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 Business › FIRS Extends Bank Accounts Substitution Exercise by OfflineDirectry(op): 9:00am On Apr 10, 2019 |
The Bank Accounts substitution exercise by the Federal Inland Revenue Service (FIRS) will be extended till June to get 55,000 tax defaulters with a turnover of N100 million and above into the tax net. The Federal Inland Revenue Service plans to generate about N750 billion from about 55,000 millionaire tax debtors. This target will be achieved with the bank accounts substitution exercise. “From the Bank Accounts substitution exercise, we used banking information to bring non-compliant taxpayers with N1billion and above turnover to comply. It has so far resulted in the recovery of N23.35billion. The exercise has been extended to cover those with turnover of N100 million and above”, said Tunde Fowler, Executive Chairman, FIRS. “To date, about 500 of them have come forward and they have paid and we have collected in the region of about N24 billion. We believe we should be able to go through the 55,000 before the middle of this year which will be the 30th of June”, Fowler had told the House of Representatives joint committees on finance; appropriations; and aids, loans and debt on the 2019/2021 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP). He restated that the 85 per cent of VAT collected goes to State Governments. “In terms of estimates, which we should be able to generate from this exercise alone, that will be about N750 billion. Fowler who noted that FIRS recorded an increase in Value Added Tax, VAT collection between 2015 and 2018 said FIRS is broadening its VAT collection scope with the adoption of States Accountants Generals (SAG) collection platform, VAT Auto-collect, integration of the GIFMIS platform with Ministries, Departments and Agencies, (MDAS) and through e-service payment options.” He was however categorical that VAT is not for the poor: “Out of about N5.3 trillion, a large percentage is shared between states and local governments. In VAT, there has been a growth of over 44 percent between 2015 and 2018. And that is at the current rate of 5 per cent. “Now when you look at Africa as a continent, Nigeria still has the lowest VAT rate. When we look at the items that are not Vatable, basic food is not Vatable, medicals, education. But if you decide and you have the ability to go to a restaurant to eat and drink the same thing you can buy in the open market, then you pay VAT. So VAT basically is a consumption tax and those who choose not to go to the open market to buy their food and cook at home are subject to VAT. So its (VAT) not a hardship on the low income earners because normally they don’t even go to hotels when their wives can cook at home and they can have something very nice”, Fowler said. “But the same Nigerians who are complaining about an increase are the same ones who go to Ghana and go and pay triple the amount in VAT or go to London and pay higher amount. “So we are just saying, like the minister said that we should get used to the idea. And 85 percent of VAT goes to the State Governments who are supposed to be closer to the people. So they can use that money as approved by their State Houses of Assembly. So they can use that money on education, infrastructure, etc. “Yes, we had in increase of about 32 per cent from N4.02 trillion in 2017 to N5.3 trillion in 2018. At the Federal level, clearly we can see all the projects that are being completed, based on the available funds. I’m just saying that if we keep on the same way, the expectations cannot be different. “For those who have the ability and the desire to take the choice, of going to areas where they have to pay VAT, then they should be allowed to pay VAT. The FIRS Chairman told the committee that through enforcement activities in respect of defaulting taxpayers from various tax offices, tax audit and investigation assessments, FIRS has generated the sums of N28.51billion and $77.83million. “FIRS and the Economic and Financial Crime Commission (EFCC) Joint Tax Force (JTF) was introduced in 2018 to enhance the fight against tax related economic fraud. As at December 2018, a total of N6.94 billion and $278,430 had been recovered by the JTF. This and other such initiatives are continuous and will be continuous going forward.’’ He said that FIRS also initiated income tax on property owners in Abuja and Lagos as part of efforts to deepen tax revenue collection and expand the nation’s tax net as well as increase the revenue base. “This project which initially targeted property owners in Abuja and Lagos has so far yielded N4.3 billion, and is being extended to other locations. In this regard, Oyo and Kaduna states have commenced. “It is important to note that this is not a property tax but rather the use of the provisions of the law to bring into the tax net companies that own properties but failed to file necessary tax returns and pay appropriate taxes due,’’ Fowler, explained. On tax audit exercise of the Service, Fowler said “This covers both the National Tax Audit (NTA) and the Pioneer Audit (PA). The NTA exercise contributed the sum of N212.79billion to tax collection in 2018. Following improvements to the audit process and resultant increased efficiency, the exercise is expected to produce increased audit yield in 2019.” Source: Businessday newspaper www.innerkonsult.com for outsourcing your professional services on accountancy, tax, CAC , business assurance services
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| Business › Remittance Default: Employers Pay N365m Penalty by OfflineDirectry(op): 10:18am On Mar 20, 2019 |
Remittance default: Employers pay N365m penalty Kusimo Tolu-Omobola by Kusimo Tolu-Omobola March 19, 2019 in Business For failing to remit pension contribution as and when due to employees, erring employers have paid N365.67 million as penalty to their employees through the National Pension Commission (PenCom)The Nation has learnt. This, according to PenCom, brings the amount recovered from employers to N14.95 billion. A report by the commission, said the N365.67 million was received by PenCom in the third quarter of 2018. The report titled, “Update on the Recovery of Outstanding Pension Contributions and Interest Penalty from Defaulting Employer”, indicated that the commission engaged agents to recover the unremitted pension contributions from errant employers. The commission engaged the services of 14 Recovery Agents to recoup the outstanding pension contributions with penalties from defaulting employers. The report read: “Following the issuance of demand notices to the employers whose liabilities had been established by the Agents, some of them had remitted the outstanding pension contributions and penalty. “During the quarter, the sum of N564.67 million, representing principal contribution of N199.01 million and penalty of N365.67 million were recovered. This brought the total recoveries made to date to N14.95 billion comprising of principal contribution amounting to N7.62 billion and penalty amounting to N7.32 billion. “The commission continued to apply various strategies to ensure compliance with the provisions of the Pension Reform Act (PRA) 2014. These included the application of sanctions and collaboration with key stakeholders on public enlightenment campaigns as well as engagement of defaulting employers via pension recovery agents employed by the Commission to recover unremitted pension contributions. Source: The nation newspaper www.innerkonsult.com Accountancy, Tax, audit, CAC registration, company valuation and inventory -stock taking
