Real Madrid will rival Barcelona in the race to sign Paris Saint-Germain striker Neymar this summer, according to reports in the Spanish press on Friday. Madrid has shifted focus to Neymar after the close of the English Premier League’s transfer window on Thursday ended their hopes of signing Manchester United midfielder Paul Pogba. According to Marca, Neymar has “returned to the scene” with the club “believing for some time that the team is lacking a big star up front”. Sports newspaper AS claims the Brazilian has been offered to Madrid by PSG, who are open to selling if they can either recoup the 222 million euros they spent on him in 2017 or receive half that amount, with players included in the deal. It means La Liga’s two greatest rivals are set to go head-to-head in the battle to sign Neymar before the Spanish transfer window closes on September 2. Barcelona newspaper Mundo Deportivo says the 27-year-old will wait until August 20 for Barcelona to make a decisive move, after which “PSG’s number 10 does not rule out any option in order to leave the French champions, where it is clear he does not want to stay any longer.” But Mundo adds that “it is clear Neymar wants to play for Barcelona” while Diario Sport agrees, writing that “the winning card Barca continues to hold is the will of the striker to reunite with players like Leo Messi and Luis Suarez. With them, he has a great understanding on the pitch and also a strong friendship off it.” Marca believes Madrid also have factors in their favour. “Neymar’s priority is not to go to Barcelona. His priority is to leave the PSG,” wrote Marca, also citing their “magnificent relationship” with PSG, “quite the opposite” of how the French club views Barcelona. Luka Modric is mentioned as a possible makeweight while Philippe Coutinho, who reportedly rejected an offer from Tottenham this week, could be included in an offer from Barcelona. Sport admits whichever team signs Neymar will “inflict a blow on their rivals by snatching a star player from the other’s grasp”. “From now on, it will be Neymar that decides,” Sport added. “Barcelona wants the player to go public but he understands such a move would be risky. If Barca and PSG do not reach an agreement he would be stuck in the French capital for the third year.”

Source: Punch

Contact InnerKonsult for Professional Services on Tax, Accountancy and CAC Services. O8038460036, www.innerkonsult.com

It seems Romelu Lukaku’s time at Man U is gradually winding down after reports of beef between the Belgian and his boss, Ole Gunnar Solksjaer over what the former perceived as biased Pogba treatment. Adam Crafton of The Athletic claims Lukaku hasn’t spoken to Solskjaer since last Friday and it seems a major part of the problem is Paul Pogba. According to Crafton, the Belgium international is “baffled” by the way Solskjaer has treated his desire to leave United compared to Pogba, who said in June he would like a “new challenge”. “There is also truth in reports of a drastic deterioration in his (Lukaku’s) relationship with Pogba,” Crafton wrote. “The pair exchanged words last season and Lukaku is also baffled by the way Pogba’s pre-season hints at a transfer have been indulged by Solskjaer. “By contrast, Lukaku believes his own professionalism has only cost him precious time in pre-season training with a new club.” Lukaku feels hard done by, but it’s important to note that back in April he said playing in Serie A would be a “dream”. “Playing in Serie A is a dream, it would be really a dream,” he said. “I hope to be able to play sooner or later, even if at the moment I am focused on United.”
…As Inter insist on Belgian star
Romelu Lukaku’s agent is flying to London for more talks with Manchester United as Inter prepare one final bid for the striker. Gianluca Di Marzio, Fabrizio Romano and Sky Sport Italia all report Inter are not giving up on Lukaku and will launch one last assault for the Belgian. The Nerazzurri previously bid €60m plus bonuses, but United are continuing to hold out for €85m. It is claimed the purpose of Federico Pastorello’s trip to England will be to act as an intermediary on the Beneamata’s behalf. Pastorello will then liaise with Inter President Steven Zhang to see how much more his club are willing to offer. However, the sources stress they are in no mood to bargain with the Red Devils and will only make a formal bid once they are sure it will be accepted. Juventus also remain keen on the 26-year-old, although they have to sell Paulo Dybala before they can finance a deal.

Source: Punch

Contact InnerKonsult for Professional Services on Tax, Accountancy and CAC Services. O8038460036, www.innerkonsult.com

Eden Hazard scored his first goal for Real Madrid in sublime fashion as Zinedine Zidane’s team earned a welcome 1-0 pre-season victory at Salzburg. Hazard, who arrived in the close season from Chelsea for a fee which could reportedly reach £130m, lit up proceedings in the 19th minute with a brilliant curling effort as Los Blancos continued their preparations ahead of their LaLiga opener away to Celta Vigo on August 17. The Belgium international’s strike made it back-to-back successes for Madrid after victory over Fenerbahce in their previous outing, but they were far from their fluent best at the Red Bull Arena. There was again no place in Zinedine Zidane’s squad for Gareth Bale, who recently saw a move to Chinese club Jiangsu Suning collapse, while midfielder James Rodriguez was another notable omission. Madrid’s marquee addition Hazard gave a glimpse of his star quality when he latched onto Karim Benzema’s throughball before cutting onto his right foot and whipping a superb curling shot inside the post. It was a rare moment of class in an otherwise largely uneventful game, which still left question marks over the form of the Spanish giants, who have lost to Bayern Munich, rivals Atletico Madrid and Tottenham ahead of the new campaign. Takumi Minamino missed a golden chance for Salzburg at when Andreas Ulmer’s deep cross found him unmarked at the back post, while Patson Daka spurned a glorious opportunity to pull the hosts level after the break when he was sent clean through and fired over. Luka Jovic replaced Hazard in the 62nd minute and nearly doubled Madrid’s advantage, but he was unable to beat goalkeeper Carlos in the best opening before the final whistle.

Source: Punch

Contact InnerKonsult for Professional Services on Tax, Accountancy and CAC Services. O8038460036, www.innerkonsult.com

A tax expert and partner with Price water Cooper (PwC), Taiwo Oyedele, has said the current tax regime in Nigeria does not encourage informal businesses aspiring to formalize their operations. Oyedele spoke during a panel discussion at the Special Policy Dialogue Colloquium, entitled “Policy Change – The Enabler of Sustainable Growth”, organized by the Financial Derivatives Company in Lagos on Monday.
He said: “Under the AfCFTA, we will need to formalize so many businesses because if you are not formalized, you can’t play in Africa. “In Nigeria today, if you have your business not registered with the Corporate Affairs Commission (CAC) and you want to be fully tax compliant, the maximum income tax you pay is about 19 percent. If you make the mistake of formalizing it and you register with the CAC, your tax goes up to 42 percent. How would that make sense for anybody to do?” He said the country needs a mindset change to help drive policy in the right direction. “The biggest things we have to do to make the most impact are not the most difficult. They are around policies. The road, the rails and the ports will take time, but policies can give you result in a few months,” he added. He charged the nation’s government to carry out a specific assessment, saying “most of the things we need to do are things that are good for us anyway, with or without the free trade area. They are good for human beings, good for businesses and the economy.”

Source: daily trust

Contact InnerKonsult for Professional Services on Tax, Accountancy and CAC Services. O8038460036, www.innerkonsult.com

The chairman of the committee on the recovery of stolen movable assets belonging to the Imo State government, Jasper Ndubuaku, has said that the committee had recovered over 70 vehicles since its inauguration by the State Governor, Emeka Ihedioha. Ndubuaku, who spoke to our correspondent in Owerri, the state capital on Tuesday, said that the committee had equally recovered two asphalt plants. The governor’s aide said that the committee had recovered properties worth N1bn. Ndubuaku, who served as a lawmaker in the state between 1999 and 2007, said the committee was not on a witch-hunt mission against anybody as being alleged by the immediate past governor of the state, Rochas Okorocha. According to him not all the recovered properties belonged to the members of the Okoorcha family. He said that the committee equally recovered some of the properties from ex aides and appointees of Okorocha. Ndubuaku said that Okorocha “damaged” the state by governing it wrongly. He said, “We are not witch-hunting anybody. The facts are there. “We have recovered over 70 vehicles. We equally recovered two asphalt plants. The estimate of things we have recovered is about N1bn. More are to come. We have all the records.”

