The European Union on Friday removed the British overseas territory of Bermuda, the Dutch Caribbean Island of Aruba and Barbados from the bloc’s blacklist of tax havens. The three islands were added to the list in March as they had failed for months to change their tax rules, which the EU deemed at risk of facilitating tax evasion in other countries.
But now Aruba has been removed because it has changed its legislation to make it compliant with EU requirements, an EU statement said in Brussels. The statement said Bermuda and Barbados had committed to addressing EU concerns and have therefore been moved to a so-called grey list of countries still under EU scrutiny for their tax practices. The removal means no EU territory is on the list. The blacklist has now shrunk to 12 jurisdictions, among which are the United Arab Emirates, Oman and the three US territories of American Samoa, Guam, and the US Virgin Islands. Other jurisdictions on the list are Belize, Fiji, the Marshall Islands, Vanuatu, Dominica, Samoa and Trinidad and Tobago. Blacklisted states face reputational damage and stricter controls on transactions with the EU. The EU set up the blacklist in December 2017 after revelations of widespread tax avoidance schemes used by corporations and wealthy individuals to lower their tax bills. The list initially comprised 17 jurisdictions, but it is subject to regular reviews. Countries with legal shortfalls are added if they do not amend their rules by set deadlines.

Source: Punch

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Nigerian airlines have called on the federal government to review its tax policy for the sector as well as the cost of aviation fuel, in order to reduce cost of flight operations and ensure they remain in business. The operators said many airlines that went under in the last few years were due to high cost of operation, including high taxes and high cost of aviation fuel.
The airlines said cost of flight tickets would also reduce if they pay less taxes and spend less on aviation fuel, which is known as Jet A1, so that more Nigerians can travel by air, especially now road travel is fraught with insecurity. In addition, the operators said they spend huge resources on aviation fuel because of its arbitrary costs, which according to them does not reflect the cost of crude oil, but negatively affect long-term planning by the airlines. Speaking on behalf of the airlines, the CEO of Aero Contractors, Captain Ado Sanusi, said there was need for government to review its policy on aviation fuel, noting that although supply was deregulated, the government could take actions to ensure that supply is regular and prices lower than what obtains currently. “The first government intervention to reduce cost of operation should be in the supply of fuel, which over the years government has been striving to bring the prices down. “This is critical because about 40 per cent of the cost of operation is almost on fuel, Jet A1. So we can look at it and ensure that the fluctuation in the prices is not much. “Look at the situation now. The prices go from N198 to 220 per litre. So if we can have a constant supply of Jet A1 at constant price, airlines will know how to plan their budget and how they can bring down the cost of ticket based on the lower cost of aviation fuel,” Sanusi said.
He noted that in most countries the price of Jet A1 is, “very dependent on the price of crude oil but in Nigeria it is dependent on the landing cost of imported product.” The Aero CEO said crude oil price could be steady for the next six months, but Jet A1 price would be fluctuating, stressing the need to streamline prices. He said although Jet A1 had been deregulated, the government could persuade the importers to ensure constant supply of the product or government could be importing the product and selling to marketers. Another factor that has influenced the high price of tickets, the airlines said, was the high taxes operators pay, so they urged government to tackle the problem of multiple taxation. “Government has done very well in the area of taxes by reducing some and looking at removing VAT. I hope it has done that already. But the most important thing government should tackle is multiple taxation.
“The federal government should look at it. The last time they reviewed taxes in aviation was a very long time ago and I think they should look at it and reflect the reality on ground.

Source: This days

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The Executive Chairman, Federal Inland Revenue Services, FIRS, Mr Babatunde Fowler, has blamed ignorance of taxation rules for the incessant controversies between taxpayers and government. Fowler, expressed this view at the KPMG Tax Breakfast Seminar in Lagos, with theme, ‘Tax Controversy and Dispute Resolution’. He counselled taxpayers to consult experts in tax issues to avoid over-payment, noting, however, that FIRS does tax refund when necessary.
Fowler stated: “The cause of incessant tax controversies between the government and taxpayers are majorly as a result of ignorance of tax administration on the side of taxpayers. Corporate bodies need to take advantage of tax education which FIRS is embarking on across the country using different communications media. “Taxpayers need to query the source and any observed errors or omissions in tax letters/statements from tax authority. No one has the right to bully any taxpayers in any circumstance. “We have our Joint Tax Board, JTB, across states whose rectification with any organization is binding by other JTB across the federation. So to avoid multiplicity of tax charges, you must know the law permitting such tax; you are even free to decline an invitation for Joint Tax Audit. Still, it is better you even go to Tax Appeal Tribunal (TAT) where necessary.” In his remark, KPMG Partner and Head, Tax, Regulatory and People Service, Mr. Wole Abayomi, said: “The constantly changing economic landscape requires governments at all levels to develop frameworks that will provide a competitive tax landscape for business, effectively accelerate tax revenues, proactively curb tax evasion and create opportunities for the country’s teeming population. “A situation where the last time Companies Income Tax Act (CITA) and Value Added Tax (VAT) Act were reviewed was 12 years ago leaves much to be desired, thus, there is an urgent need for government to reform our outdated tax laws to reflect current economic realities. “An efficient way of doing this is to return to the practice of enacting a Finance Act soon after the passage of the annual federal budget through which our tax laws can be constantly reviewed in accordance with global best practices.”

Source: Vanguard

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A major national lesson for the government and citizens of Nigeria over the last five years is that oil revenue, on which the country is almost totally dependent to fund development, cannot be relied upon to take the country to its desired developmental destination.
For decades, local and international economic observers had cautioned against near-total dependence on oil revenue. In 2012, for example, the International Monetary Fund (IMF) advised developing countries that taxation would play a key role in their bid to move their citizens out of poverty. “Developing countries must be able to raise the revenues required to finance the services demanded by their citizens and the infrastructure (physical and social) that will enable them to move out of poverty. Taxation will play the key role in this revenue mobilization,” counselled the IMF.
Such warnings were, however, treated with indifference, abetted by favourable oil prices on the international market. The result was a culture of complacency, marked by reluctance to seek alternative revenue sources. This, of course, meant that the country was incapable of optimally generating revenue needed for infrastructural and human capital development needs from the vast range of activities in its economic space, a paradox, given the size of its economy. By 2014, Nigeria started feeling the pinch when international oil prices began tumbling, leaving the Federal Government unable to meet its obligations and forcing it to borrow to pay salaries of civil servants. Government at other levels naturally suffered the same fate, as many were unable to pay salaries let alone embark on capital projects. The tumble would grow into a nosedive, with prices crashing from $105 per barrel to $53 per barrel in 2015. This was the situation the current administration inherited in 2015, with the country slipping into recession the following year. Faced with the oil price crisis, the government of President Muhammadu Buhari knew it had to look elsewhere to find funding for the various programmes it promised Nigerians. The administration decided to focus on internally-generated revenue and sought a man to drive the process. The mantle fell on Babatunde Fowler, who was appointed chairman, Federal Inland Revenue Service (FIRS) in 2015. Fowler came in on the back of an impressive record of performance at the Lagos State Internal Revenue Service (LIRS), which he made the model of revenue mobilisation in the country. It was hardly the best period to come into office, given parlous state of the economy, squalid voluntary tax compliance rates (partly encouraged by absence of tax conscience among eligible taxpayers as well as failure of tax administration to recognise the importance of communication) and poor revenue collection processes, which made leakages easy.