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| Business › Local Government Cannot Impose Unconstitutional Taxes And Levies On Companies by OfflineDirectry(op): 12:30pm On Feb 28, 2019 |
Nigeria: FCT High Court Rules On The Imposition Of Taxes And Levies By Local Government Councils On 14 January 2019, the High Court of the Federal Capital Territory ("FCT High Court" or "the Court"  held that Local Government Area Councils (LGCs) in the Federal Capital Territory (FCT) cannot impose unconstitutional taxes and levies on companies, in the case between Abuja Electricity Distribution Company (AEDC) v. Kuje Area Council (KAC). According to the Court, the LGCs have no legislative power to create or impose any tax or levy outside the ambits of the Constitution and the Taxes and Levies (Approved List for Collection) Act. The Court reached this decision on the grounds that Section 299 of the Constitution vests the legislative powers of the FCT in the National Assembly.Details Abuja Electricity Distribution Company is an Electricity Distribution Company licensed by the National Electricity Regulatory Commission to carry out electricity distribution within and around the FCT, Kogi, Nassarawa and Niger States. KAC, an LGC in the FCT, issued and served demand notices on AEDC, demanding sums amounting to N540,000 as levies/fees for outdoor advertisements, corporate parking, sanitation and operational permit for 2015 and 2016. In response to the demand notices, AEDC instituted an action at the FCT High Court seeking, amongst other things, a declaration that KAC has no legislative competence and power to unilaterally create and impose new taxes and levies outside the provisions of the Taxes and Levies (Approved List for Collection) Act. The Court ruled in favour of AEDC, holding that KAC acted ultra vires by imposing taxes and levies that are outside the ambit of the Fourth Schedule to the Constitution and Part III of the Taxes and Levies (Approved List for Collection) Act. The Court relied on the provisions of Section 299 of the 1999 Constitution stating that the legislative powers of the FCT is vested in the National Assembly and that the LGCs of the FCT do not have the powers to create new heads of taxes in the absence of any enabling legislation by the National Assembly. Although the Court held that there was no legal basis for the imposition of corporate parking, sanitation and operational permit fees by the LGC, it affirmed the powers of the LGC to impose levies for outdoor advertisement because this is contained in the Taxes and Levies (Approved List for Collection) Act and in line with the Constitution. Implication Based on this Judgment, LGCs in the FCT cannot unilaterally create or impose any form of taxes or levies outside those listed in the Fourth Schedule to the Constitution and the Taxes and Levies (Approved List for Collection) Act. The Judgment is in line with established judicial precedence that a LGC can only impose or create new taxes and levies where there is an enabling law to that effect. Consequently, taxpayers who have been issued assessments for taxes and/or levies that appear contentious need to evaluate such assessment in the light of existing laws and relevant guidelines. Taxpayers are also encouraged to seek professional advice when in doubt regarding seeming arbitrary tax assessments.
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| Business › FIRS, Recovered N23 Billion From Tax Defaulters In Nigeria by OfflineDirectry(op): 8:25pm On Feb 20, 2019 |
FIRS, Police and tax defaulters in Nigeria WHILE receiving the acting Inspector-General of Police (IGP), Muhammed Adamu, during a courtesy visit to his office recently, the Executive Chairman of the Federal Inland Revenue Service (FIRS), Mr Babatunde Fowler, said the service, in collaboration with stakeholders like the Nigeria Police Force, would continue to go after wealthy tax defaulters this year. He disclosed that the service had recovered N23 billion from a closer look at the books of over 45,000 tax defaulters with over N100 million as turnover, promising that it would go after another set of millionaire tax defaulters. Earlier at a management retreat at the Eko Hotels in Lagos State last month, Fowler spoke of the FIRS’s plan to identify and tax bank account holders with over N100 million as turnover but with no evidence of tax payment. To be sure, if the objective of the FIRS is to ensure that all citizens of this country are dragged into the tax net to ensure tax payment, then this initiative is quite salutary. Ideally, tax payment by citizens is a sure evidence of an existing social contract between them and the state. To say the least, civic duties are not restricted to voting during elections; they also include the payment of taxes. Besides, the seemingly intractable problems of poverty and inequality in the country can, in part, be traced to inefficient and negligent revenue collection methods. This has been the bane of the Nigerian state since it morphed into a mono product economy upon the discovery of oil as the principal source of revenue. Apparently, FIRS is now living up to its billing as a revenue agency for the Nigerian state poised to recoup the former losses from state negligence. Indeed, while governments and their personnel may act irresponsibly, citizens still owe a duty to pay taxes. Then, they can take up the irresponsible politicians and sack them from office. For a poor country like Nigeria, it is even befuddling how it is expected to handle its various duties like improving infrastructure when private people in their tens of thousands with turnovers in excess of N100 million are outside the tax net. Elsewhere, tax evasion attracts very heavy sanctions, like long jail terms for individuals. It is even unimaginable at the corporate level. It is crucial, therefore, that the FIRS insists on this initiative even if its critics, and they are numerous, are wary of the impact this may have on the ease of doing business index in the country. It is imperative that all citizens are brought into the tax net. The question of the ease of doing business and attracting local or foreign investments are different issues that should be addressed more comprehensively. Before crude oil became the prince of revenue generation in Nigeria, tax payment by all adult citizens was compulsory and defaulters were regularly reined in. The tax defaulters themselves knew they were felons, hence their fugitive existence. If they were farmers, they came to pay as soon as they became solvent after the harvest season. We commend the FIRS for the initiative of recovering N23 billion from 45,000 tax defaulters and encourage it to go after other wealthy Nigerians who are doing profitable businesses in the country without paying the state its dues. Beyond compelling these defaulters to pay, it is also crucial to make them realise that it pays to pay taxes. Certainly, it cannot continue to be business as usual. www.innerkonsult.com Accountancy, Tax, assurance, stock taking and CAC professional services