Source: punch

Contact InnerKonsult for Professional Services on Tax, Accountancy and CAC Services. O8038460036, www.innerkonsult.com

Following the expiration of the five-year Value-Added Tax (VAT) exemption on Stock Exchange transactions, it has been revealed that investors may lose as much as N2.5 billion yearly as additional costs on transactions. Reports said stakeholders in the Nigerian capital market have been expressing concerns on the matter just as the non-reversal of VAT payment takes its toll on stock market transactions.
The reports also showed that market charges have increased total costs of transactions-on both sides (buying and selling) from 3.7% as at July 24 to 3.9% by July 25. The background: The VAT exemption on stock exchange transactions expired on July 24, thus investors and dealing members of the capital market are now required to pay VAT for transactions carried out on the NSE. A former Minister of Finance, Dr. Ngozi Okonjo-Iweala, had in 2014 exempted VAT deductions from commissions earned on the traded value of shares, commissions payable to the SEC and commissions payable to the Central Securities Clearing System (CSCS). Following the expiration, the deduction of VAT took effect from on July 25. Hence, the commissions that attracted VAT include the ones earned by Dealing Members on traded values of shares and the ones payable to the NSE and the CSCS. Transactions Cost up: Further details had revealed that the re-imposition of 5% VAT, commission payable to stockbrokers increased from 1.35% per transaction to 1.41%. Commission payable to the NSE also increased from 0.3% to 0.31% while the commission payable to CSCS rose from 0.36% to 0.378%. Besides, investors will pay stamp duty of 0.075% on each transaction. A further breakdown in the report showed that the total costs per transaction on the buy-side increased from 1.72% as at July 24 to 1.79% by July 25, while total costs on the sell-side rose from 2.02%t to 2.12%. Specifically, investors paid an average of N2.49 billion yearly or N207 million monthly, based on transactions in the past two years. This means an estimated additional cost to be paid by investors may be in the region of N2.5 billion Stakeholders concerns: Meanwhile, stakeholders in the capital market have decried the inconsistency in government’s fiscal policies and its understanding of the fragile capital market. According to the Chief Executive Officer of Sofunix Investment and Communications, Mr. Sola Oni, the re-imposition of the VAT was a bad omen for the stock market and it may further stifle investors’ confidence in the capital market. “It will obviously increase transaction costs and make our market more uncompetitive. High transaction cost is at variance with global best practices. The policy is an overkill at a period when investors’ confidence in the market is still fragile,” Oni added.

Source: Nairamatric

Contact InnerKonsult for Professional Services on Tax, Accountancy and CAC Services. O8038460036, www.innerkonsult.com

The Executive Chairman of the Federal Inland Revenue Service (FIRS), Tunde Fowler, has hinted that the country’s various tax and excise law reforms might soon be harmonised, as the agency inaugurated the reconstituted National Tax Policy Implementation Committee (NTPIC).
Speaking at the inauguration ceremony, Fowler said since the committee had been officially put in place, the National Assembly might soon be required to pass a bill to carry out the harmony exercise. Fowler charged the Technical Committee to accelerate the development and submission of a draft, Finance Bill, to harmonise the various tax and excise law reform efforts. “It is our expectation that the Technical Committee will work assiduously over the next few weeks to produce a singular set of fiscal measures that will be considered and approved by the reconstituted NTPIC. “Once agreed, these fiscal measures are to be submitted to the Economic Management Team and Federal Executive Council, for approval and ultimate transmission to the National Assembly, for passage into law, as part of the efforts to support the 2020 Executive Budget proposal.” What you should know: Tax harmonisation is generally understood as an adjusted tax system of different jurisdictions in the pursuit of a common policy objective. This type of policy involves the removal of tax distortions affecting commodity, and factor movements in order to bring about a more efficient allocation of resources within an integrated market. Controlling tax rates does not only stabilize tax revenues but is also sometimes necessary for moving forward with economic and political integration. On the other hand, deregulating tax rates maintains the autonomy of member countries in tax matters for their own short-term economic and social policy purposes. In addition, it mitigates political distortions. Prior to this development, OXFAM, an International Non-Governmental Organisation, had advised the Nigerian government to review the country’s tax incentive policy, which currently costs the country huge revenue loss.

Source: Nairamatrics

Contact InnerKonsult for Professional Services on Tax, Accountancy and CAC Services. O8038460036, www.innerkonsult.com

Breaking into the Premier League’s top six has been a tough task for the teams outside the elite group of Manchester City, Liverpool, Tottenham, Chelsea, Arsenal and Manchester United. But with questions over United, Arsenal and Chelsea, there could be a rare vacancy to fill this season. Here are three clubs most likely to upset the established order:
Leicester
Since their fairytale Premier League title in 2016, the Foxes have finished 12th and then ninth twice, but boss Brendan Rodgers heads into his first full season at the King Power Stadium hoping to crack the top six. Even the sale of England defender Harry Maguire to Manchester United for £80 million ($97 million) cannot sap the optimism around Leicester, who showed in a 3-0 demolition of Arsenal late last season that they have nothing to fear from the so-called big guns. Jamie Vardy remains the key to Leicester’s success, with the striker’s superb finishing and clever movement bringing 18 goals in 34 league games last season. Former Liverpool and Celtic manager Rodgers, hired in February, has tried to surround Vardy with more quality, bringing in Newcastle forward Ayoze Perez and turning Belgian midfielder Youri Tielemans’ successful loan spell from Monaco into a permanent move. Tielemans should dovetail well with promising playmaker James Maddison to increase the supply lines to an attack that could also feature young forward Harvey Barnes, while Ben Chilwell and Ricardo Pereira are two of the better-attacking full-backs in the Premier League.
Wolves
Nuno Espirito Santo’s side finished closest to the top six, ending up in seventh place after an impressive first season back in the top-flight. While Wolves’ rapid progress under Nuno is undeniable, they were still nine points behind sixth-placed Manchester United and need to make further strides to overhaul them. With that in mind, Wolves sealed permanent deals for Raul Jimenez, who netted 13 times in the Premier League last season, and Leander Dendoncker after their loan spells, while Italy striker Patrick Cutrone arrives from AC Milan. Wolves enjoyed wins against four of the top six and knocked Liverpool out of the FA Cup, but now Nuno has to work with the added demands of the Europa League. That could prove an especially vexing issue given the manager so desires a settled side that 10 of his players made at least 33 Premier League appearances last season.
Everton
Everton has been knocking their heads against the Premier League’s glass ceiling, finishing seventh, eighth and eighth over the past three seasons. But Marco Silva’s side head into the new campaign with the renewed belief they can bridge the gap after Everton won five of their final eight matches, including home victories against Chelsea, Arsenal and Manchester United. Idrissa Gueye and Kurt Zouma have departed since last season, the former to Paris Saint-Germain and the latter back to Chelsea after his loan. But Silva has brought in Juventus’s gifted young striker Moise Kean, Manchester City defender Fabian Delph and Mainz midfielder Jean-Philippe Gbamin and can also look forward to more progress from Brazil forward Richarlison. Billionaire majority shareholder Farhad Moshiri has laid the foundations for Everton’s future by backing plans for a new stadium and funding significant investment in new signings — now Silva has to build a team fit for that arena.