Source: The Sun news

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The Nigeria Economic Summit Group has said that about 70 per cent of Nigerians believe that it is not wrong to pay tax. The NESG disclosed this during its Fiscal Policy Round table event in Lagos, while launching its Citizen Perception Report, a research advocating better tax system in the country. The Fiscal Policy Round table co-chair, NESG, Dr Doyin Salami, said the government had been unable to meet recurrent and capital expenditures following a budget deficit of N3.8bn and debt profile of N22.7bn.
While mentioning some findings in the Citizens Perceptions Report, he said that, “Over 70 per cent of Nigerians believed that it is not wrong to pay taxes. This sentiment is fueled by the issues around the social contract between the government and the citizenry.” Salami, who was represented by the PWC West Africa Tax Leader and Research Director, NESG Fiscal Policy Round table, Mr Taiwo Oyedele said, “Low tax compliance results from tax complexity, crisis of trust in the government and inadequate social contract deliverables; while tax officials were constrained by inconsistent tax policies, limited resources, unrealistic targets, and inability to influence service delivery, among others.”
The NESG noted that its project called, ‘Better Tax’ sought to close knowledge gaps in fiscal policy and create a sustainable framework to actualize the Federal Government’s inclusive economic agenda. It noted that the report was the product of a nationwide perception survey across households and small businesses in the tax value chain. In the report, it tasked the government to establish an office of tax simplification among other recommendations targeted at demystifying complex provisions in the nation’s tax laws and boosting dwindling revenues from the non-oil sector of the economy. The Chairman, NESG Fiscal Policy Round table, Dr Sarah Alade, said the core concept of the round table was to reflect the needs and objectives that formed the basis of a robust fiscal reform platform, focused on mobilizing and growing the country’s tax revenue. She mentioned that the International Monetary Fund estimated that revenue collected in 2016 across all tiers of government was only about six per cent of the Gross Domestic Product. Alade added that historically, more than 70 per cent of the revenue had come from the oil sector while the non-oil sectors, which accounted for more than 90 per cent of GDP, had historically contributed about 30 per cent to revenue. She said, “This limits Nigeria’s ability to credibly execute its development plan and fund critical social sector programmes. It also leaves Nigeria very vulnerable to macro-economic shocks from low oil prices. The most recent fall in oil prices threw Nigeria into a fiscal crisis with spill-over effects on the economy resulting in a recession in 2016. “Building a strong revenue base that is balanced between the oil and non-oil sector is therefore critical to sustainably financing Nigeria’s development programme and long-term macro-economic stability.”

Source: Punch 

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The Tax Appeal Tribunal on Tuesday adjourned until July 17, hearing in the suit filed by Joseph Daudu, SAN, challenging alleged N1.2 billion error in taxation. Mr Daudu (appellant) said he was dissatisfied with Federal Inland revenue Service (FIRS) assessments of his Withholding Tax (WHT), Personal Income Tax and Value Added Tax (VAT) for the period from 2010 to 2017.
Specifically, he expressed dissatisfaction with the decision to assess him with respect to WHT and VAT in the sum of N 1. 2 billion. He prayed the tribunal to restrain FIRS. The tribunal, presided over by Alice Iriogbe, adjourned after applications by parties were taken. Mrs Iriogbe had advised the appellant counsel to look for an alternative way to solve the problem of the appellant not coming to testify for himself to avoid waste of time. She then adjourned until July 17 for hearing. Earlier, Abedayo Adedeji, counsel for Mr Daudu, told the tribunal that they were served with some documents by FIRS and they needed to respond. He notified the tribunal that the appellant would like to be at the tribunal by himself but he was still not fit he also presented the medical report to attest for that. Mr Adedeji further informed the tribunal that the appellant needed to be in the tribunal because some of the issues are personal which he needed to clear. His application was for additional witnesses on oath and time to enable the appellant to be in the tribunal and testify for himself. In his response, Taiwo Osipitan, SAN, counsel for FIRS, told the tribunal that the ill health of the appellant was touchy having been served with the medical report and so they are not objecting. He also applied for extension of time to regularize the documents. He said the motion was filed on May 14, but they could not bring some of the documents. Mr Osipitan said in that case, those documents that were not brought would be abandoned. Mr Adedeji earlier, claimed that it was a misnomer for the appellant, who operated a law firm as a legal practitioner and did not deal in primary goods, to be assessed on Withholding Tax (WHT). “It is unheard of for a legal practitioner to pay Withholding Tax, the respondent acted in error when it assessed the appellant on individual Income Tax from 2010 to 2017,” he said Responding, FIRS noted that its assessments were not in error and that it was discovered that the appellant did not deduct and remit WHT on some of the expenses and payments made under the period in review. The service, therefore, prayed the tribunal to declare that the notices of assessments issued on the appellant for 2010 to 2017 assessment was right. It also urged the tribunal for an order mandating the appellant to pay the total sum of N1.2 billion being the appellant’s liability for WHT, Personal income tax and VAT for 2010 to 2017 years of assessment. FIRS stated that it rightly assessed the appellant; acting in accordance with the law and by collaborating with EFCC on non-declaration of income as well as tax evasion.

Source: Premium time

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Chief Executive Officer of the Nigeria Financial Intelligence Unit (NFIU), Modibbo Hamman Tukur, has commended the Federal Inland Revenue Service (FIRS) for revolutionizing tax administration in the country. Tukur said this during his courtesy visit to the Chairman of FIRS, Mr. Tunde Fowler, in Abuja yesterday. He also promised that tax compliance would soon become a key constituent of every criminal investigation by NFIU.
“So today, the FIRS is either contributing to the economy better than the oil industry or you are contributing at an equal rate with the oil sector even if you factor in the Forex aspect of it. That is very encouraging because the more the internally-generated revenue grows farther, the more the oil sector will be winding down,” Tukur stated. Fowler, who noted that the partnership between NFIU and FIRS would increase tax revenue generation, commended the Presidency, Ministry of Finance, NFIU and other stakeholders for their contributions to the success recorded by FIRS. He promised that FIRS would continue to partner with relevant stakeholders to ensure increase in revenue generation and enhance tax administration.

Source: Guardian

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[b]Nigerian citizens are ready to pay their taxes given proper education and expenditure transparency on the allocation and application of resources by the government, according to a new survey by the Nigeria Economic Summit Group. The survey, Citizen Perception Report is the first of several research pieces to be published by the NESG Fiscal Policy Round table in support of its tax reform and advocacy vehicle “Better Tax” supported by Bill and Melinda Gates Foundation.
During the launching on Wednesday, Dr Sarah Alade, Chairman, NESG Fiscal Policy Round table, said, the core concept of the round table was to reflect the needs and objectives that form the basis of a robust fiscal reform platform focused on mobilizing and growing the country's tax revenue. According to Dr Alade, data from the Citizen Perception Survey reinforces the appalling level of fiscal responsibility in taxpayer education, which fuels apathy and low morale among taxpayers. She said, “beyond the general clamor for increasing revenues and the correlation with higher tax rates, there are other issues around taxpaying in Nigeria. There is the presumption that the Nigerian citizenry is apathetic to the payment of taxes, which makes the findings of the Citizen Perception Survey crucial." The findings show that Nigerians are not averse to taxpaying given proper education and expenditure transparency on the allocation and application of resources by the Government. Fiscal Policy Round table Co-Chair Dr Doyin Salami, who was represented by Taiwo Oyedele - PWC West Africa Tax Leader and Research Director NESG Fiscal Policy Round table said the government had been unable to meet recurrent and capital expenditures following a budget deficit of N3.8 billion and debt profile of N22.7 billion. Oyedele, who shared evidence-based data from the Citizen Report during his technical presentation at the event, disclosed that “low tax compliance results from tax complexity, crisis of trust in the government and inadequate social contract deliverables; while tax officials were constrained by inconsistent tax policies, limited resources, unrealistic targets, and inability to influence service delivery, among others”. Citing the data from the Citizens Perceptions Reports, he said that over 70% of Nigerians believe that “it is not wrong to pay taxes”. This sentiment is fueled by the issues around the social contract between the government and the citizenry.

Source: Pulse

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The Institute of Chartered Accountants of Nigeria (ICAN) has accredited National Diploma (ND) and Higher National Diploma (HND) programmes in Accountancy being run by the Abubakar Tatari Ali Polytechnic (ATAP) Bauchi. The Dean, School of Management Studies of the polytechnic, Dr Hafiz Baba who announced this, said this would enable students of Accountancy of the institution to enjoy a waiver while registering for ICAN examination.
The Dean added that, ATAP is now in consultation with ICAN headquarters in Lagos for the opening of an examination center in Bauchi where students can sit for the professional examination. Dr Baba added that following the accreditation other professional bodies like Nigeria Society of Engineers and the Institute of Quantity Surveyors have visited the polytechnic for final accreditation. He further disclosed that the polytechnic had been accredited to run National Diploma in Taxation after meeting all the requirements of professional bodies. According to him, the polytechnic now runs 46 fully accredited National Diploma and Higher National Diploma courses, 18 NCE courses and eight degree programmes in affiliation with ATBU, Bauchi.