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| Business › Federal Government Introduces New Electronic Yellow Card For Travellers by OfflineDirectry(op): 7:01pm On Feb 19, 2019 |
Federal Government of Nigeria Introduces New Electronic Yellow Card for Travellers The federal government has introduced electronic yellow card for international travellers out of the country. This will replace the old card with effect from April 1 this year. The yellow card is the international certificate of vaccination or prophylaxis. According to the federal ministry of health, to obtain an e-yellow card, one has to register on the official website in addition to paying N2,000. The ministry said it takes maximum of an hour for the card to be ready after vaccination, and that international travellers are to be vaccinated at least 10 days before travelling. “August 1, 2018 marked the official expiry date of the old yellow card and commencement of issuance of electronic yellow card’. “The card, which is machine-readable, and has the ability to store vaccination history of the holder, was designed to put an end to the era of fake yellow card issued by unauthorized personnel for years”. “The card has increasingly become an essential travel document, with several embassies making it a prerequisite for visa application”, the ministry added. www.innerkonsult.com Accountancy, Tax, assurance , Stock management and CAC Professional services
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| Business › Re: How To Process Form M For Importation In Nigeria by OfflineDirectry(m): 1:36pm On Feb 15, 2019 |
Donraqh: 1 Share
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| Business › FIRS Recovers N23bn From 45,000 Millionnaire Tax Defaulters by OfflineDirectry(op): 8:59pm On Feb 08, 2019 |
FIRS Recovers N23bn from 45,000 Millionnaire Tax Defaulters February 8, 2019 5:42 am0 Executive Chairman of the Federal Inland Revenue Service (FIRS), Mr. Babatunde Fowler, James Emejo in Abuja The Executive Chairman, Federal Inland Revenue Service (FIRS), Mr. Tunde Fowler, yesterday said the sum of N23 billion was realised from 45, 000 tax defaulters, who had over N100 million as turnover in their respective bank accounts. He said the recovery followed a crackdown on defaulters which was carried out in collaboration with other stakeholders including the Nigeria Police Force, adding that another set of 40, 000 millionaire will be targeted in this year. Speaking when he received the acting Inspector-General of Police, Mohammed Abubakar Adamu, who paid him a courtesy visit, Fowler said the Service will will continue to go after wealthy tax defaulters in 2019. He, therefore, sought the cooperation of the police to help compel tax defaulters to pay their taxes. In a statement issued by Head, Communications & Servicom Departments, Mr. Wahab Gbadamosi, the FIRS boss noted that it had identified 45, 000 millionaire tax evaders in 2018 and recovered the sum of N23 billion through substitution of their bank accounts. He expressed gratitude to the police for aiding the success of the crackdown and further requested for more support to enable it recover due taxes from more 40, 000 rich tax evaders in 2019. He said: “Let me put on record that the Nigeria Police Force has been extremely helpful to FIRS. Without the Police, I doubt that the Service would have been able to achieve what we have achieved. 2018 was a successful year. The FIRS collected a total of N5.320 trillion of tax revenue. This is the highest revenue collection in the history of FIRS. “This is significant given that this collection was when oil prices oscillated between $50 and $70 per barrel. Oil price was at an average of $100 to $120 per barrel between 2012 when FIRS collected N5.07 trillion. Oil component of the N5.320 trillion is N2.467 trillion (46.38 per cent), while non-oil element of the collection is N2.852 trillion (53.62 per cent).” Adamu, however, assured of the police continued support as the job of revenue generation is critical to the survival of the nation. “We feel that the work you do is one of the most important for the survival of the country. And you need to be supported from all angles so that you achieve what you want to achieve to the benefit of every Nigerian. “We will continue to work with you to improve security so that people would do their businesses here, make profits and pay their taxes. We believe that with the new Management team of the Nigeria Police Force, which is adopting Community Policing, we would be able to improve security,” Adamu said. www.innerkonsult.com Accountancy, Tax, Assurance, business planning and CAC professional services
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| Politics › Re: FIRS Goes After 85,000 Millionaire Tax Debtors by OfflineDirectry(m): 8:15pm On Feb 08, 2019 |
This a tax regime not oil. Government is ready to survive on tax rather than oil money
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| Business › International Community Makes Important Progress On Tax Challenges Of Digitalisa by OfflineDirectry(op): 9:29am On Feb 06, 2019 |