Source; punch

Contact InnerKonsult for Professional Services on Tax, Accountancy and CAC Services. O8038460036, www.innerkonsult.com

Champions Paris Saint-Germain is clear favourites to lift the French title for the seventh time in eight seasons after their nearest rivals Lille and Lyon sold key players over the summer. While Thomas Tuchel’s men have strengthened in midfield and kept hold of Neymar, Lille saw leading scorer Nicolas Pepe depart for Arsenal with Nabil Fekir, Ferland Mendy and Tanguy Ndombele leaving Lyon for fresh challenges abroad. AFP Sport takes a look at five new faces to watch in Ligue 1 for the 2019-20 campaign:
Idrissa Gueye
The Senegalese international returned to France last week after PSG stumped up a reported 32 million euros ($35.5 million) to bolster their midfield, the area most in need of reinforcement. Gueye, 29, spent seven years with Lille before moving to England in 2015, first with Aston Villa and then Everton. The Toffees rejected a January bid for the midfielder last season but his belated arrival in the French capital represents a shrewd signing for Tuchel. Gueye shone as Senegal reached the Africa Cup of Nations final, serving as the crucial link between defence and attack, and PSG will hope his acclaimed ball-winning ability will complement a team overflowing with attacking options. The club also snapped up the combative Ander Herrera on a free transfer from Manchester United and Spanish midfielder Pablo Sarabia, who scored 23 goals in 52 games last season for Sevilla.
Abdou Diallo
The signing of France Under-21 international defender Abdou Diallo from Borussia Dortmund suggests Thiago Silva’s time at the club is nearing an end. Diallo, 23, will be reunited with Kylian Mbappe at PSG, having made a handful of appearances during Monaco’s title-winning season in 2016-17. Two successful years in Germany followed, with Mainz and Borussia Dortmund, where he continued his progression and displayed his versatility out on the left flank. Mats Hummels’ return to Dortmund made Diallo expendable and although he faces competition from Silva, Presnel Kimpembe, Marquinhos and Thilo Kehrer, he represents a long-term investment at Parc des Princes having signed a five-year deal.
Sylvinho
The former Barcelona and Arsenal full-back was hand-picked as Lyon boss by compatriot Juninho, a former club star who is the new sporting director of the seven-time French champions. Sylvinho, 45, was working as right-hand man to Brazil coach Tite and had been preparing a team for the 2020 Olympics in Japan. He will take over a Lyon side that finished third and earned a spot in the Champions League, but one subject to considerable transformation after the big-money sales of Mendy and Ndombele, as well as Fekir’s surprising move to Real Betis. Lyon splashed out on Danish centre-back Joachim Andersen, whose fee could rise to a club-record 30 million euros, after luring Brazilian midfielder Thiago Mendes from Lille for 26.5 million euros. Sylvinho has been set the target of another top-three finish by club president Jean-Michel Aulas.
Andre Villas-Boas
The former protege of Jose Mourinho has been tasked with reviving fallen French giants Marseille. The 1993 European champions turned to former Chelsea, Tottenham, Porto and Zenit St Petersburg coach Villas-Boas after the club missed out on continental football having finished fifth under Rudi Garcia. The Portuguese had been out of the game for 18 months and took part in last year’s Dakar Rally. He rose to prominence at Porto, initially serving as Mourinho’s assistant before becoming the youngest coach to win a UEFA competition, lifting the Europa League trophy as his team completed a treble in 2010-11. “I will lay down my life to get Marseille back to their best level. I will let the results do the talking but I’m confident because this team is capable of it,” Villas-Boas, 41, said at his Marseille unveiling.
Hwang Ui-Jo
The forward will become the first South Korean to play for Bordeaux after penning a four-year contract with the Girondins. Hwang started out with Seongnam, his country’s most successful club, before two years with Japan’s Gamba Osaka. The 26-year-old was voted the best South Korean player last season by the national football federation. Hwang joins countryman and Reims striker Suk Hyun-Jun in Ligue 1, and Bordeaux coach Paulo Sousa hopes his new signing will bring added quality to a team “in a rebuilding year” following a 14th-place finish last season.

Source: punch

Contact InnerKonsult for Professional Services on Tax, Accountancy and CAC Services. O8038460036, www.innerkonsult.com

Abia State Deputy Governor, Rt Hon Ude Oko Chukwu, has called on citizens and entrepreneurs to invest in the state and enjoy tax waivers for a minimum of five years. Sir Oko Chukwu who made the call at Afaraukwu Umuahia during the opening of a mini residential estate built by a Lagos based security consultant,
Chief Nzeribe Okegbue, informed that the waivers are to encourage Abians and others to contribute to the development of the state. According to him, “There is no better state to invest in as our state is currently rated among the top three safest in Nigeria and the administration led by Dr Okezie Ikpeazu is ready to support you and others to ensure good returns on your investment. We are committed to the industrialization of the state and will continue to provide support to investors as well as provide necessary infrastructure to ensure that you reap good returns on your investment within a peaceful atmosphere.” He applauded the decision of Chief Okegbue and assured him of the willingness of the government to provide enabling environment for him to further expand his investment in the housing sector which he described as crucial to the plans of the government to provide affordable housing to residents and visitors to the state through partnership with the private sector. In his address, Chief Nzeribe who is the Managing Director of Lagos based Combatants Guards Ltd, expressed appreciation to the government for encouraging him to invest in his home state and assured that he is ready to expand his investment in the state as well as make available his expertise to support manpower development in the state. He applauded the efforts of Governor Ikpeazu’s administration to positively change the Abia narrative and promised that he will invite his friends to also come to the state to invest. In his remarks, the Chairman of the occasion, Chief Ndidi Okereke, described Abians as the most intelligent and hardworking people in Africa and called for citizens support to the investment drive of Governor Okezie Ikpeazu administration. According to him, if Abians living outside the state decide to bring thier investments home the state will certainly become the most industrialized in Africa. The ceremony was witnessed by top government officials, including the State Commissioner For Information, Chief John Okiyi Kalu, Director General of Broadcasting Corporation of Abia State, Sir Uchenna Dike, former Commissioners including Chief Mascot Obike, traditional rulers and others.

Source: daily trust

Contact InnerKonsult for Professional Services on Tax, Accountancy and CAC Services. O8038460036, www.innerkonsult.com

US President Donald Trump on Tuesday sued the Democratic-controlled House Ways and Means Committee, the New York state attorney general and a New York state tax official to block any potential efforts by lawmakers to obtain his state tax returns.
Trump filed the lawsuit in federal court in Washington, D.C., alleging that House Ways and Means Committee Chairman Richard Neal (D-Mass.) is considering using a recently passed New York state law to get the tax returns. “Because the Committee’s jurisdiction is limited to federal taxes, no legislation could possibly result from a request for the President’s state tax returns. The Committee thus lacks a legitimate legislative purpose for using the TRUST Act,” the lawsuit states. This lawsuit comes on the heels of a separate complaint filed by the House Ways and Means Committee seeking Trump’s federal tax returns.

Source: P.M news

Contact InnerKonsult for Professional Services on Tax, Accountancy and CAC Services. O8038460036, www.innerkonsult.com

As a means of fighting tax evasion, the Kenya Revenue Authority (KRA) has announced plans to install Electronic Tax Registers (ERTs) at business establishments in the country. The ETRs will grant KRA real-time access to invoices issued by traders around the country.
By law, businesses with an annual turnover of at least Sh5 million will be required to get this electronic tax register. Traders, manufacturers, and suppliers will also be required to install the new Internet-enabled ETRs which allow the taxman track business conducts using invoices of every transaction and assess the tax due on a real-time basis. The planned deployment has the legal backing of VAT Act 2013, a law which prohibits the use of hard copy cash sale receipts and invoices. To ensure compliance, the system will require traders to seek permission before performing any business the next day. This means incorrect or incomplete data logged in the previous day could lock them out. More so, control units are required to send end-of-day summary after all the invoices for the respective day have been transmitted and before starting invoice transmission for the next day. Once the new device is out, however, manufacturers are expected to bear the cost of compliance and procurement. Traders and manufacturers may as well choose to pass it to the customers. On the aspect of procurement cost, Nikhil Hira, a tax expert and director at law firm Bowman’s Kenya said, “I assume that once the machines have been sourced, taxpayers will be told to purchase and start using them – of course, this means additional cost for taxpayers.” KRA has consistently missed its targeted annual growth in tax returns for reasons being tax-related misconduct such as theft, cheating in the declaration of return, corruption, collusion and soliciting bribes from tax cheats. The agency, under the newly appointed Commissioner-General James Mburu, is expected by the Treasury to collect Sh1.87 trillion in taxes in the current financial year, up from the Sh1.65 trillion it was expected to rise in the just-ended financial year. The government of Kenya has over the years tried to restrain tax evasion by implementing different systems ranging from the Integrated Customs Management System (iCMS) to the Simba System and now, the ETR. Recently, seventy-five KRA staffs were arrested and detained in a tax evasion scandal. In April 2018, KRA got a businessman arrested in a sophisticated tax evasion case ever witnessed in the country. He was charged with counts relating to evading payment of about Sh7 billion in value-added tax (VAT) and income taxes. In November last year, President Uhuru Kenyatta directed the KRA to use the Sh3 billion Huduma Namba (a new National Integrated Identity Management System) biometric data to catch tax cheats. With this new system coming into play, KRA can monitor businesses incomes and businesspersons will not be able to reduce their tax liability without being noticed. This will allow the government to put taxes generated into public service development. Improving tax revenue has always been a top issue on the agenda of most African governments. In March 2019, the Nigerian government introduced new taxes in a bid to increase the revenue of the country. Also, the Togo Revenue Authority (OTR) is the first in the 14-member CFA franc zone to unify national tax and customs services. Since it was created in 2014, the OTR has successfully streamlined both processes and cut staff numbers by 17 percent. Togo saw tax proceeds increase by 23 percent the year after the OTR was created.