Source: Daily trust

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The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) on Thursday commended the Federal Government for the removal of Value-Added Tax (VAT) on locally sourced Liquefied Petroleum Gas (LPG). The NALPGAM President, Mr Nosa Ogieva-Okunbor, said on Thursday in Lagos that the Federal Government had approved the removal of VAT on LPG and gazette the same.
According to him, the clamor for VAT removal from domestically produced LPG, otherwise known as cooking gas, has been of perennial concern to members of the association. “We express our profound gratitude to the Federal Government and all relevant government agencies for listening to our plea to remove VAT from LPG products sourced locally. “We also want to use this opportunity to thank and appreciate the Department of Petroleum Resources (DPR) for its timely directive stopping the inappropriate and indiscriminate installation of skid plants in petrol stations,’’ Ogieva-Okunbor said in a statement. He said the directive that all skid plants in filling stations be dismantled and removed was apt, considering the huge danger they constitute to the public in the operations. He appealed for a proper and thorough implementation of the directive across the country. The NALPGAM boss urged government to create a more conducive and enabling environment for investors in the industry, particularly now that deepening the consumption of LPG in the country had become one of its major interests. He said marketers were also geared toward ensuring the success of the programme by complementing government’s efforts. “We appeal for a reduction on the import duty on LPG equipment and accessories. “The increased awareness of LPG usage has seen consumption in Nigeria growing from 50,000MT in 2007 to over 600,000MT in 2018 with more indigenous investments in LPG bottling plants. “This will further ensure that majority of Nigerians enjoyed the convenience of the proximity of LPG refill or exchange points. “We implore the federal and state governments to initiate a well-funded social welfare programme to expand the usage of LPG,’’ the NALPGAM boss said.

Source: Leadership

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Seventy-five Kenyan tax agency staff were arrested on Friday on suspicion of abetting tax evasion and bribery, the latest effort by authorities in the East African country to fight corruption. The staff have not been charged and are being questioned, the Kenya Revenue Authority (KRA) said in a statement.
“Investigations into the rackets have been in progress for the last four months with covert assistance provided by national law enforcement agencies to help in trailing money and communication,” it said. The staff, who work in the domestic tax department and customs and border control, are accused of helping to fraudulently clear cargo and alter tax returns to help people dodge tax payments, the KRA said. It did not say how much revenue had been lost. The detentions come as the government is struggling to raise tax revenues to fund its budget.

Source: Independent

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The FIRS is comfortably the largest revenue collection agency, responsible for petroleum profit tax (PPT) and the most important non-oil taxes. The revenue generation of the FGN can be judged on its performance. Its collection increased by 22% in 2017 and 32% in 2018 but remains short of budget and, more significantly, the level to fund the overdue transformation of the Nigerian economy. PPT collection achieved 93% of budget in 2018, and non-oil taxes just 70%, which highlights the areas where the FIRS should concentrate its efforts.
Our chart shows that the FIRS has not achieved its target since 2014 because the setting of budgets has become more aggressive. If we take the FGN’s share of company income tax (CIT), we see from data provided by the Budget Office of the Federation that collection in 2017 reached N543bn (vs a budget of N808bn). In the first nine months of 2018 it hit N500bn (vs a full-year target of N795bn). Budgets are to remain aggressive. We note that the FIRS has an N8.0trn target for total revenue generation in 2019 (vs N5.3trn actual in 2018). The FIRS has a number of initiatives in place to boost collection, centred upon the use of electronic systems, the pooling of information with government departments and working with external consultants. They are all commendable and apparently based upon on improving compliance and coverage. The FGN seems reluctant to increase tax rates as well as tighten compliance. There were reports in the local media that senior officials had discussed raising PPT, CIT and VAT in meetings with a Senate commission (Good Morning Nigeria, 21 March 2019). However, they are still just reports, and we await signs that the FGN will adopt the fastest route (some higher rates and improved compliance).

Source: Proshare

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Private sector Think-Tank, Nigeria Economic Summit Group (NESG) is set to unveil the findings of its nationwide survey on tax perception and drive government-citizen engagement for sustainable fiscal reforms through the launch of its “Better Tax” initiative. Better Tax, scheduled for launch in Lagos on May 15, is a service of the NESG’s Fiscal Policy Round table in its commitment to building a globally competitive economy through fiscal consolidation that impacts the citizenry and drives holistic national development. The initiative seeks to create a platform for discourse between government and the citizenry that will reshape tax perception. It is expected to transform tax from being perceived as a burden to a tool for sociol-economic development.
Experts have long advocated a refocus of the economy to the non-oil sector following the 2014 crash in global oil prices. Reinforcing this argument, Federal Inland Revenue Service (FIRS) Chairman, Babatunde Fowler, disclosed that the non-oil sector outpaced the oil sector with a 54% contribution to the N5.32 Trillion revenue generated in 2018. Aligned with this development, government has set a policy priority to significantly boost the share of non-oil revenue by 2020. However, Nigeria’s low tax compliance levels thwart the realisation of this revenue mobilisation objective. In 2018, FIRS disclosed that about 6,772 billionaire businesses in Nigeria did not pay tax, adding that this category of organisations have between N1billion and N5 billion turnover in their accounts, but had no Tax Identification Number (TIN). About 57 million Nigerians are economically active, but the vast majority are not registered to pay Personal Income Tax. “Better Tax sets a radically different tax reform agenda for Nigeria that is impactful and proffers evidence-based solutions to address the twin-problem of low tax morale and compliance that Nigeria continues to grapple with. The research component of “Better Tax” is holistic and cuts across the six geopolitical zones. It includes all stakeholders across the tax revenue value chain such as the government, taxpayers and tax officials. The overarching objective of the project is to drive mutual collaboration and action among all stakeholders which will, in turn, see Nigeria transform its tax strategy and grow its revenue significantly in record time.” According to Dr. Sarah Alade, Chairman, NESG Fiscal Policy Roundtable: “Project Better Tax is distinct from previous tax reform initiatives because it adopts a multi-pronged approach to easing the tax burden.” The project leverages the findings of nationwide surveys to cascade information on Nigeria’s current fiscal position in a concise manner designed to educate stakeholders on the role of taxation, and the dual responsibility of citizens and the government to actualise the social contract envisaged through strict tax compliance and fiscal responsibility as obtains in developed economies.” Experts expected at the event include Chairman (NESG) Fiscal Policy Roundtable ,Dr. Sarah Alade, and Co-Chair (NESG) Fiscal Policy Roundtable, Dr. Doyin Salami. The event will also feature a panel discussion on "Making Taxation work for Nigeria" Issues, Solutions and Priorities; Panelists include the President Manufacturing Association of Nigeria, Engr. Ahmed Mansur, Executive Director Enough is Enough Nigeria Ms Yemi Ademolakun among st others.

Source: Proshare

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The power to levy tax in Nigeria, being a federation, is shared between the Federal, State and Local governments. To avoid double taxation, the tax system spells out which government unit (federal, state or local) has the power to levy tax on specific persons and matters.
The Federal Inland Revenue Service Establishment Act 2007 provides in Section 25 that the Federal Inland Revenue Service (FIRS – primary tax agency of the federal government) shall have power to administer the following taxes:
1. Companies Income Tax Act (CITA).
2. Petroleum Profits Tax Act.
3. Personal Income Tax Act (PITA).
4. Capital Gains Tax Act.
5. Value Added Tax Act.
6. Stamp Duty Act.
7. Taxes and Levies (Approved List for Collection).
In Nigeria, CITA is applicable to companies registered under Part A of the Companies and Allied Matters Act 1990 while PITA is applicable to individuals and Business Names. For this discourse, our focus will be on PITA. PITA is the tax payable by all individuals, registered businesses and partnerships which are not companies. Part II of the Taxes and Levies (Approved list for collection) Decree No. 21 of 1998, LFN which is incorporated into the 2007 Act, provides that it shall be the sole responsibility of the states to collect all personal income tax in respect of ‘Pay As You Earn’ (PAYE) and Direct Assessment. The PAYE model is applicable to those in paid employment, while those in businesses carry out Direct Assessment and remit their taxes to the state. In effect, reading both legislations together ({Approved List of Collection} Decree No. 21 of 1998 and Federal Inland Revenue (FIRS) Establishment Act 2007), the FIRS have no authority to collect taxes from individuals, registered businesses and partnerships which are not registered companies, these falls under the remit of the state tax authorities.