International community makes important progress on tax challenges of digitalisation The tax challenges of the digitalisation of the economy were identified as one of the main areas of focus of the Base Erosion and Profit Shifting (BEPS) Action Plan, leading to the 2015 BEPS Action 1 Report (the Action 1 Report). The Action 1 Report found that the whole economy was digitalising and, as a result, it would be difficult, if not impossible, to ring-fence the digital economy. The Action 1 Report also observed that, beyond BEPS, the digitalisation of the economy raised a number of broader direct tax challenges chiefly relating to the question of how taxing rights on income generated from cross-border activities in the digital age should be allocated among countries. The international community has just made important progress toward addressing the tax challenges arising from digitalisation of the economy and has agreed to continue working multilaterally towards achievement of a new consensusbased long-term solution in 2020. Countries and jurisdictions participating in the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) will step up efforts toward reaching a global solution to the growing debate over how to best tax multinational enterprises in a rapidly digitalising economy. Renewed international discussions will focus on two central pillars identified in a new Policy Note released after the Inclusive Framework’s January 23-24 meeting, which brought together 264 delegates from 95 member jurisdic- tions and 12 observer organisations. The first pillar will focus on how the existing rules that divide up the right to tax the income of multinational enterprises among jurisdictions, including traditional transfer-pricing rules and the arm’s length principle, could be modified to take into account the changes that digitalisation has brought to the world economy. This will require a re-examina- tion of the so-called ‘nexus’ rules – namely how to determine the connection a business has with a given jurisdiction – and the rules that govern how much profit should be allocated to the business conducted there. The Inclusive Framework will look at proposals based on the concepts of marketing intangibles, user contribution and significant economic presence and how they can be used to modernise the international tax system to address the tax challenges of digitalisation. A second pillar aims to resolve remaining BEPS issues and will explore two sets of interlocking rules designed to give jurisdictions a remedy in cases where income is subject to no or only very low taxation. Given the significance of the new proposals for the international tax system, the Inclusive Framework will issue a consultation document that describes the two pillars in more detail, and a public consultation will be held on 13 and 14 March 2019 in Paris as part of the meeting of the Task Force on the Digital Economy. Further details on the consultation process, including how stakeholders can provide input and most effectively participate, along with the consultation document, will be published in the coming weeks. “The international community has taken a significant step forward toward resolving the tax challenges arising from digitalisation,” said Pascal Saint-amans, director of the OECD Centre for Tax Policy and Administration. “Countries have agreed to explore potential solutions that would update fundamental tax principles for a twenty-first century economy, when firms can be heavily involved in the economic life of different jurisdictions without any significant physical presence and where new and often intangible drivers of value become more and more important.” “In addition, the features of the digitalised economy exacerbate risks, enabling structures that shift profits to entities that escape taxation or are taxed at only very low rates. We are now exploring this issue and possible solutions,” SaintAmans said. Members of the Inclusive Framework renewed their commitment to reaching a consensus- based, long-term solution in 2020, with an update to be presented to the G20 during 2019. In addition to discussions on digitalisation, the Inclusive Framework finalised a report on BEPS Action 5 (Harmful Tax Practices), which has also been released today.
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| Business › The Federal Inland Revenue Service (FIRS) Targets N8 Trillion Revenue In 2019 by OfflineDirectry(op): 6:06pm On Feb 04, 2019 |
The Federal Inland Revenue Service (FIRS) re-wrote Nigeria’s collection history in 2018, when it collected N5.3 trillion as tax revenue for the year. FIRS Executive Chairman Tunde Fowler, who made the announcement in Lagos at a retreat: “Parliamentary Support for Effective Taxation of the Digital Economy” also announced that the Service is targeting N8 trillion for 2019. Fowler said: “FIRS’ generation of N5.3 trillion is significant as it was at a period when oil prices averaged $70 per barrel. Oil price was at an average of $100 to $120 per barrel between 2010 and 2013.” The FIRS boss noted that the non-oil component of the N5.320 trillion is N2.467 trillion that was (53.62 per cent), while the oil element of the collection was N2.852 trillion (46.38 per cent). From audit alone, the FIRS collected N212,792 billion from 2,278 cases with a huge reduction in audit circle. Odilim Enwegbara, a development economist and financial expert who serves as Chairman/CEO at Pan Africa Development Corporate Company (PADCC), congratulated the FIRS “given how difficult it is to beat tax evaders in Nigeria, and how difficult it is also to extract tax money from the overly powerful corporate Nigeria and politicians, especially when dealing with a population that believes that it will never pay tax because there is nothing it gains from the government and more so given how extravagant government officials are with public money.” Enwegbara noted that “our tax collectors have to find themselves dealing with the so-called Nigerian big men, who waste no time in threatening tax collector with “I will deal with you if you ever return here again.” Even foreigners are today the worst tax evaders in Nigeria. They go to the extent of bribing our tax collectors and should the tax collector refuse, these foreigners tend to bypass them to go directly to their bosses and should their bosses refuse they will go to powerful politicians who the tax collectors will have to fear. But if these fails, then, these foreigners tend to hire powerful lawyers to take the FIRS to court where their tax evasion cases are abandoned.” “That is the condition our tax collectors and enforcers have found themselves all these years. Understandably, Nigeria’s tax to GDP is the lowest among its peer economies. It is also because of this same reason that our budget to GDP is the lowest among peer economies. And the same reason why we have the highest debt service to revenue ratio in the world” Enwegbara told The Nation. He continued: “As far as I am concerned, our tax to GDP shouldn’t have remained the lowest among peer economies, should FIRS have been as ambitious and as aggressive as it should be. FIRS has no reason not to be generating N16 trillion instead of N8 trillion in 2019 if it has approached the government to empower it to pursue the evaders with serious punitive measures; if the right policies are in place and fully implemented, and above all, if the right tax collection infrastructure is set up. Should these have happened, I don’t see why we wouldn’t be targeting as high as N30 trillion as tax revenue, with as high as N16 trillion from VAT, especially if we increase the VAT rate from the current 5% to as little as 10%, given that most