Source: Ventures Africa

Contact InnerKonsult for Professional Services on Tax, Accountancy and CAC Services. O8038460036, www.innerkonsult.com

Manufacturers and providers of goods and services under the aegis of Nigeria Employers’ Consultative Association (NECA) wednesday expressed their opposition to the plans by the federal government to increase taxation, including the value added tax (VAT).
NECA also called on the federal government to address the nation’s infrastructure deficit before the take-off of the African Continental Free Trade Area (AfCFTA). It lauded the signing of the agreement by President Muhammadu Buhari, saying the trade pact could enhance capital inflows into the country. It also warned that AfCFTA could harm the country’s economy in view of what it described as the variables of Nigerian businesses and industry. Speaking after leading a delegation of NECA to a meeting with President Buhari in the State House, Abuja, NECA’s Director-General, Timothy Olawale, said members of the delegation told Buhari that increasing tax this period would increase the burden of companies which were already paying more than they could bear. Besides, he said increasing VAT now would further impoverish the poor. A former Minister of Finance, Mrs. Zainab Ahmed, had said in June that the federal government was planning to increase VAT to 7.5 per cent from the current five per cent by 2020. She said the increment would help the federal government to shore up falling revenue. But Olawale said the delegation told the president that instead of increasing any tax rate, efforts should rather be geared towards broadening the scope of tax collection by going after 65 per cent of the citizenry who do not pay tax. He said if at all VAT would be increased, the increase should be targeted at luxury goods and opulent people and not the masses. “Basically, what we told the president is what we have repeated over and over again in the public domain, that rather than any increase in taxation because as it is, organised businesses are already being overburdened with all sorts of taxes and levies; as a matter of fact, we have calculated 105 different taxes and levies we are paying as we speak, which is cumbersome and burdensome. “So, we had advised that rather than resort to any form of increase in taxation, what government should be looking at is putting mechanism in place to widen the tax net in such a way that almost 65 per cent of non-compliant taxpayers are captured in the tax net. That way, more revenue will accrue into the coffers of the government. We specifically also voiced our concern with the suggestion and proposal out there that value added tax should be increased. “We have advised government that if it comes to be, it will reduce the purchasing power of Nigerian workers as well as the poor masses that the president, as we know, is working hard to improve their lot. We are saying that if government must as a matter of an avoidable necessity increase VAT, it should target luxury goods as well as the extra affluence in the society, not the poor masses or consumption goods and services that are for the benefit of the masses,” he said. On AfCFTA, Olawale said whereas the agreement was laudable and could enhance capital inflows into the country, it could also harm the country’s economy in view of what he described as the variables of Nigerian businesses and industry. He listed such variables to include poor infrastructure deficit, which does not make Nigerian goods and services competitive. According to him, to save the country’s businesses from chaos, the government must address the lingering challenges, otherwise, companies that are already struggling will eventually fold up when the implementation begins. “We don’t want a situation where our businesses are not competitive due to the disadvantaged environment in which they operate. Of course, we are all familiar with the disadvantaged environment with regards to the issue of agriculture among which is power and the issue of road network, that is transportation of goods and services and accessibility to the different business environment.

Source: Thisdays

Contact InnerKonsult for Professional Services on Tax, Accountancy and CAC Services. O8038460036, www.innerkonsult.com

Paris Saint-Germain have sensationally cut Neymar’s asking price almost in half, according to latest transfer gossip surrounding the Brazilian forward. The 27-year-old was apparently valued at as much as €300m earlier in the summer when Barcelona first came calling, but PSG would supposedly now accept just €180m for their star attacker, according to Sport. The report mentions links with Barcelona and it has generally been the Catalan giants most strongly linked with re-signing the player they sold to PSG two years ago. Neymar was a big hit at the Nou Camp and one imagines he’d be welcomed back to the club to form a stunning attack alongside the likes of Lionel Messi, Luis Suarez and summer signing Antoine Griezmann. Don Balon have also linked Neymar with Manchester City, claiming manager Pep Guardiola had personally contacted the South American over a move to the Etihad Stadium. There’s no doubt Neymar would be a huge statement signing by the Premier League champions and potentially help them go that bit closer to finally achieving Champions League glory. That said, many felt the former Santos man would also help PSG to do that, and that has not proven to be the case. Still, for €180m one imagines more clubs might be more willing to gamble on this potential transfer. club to form a stunning attack alongside the likes of Lionel Messi, Luis Suarez and summer signing Antoine Griezmann. Don Balon have also linked Neymar with Manchester City, claiming manager Pep Guardiola had personally contacted the South American over a move to the Etihad Stadium. There’s no doubt Neymar would be a huge statement signing by the Premier League champions and potentially help them go that bit closer to finally achieving Champions League glory. That said, many felt the former Santos man would also help PSG to do that, and that has not proven to be the case. Still, for €180m one imagines more clubs might be more willing to gamble on this potential transfer.

Source: Punch

Contact InnerKonsult for Professional Services on Tax, Accountancy and CAC Services. O8038460036, www.innerkonsult.com

The Federal Inland Revenue Service has said that the Federal Government has cleared N33.13bn outstanding PAYE tax liabilities owed by Federal Ministries, Departments and Agencies to states from 2002 to 2016, in the South-West region.
The chairman, Joint Tax Board, Mr Babatunde Fowler, disclosed this on Thursday when he inaugurated the new National Taxpayer Identification Number registration system in the South-West geopolitical zone. He said the TIN registration system and Consolidated National Taxpayers Database introduced by the JTB would improve the efficiency and output of the entire tax administration process and provide convenience to taxpayers and tax authorities. According to the JTB chairman, the new system will ensure that the taxpayer’s information is available whenever and wherever it is needed. Fowler said the system possessed the capability to integrate with relevant agencies and leverage already captured data, deploy analytics to discover underlying and correlating trends and patterns that could lead to increased Internally Generated Revenue for all tiers of government. These agencies, he added, included the Corporate Affairs Commission, Nigeria Customs Service, Nigeria Immigration Service, Federal Road Safety Corps, Central Bank of Nigeria and the Nigeria Inter-Bank Settlement System, Nigeria Identity Management Commission and Nigerian Communications Commission. He said, “This will significantly reduce the burden of manual taxpayer information management and by extension grossly crash the cost of collection. “The system is designed in such a manner that each taxpayer is assigned a unique and universal Taxpayer Identification Number and it is now possible for any taxpayer to view, retrieve or update their tax profile from anywhere 24/7.” According to him, the new TIN registration system and its consolidated database of individual and corporate taxpayers’ have been designed to form the foundation upon which the nation’s automated tax administration system was built. The JTB boss mentioned some of its recent milestones to include, “The payment by the Federal Government of all outstanding PAYE tax liabilities owed by Federal MDAs to states from 2002 to 2016, totalling N135.8bn; with a total of N33.13bn paid to the states in the South-West geopolitical zone.” In his opening remarks at the event, the Executive Secretary, JTB, Oseni Elamah, said the new system was a web-based solution that offered access to authorised users to initiate TIN request from the comfort of their homes/offices real-time online, verify their tax status and print their TIN certificate. “It is a transparent system that assures timely and accurate collection and recording of basic identification data,” he said Lagos State Governor, Babajide Sanwo-olu, commended the JTB for initiating the new system, which he said would take tax administration to the next level.