Source: The Nigeria Lawyers

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The Nigeria Anti-Corruption Vanguard has called ‎on the Economic and Financial Crimes Commission, EFCC, to probe activities of Orion Agro Industries‎ Nigeria Limited, manufacturing cigarettes in Ilorin Kwara State, considering the alleged interest of the Senate President, Bukola Saraki in the affairs of the company.
It alleged that the firm was being allegedly used by the Senate President for illicit financial transactions since 2003. The group also called on the Board of Customs and Legal Department to halt process of renewing import license for the firm.
The group stated this in a statement to DAILY POST on Thursday, adding that the firm was only looking for tax waiver.‎ The statement was signed by the National Coordinator of the group, Oloye Akin Ayokunle. It also called on the Comptroller General of the Nigeria Customs Service, Col. Hammed Ali to do its due diligence before processing the Orion Agro Industries application for renewal of importation license. The statement added, “One of our concerns again is the speed at which the process of renewing this firm license is taking at Customs, there is a government policy that additional investments should not be entertained in the Tobacco sector, Orion Agro Industries has not been in business for almost 20 years. “According to our investigation Bukola Saraki bought into the company when he was elected the Governor of Kwara state in 2003. Since then the firm has been a signpost for illicit money laundering activities for Saraki and his cronies in the PDP. “After closing shops for many years, the firm suddenly using Saraki last minute influence has applied to the Nigeria Custom for renewal of its license and tax waivers on pretense of building it’s factory in Nigeria. “The company imports from it’s main manufacturer in Poland, not a single stick of cigarette was produced in Ilorin Nigeria since 2004 when it was importing tax free. “The company should be made to give account for its local investment in Nigeria and engagement with its host communities during its years of waivers before it’s license is renewed. “Also this company has not paid a dime as tax into the federation account and the Kwara state government. It’s in public domain that Kwara state Governor AbdulFatai has given the company 20 years tax holiday, meaning the government at all level will not get anything in return from Orion Agro Industries.” “Everything about Orion Agro Industries‎ is shrouded in secrecy, details of the company has been pulled out on the Corporate Affairs Commission,CAC registered companies portal neither does it have Standard Organization of Nigeria SON approvals on production or importation of tobacco products in the country. “Also the company does not have any records in SON since 2003 it has been in operation but has been moving money out of the country in guise of importation,” Ayokunle said. ‎”We are also calling on the EFCC to probe in to the financial transactions of Orion Agro Industries‎ and its link with Senate President Bukola Saraki.”‎ The group recalls that under the PDP government in Nigeria, license were issued, “to anybody for anything, once you get access to Aso Rock. This Orion is just one of the many companies in Nigeria that have illegally benefited from waivers and tax holidays from government. But failed to deliver on regulation guiding the sector.”

Source: Daily post

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Farmers in the North-West geopolitical zone have recounted their ordeals following the increasing rate of banditry and kidnapping, saying bandits have resorted to taxing them before they can have access to their farms. They said apart from this, most of them have been forced to abandon their farms, adding that except something urgent was done to end banditry; food insecurity would be triggered in the country.
For instance, in Zamfara State, farmers’ associations said bandits had resorted to taxing their members before allowing them to go to their farms. The groups stated that in Kebbi State, the hub of rice farming, that 350 farmers, mostly rice cultivators, had abandoned their farms. They, therefore, warned that the increasing rate of banditry and kidnappings in the North-West geopolitical zone could affect food production in the area by over 50 per cent. Officials of the All Farmers Association of Nigeria and the Rice Farmers Association of Nigeria in separate interviews with the News Agency of Nigeria explained problems its members were facing. NAN also reported that 10,000 households, mostly peasant farmers, had been displaced in Zamfara State. 350 farmers abandon farms in six LGAs in Kebbi Also, the Secretary of AFAN in Kebbi State, Muhammad Idris, in an interview with NAN in Birnin Kebbi, said, “Over 350 farmers have been affected as a result of banditry in Danko/Wasagu, Argungu, Yauri, Ngaski, Zuru and Birnin Kebbi local government areas. “Our members, especially rice farmers, have stopped going to their farmlands in those areas for fear of being kidnapped or killed. Rice farming is not like any other farming as it requires constant and close monitoring; you have to be closer and observant of how it grows and the level of water and all that, hence you have to be going to the farm everyday if not, it will not yield positive result,” he said. A farmer, Garba Isah, in Gwadangwaji area of Birinin Kebbi, said due to rampant kidnappings he was unable to go to the farm for sometime out of fear, warning that the situation could trigger food insecurity. Many people in N’West have lost interest in farming – Kaduna AFAN chair Also, AFAN chairman in Kaduna State, Alhaji Nuhu Aminu, said many farmers had lost hope in their farming business due to security concerns in the North-West. “As I am talking to you now, those that are willing to go and cultivate their farmlands are not up to 30 per cent because of fear of kidnapping,” he said. Aminu added that in the last farming season, some farmers were unable to harvest their crops due to security problems. Some villagers in Giwa Local Government Area of the state said because of insecurity, farmers were no longer safe and free to cultivate their farms. A resident of Karau-Karau village in the local government, Mallam Ibrahim Musa, said, “Many of us cannot go to our farms for fear of bandits and this is our main business as villagers; kidnapping has become a common phenomenon in this area.” According to NAN, villages affected by the activities of bandits in Giwa Local Government Area are Fatika, Sabon Sara, Kidandan, Galimawa, Gangara and Iyatawa. Bandits tax Zamfara farmers before allowing them to farm —RIFAN secretary It was a different case in Zamfara State. Farmers in the state chapter of RIFAN said they envisaged 50 per cent reduction in rice and other farm produce in the forthcoming farming season because of the activities of criminals. The RIFAN Secretary in the state, Sanusi Muhammad, said there had been continued decline in agricultural production in the state over the years, which had worsened the poverty level of the people. He stated, “Most of our farmers cannot go to farms due to fear of bandits’ attacks and kidnapping. Bandits send messages of attack to communities or tax farmers large amounts of money before they allow them to go to farms. “Bandits are now the ones who decide whether we go to farms or not, in some areas even if farmers plant crops they cannot cultivate due to insecurity. The situation is unfortunate; most of our members are victims of this ugly situation. “Most of the areas affected by insecurity are areas where we have large numbers of farmers. Some of our farmers producing thousands of bags of grains, not only rice, almost all the crops grow in this state now cannot produce even a quarter of the quantity of food they used to produce.”

Source: Punch

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Chairman of the Federal Inland Revenue Service (FIRS), Mr. Tunde Fowler, has dismissed reports suggesting that money paid as taxes was missing from the agency’s coffers. Fowler made the clarification in his office in Abuja yesterday. The clarification came in the wake of media reports alleging that taxpayers’ money in the custody of the agency was missing. The FIRS chairman explained that taxes collected by the FIRS were not paid into the coffers of the Service, but directly into the Federation Account, electronically, through the Central Bank of Nigeria (CBN).
The FIRS, he further explained, does not have access to taxpayers’ money, adding that its operations are funded by appropriation of the national assembly through monthly remittances by the Federation Accounts Allocation Committee (FAAC). Over the last few weeks, there have been media reports around alleged exploitation of the Service’s accounting system on Duty Tour Allowance (DTA) by some staff to collect claims that they were not due for. This alleged infraction is said to be under investigation by the Economic and Financial Crimes Commission (EFCC), with some media outlets suggesting that the probe was into missing taxpayers’ money. Fowler explained that the issue at stake in this inquiry was related to operational/travel funds within the FIRS’ expenditure budget. “On the DTA (Duty Tour Allowance), it is claimed that some staff applied for and were granted allowances to travel on official trips. Some are alleged not to have travelled for the number of days for which they were slated. The EFCC is looking into that. Sometimes, it is good to have a third party investigate matters like this instead of having a staff investigate another staff. “Investigation by a third party is more objective. FIRS has since taken steps to remediate this. The EFCC will soon complete its investigation. Anybody found guilty will be dealt with through our administrative process,” said the FIRS boss. Fowler also stated that the agency has a relationship with the EFCC through which it combats tax evasion. “We have a relationship with the Economic and Financial Crimes Commission (EFCC). We have a partnership through which we combat evasion of taxes. People don’t want to get into trouble with EFCC. So, they pay on time,” he explained. Fowler added that FIRS acknowledges the statutory rights and responsibilities of anti-corruption agencies and other government agencies such as the EFCC, the Independent Corrupt Practices and Other Related Offences Commission (ICPC), State Security Services (SSS) to inquire into the operations of the Service. He promised that the FIRS would continue to give access to agencies with statutory rights and all those who seek information on its operations. He added that invitation of FIRS officials by the EFCC, Police, SSS and ICPC to shed light on financial transactions and operations of the Service were not uncommon and were continuous. Fowler noted that the FIRS is a public trust operated on behalf of Nigerians and affirmed that no officer of the Service was at large. The FIRS boss thanked all stakeholders, including the media, for their interest in the operations of the Service. However, he enjoined the media to always go the extra mile to ascertain the truth, particularly on sensitive financial issues where taxpayers and public trust were at stake. He reassured the general public of FIRS’ commitment to public accountability and transparency in the sacred mandate of tax collection.