countries have their VAT rate as high as 20%.” He commended the enforcement department of the FIRS, which, he said, “has done a good job if not, there is no way FIRS should have surpassed its own set target of N5.3 trillion. But a more proactive enforcement team needs to be in place and needs to be fully empowered with the right laws and technology to go after those tax evaders no matter how highly placed in the society.” He added: “I will like to see the next government to be so aggressive with its tax policies to the extent of setting up Tax Courts along with creating Tax Police. We need these measures if we want to make sure that there is no more hiding place for tax evaders. Such proactive measures will seal off the current huge loopholes especially when accompanied with costly punitive measures. We need to adopt them if we want tax avoidance to become something no one would want to indulge in any longer in Nigeria. “If we get it right starting with dealing with the tax evaders, and should be as a result be able to grow our tax revenue to as high as N20 trillion in 2019 alone, we will drastically reduce our high current debt service to revenue ratio, now dangerously above 70%. “In the meantime, I am willing to share with the next government our product the zero-tax-evasion software created to make it extremely difficult for VAT collectors to easily divert the money or for VAT collector to fail to collect such VAT money on behalf of government. Should our software adopted by the next government, we will be increasing the country’s VAT revenue to as high as N20 trillion especially if the next government agrees to double our VAT rate from the present unbelievable 5% to mere 10%. If the next government will have the money needed to invest in social and industrial infrastructure, it will have to grow its tax revenue, starting with VAT which is the easiest way and one of the best sources of tax revenue for most governments in the world. “As I said earlier we are still far behind all our peer economies in our ability to increase our tax to GDP ratio and our tax to budget ratio. We urgently need it or else the country will be on its way to bankruptcy. It has become inevitable as our debt service to revenue ratio continues to grow, reaching 105% by 2020. Should we get to this point, we will have difficulty borrowing more even if we increase our MPR to 30%. This is because lender will not be ready to lend to us use major part of the borrowed money for debt service. No foreign or local investor will like to continue to invest in such an economy, since those who already invested in it will be looking for how to leave the quasi bankrupt economy.” Mr. Tope Fasua the Presidential Candidate of the Abundant Nigeria Renewal Party (ANRP) told The Nation that “on the tax please note that the FIRS figure is for Jan to Dec 2018. It surpassed the figure for 2017 which was N4.5trillion. But the same FIRS in 2013 collected N5.007tr. He said: “There was a devaluation of currency by almost 50% in 2016. This means FIRS collections ought to double from N4.5 trillion where it was then to about N9 trillion.” “The N8 trillion they are targeting this year is not particularly ingenious but is something we should ordinarily ask for as a matter of accountability to the people. If FIRS had accounted for the devaluation of the naira from N177 to N305 as at 2017, today we ought to be targeting at least N10 trillion. I believe setting this goal can only be beneficial to the people of this country.”
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| Business › Customs Decries Absence Of Tax Incentives For Shipping Sector By FIRS by OfflineDirectry(op): 5:12pm On Feb 02, 2019 |
Customs decries absence of incentives for shipping sector 1st February 2019 NEWS AGENCIESNigeria Economy No Comment on Customs decries absence of incentives for shipping sector The Nigerian Shippers Council has decried the absence of incentives for practitioners in the shipping sector of the economy. The Executive Secretary, NSC, Hassan Bello, described the development as neglect, saying that it stood out painfully in the basket of incentives offered by the Central Bank of Nigeria, Ministry of Finance, and Federal Inland Revenue Service, which was published in the 2018 Compendium of Investment Incentives in Nigeria by the Nigerian Investment Promotion Commission. The NIPC and the Federal Inland Revenue Service launched the Compendium of Investment Incentives in Nigeria in 2017. The compendium is a compilation of fiscal incentives in Nigerian tax laws and sector-wide fiscal concessions duly approved by the Federal Government and supported by legal instruments. The investment incentives include Companies Income Tax incentive, which has been pegged at 30 per cent to encourage potential and existing investors as well as entrepreneurs. Another one is Pioneer Status, an industry incentive aimed at enabling the industry concerned to make a reasonable level of profit within its formative years. Pioneer Status is a tax holiday granted to qualified or eligible industries anywhere in the federation for a period of three years (with addition alone more year or two years straight). Others are incentives in the solid minerals, petroleum and natural gas sectors; telecommunications, energy/electricity, tourism, transport; export; other lines of trade and special investment. In addition to these incentives, the CBN has also created an incentive for the agricultural sector, tagged Anchor Borrowers Programme, that provides funds at single-digit interest rates to mostly rice farmers and operators in the rice value chain. Hassan noted that the maritime sector was bedevilled by several constraints mainly due to the financial crisis facing shipowners and maritime operators. He said in spite of the fact that the industry was endowed with enormous possibilities that were waiting to be maximised, the difficulty in accessing funds by indigenous shipping business owners had posed a huge threat to the sector. He listed the financial challenges facing the sector as absence of adequate tax relief period, lack of investment capital, absence of long term concessional funding, withholding tax on interest, dividends, dollar accounting and others. “Uncertainties, lack of guarantees and assurances on investment had in the past resulted in the high debt profile of maritime industry in the financial sector of the economy,” he said. He noted that shipowners also faced the challenge of the absence of an exemption from Customs duties, as well as benchmarking with other progressive maritime states. The Director-General, Nigerian Maritime Administration and Safety Agency, Dr Dakuku Peterside, while addressing the huge financial gap in the shipping sector, had maintained that the Cabotage Vessel Financing Fund was not sufficient to cater to the needs of operators in the sector.
