Punch

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HMRC plans to introduce new rules for taxpayers and intermediaries on cross-border tax planning, and which might affect British residents’ who buy overseas properties. Thinking of buying a holiday home in the Dordogne? The taxman needs to know
HMRC plans to introduce new rules for taxpayers and intermediaries on cross-border tax planning, and which might affect British residents’ who buy overseas properties. It is not uncommon for those buying this type of property to be offered alternative ways of holding the asset. If the main benefit is the avoidance of tax the details will need to be reported to HMRC. HMRC acknowledges that one of the primary purposes of their proposals is to refine the requirement to report tax planning where cross-border transactions are involved. The taxman is aware that historically UK residents have acquired overseas assets with undeclared income and have used offshore structures to hide the asset from the tax authorities. HMRC is concerned that unless they are informed at the time of the transaction there is a risk that tax could be lost. HMRC is interested in the source of the funds used to acquire the holiday home, how the maintenance costs are paid, whether the letting of the property generates rental income or whether a capital gain is made when the property is sold. If HMRC is told of the acquisition of the property, this will allow them to consider if there were any concerns with how the taxpayer funded the property and met the running costs. HMRC also wishes to gather information on tax planning solutions offered to taxpayers to judge whether one of the benefits would be the avoidance or evasion of taxes. The government has undertaken to share this information with other EU member states to ensure that cross-border transactions are not used for this purpose. Brits with overseas assets have been under the spotlight since the mid-noughties, as HMRC has continued to target offshore income and gains not previously reported. Starting in January 2016, data was gathered by banks under the OECD’s Common Reporting Standard (CRS) for the automatic exchange of information. This required the participating tax authorities to exchange information with the country in which the account holder was tax resident. HMRC has also cracked down on marketed tax avoidance schemes, and the facilitation of tax evasion by professionals and intermediaries both inside and outside the UK. The government is consulting on new legislation that will require the disclosure of cross-border tax avoidance arrangements. The requirement to report will apply even when the planning is not adopted, all that is necessary is that the promoter has made the planning available to or discussed it with the taxpayer. All parties involved will need to disclose details of the planning, with taxpayers required to report the planning on their personal tax returns. Under the terms of the OECD Directive, the relevant tax authorities will use the information to target tax avoidance and evasion and, where appropriate, share the information with EU member states. The consultation document makes it clear that there may need to be a report made, even where the planning may be in line with and in the spirit of the law. HMRC’s concern is that there is a risk that avoidance or evasion of tax could still be one of the main benefits of the planning.

Source: Legit

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The Ministry of Finance has confirmed that it is continuing to implement Value Added Tax in compliance with the GCC Unified Agreement, which requires its implementation by all GCC members.
The ministry said in a statement, "The government is working on completing the legislative procedures to issue the VAT law, pointing out that the General Secretariat of Taxation is currently completing the administrative and technical procedures in preparation for applying this tax once approved. "The ministry confirms Oman's continuous efforts to implement a number of financial procedures in all aspects of revenue and public expenditure, in order to achieve fiscal balance of public finance." "The financial accounts of the Sultanate indicate that the financial measures taken have achieved positive results in controlling government spending and reducing the annual deficit in return for an increase in government revenues," the ministry added.

Source: Punch

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