Source: Leadership

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In a bid to refloat the economy and escape another recession in the economy, stakeholders have proposed an increase in Value Added Tax (VAT) and reintroduction of toll gates on Nigerian roads. One of the stakeholders who is also the Lead Director of Centre for Social Justice, Eze Onyekpere, advised President Muhammadu Buhari and the National Assembly to urgently consider increasing the Value Added Tax from five per cent to 7.5 per cent and also activate measures to increase collection efficiency.
Besides, the Federal Government should account for and utilise stamp duties which have accrued trillions of naira at the Central Bank of Nigeria (CBN). It should equally review Petroleum Sharing Contracts as recommended in various Nigerian Extractive Industries Transparent Initiative Studies. According to him, this will bring in additional revenue of not less than $1.6 billion every year. Onyekpere also proposed reintroduction of tollgates on Nigerian roads, saying that it would help to fix broken-down infrastructure. “There should be expedited passage and assent to the Petroleum Industry Bill for reforms in the oil and gas sector as this will also increase revenue from oil and gas extraction” he said. But a development economist, Mr Odilim Enwegbara, proposed that VAT should be increased to 10 per cent from five per cent. He, however, regretted that much of the tax revenues get diverted by corrupt officials. To refloat the economy, he said, will require doubling government revenue receipts through tax particularly Value Added Tax (VAT). “Besides, efforts to increase VAT to at least 10 per cent with as high as 20 per cent on luxury consumptions, tax collection and remittance infrastructure in Nigeria remains outmoded to the extent that as high as 70 per cent of VAT money get diverted by collecting and remitting firms in connivance with Federal Inland Revenue Service (FIRS) officiating. “It will require that the items on the exclusive list such as solid mining and billings for interstate traffic offences along with the introduction of auto number plate be renewed. These will definitely increase states’ IGRs. The Zamfara State Governor and the chairman of Nigerian Governors’ Forum, Abdulaziz Yari, had warned of a possible economic recession due to the decline in oil price and debt overhand. “We are expecting the possibility of another cycle of recession by mid-2020 and which may last up to third quarter of 2021,” Yari said.

Source: The Sun

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The Federal Inland Revenue Service (FIRS), on 30 April 2019, notified the public that it has introduced new measures to simplify and ease tax audit experience for all taxpayers.
The new measures are intended to:
1. Reduce tax audit cycle to 63 days
2. Eliminate multiple tax audits by various tax authorities
3. Facilitate a single tax audit exercise window for a taxpayer that operates in more than one tax jurisdiction within Nigeria
In order to ensure that the above objectives are achieved, FIRS, various States Internal Revenue Service (SIRS) and Joint Tax Board (JTB) signed a Memorandum of Understanding (MoU). Understandably, the achievement of the 63-day cycle for completion of a tax audit exercise will depend largely on human factors such as; ease of provision of relevant documents by taxpayers, level of efficiency of the tax authorities during the review process and availability of the parties for reconciliation meetings to resolve the tax audit issues identified. Thus, it may be challenging or difficult to conclude some tax audit exercises within the recommended timeline above. Nonetheless, the recommended timeline sets a benchmark that tax authorities and taxpayers can work towards to ensure the speedy conclusion of tax audits. To ensure the objectives of the new measures are achieved, tax authorities may also consider simplifying tax audit selection procedures and adopting a risk-based approach to tax audit exercises. Further, while there are no indications on the required steps to reduce the audit completion cycle, elimination of multiple tax audits would go a long way in reducing the time spent by taxpayers. With respect to elimination of multiple tax audits, the FIRS Notice requires a taxpayer that operates in more than one tax jurisdiction within Nigeria, to apply for a joint tax audit through JTB, or the Office of FIRS’ Executive Chairman, or the Office of the Chairman of the relevant SIRS where the taxpayer’s head office is domiciled. This initiative is a welcome development and a step in the right direction in addressing taxpayers’ clamour for elimination of multiple tax reviews and audits to ensure efficient use of resources of both the tax administrators and the taxpayers. It remains to be seen, how the MoU would play out. It would be recalled that FIRS signed MoU with SIRSs during the Voluntary Assets and Income Declaration Scheme (VAIDS). However, the aftermath of VAIDS was greeted by conflicting tax audits/reviews by SIRSs, which included years already covered under VAIDS, for which a taxpayer had already made a voluntary declaration. It is hoped that the MoU would be upheld to ensure that the above objectives are met.

Source: Deloitte

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The Economic and Financial Crimes Commission (EFCC) has launched a probe into the activities of some staff of the Federal Inland Revenue Service (FIRS). Babatunde Fowler, FIRS chairman, confirmed the development to TheCable on Wednesday saying the probe borders on alleged cases of irregularities concerning duty tour allowance (DTA).
“On the DTA (Duty Tour Allowance), it was claimed that some staff applied for and were granted, allowances to travel for official trips. Some are alleged not to have travelled for the number of days, for which they were slated. The EFCC is looking into that,” he said. “Sometimes, it is good to have a third party investigate matters like this instead of having a staff investigate another staff. An investigation by a third party is more objective. FIRS has since taken steps to remediate this. “The EFCC will soon complete its investigation. Anybody found guilty will be dealt with through our administrative process.” Fowler also dismissed claims that taxpayers’ money has gone missing. He explained that all taxes are paid directly into the account of federation account through the Central Bank of Nigeria. “The FIRS does not have access to taxpayers money. Its operations are funded by an appropriation of the national assembly through monthly remittances by the federation accounts allocation committee (FAAC),” he said. Fowler added that FIRS acknowledges the statutory rights and responsibilities of anti-corruption agencies and other government agencies such as the EFCC, the Independent Corrupt Practices and Other Related Offences Commission (ICPC), State Security Services, SSS to inquire into the operations of the Service. The FIRS chairman promised that FIRS would continue to give access to agencies with statutory rights adding that invitations of officials of the service by EFCC, the Police, SSS and ICPC to shed light financial transactions are not uncommon.

Source: The Cable

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The Chairman of the Federal Inland Revenue Service (FIRS), Mr. Tunde Fowler, has dismissed reports suggesting that money paid as taxes is missing from the agency’s coffers. Fowler made the clarification in an interview in his office in Abuja, yesterday. The clarification came in the wake of media reports alleging that taxpayers’ money in the custody of the agency is missing. The FIRS chairman explained that taxes collected by the FIRS are not paid into the coffers of the agency, but directly into the Federation Account, electronically, through the Central Bank of Nigeria (CBN).
The FIRS, he further explained, does not have access to taxpayers’ money, adding that its operations are funded by appropriation of the National Assembly through monthly remittances by the Federation Accounts Allocation Committee (FAAC). There were reports of alleged exploitation of the agency’s accounting system on Duty Tour Allowance (DTA) by some staff who collect claims that they are not due for. This alleged infraction is said to be under investigation by the Economic and Financial Crimes Commission (EFCC). However, some media outlets have reported that the probe was into missing taxpayers’ money. But Fowler explained that the issue at stake in this inquiry is related to operational/travel funds within the FIRS’ expenditure budget. “On the DTA (Duty Tour Allowance), it is claimed that some staff applied for and were granted allowances to travel on official trips. Some are alleged not to have travelled for the number of days for which they were slated. The EFCC is looking into that. Sometimes, it is good to have a third party investigate matters like this instead of having a staff investigate another staff. Investigation by a third party is more objective. FIRS has since taken steps to remediate this. The EFCC will soon complete its investigation. Anybody found guilty will be dealt with through our administrative process,” said the FIRS boss. Fowler also stated that the agency has a relationship with the EFCC through which it combats tax evasion. “We have a relationship with the Economic and Financial Crimes Commission (EFCC). We have a partnership through which we combat evasion of taxes. People don’t want to get into trouble with EFCC. So, they pay on time,” he explained. Fowler added that FIRS acknowledged the statutory rights and responsibilities of anti-corruption agencies and other government agencies such as the EFCC, the Independent Corrupt Practices and Other Related Offences Commission (ICPC), and the Department of State Services (DSS) to inquire into the operations of the agency. He promised that the FIRS will continue to give access to agencies with statutory rights and all those who seek information on its operations. He added that invitations of FIRS officials by the EFCC, Police, DSS and ICPC to shed light on financial transactions and operations of the agency are common and are continuous. Fowler noted that the FIRS is a public trust operated on behalf of Nigerians and affirmed that no officer of the Service is at large. The FIRS boss thanked all stakeholders, including the media, for their interest in the operations of the agency. However, he enjoined the media to always go the extra mile to ascertain the truth, particularly on sensitive financial issues where taxpayers and public trust are at
stake. He re-assured the general public of FIRS’ commitment to public accountability and transparency in the sacred mandate of tax collection.