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| Business › CAC Commends NASS Over Passage Of Company And Allied Matters Bill by OfflineDirectry(op): 4:11pm On Feb 02, 2019 |
CAC Commends NASS Over Passage Of Company And Allied Matters Bill THE Corporate Affairs Commission (CAC) has commended the National Assembly (NASS) over the passage of the Companies and Allied Matters Bill, noting that the Bill will enhance the development of new businesses through proper regulations. According to the statement made available by Head of Corporate Communications of the Agency, Godfrey Ike, the Acting Registrar, Lady Azuka Azinge commended the House of Representatives for the passage of the Bill. She said the Bill “seeks to repeal the extant statute (the Companies and Allied Matters Act, Cap C20, Laws of the Federation of Nigeria 2004) and enact another statute in its place, represented one of the biggest pieces of legislative review in the history of the National Assembly.” The Acting Registrar noted further that since the extant statute was enacted almost 30 years ago, it had not witnessed any significant review. Lady Azinge revealed that the main thrust of the Bill “is to ensure the ease of starting and growing business in Nigeria; ensure more appropriate regulation for MSMEs; enhance transparency and shareholder engagement; align regulatory framework with international best practice for competitiveness and, in the context of a global economy, make Nigeria an investment destination of choice.” She Described the Bill as testimonial of a partnership that worked, she acknowledged the collaboration between the Commission, the Government and private sector stakeholders. noting in particular, the support of the Presidential Enabling Business Environment Council (PEBEC) through its secretariat, the Enabling Business Environment “Secretariat (EBES); the National Assembly Business Environment Roundtable (NASSBER); the Technical Advisory Committee of the Senate; the Federal Ministry of Industry, Trade and Investment (FMITI); the Federal Ministry of Justice (FMJ); the Securities and Exchange Commission (SEC); the Nigerian Bar Association through its Section on Business Law (SBL-NBA); the Institute of Chartered Accountants of Nigeria (ICAN); the National Association of Chambers of Commerce, Industries, Mines and Agriculture (NACCIMA); and the Manufacturers Association of Nigeria (MAN).” “Others were the Nigerian Investment Promotion Commission (NIPC); the Federal Inland Revenue Service (FIRS); the Institute of Chartered Secretaries and Administrators of Nigeria (ICSAN); the Association of National Accountants of Nigeria (ANAN); the Nigerian Stock Exchange (NSE); the Business Recovery and Insolvency Practitioners Association of Nigeria (BRIPAN); the Nigerian Association of Small and Medium Enterprises (NASME); Lagos Chamber of Commerce and Industry (LCCI) and several professional firms.” Lady Azinge expressed optimism that the Bill will receive the assent of Mr President very soon. www.innerkonsult.com Accountancy, Tax, Assurance and CAC services 1 Like
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| Business › LIRS Extends Filing Deadline For Employers From 31st Jan To 8 Feb. 2019 by OfflineDirectry(op): 9:37am On Feb 01, 2019 |
LIRS extends filing deadline for employers from 31st Jan to 8 Feb. 2019 You can only file annual returns online for Lagos state employees and there is issue of server, networks and connectivity failure and tax consultants could not file their clients annual returns at the due date. The LIRS has extended the deadline for employers to file their annual returns from 31 Jan to 8 Feb 2019. This is to enable companies who have been unable to file online to do so without incurring late returns penalties. www.innerkonsult.com Accountancy, Tax , Assurance and CAC services Lagos Nigeria
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| Business › The House Of Representatives Has Approved The Sum Of N30,000 As The New National by OfflineDirectry(op): 6:36pm On Jan 29, 2019 |
Reps Approve N30,000 As New Minimum Wage The House of Representatives has approved the sum of N30,000 as the new national minimum wage. The approval came after the adoption of the report by the ad hoc committee set up on the New Minimum Wage Bill presented to the National Assembly by President Muhammadu Buhari on Thursday. Passing the bill for the third reading on Tuesday, the lawmakers unanimously approved the N30,000 recommendation by the committee in consonance with the resolution by the tripartite committee set up by the President. Buhari had in the executive bill sought the approval of N27,000 as against the N30,000 agreed by the stakeholders.