Source: Punch

Contact InnerKonsult for Professional Services on Tax, Accountancy and CAC Services. O8038460036, www.innerkonsult.com

OXFAM, an International Non-Government Organisation, has advised the Nigerian Government to review its policy on tax incentives currently costing the country a revenue loss of over N580 billion annually. The Country Director, OXFAM Nigeria, Constant Tchona, gave the advice on Wednesday in Abuja at the public presentation of the Fair Tax Monitor Index Report and the Commitment to Reducing Inequality Index Report.
Tchona said studies had shown that the fiscal incentives granted with the hope of stimulating investments in the country were eroded by poor governance and lack of transparency. He said there was no-cost benefit analysis to justify the exemptions. Tchona said in the spirit of fair taxation, the process for granting tax incentives should include mandatory parliamentary oversight, clear requirements for incentives and periodic review of expected results. He said: “The National Assembly should enact a law that will criminalise the actions of banks, auditors, accountants and lawyers that facilitate illicit financial flows. “When such professionals act contrary to existing regulations, they should be held accountable in Nigeria. “This can be enforced through strengthened professional association bodies. “There is also need for the Nigerian Government to fast-forward action on the new National Tax Policy and clamp down on corporate crimes. “New legislation and rules to cope with current realities should be enacted along with introduction to cutting-edge technology.” Tchona advised the government to make tax laws gender-friendly and more equitable to women as drivers of micro and small businesses in the country. He also urged the government to consider making Value Added Tax more progressive by charging more for luxury goods than service items. Tchona said this would help to reduce wealth inequality in the country. He said: “VAT exemption for building materials will have a direct positive bearing on middle and poor class segments of the population and make rent cheaper, thereby reducing housing deficit. “It is also important to increase direct tax net rather than increasing burden of indirect taxes like VAT. “Establishing a more progressive tax system will make it possible for government to deliver on essential public services like education, health and social protection, among others.” NAN reports that a 2015 OXFAM report highlighted the inefficiency of Nigeria’s tax incentives where it reported that the country loses N580 billion annually through tax incentives to multinationals. The study also showed that Nigeria, Ghana and Senegal had a combined loss of over $5.8 billion every year. The report further showed that tax incentives were not the priority for investors, rather they looked for infrastructure, education and the quality of the workforce. In a related development, a report of the Federal Inland Revenue Service showed that about 30 per cent of companies in Nigeria were involved in tax evasion and 25 per cent of registered companies in the country were not paying tax.

Source: The Eagle

Contact InnerKonsult for Professional Services on Tax, Accountancy and CAC Services. O8038460036, www.innerkonsult.com

Often described as Britain’s “most hated tax”, inheritance tax seems uniquely able to enrage all sorts of people. Theoretically charged at 40 per cent on the value of an individual’s estate above £325,000, it is perceived as unfair for many different reasons.
“Inheritance tax is a wholly voluntary tax,” reads the most recommended comment underneath last week’s FT article on proposed IHT reforms. “Ask any specialist tax lawyer or accountant. The UK’s annual £5bn IHT bill is only paid by the wealthier middle classes, who have less ability to avoid it through planning. Virtually none is paid by the very wealthy in the UK.” Tax laws surrounding inheritance are also extremely complicated, baffling families and executors at a time when they may be struggling with a bereavement. Meanwhile, rising property prices in many parts of the country, coupled with an IHT threshold that has been frozen for a decade, mean more people are being caught by the tax. Government receipts for 2018-19 were the highest on record. And although only 5 per cent of estates have duties to pay, 10 times as many have to complete and submit lengthy tax forms. Against this restive background, the chancellor asked the Office of Tax Simplification (OTS), an independent statutory body, to review the tax 18 months ago. Its strict remit meant it could only focus on how to simplify IHT from a “technical and administrative” perspective. It therefore did not consider policy questions, such as whether the tax should be abolished. Nevertheless, if enacted, recommendations made last week would represent a major shake-up of the way assets are passed on in the UK — rewriting rules which have not changed for at least four decades. FT Money looks at the main proposals, their implications — and what chance they have of becoming reality.

Source: Punch

Contact InnerKonsult for Professional Services on Tax, Accountancy and CAC Services. O8038460036, www.innerkonsult.com

Nigerian Association of Small and Medium Enterprises (NASME) has partnered with Oxfam International to bring about 180 Micro, Small and Medium Enterprises (MSMEs) in the tax net, in order to aid the redistribution of wealth in the country.
According to the president and Chairman of Council, NASME, Segun Agboade, the move was to also help generate more income for the federal government to redistribute wealth and create job opportunities in the country. Agboade at a press briefing to present Corporate Affairs Commission (CAC) certificates and Federal Inland Revenue Service’s (FIRS) Tax Identification Number (TIN) to beneficiaries of the NASME/Oxfam MSME tax compliance project, advised the federal government to urgently address issues hindering the business community, saying that businesses must be able to enjoy the benefits of the present administration’s ease of doing business mandate. In his words: “We are partnering with Oxfam to make ready about 180 SMEs in Benin and Lagos and as you know lots of small businesses belong to the micro segment. Many of them are un-banked, unregistered and what the government needs to do now is to widen the tax net and encourage the micro businesses to enjoy the benefits of the ease of doing business. “They need to be formalised and be registered in order to be attractive and eligible for lending from banks. This effort we are putting together is to migrate SMEs of the lowest ladder to the next level by giving them their Tax Identification Number (TIN), so that they can pay their taxes as and when due and get access to finance to support their businesses. “If government wants the micro businesses to migrate to SMEs, which is better because it widens the tax net, they need to make sure they address issues around infrastructure, power and other bottlenecks hindering the growth of businesses. “This is going to be a permanent benefit to the federal government because they have been captured into the tax net. We want to also commend Oxfam for believing in us that we can carry out this initiative,” he added. He noted that the recent directive by Central Bank of Nigeria (CBN) to commercial banks to dedicate 60 per cent of bank deposit as loan is still inadequate, but a welcome development as it would encourage lending to businesses. “We want CBN to monitor this directive, because if that is done, it would make banks give businesses attention because they need to comply. It is a good thing and we are grateful to the federal government for that laudable policy, but we look further to more. The CBN has so many windows to support businesses but not many are opened; we believe things are gradually getting better and we want CBN to encourage these banks to do more,” he stressed.

Source: Guardian

Contact InnerKonsult for Professional Services on Tax, Accountancy and CAC Services. O8038460036, www.innerkonsult.com

Polish lawmakers have approved a measure that would exonerate most workers under the age of 26 from income taxes as the country seeks to stem the flow of its young people to other EU nations in search of better paying jobs.
The lower house of parliament approved the measure introduced by the ruling conservatives in a vote late Thursday by an overwhelming majority. The bill would exonerate workers under the age of 26 from Poland's 18 percent personal income tax for those whose gross earnings don't surpass 85,500 zlotys (20,000 euros, $22,500) per year. That level is higher than Poland's average income, estimated to be around 60,000 zlotys per year before tax. The approval of the measure by the upper house of parliament and its signature by the president is widely expected. Some two million people could benefit from the measure, according to supporters of the legislation, which should enter into force from August 1. Poland has long been haemorrhaging skilled workers to other EU states where they can find better paying jobs, posing both a long-term demographic risk and short-term problem finding enough labourers to continue the country's streak of economic growth since the fall of communism in 1989. The measure was one of the campaign promises made by the ruling Law and Justice party ahead of the European parliamentary elections in May, which it won, and legislative elections scheduled for later this year.

Source: france2  

Contact InnerKonsult for Professional Services on Tax, Accountancy and CAC Services. O8038460036, www.innerkonsult.com

The Confederation of British Industry (CBI) has called on chancellor Philip Hammond to drop the idea of a digital services tax because it could end up stifling the digitalisation of UK businesses beyond those that it is intended to target
Commenting on the introduction of the tax in April 2020, chief economist Rain Newton-Smith said that there had not yet been a proper economic impact assessment of the tax. “It has the potential to mean companies are less likely to become more digital, when the whole industrial strategy is supposed to be predicated on getting people to start and grow digital businesses,” she warned. The tax is aimed at online marketplaces, social media platforms and search engines with a global turnover in excess of £500m. Digital giants like Amazon, Apple and Google will be charged at a rate of 2% on revenue they generate in the UK. It is intended to be narrowly scoped to ensure that it is the tech giants, not start-ups, which shoulder the burden of the new tax. Initially, Hammond had hoped that other leading economies would agree a joint way forward on digital taxes. But he ran out of patience last year and announced in the October Budget that the UK would be going it alone. “It is only right that these global giants, with profitable businesses in the UK, pay their fair share towards supporting our public services,” he said at the time. “In the meantime, we will continue to work at the OECD and G20 to seek a globally agreed solution and if one emerges, we will consider adopting it in place of the UK digital services tax.” That has not happened yet. Despite the presence of digital taxes on the agenda for discussion at the recent G20 meeting in Japan, the best the G20 finance ministers could do was to aim to agree new rules on cross-border corporate taxes by 2020. This is not surprising, given the obstacles that need to be overcome – including fierce resistance from the US where most of the digital giants are headquartered. Newton-Smith told the Telegraph that she was concerned the tax would catch more businesses in its net than originally intended. “The lines are blurred on what is a search engine or a social media platform and that is a challenge when you have a tax that is based on business models rather than on profit stream,” she explained. “A 2% tax doesn’t sound like a lot but in a high-volume, low-margin business, it could wipe out your profits. When it comes to small businesses, adding to their cost base is not welcome.” The CBI also told the government that its plans to become the world leader in internet regulation, set out in the recent White Paper, do not go far enough. The business organisation wants to see a new independent regulator established as part of OFCOM, great clarity on the definitions, legal responsibilities and scope, proportionate and feasible enforcement measures and joined up government initiatives on tech policy and regulation. It also wants digital literacy to be enhanced across business and the wider UK public.