Source: This Days

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Vice President Yemi Osinbajo has extended the special window to register businesses at a reduced rate of N5,000 instead of N10,000 at the Corporate Affairs Commission (CAC). Osinbajo extended the business registration incentive from May 1 to July 31 2019. This was disclosed by the VP’s special assistant on media and publicity, Laolu Akande, on Monday at the first quarter MSMEs stakeholder meeting held at the Presidential Villa.
The move by the federal government is to enable more Micro Small and Medium Enterprises (MSMEs) formalise their businesses. The special window for subsidized registration costs kick-started from October 1 to Dec 31, 2018, but was later extended from 1st January to 31st March 2019, leading to an increase in business registration rate from 54,000 to 163,000. Osibanjo, however, urged relevant government agencies at the meeting to speedily come up with better funding strategies for small businesses in the country. “Having listened to all the issues raised in the report and from your various contributions about funding, I think you should come up with suggestions on better funding for startups and MSMEs, we need to address this issue as quickly as possible.”

Source: The Whistler

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The Executive Secretary/Chief Executive, Nigerian Investment Promotion Commission (NIPC), Ms. Yewande Sadiku has said about $90.9 billion worth of investments were recorded in the country last year. Speaking during an interaction with Commerce and Industry Correspondents Association of Nigeria (CICAN) in Abuja, she said there were 92 projects covering 23 states and the FCT. She said 33 per cent of the investments came from Nigerian investors, which according to her was consistent with government’s efforts to get Nigerians to invest in their own county.
Other investment sources according to her included the UAE, France and UK. The NIPC boss, however, explained that though the announcements were not actual investments, they nevertheless “give us direction and a sense of investor interest in Nigeria”. She said: “We actually track it so that at the end of the quarter, half year, month or full year, we can say this is the total value of investment announcements that were made. We look at where the investments are supposed to be coming from. “Remember they are announcements and not investments. The announcements related to mining and quarrying and oil and gas, manufacturing, construction, transportation and storage.” She also said investor interest in the first quarter of 2019 could to be less than the same period in 2018 because of elections concerns. Sadiku, also said the agency had statutory powers to register companies in the country, alongside the Corporate Affairs Commission (CAC). According to her: “There’s a provision in the NIPC Act and it’s always being in the NIPC Act. It says that any enterprise in which foreign participation is allowed, they should register with NIPC before they commence business. Any enterprise in which foreign participation is allowed. “So I actually find myself that many people are not aware of this requirement even though it has always been in the NIPC Act. The object is that you register with CAC and then we register with NIPC. “Part of the reforms that we would like to see is that the process of registering with CAC and registering with NIPC and subsequently registering with FIRS for your tax identification number is more seamless than it is currently. But that is still in a work that is in progress but it has always been a requirement of the NIPC Act.” She also disclosed that following the 2017 review of the Industrial Development Income Tax Relief Act (IDITRA), which is the law that created the pioneer status, 27 new companies had been added to existing list. The ES also noted that the review further removed two sectors namely cement and mineral oil prospecting from the list of beneficiaries of pioneer status. She said: “We removed cement from it because based on different reports by the relevant agencies of government, it was deemed that the cement industry was matured enough to no longer require that incentive, not that we don’t want further investments but it is mature enough to no longer require that incentive. “The work that was done also suggested that we take off mineral oil prospecting and processing because it falls under the petroleum profit tax Act rather than the company income tax Act.”

Source: This Days

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10 ways taxes come to your rescue that you probably take for granted: Shelter If you were raised or currently reside in public housing, you may have reason to thank the taxes you or others have generated for the relative freedom you enjoy from exorbitant rent. After all, you have no reason to contend with agency, caution or other fees that your peers understand as the price they must pay for a roof over their heads. But don’t be surprised if the government makes demands for a fraction of your income to make the same facility available to others in the short run. The National Assembly has just passed the National Housing Fund (NHF) Bill 2018 which seeks to impose a compulsory 2.5% deduction on your monthly income to secure funding for additional housing projects in the country. Healthcare Oftentimes, private hospitals lack the specialised skills or equipment to treat the ailments that strike when you least expect. In such cases, they refer patients to general hospitals across the federation for more specialised care. If you or yours have had occasion to receive healthcare at any public hospital to cut cost or for referral purposes, you should be a tax ambassador because some of those hospitals were built with revenue generated from taxes. Think what would have happened to you if none were just around the corner when it mattered.
Mass transit At federal, state or local government levels, you may have been lucky to catch a bus that only cost a fraction of what you usually expect from commercial transportation during your commute to work or business. Your child probably had cheery news to share about how a big neighbourhood bus took her to school for free. It is called a mass transit system provided by the government, and don’t be surprised if it was funded with proceeds from taxes paid by you or others. Free Education Taxes may have come to the rescue if you are the product of a public school or federal/state university. Remember how fulfilling it was to pay as little as N25, 000 as your tertiary school fee when the parents of your counterparts in private universities literally gave an arm and a leg to meet up with tuition? The government is sometimes able to achieve a measure of subsidised education because several upstanding citizens exercise their civic duty to pay taxes. It wouldn’t hurt to join them so others can have the same story to tell. Education is a basic right, after all. Brand Nigeria If you are a business person dealing in locally-made products with money in your pocket by month end, you probably have taxes to thank. Government often imposes high taxes on foreign goods to encourage patronage of local products by the citizenry. This might sometimes leave you smiling to the bank when it matters. Good Roads Roads riddled with potholes leave us frantic and furious because they do not only damage our vehicles but are often responsible for the auto accidents that claim innocent lives on a daily basis. This explains why good roads should not be taken for granted. They are products of the taxes/alternative revenue sources, and fall into the category of social amenities we expect when the government is financially buoyant. Job Creation In a country with unemployment figures pegged at 23.1%, it is a privilege to be part of the gainfully employed workforce. But what you may not know is that job creation sometimes depends a lot on taxation. Case in point, your organisation may have been priced out of the market without tax waivers or holidays granted by the government to encourage investments and business growth, depending on the industry that engages you. Thinking about this should encourage you to pay your taxes. Income Redistribution Tax helps ensure social justice in the sense that it is pegged at a particular percentage of income, not a specific fee. As such, it creates a level playing field for all because the higher your income, the higher the tax margin deducted and vice versa. Security Just about every one of us would prefer to live and work in secure neighbourhoods. In fact, we have reservations with the response time of the Nigerian police force because we want them available round the clock for crime-fighting and other purposes. But keep in mind that your tax is one source of remuneration for the cops. As such, prioritising tax payment is one sure way of keeping them motivated so they will be better placed to perform their statutory duties when situation calls for it.

Source: Vanguard

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The Rivers State Internal Revenue Service (RIRS) has unveiled a new tax for the informal sector, promising to be fair in its collection. The RIRS Chairman, Mr Adoage Norteh, made the disclosure at a news briefing in Port Harcourt on Monday. The chairman said that members of the public would begin to pay for every space they would use aside from their stores, offices and business spaces.
“If you want to put up a business in any corner of the state, we may not ask you not to do so but we will ask you to pay a fee because that space belongs to everybody in the state”, NAN quoted him as saying. “We want to face those informal people whose addresses are not known, those who are selling by the roadsides and earn income. “For instance, the taxi people on the streets that make traffic flow difficult, the street sellers among others,” he said. Norteh said that the aim was to develop the state. The chairman said that the agency did not engage in multiple taxation. “There is a lot of noise about multiple taxation, we don’t engage in it; it has been a thing of the past since we came on board, and we insist that people will not be harassed provided they do the right thing,” he said Norteh further said that the agency would collaborate with relevant authorities in the state to effectively implement the policy. He told journalists that the tax would not be flat but would depend on the size of the space. He said hat the agency would meet with stakeholders including transporters and traders before collection of the tax. “The agency will be fair in the collection of the new taxation,” Norteh said.