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| Business › Frc Unveils Nigerian Code Of Corporate Governance 2018 (nccg 2018) by OfflineDirectry(op): 5:46pm On Jan 28, 2019 |
FRC UNVEILS NIGERIAN CODE OF CORPORATE GOVERNANCE 2018 (NCCG 2018) On the 15th of January 2019, the Vice President of the Federal Republic of Nigeria and the Honorable Minister of Industry, Trade and Investment unveiled Nigerian Code of Corporate Governance 2018 Please download www.innerkonsult.com Accountancy, Tax, Assurance and CAC professional services
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| Business › Buhari Signs Executive Order Allowing Private Companies To Build Federal Roads by OfflineDirectry(op): 6:13pm On Jan 25, 2019 |
Buhari signs executive order allowing private companies to build federal roads President Muhammadu Buhari has signed and executive order allowing private companies build federal roads in the country. The Executive Order 007 2019, signed by the president, is on Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme. The president signed the order on Friday inside the council chamber of State House, Abuja. The new order will allow private companies such as the Dangote Group, Unilver, and Lafarge Africa construct major roads across the country and be paid in the form of tax credit. Visit: www.innerkonsult.com Accountancy, Tax, Audit and CAC professional services. 1 Like 1 Share
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| Business › Federal Inland Revenue Service Country-by-country Reporting Regulations by OfflineDirectry(op): 8:56am On Jan 25, 2019 |
FEDERAL INLAND REVENUE SERVICE COUNTRY-BY-COUNTRY REPORTING REGULATIONS a. Introduction The Federal Inland Revenue Service (FIRS) has published the Income Tax (Country-by-Country Reporting) Regulations, 2018 (CbCR Regulations). The CbCR Regulations was made public on 19 June 2018 and have an effective date of 1 January 2018. The Country-by-Country reporting is a response to evidence-based research on the direct consequence of harmful tax practices that result in profits being moved away from where they were made to the ultimate benefit of the taxpayer. b. Implications of CbCR The CbCR is one of the three-tiered transfer pricing documentation approach recommended by the Organisation for Economic Cooperation and Development (OECD) in the Action 13 report of the Base Erosion and Profit Shifting (BEPS) project unveiled in October; 2015. The CbCR contain information on the location of revenue, profits, taxes, employees and economic activity within large MNE Groups, based on a standard template. The objective of the CbCR is to allow tax administrations to perform high-level transfer pricing risk assessments and to evaluate other BEPS related risks. In Nigeria, the ultimate parent entity (UPE) of an MNE Group that is resident for tax purposes in Nigeria would be obliged to file the CbCR, where the consolidated revenue of the Group is N160 billion or above. As provided in the Regulations, the CbCR must be filed within 12 months following the MNE Group’s accounting year end. An MNE Group member (Constituent Entity) whose UPE is not tax resident in Nigeria, is required to notify the FIRS of the identity and tax jurisdiction of the entity responsible for filing the CbCR. This notification must be made no later than the last day of the reporting accounting year of the MNE Group. c. Notification and Consequence for Non-Compliance To show commitment to driving compliance with the Regulation, the FIRS has subsequently released guidelines for completing the CbCR template and more recently, a Public Notice reminding MNE Groups operating in Nigeria of their obligation to make the above notification to the FIRS. The public Notice serves as a wake-up call for MNE Groups to comply and avoid stiff administrative penalty imposed by the Regulations for non-compliance. Penalty for late filing of CbCR has been determined at N10,000,000 for the first month of default and N1,000,000 for every month the default continues while penalty for incorrect/false report is N10,000,000. Penalty for failure to notify FIRS of the MNE Group’s UPE, Surrogate Parent Entity or identity & residence of the Group’s reporting entity has been determined at N5,000,000 for the first month of default and N10,000 for every day the default continues. visit:innerkonsult.com Accountancy, Tax, Assurance and CAC services Lagos Nigeria.
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| Business › Welcome To Inner Konsult LTD - Tax And Accountancy Services by OfflineDirectry(op): 1:13pm On Jan 14, 2019 |
Welcome to Inner Konsult LTD - Tax and Accountancy Services Whatever your needs, we can help. Inner Konsult LTD- Tax and Accountancy Services is a firm of Accountants based in Lagos Nigeria offering taxation, accountancy, business advisory and support services to a wide range of Companies, businesses and individuals. We provide a cost-effective, high value solution to meet all of your financial needs. We work hard to get to know you in order to deliver timely, individual advice on how to improve your business and personal wealth. To find out more about how we can help you and your business view our services. We provide accountancy , Tax , Assurance and CAC services www.innerkonsult.com AWOLOWO HOUSE/GLASS HOUSE 2ND FLOOR LEFT WING (AYONAK) 29/31 AWOLOWO WAY IKEJA LAGOS NIGERIA. TEL; 2348038460036
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| Business › Accountancy, Tax Services Lagos Nigeria by OfflineDirectry(op): 10:51am On Jan 13, 2019 |
Accountancy, Tax Services Whether you are an established company or a start-up business, Inner Konsult LTD can help you make the most from your business Limited Company Accounts Self-Assessment tax return Payroll Services Management Consultancy Accounting Systems Tax Planning Annual Accounts VAT return preparation Management Accounts Workplace Pensions Tax Investigation Services Tax Planning Tax representation services We provide accountancy , Tax , Assurance and CAC services www.innerkonsult.com AWOLOWO HOUSE/GLASS HOUSE 2ND FLOOR LEFT WING (AYONAK) 29/31 AWOLOWO WAY IKEJA LAGOS NIGERIA. TEL; 2348038460036 1 Like
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| Business › Accountancy Services – Inner Konsult LTD by OfflineDirectry(op): 9:13pm On Jan 12, 2019 |
Accountancy Services – Inner Konsult LTD Inner Konsult Ltd offers the full range of services you would expect from an accountancy practice including limited company services. If you’re considering starting your own limited company we can advise and assist you with a free consultation to establish your exact requirements. Accountancy Services - We can then take care of every part of the process from company incorporation to filing your annual returns and everything in between. Inner Konsult Ltd is dedicated to the highest level of customer care and service, giving you total peace of mind that your accounts will be taken care of in a timely and professional manner. We provide accountancy , Tax , Assurance and CAC services www.innerkonsult.com AWOLOWO HOUSE/GLASS HOUSE 2ND FLOOR LEFT WING (AYONAK) 29/31 AWOLOWO WAY IKEJA LAGOS NIGERIA. TEL; 2348038460036