Source: Ecomonia

Contact InnerKonsult for Professional Services on Tax, Accountancy and CAC Services. O8038460036, www.innerkonsult.com

The Lagos State Internal Revenue Service has resumed the sealing of companies and hospitality firms over unpaid consumption taxes. LIRS sealed 14 firms during its tax law enforcement exercise on Wednesday.
The LIRS Director of Legal Services, Mr Seyi Alade, said that two enforcement teams had been mobilised by the service for the state-wide exercise. Now, the service has resumed sealing of firms particularly the hospitality firms. It (LIRS) is committed to continuing the exercise until full compliance to tax payment and remittance are achieved,” Alade said. Alade claimed that less than 65 per cent of the corporate organisations operating in the state pay taxes, saying that many of them operated without any tax remittance to the government. He called on firms to ensure up-to-date tax payment. The Head of Distrain Unit of the LIRS, Mrs Ajibike Oshodi-Sholola, said that the two enforcement teams had sealed 14 hospitality firms, including restaurants, hotels and guesthouses. According to her, the tax liabilities of the affected firms covered from 2014 to 2016, saying that they were audited for the two years but had yet to make payment. “Before LIRS embarks on sealing, it must send two letters to the management of the affected firm, reminding it of tax liabilities. “Both the demand notice and letter of intention to distrain were sent to the management of hospitality firms but they failed to act,” she said.

Source: Punch

Contact InnerKonsult for Professional Services on Tax, Accountancy and CAC Services. O8038460036, www.innerkonsult.com

The Corporate Affairs Commission (CAC) has initiated several reforms aimed at easing business registration, encouraging informal enterprises to regularize and streamline all matters relating to company incorporation in the country.
Some of these reforms have been captured in the Companies and Allied Matters (CAM) Bill 2019, which has been passed by the National Assembly and transmitted to the President for assent. ASome of the key reforms include abolishing the requirement for a company to have an authorised share capital, enabling a single person to form a private company, significantly updating the rules on insolvency, and introducing, for the first time, a business rescue process. Other innovations in the bill meant to repeal the Companies and Allied Matters Act (CAMA), include the introduction of close-out netting provisions; and the concept of limited liability partnerships. As the deadline for the presidential assent approaches, there are fears in the CAC and some concerned stakeholders that the reforms may not see the light of the day and this will set the country back on the progress recorded so far on ease of doing business. Yesterday, the Acting Registrar-General of the CAC, Lady Azuka Azinge, emphasised the imperatives of a presidential assent to the CAM Bill when she briefed the media on the dangers of allowing the bill to perish. Lady Azinge said the amendments were in line with President Muhammadu Buhari administration’s reform agenda to create an enabling environment for businesses to thrive. The CAC boss said the CAM Bill had been passed by the 8th Assembly and was awaiting presidential assent. She said when passed into law, the bill would open up the business space, enhance the development of Micro, Small and Medium Enterprises (MSMEs), create employment, and generate wealth for rapid economic growth consistent with the Economic Recovery and Growth Plan (ERGP) of the present administration. The Executive Director of Civil Society Legislative Advocacy Centre (CISLAC), Auwal Musa Rafsanjani, has also called on the president to assent to the bill. “This legislative framework will provide a legal foundation for the implementation of beneficial ownership disclosure. If signed into law by President Buhari, it will lead to the establishment of the electronic web-based open Beneficial Ownership register in Nigeria,” he said. Rafsanjani said the real goal is the establishment of comprehensive database of real workers behind the management of private companies operating within Nigerian jurisdiction. The bill seen and analysed by Daily Trust showed that it would ensure more appropriate regulation for MSMEs in the country. Some of the innovations targeted at SMEs include making it optional for smaller companies to have a company secretary; making it easier for smaller companies to comply with accounting requirements; and making it optional for one-man and small companies to hold an annual general meeting. The bill also made provision for the introduction of separate model articles of association for private companies that will contain the minimum key rules on the internal workings of the company. The bill, reviewed by stakeholders aimed to enhance transparency and shareholder engagement by increasing transparency and disclosures on beneficial ownership to determine persons with power to exert significant level of influence or control over the decisions and actions of a company. It aims to align regulatory framework with international best practice for competitiveness and thus enhance the efficiency of the regulatory process by introducing measures to make company law better fitted to modern business realities, improve the business environment and performance across the economy as well as reduce direct compliance costs for businesses. To attract Foreign Direct Investments (FDIs) into the country, the bill introduced orderly and more effective procedures for business rescue and resolving insolvency: Administration, Company Voluntary Arrangement and Netting. Further analysis of the bill showed it made provisions for the inclusion of representative of the MSMEs on the Board of CAC, pre-action notice to reduce litigation for the commission, right of one person to form a company, removal of consent of Attorney-General of the Federation for registration of (memorandum of) a company limited by guarantee. The amendments included the abolition of Authorised Share Capital and introduction of Minimum Issued Share Capital, removal of requirement of Statutory Declaration of Compliance by legal practitioner for registration of company, reduction in filing fees for registration of charges by 65 per cent, exemption of small companies dormant since incorporation from audit requirements and e-meetings for private companies.

Source: Daily trust

Contact InnerKonsult for Professional Services on Tax, Accountancy and CAC Services. O8038460036, www.innerkonsult.com

As an entrepreneur, you will always be confronted with issues related to money, money management and profitability. Here are a few frequently asked questions (FAQs) by other entrepreneurs and the responses to these FAQs. In providing these responses, it is expected that you will come to fully grasp the mind-set requisite to mastering your business finances.
Q. At what point should I start preparing financial statements for my business?
R. Financial reporting is an integral part of your business. It is not an event that you are planning for; it is the report card of the business. I find people saying that they want to wait till they are bigger before they start preparing financial statements. This is an erroneous concept. From the moment you decide to start running your business, accounting for that business comes into the plan. It is not an after-thought and should be given the priority it deserves. Think of all the big brands you love; they got to where they are by being financially responsible.
Q. What do I do if I cannot afford a qualified accountant?
R. If you are just starting a business, the fact of the matter is that you have got to plan for accounting for your business. If however you are unable to afford a qualified accountant, then you can outsource the function. You are likely to pay half the cost of keeping a qualified accountant full time if you go this route. Alternatively, you can decide to spend the time to learn to do it yourself. It is a time consuming activity and it shouldn`t be an activity that you handle yourself over the lifetime of your business. As a business owner, your primary activity is to drive sales and customer retention. So have a plan in place to drive sales to the extent that it can cater for the cost of having your own accounts handled professionally.
Q. Do I pay VAT even when my business is making a loss?
R. Value Added Tax (VAT) is actually a tax on sales and not a tax on profit. It is expected that as long as you are selling an item or service subject to VAT under the tax laws governing the country, you are to charge your customers 5% of the selling price and remit same to the tax authorities. If your excuse is that you did not charge your clients VAT because you didn’t know you were supposed to, it will not absolve you of your VAT liabilities to the government. There are other taxes applicable to the company’s profit like Company Income Tax and Education tax. However, as stated above, the VAT is a tax on sales. Even if you make losses month on month, you are still to remit your VAT.