Source: The Nation

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A member of the OPS has warned that more manufacturers might be in the process of shutting down, if government fails to address the problem of multiple taxation, poor infrastructure and the proposed increase in value added tax (VAT).
Managing director of NISPO Porcelain Company Limited, Mr. Afam Ukatu, stated this in his goodwill message at the inauguration of Commerce and Industry Correspondents Association of Nigeria (CICAN), in Lagos. He called on government at all levels to engage the organized private sector (OPS) and chart the ways to eliminating multiple taxation, which is an endemic problem militating against businesses in the country. The NISPO MD said, “If the government does not look into the issue of multiple taxation and harmonizes it as quickly as possible, many more manufacturers would shut down. “The situation has deteriorated to the extent that tax authorities shut down factories because of tax defaulters, but what I do ask them is that if you shut a factory because they are not paying tax, and all their workers are on the street, where are they going to get money to pay the tax? Again, I will advise that the government desist from the proposed increase of VAT”. Ukatu reiterated the need to look into multiple taxation and VAT, arguing that taxes are being paid on turnover. “But what of the situation where a manufacturer is losing money? It is obvious that a manufacturer produces and still loses money and still expected to pay taxes. There should be a system whereby you are evaluated by the tax authorities just like in China. It is a sad story that the country has a very huge gap that directly hampers business. It is obvious that the cost of transport from one end to the same Lagos has gone up more than what you paid as freight from China to Nigeria,” he said.

Source: The Sun

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When you are starting out as a business owner, banking charges might be the furthest thing from your mind — until they start to add up! Get ahead of the game with these cost-saving tips, before you even open your business bank account. Take control of your business finances today by choosing the most useful type of bank account, opting for cost-saving features and making full use of the benefits available through your bank. These practical tips will give you a head start and help you to optimize your savings as your business grows, according to /discover.rbcroyalbank.com.
Save on business banking accounts
Open a business banking account that offers flexible transaction limits and low, tax-deductible fees charged only when you use the services. Streamline your accounting and keep your banking costs down by choosing an account that helps you track your business expenses. Find out whether you require a minimum balance to avoid fees, and maintain that amount in your account.
Sign up for online banking
Online banking and electing to receive electronic statements from your bank is not only more environmentally friendly, but it can also save you fees if your bank charges for paper statements. Additionally, some banks offer financial incentives for changing to paperless billing. A banking association had reported that 83 per cent of consumers feel online banking adds value for them.
Pay your bills electronically
A report showed that 68.3 per cent of a community now use electronic payment options. This growing trend can help save you time and the hassle of paying manually. Using your bank’s online bill payment solutions will help you pay on time, building both your business’s credit rating and your reputation. Make the most of payment discounts for on-time or early payments, set up alerts to ensure you have funds available when payments are due, and consider getting overdraft protection to avoid cash flow challenges.
Accept electronic payments
Offering your customers ways to pay you electronically can save you time and money on reconciliation. Receiving payments electronically means your will receive (and can use) the funds sooner. If you need payment processing or e-commerce options, you can obtain access to these additional services through your bank.
Use a business credit card to track expenses
With a business credit card, you can track company expenses and earn points or get cashback for your purchases. Pay your credit card balance in full within a week or two, to avoid accruing interest. Take advantage of any rewards programs available for the credit card you choose. You’ll accumulate points that you can use as a payment towards your credit card balance, or for benefits such as airline miles.
Search for a business bank
Searching for a business bank account is an exciting yet crucial step that every small business owner ought to take—ideally sooner in their business’s timeline rather than later. Whether you are a new business that is just starting up and you need a business debit card, or you are a well-established business looking for a way to earn for your savings, you’ve got quite a few decisions ahead of you. Because this is such a vital decision for your business is finances, it is crucial to know what you are doing when you are sifting through all of your business bank account options.
Before you open a business bank account, make this initial decision;
First thing is first, you will need to decide which kind of business bank account you want to prioritise in this search. Do you want a business current account or a business savings account? Though these two types of business bank accounts are certainly not mutually exclusive—in fact, they work wonderfully together—you will need to decide which type of business bank account you want to look for at this very moment. If you are looking for a home for your business’s working capital cash flow that allows your money to be easily accessible, then you are looking for a business current account. On the other hand, if you are looking for a way to store your business’s money away to save and even earn for it, then you will want to look into your business savings account options. Generally speaking, newer businesses that are just starting up will likely be in more need of a business current account, while businesses which are well-established with a lot of cash on hand will likely be in search of savings accounts. Plus, a business current account is a business fundamental, while a business savings account can often be taken care of leisurely. That said, there are both business savings and current accounts out there that can serve businesses of all shapes and sizes.

Source: Punch

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The Federal Inland Revenue Service is seeking the support of the Central Bank of Nigeria to track payment of Value Added Tax made electronically by foreign entities that are not registered in Nigeria. The agency said this in a document detailing its strategic revenue growth initiatives for 2019 to 2021 which was submitted to the National Assembly. The strategic revenue growth initiatives are measures aimed at boosting revenue through taxation, particularly VAT.
There has been an increase in online purchases of goods and services from foreign entities that are not registered in Nigeria. These transactions are subject to VAT payment under the current VAT legislation. The payment of VAT on these transactions is made electronically making huge tax revenue to be lost due to the inability of the FIRS to track and charge VAT on these transactions. To address this loophole, the FIRS according to the document which was submitted to the lawmakers, is urging the Ministry of Finance to work with the apex bank to fashion out modalities of installing software that could track these transactions. The service said the software would perform the task electronically through payment gateways such as Interswitch, Nigerian Interbank Settlement System, Master Card and Visa among others. The service also called on the minister of finance to leverage the provisions of Section 38 of the VAT Act to issue a regulation which would expand the meaning of “goods and services” to include land, buildings and oil wells. In addition, it said the meaning of “services” in the Act should be expanded to include intangibles and digital items such as software. The service said such regulation should be gazetted by the Ministry of Finance. Other strategies to shore up tax revenue are the expansion of Tax Identification Number database to cover federal, states and local governments. This is expected to establish a reliable VAT tax base across the country. There is also a plan to review existing tax laws to close the legal loopholes for taxes by adopting a sectoral, rule-based approach. The service is also considering developing a unified nationwide taxpayer database as well as review collections of surcharge on international ticket purchase at the point of sale.