Source: Proshare

Contact InnerKonsult for Professional Services on Tax, Accountancy and CAC Services. O8038460036, www.innerkonsult.com

The Federal Government has cleared the N135.8bn Pay-As-You-Earn tax liabilities owed by federal Ministries, Department and Agencies to state governments. The PAYE tax liabilities owed to various state governments covered the period between 2002 and 2016.
The Executive Chairman, Federal Inland Revenue Service, Mr Babatunde Fowler, confirmed the payment on Monday in Abuja at the inauguration of the “Go- live” ceremony of Tax Identification Number. The initiative, designed by the Joint Tax Board, was to consolidate the national tax database. Fowler urged states to reciprocate government gesture by promptly remitting all Withholding Taxes and Value Added Tax due to the federation account. He said within the last few years, tax administration had been strengthened, adding that there had been an expansion of the nation’s tax base from 10 million to 20 million taxpayers. He said the country had the potential to increase the number of taxpayers to 45 million before the end of the third quarter of the year. He said, “There is a growth in the Internally Generated Revenue of states by over 46.11 per cent from N800.02bn in 2016 to N1.16tn in 2018; growth of FIRS collections by 53.81 per cent from N3.3tn in 2016 to N5.32tn in 2018; with the 2018 total collection of N5.32tn being the highest collection ever in the history of the FIRS, while non- oil revenue, with a collection of N2.85tn, accounted for 53.63 per cent of total revenue collection. “For the first time in the history of Nigeria, the Federal Government paid all outstanding PAYE tax liabilities owed by Federal MDAs from 2002 to 2016, totalling N135.8bn to the various state governments in May 2019. “We hope that this gesture will encourage state governments to also promptly remit all Withholding Taxes and VAT due to the federation account.” Vice-President Yemi Osinbajo while inaugurating the initiative said President Muhammadu Buhari had directed the Central Bank of Nigeria, the Nigeria Interbank Settlement System, the National Identity Management Commission and other relevant agencies critical to the successful implementation of TIN to accord their support to JTB by supplying relevant data of individuals, corporate bodies to the board. Osinbajo said the TIN registration system and consolidated tax database reflected the dynamism of a changing world.He said, “ The world is constantly changing, and along with it, the accepted ways of doing everything, including the management of economic and financial systems.“As international boundaries dissolve under the reality of a globalising world, and as financial and economic activities increasingly transcend geographical limitations, tax administration itself, must of necessity continually adapt. “Tax administration is built around data, without credible and comprehensive data, an efficient tax system would be an impossibility.” He said that to function optimally, tax authorities had to be aware of important statistics such as numbers of eligible individuals and businesses, the volume of economic activities. With this information, he said the tax authorities could design and implement strategies to boost tax revenue. Earlier, the Executive Secretary of the JTB, Mr Oseni Elamah, said the new system leveraged existing data from relevant identity management agencies to reduce the burden of multiple registrations of taxpayers, promote the ease of doing business and paying taxes.

Source: Punch

Contact InnerKonsult for Professional Services on Tax, Accountancy and CAC Services. O8038460036, www.innerkonsult.com

The Vice President, Pest Control Association of Nigeria (PECAN), Mr. James Erondu has said many of its members have been running their companies at a loss due to multiple taxation and extortion. He therefore appealed to the Lagos State government to call its tax agents to order and put an end to the extortion.
Speaking yesterday at the one-day seminar to commemorate the Global World Pest Day, organised by the Ministry of Environment and Lagos State Environmental Protection Agency (LASEPA) in collaboration with Rotimax Integrated Services Limited, Erondu said it is the responsibility of government to create enabling environment for pest control companies to thrive, rather than extorting them. “If government addresses the issue of multiple taxation, it would go a long way in boosting the business of our members,” he said. Speaking at the event with the theme Recognising the importance of pest management in Protecting Public Health and the Environment, Erondu asked pest control practitioners who have not registered with the association to do so to avoid embarrassment, saying the association has decided to rid the industry of quackery. General Manager LASEPA, Engr. Ayodele Anthonio commended members of the association and assured them their welfare would be taken care of.

Source: Guardian

Contact InnerKonsult for Professional Services on Tax, Accountancy and CAC Services. O8038460036, www.innerkonsult.com

The Securities and Exchange Commission (SEC) is planning to partner the Federal Inland Revenue Service (FIRS), the Corporate Affairs Commission (CAC), and the Nigerian Stock Exchange (NSE), over Oando Plc‘s alleged corporate infractions.
The capital market regulator disclosed that it plans to share findings from Oando Plc’s forensic audit with other regulatory institutions in order for further actions to be taken. SEC,NSE,FIRS,CAC,Oando Plc, Oando's forensic audit. SEC is referring to the alleged corporate infractions leveled against the oil and gas company that include –corporate governance lapses, insider abuse, internal control failure, and capital market abuse. The Plan: The capital market regulator will refer to the alleged violation involving the over-deduction of withholding tax on dividends paid to shareholders in 2014 to the FIRS. A statement from SEC disclosed the following. “There were several corporate governance lapses stemming from poor board oversight. These include irregular approval of directors’ remuneration, directors’ participation in matters in which they had declared interest, unjustified disbursements to directors and management of the company, and failure of the audit committee to hold meetings with management, internal auditors and external auditors. “Oando Plc deducted an amount representing 24 per cent of the dividend paid to shareholders in 2014 as withholding tax; this exceeded the statutory requirement of 10 percent as required by the Companies Income Tax Act. “Oando Plc failed to comply with several tax laws such as the Companies Income Tax Act and Value Added Tax Act, etc. These tax-related violations are being referred to the FIRS.” More so, SEC will refer to the issue of an alleged failure of internal control, issue arising from the sale of its subsidiary, as well as insider and suspected market abuse. to the NSE. “Oando Plc failed to establish an effective system of internal control as required under section 61 of the Investment and Securities Act 2007 over its financial reporting thereby compromising the integrity of the company’s financial controls and reporting as revealed by the misstatements in the financial statements, high number of related party transactions and unjustified disbursements to directors. “In 2013, Oando Plc reported the sale of its subsidiary, Oando Exploration and Production Limited to Green Park Management Limited without obtaining the approval of the commission in violation of the provisions of the Investment and Securities Act 2007 and the consent of the Minister of Petroleum as required under the Petroleum Act, 1969. “The purported sale of OEPL enabled Oando Plc to report a profit instead of a loss, thereby misstating its financial statement in 2013 and 2014 and consequently misleading investors. This ‘fictitious’ profit reported in 2013 enabled Oando Plc to declare dividends.” “The 2013 misstated accounts and quarterly reports of Oando Plc were included in the 2014 rights circular, thereby misrepresenting the financial status of the company to the public in violation of section 64 of the provisions of the ISA 2007. “In 2012, 2013, 2014 and 2015, certain insiders of Oando Plc sold shares of the company during ‘closed periods’ despite having the knowledge of active closed periods by the company and contrary to the rules of the NSE.” On the issues to be recommended to the CAC for further action, the document said these included alleged false disclosures and non-disclosure of beneficial ownership. The Genesis: Oando Plc and SEC have been at loggerheads since the regulatory body released its investigation into the activities of the management of the company. SEC accused the management of market abuses and false disclosures, demanding the resignation of Tinubu, the Board chairman, and other executives and directors of the company.