Source: Punch

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About four months ago, President, Muhammadu Buhari presented a total of N8.83 trillion as the proposed budget for the fiscal year 2019 to a joint session of the National Assembly. Close to N7trillion of that figure, representing 79 per cent of the total, is expected to be financed by government from different revenue resources major of which is oil. Judging by the opinion of experts, Bamidele Famoofo reports that achieving the budgetary target remains a herculean task for the government. The proposed federal government budget is predicated upon revenue projections of N6.97 trillion for the 2019 fiscal year. From the oil sector, the federal government is expecting revenue of about N3.73 trillion, while N710 billion will come from the proceeds of government equity in joint ventures. As part of the government’s non-oil revenue push, it anticipates to receive about N799.52 billion from businesses as part of its own share of company income tax receipt. Also, the federal government’s share of revenue from customs duties and value added tax(VAT) are estimated to come to a region of N302.5 billion and N229.34 billion respectively. Oil Revenue Government’s projection is that about N3.73 trillion or 42 percent of funding will come from the sales of oil. This figure was derived from assumptions of oil price benchmark of $60 per barrel and an oil production of 2.3 million barrels per day. Daily crude oil production estimate of 2.3 million barrels per day is the same amount as budgeted for the 2018 fiscal year.
However, Nigeria currently produces about 1.8million barrels per day, which according to some experts in the oil sector, is believed to be a more realistic production estimate.
Non-oil Revenue
Nigeria’s non-oil revenue is mainly divided into value added tax, Corporate Income Tax, customs duties and levies. FG receives 14 percent of the VAT, while other taxes are paid into the Federation Account, which FG is entitled to 48.5 per cent. Nigeria’s non-oil r e v e n u e ( e x c l u d e s independent revenues from agencies by classification) has usually followed the GDP growth and the economic health of the country.
VAT
CEO of BudgIT, Oluseun Onigbinde, noted that as oil price and production swings had been critical to Nigeria’s economic growth, foreign reserves and currency stability, non-oil revenue growth has also been strongly influenced by oil. “It is evident that when oil revenue declined in 2016 due to the oil price slump, the growth of non-oil revenue marginally reversed. We see this in the change in Company Income Tax revenue—N1.2 trillion in 2014, N1.0 trillion in 2015, N0.9 trillion in 2016, and back to N1.2 trillion in 2017.” A total VAT uptake of around N229.34 billion was proposed by government for 2019. This amount is higher than about N207.51 billion in 2018. In 2014 and 2015, the federal government’s share of VAT was N106.74 billion and N104.66billion respectively. For the 2017 fiscal year, the federal government’s share of VAT came to about N130.05 billion. A Globalist article states that, “Nigeria doesn’t fare much better with value-added tax and corporate tax. A paltry 9 percent of Nigerian companies pay corporate tax, while only12 percent of registered businesses comply with VAT obligations. With some estimates finding as many as 99 percent of small businesses are unregistered, those percentages are even lower in reality.”
Company Income Tax
For the 2019 fiscal year, the federal government projects a CIT uptake of N799.51 billion, which is an increase from the approved N658.55 billion for the 2018 fiscal year. FG’s share of CIT rose from the 2015 level of N473.32 billion to an estimated N543.34 billion in 2017. As at the third quarter of 2018, actual CIT uptake was at N500.37 billion, a N92.78 billion increase from the actual of N407.59 billion in 2017, for a corresponding period. Considering the trends of the past five years, it will be overly optimistic to believe that the federal government will meet its 2019 CIT revenue projections. “At 30 percent, Nigeria’s CIT rate is higher than the average CIT rate in Africa which is at 28.53 per cent. In the European Union and Asia, CIT rates lie between 18.88 percent and 20.14 percent respectively. With serial reforms to boost corporate taxes which include Voluntary Assets and Income Declaration Scheme (VAIDS), that failed to significantly boost taxes revenues, it is evident that Nigeria lacks the formal private sector depth to deliver huge corporate taxes.”, BudgIT disclosed in its recent report on the budget. BudgIT believes the recent approach of using bank as agent of tax collection has been heavily resisted, but has a potential of increasing the number. “Another N799billion target by FIRS is commendable, but we do not expect magic in FIRS CIT collection which might reach N1.3trillion in 2019, raising FG’s share (48.5 per cent after cost of collection) to around N650billion,” it said.

Source: Thisdays

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The Edo State Internal Revenue Service has commenced aggressive tax enforcement exercise to collect revenue owed the state government.
In a statement signed by its Executive Chairman and Chief Executive Officer (CEO), Mr Igbinidu Inneh, the tax agency advised members of the public to take note of the commencement of the exercise and make sure to settle all their tax liabilities to avoid sanctions. According to him, “This is to notify the general public that the Edo State Internal Revenue Service has embarked on an aggressive Tax Enforcement exercise of all Revenue owed Edo State Government, particularly Income Taxes, Consumption Tax as well as Road Taxes.” “By this notice, the general public is advised to take note and settle all their tax liabilities to avoid sanctions,” he added.

Source: Vanguard

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The Bishop of Ife Diocese, Anglican Communion, Ile-Ife, Osun State, Rt. Rev. Olubunmi Akinlade, has urged the Federal Government to drop the idea of increasing the rate of Value Added Tax by 50 per cent. The bishop said increasing the VAT from its current five per cent to 7.5 per cent would have multiplier economic effects on goods, services and livelihood.
Akinlade, in a statement on Friday, observed that implementing the increase would not be ideal in the light of the current economic situation in the country and the hardship most Nigerians were grappling with. The cleric stated that government at all levels needed to carry out economic and social projects that would impact the life of the citizens. He advised the government to focus on policies that would reduce unemployment and increase economic fortunes of Nigerians. Akinlade said, “I will appeal to government to suspend any increase in VAT as the economic hardship is biting hard. Policies that promote job creation and reduce unemployment should be rigorously pursued. People are hungry, so polices that favour massive food production and distribution at affordable rate must be pursued.” The reverend said when government made job creation a priority, “it will automatically reduce the vices we see in the society,” noting that emphasis should be shifted from white collar jobs to skilled labour. He added, “No matter what happens, skilled manpower is needed. Such a person is an entrepreneur and he or she can also be an employer of labour thereby helping to further reduce unemployment.”


Source: Punch

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The executive chairman of the Federal Inland Revenue Service (FIRS), Mr. Tunde Fowler has set for the agency a target of N750 billion to be recovered from 55,000 defaulting taxpayers. The money is what millionaire tax debtors are owing and the effort to recover it is coming at a time the government is unveiling plans to woo owners of undeclared foreign assets with amnesty and permanent waiver of criminal prosecution through the Voluntary Offshore Assets Regularization Scheme (VOARS).
Fowler said this while addressing the House of Representatives joint committee on Finance, Appropriations, Aids, Loans and Debt Management, Legislative Budget and Research and National Planning and Economic Development on the 2019/2021 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP). The FIRS chairman told members of the committees that the recent substitution exercise carried out by the service led to the recovery of N23.25 billion. He further told the lawmakers that from the bank accounts substitution exercise, the FIRS used banking information to bring non-compliant taxpayers with N1 billion and above turnover to comply. He explained that the exercise has also been extended to cover those with a turnover of N100 million and above and that currently, about 500 of the millionaire debtors have come forward to pay their taxes in the region of about N24billion. This newspaper is gratified that VOARS will complement the Voluntary Asset Income Declaration Scheme (VAIDS). VOARS is a scheme that gives taxpayers, who have defaulted in the payment of their taxes, a platform to voluntarily declare all offshore assets and foreign- sourced income relating to the preceding 30 years of assessment in exchange for a one-time levy of 35 per cent on all offshore assets in lieu of payment of default taxes amongst other benefits. The scheme is scheduled to run for a 12-month period commencing on October 8, 2018. Similar to the recently concluded VAIDS, this Scheme provides some form of clemency to taxpayers who would take the opportunity to regularize their tax affairs. It is sad that in Nigeria today, the low income earners tend to pay more tax than the high income earners. Many millionaires in the country pay little or no tax at all. The government must continue to make efforts to bring them into the nation’s tax net so as to boost its internally generated revenue. Taxation is an issue that concerns everyone. Widening the tax net would help in improving the process. Nigeria, with an estimated population of about 189 million people, almost half of whom are aged 15 to 64, according to World Bank data, still has one of the world’s lowest tax ratios to Gross Domestic Product (GDP) of six per cent, the lowest among the sub-Saharan countries the International Monetary Fund (IMF), an arm of World Bank, has measured. South Africa has 24.7 per cent. This narrative must change. In contrast, the wealthy are being heavily subjected to taxation in Europe, the United States and Australia. Revenue, Ireland’s tax body, offers a sterling illustration. Periodically, these countries publish a list of defaulters. It is our considered opinion that every Nigerian must pay tax. The FIRS and state revenue agencies must continue to act creatively and firmly in bringing in more people into the tax net. It is unacceptable that millionaires who earn much pay unusually meager tax. Government should intensify policies on progressive taxation, in which case, the richer you get, the more you pay, as is the practice in Europe. We also believe that the move to expand the tax base should be accompanied by liberalizing initiatives to stimulate the economy through private sector-led investment, attracting foreign investment and privatizing state-endowed commercial assets. The current effort to widen the tax net for increased revenue generation must go together with improving the ease of doing business. While paying tax is a necessity, the government must intensify effort to address the genuine concerns of Nigerians who complain that they do not see the impact of the tax they pay on the provision of social infrastructure such as good roads, efficient healthcare system, stable electricity supply and others. Government, at all levels, should let the people see what they are doing with the tax revenue. That will make the expansion of the tax base worthwhile. Looting public funds by government officials, including tax proceeds, make compliance a difficult habit to cultivate by most Nigerians. As part of the move to bring more people into the tax net, the authorities must ensure that cases of tax diversion by public officers are eliminated entirely.

Source: Leadership

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