Source: Nairamatric

Contact InnerKonsult for Professional Services on Tax, Accountancy and CAC Services. O8038460036, www.innerkonsult.com

Google said Thursday it supports a global agreement on taxation that could allocate more taxes from multinationals to jurisdictions outside their home countries. "We support the movement toward a new comprehensive, international framework for how multinational companies are taxed," said a blog post from Karan Bhatia, Google's vice president for public affairs and public policy.
"Corporate income tax is an important way companies contribute to the countries and communities where they do business, and we would like to see a tax environment that people find reasonable and appropriate." The announcement from Google comes with Group of 20 leaders discussing plans for a global tax system that aims to help some countries get more revenue from tech firms. At the same time France is moving toward imposing its own tax on digital giants based on revenue instead of profits amid opposition from Washington. Google said the change would probably mean Silicon Valley tech giants would pay less in the United States and more in other jurisdictions, in a departure from the longstanding practice of paying most taxes in a company's home country. Google said its overall global tax rate has been around 23 percent for the past 10 years, in line with the 23.7 percent average rate across the members of the Organization for Economic Cooperation and Development, and that most of this is paid in the United States. "We're not alone in paying most of our corporate income tax in our home country," Bhatia said. "That allocation reflects longstanding rules about how corporate profits should be split among various countries. American companies pay most of their corporate taxes in the United States -- just as German, British, French and Japanese firms pay most of their corporate taxes in their home countries." Google said a global agreement could avoid squabbles on the best way to allocate taxes from digital giants. "Without a new, comprehensive and multilateral agreement, countries might simply impose discriminatory unilateral taxes on foreign firms in various sectors," Bhatia said. "Indeed, we already see such problems in some of the specific proposals that have been put forward. That kind of race to the bottom would create new barriers to trade, slow cross-border investment, and hamper economic growth." A new treaty, he said, "will restore confidence in the international tax system and promote more cross-border trade and investment. "

Source: France24

Contact InnerKonsult for Professional Services on Tax, Accountancy and CAC Services. O8038460036, www.innerkonsult.com

French defender Abdou Diallo is on the brink of a 32-million-euro move from Borussia Dortmund to Paris Saint-Germain, German magazine Kicker reported Monday. Diallo, 23, was absent from the Dortmund squad who set off earlier Monday for a pre-season US tour and is expected to take a medical prior to signing a five-year deal for the French champions, Kicker said. An automatic choice for the German club last season with 28 Bundesliga matches and seven Champions League appearances, the France under-21 international would have more trouble establishing himself at PSG if the move goes through. With Diallo, coach Thomas Tuchel would dispose of an embarrassment of riches in central defence with Thiago Silva, Marquinhos, and Presnel Kimpembe competing with him for the central defender roles.

Source: Punch

Contact InnerKonsult for Professional Services on Tax, Accountancy and CAC Services. O8038460036, www.innerkonsult.com

The absence of a witness for the Attorney General of the Federation on Wednesday forced the Federal High Court in Lagos to adjourn till October for hearing of a suit filed by MTN Nigeria Communication Limited against the AGF over N242bn and $1.3bn import duties and withholding tax assessments.
The telecommunications company, in the suit instituted by a writ, had challenged the legality of the AGF’s assessment of import duties, withholding tax and value added tax amounting to N242bn and $1.3bn. At the Wednesday proceedings, counsel for the AGF, Tolu Mokolu, told the court that their witness could not appear in court as he had some challenges in Abuja. Mokolu also said the lead counsel, Tijani Gazali, was also held up in Abuja, urging the court to grant an adjournment. Counsel for the telecoms firm, Wole Olanipekun (SAN), said neither would he oppose the request nor ask for cost. Justice Chukwukekwu Aneke then adjourned the case till October 29, 31 for trial. In a statement on Wednesday, MTN said it had faith in the Nigerian court system and was ready to present its case whenever the opportunity arose. The company insisted that it was in “full compliance with all extant tax and regulatory obligations. We reiterate our commitment to obeying all Nigerian laws, rules and regulations that govern and guide our business practices.” MTN is seeking a declaration that the AGF’s demand was premised on a process which was malicious, unreasonable and illegal. It is also seeking a declaratory relief that the purported revenue asset investigation carried out by the Federal Government between 2007 and 2017, and its decision conveyed through the office of the AGF in a letter dated August 20, 2018, violated the provisions of Section 36 of the Nigerian Constitution. It also sought a declaration that the AGF acted in excess of his powers by demanding payment of import duties on the importation of physical goods. The company wants a declaration that the AGF acted illegally by usurping the powers of the Federal Inland Revenue Service to audit and demand the remittance of withholding tax and value added tax and declaration that the purported self-assessment exercise instituted by the AGF via a letter dated May 10, 2018, is unknown to law, null and void and of no effect whatsoever.

Source: Punch

Contact InnerKonsult for Professional Services on Tax, Accountancy and CAC Services. O8038460036, www.innerkonsult.com

Investors and dealing members will begin to pay value-added tax for transactions carried out on the Nigerian Stock Exchange (NSE). This is due to the expiration of the Value-Added Tax (Exemption of Commissions on Stock Exchange Transactions) Order of 2014.
During her tenure as coordinating minister for the economy and minister of finance, Ngozi Okonjo-Iweala had exempted VAT deductions from commissions earned on the traded value of shares, commissions payable to the Securities and Exchange Commission, commissions payable to the Nigerian Stock Exchange and commissions payable to the Central Securities Clearing System. At the time, Okonjo-Iweala said the purpose of the exemption was to encourage investments in the Nigerian capital market. VAT is a type of consumption tax placed on a product at every stage of processing/value addition. The cost is usually paid by the consumer. The order, which was a result of the powers conferred on the minister of finance in section 38 of the Value Added Tax (VAT) Act, was to be effective for five years. The section of the act empowers the minister to amend the rate of tax chargeable; and amend, vary or modify the list of exempted goods and services set out in the first schedule to the act. The five-year period lapses on July 25. Except there is an order from the ministry of finance extending the exemption, transactions carried out on the stock exchange will be eligible for VAT deductions. In an interview on Tuesday, Zainab Ahmed, former minister of finance, said the federal government has plans to raise VAT from the current 5% to 7.5% by 2020.

Source: The cable

Contact InnerKonsult for Professional Services on Tax, Accountancy and CAC Services. O8038460036, www.innerkonsult.com

The deadline for filing of income tax and transfer pricing (TP) returns with Federal Inland Revenue Service (FIRS) is fast approaching for corporate taxpayers whose financial year-end is 31 December. The Companies Income Tax Act (CITA) and Income Tax (Transfer Pricing) Regulations 2018 (the TP Regulations) require corporate taxpayers to file annual companies income tax (CIT) and TP returns within six (6) months after their financial year-end (i.e., due date for filing). Failure to do so attracts administrative penalties.
While the penalty for failure to file CIT returns on the due date is ₦25,000 for the first month of default and ₦5,000 for each subsequent month, the penalties for failure to file TP returns on the due date have been revised upward as follows: Failure to file the TP declaration form (if applicable) within the stipulated time attracts a penalty of ₦10 million for the first month of default and ₦10,000 for every day the failure continues. Failure to file the TP disclosure form within the stipulated time attracts a penalty of ₦10 million or 1% of the value of the controlled transaction(s), whichever is higher, for the first month of default and ₦10,000 for every day the failure continues. CITA and the TP Regulations allow taxpayers to apply for an extension of the due date for filing of their CIT and TP returns, respectively, where they are unable to meet such due date. While taxpayers are only required to show good cause when applying for an extension of the due date to file TP returns, taxpayers are required to meet certain stringent conditions when making an application for extension of the due date to file CIT returns. However, it should be noted that the grant of extension of the filing date is solely at the discretion of FIRS. In view of the above, taxpayers are advised to ensure that their CIT and TP returns are filed at their respective tax offices on or before 28 June 2019 in order to avoid the administrative penalties.

Source: Mondaq

Contact InnerKonsult for Professional Services on Tax, Accountancy and CAC Services. O8038460036, www.innerkonsult.com

It is now one month to the expiration of the Value Added Tax (Exemption of Commissions on Stock Exchange Transactions) Order, 2014 (“the Order”). The Order was made in 2014 by the then.
Co-ordinating Minister for the Economy and Minister of Finance in exercise of her powers under section 38 of the Value Added Tax (VAT) Act, Cap. V1, Laws of the Federation of Nigeria, 2004 and confers exemption from VAT on commissions:
Earned on traded value of shares;
Payable to Securities and Exchange Commission;
Payable to the Nigerian Stock Exchange; and
Payable to the Central Securities Clearing System.
The Order, which became effective on 25 July 2014, was to operate for 5 years as part of the Federal Government’s policy measures to encourage investments in the Nigerian capital market. Subject to any extension of the Order by the Minister of Finance, VAT would become applicable to commissions earned or payable on transactions conducted on stock exchanges in Nigeria effective 25 July 2019. Affected taxpayers should therefore take note and be guided accordingly.

Source: Proshare

Contact InnerKonsult for Professional Services on Tax, Accountancy and CAC Services. O8038460036, www.innerkonsult.com