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| Business › 15 Reasons Outsourcing , Accounting And Tax Filing Operations Are Right Choice by OfflineDirectry(op): 2:11pm On Sep 20, 2017 |
15 Reasons Outsourcing your Accounting and Corporate Tax filing Operations are the Right Choice Outsourcing is the practice of having certain job functions done outside a company instead of having an in-house department or employee handle them; functions can be outsourced to order organizations that can do it better, time and cost savings. Outsourcing has become a major trend in human resources over the past decade. It's the practice of sending certain job functions outside a company instead of handling them in house. More and more companies, large and small, are turning to outsourcing as a way to grow, in Nigeria the following professional jobs can be outsourced namely, book keeping, accounting, filing of returns to CAC-corporate affairs commission, tax and payroll management system The reasons are ; 1. Increasing your sales/turnover as result of total concentration on core service By outsourcing your bookkeeping, accounting, and tax you are going to get timely financial reporting. Having your bookkeeping system handled by experts in the field will allow you to focus your time and energy into utilizing the financial reports to create forecasts and a general financial plan. Your time can be spent focusing on increasing your sales and growing your business rather than on keeping track of your books. 2. Opportunity to cross checks your balancing figures. Putting checks and balances into a accounting system will give the owner piece of mind. For instance, having your bookkeeper handle all aspects of Accounts Payable and having the owner handle the final step of the process which is verifying the details of the checks and signing them. The are many aspects of Accounts Payable such as amount verification, terms, dates, etc. can be tedious and the time dedicated to this is critical. 3. Freeing up time for the owners/professional managers Owners and professional managers can concentrate on the professional and strategic decision making rather than wasting their time on bookkeeping/accounting and tax job. By outsourcing bookkeeping they can get back to growing, selling, marketing, product development, or any other areas they are depriving of the attention it needs. 4. Independent 3rd party advice By having an independent 3rd party involved with your business you get a true opinion from someone that isn’t emotionally or financially invested. That 3rd party will always give advice on what benefits the company not necessarily themselves. This allows you to use your bookkeeping system to make key business decisions that is based on best practice. 5. Timely Financial Reporting Bookkeeping is the first task that usually gets pushed to the back burner when your hours start to pile up. Next thing you know its tax season and you haven’t touched your books since year end. By using outsourced bookkeeping services you will have your financial reporting available virtually anytime. And you can then make an informed decision. Take for example, pay as you earn PAYE tax and VAT is remitted every month and if your records are not updated accurately, you will be overpaying or underpaying government , that is if you even ever remember to remit in the first instance. 6. Minimize Tax Liability Your inaccurate books figures can lead to some unpleasant results. If your statement of income report is over stated then you might end up overpaying taxes and wasting hard earned money or if it’s understated you might underpay in taxes and set your business up for tax audit you will eventually pay the short fall, interest and penalty. Why don’t you just outsource the bookkeeping, accounting and tax job to experts to get the best results? 7. Cash Flow management Maintaining your bookkeeping system and proper tax planning on a regular basis will assist in cash flow management. Cash flow management is the hearth of every successful business all over the world. But the starting point is proper book keeping and accounting methodology. 8. Accounts Receivable A major component of cash flow management is the handling of Accounts Receivable. Poor Accounts Receivable procedures and policies can lead to major cash flow shortages. While you statement of income may have great revenue figures, your statement of financial position may reveal that all the cash is tied up in Accounts. 9. Receivable and your bank balance may be suffering as a result of poor invoicing and customers account statements to show what is outstanding to pay your organization. High Accounts Receivable balances can lead to cash flow shortages, which may put your company in danger of going out of business and you may not figure out the problem. 10. Employee Costs Savings Outsourcing your bookkeeping, accounting , tax and annual returns to cac services will also have a positive impact on your financial reports. Not only are the costs of outsourced bookkeeping services a fraction of hiring a full time (or even part time) employee but you don’t have to worry about paying additional employer payroll taxes. Outsourcing your bookkeeping will also save on employee benefits such as healthcare, retirement, paid vacation, additional chairs, tables, laptops, internet usage and office space. 11. Avoidance of administrative headaches When you hire any employee of any field, you still need to guide and give out the job responsibilities to be carried out, because that is the basis of performance measurements. In a situation where you can not define the rolls or responsibilities there would be problem of performance measurement. Then it is better to outsource such duties to the professionals who will always rollout the duties to be carried out and follow them up professionally. 12. AVOIDANCE OF COST OF LABOR TURNOVER Outsourcing your accounting job would make you not to worry about labor turnover of your employees since the non-core jobs have been outsourced to the professionals who will eventually manage and retain the professionals in his office to work with him 13. Reduced Fraud. According to Association of Certified Fraud Examiner’s study released in 2012, most common victims of fraud are privately owned small businesses with less than 100 employees with an astounding median fraud amount running into thousands of dollars. This is due the fact that most small companies don’t have access to a controller or CFO who could look at the Key Performance Indicators (KPI) and metrics which show abnormal activity in the transactional and billing data. Accounting controls and external audits are responsible for 26% of the cases in the study for detecting or preventing fraud. With Outsourced accounting small businesses can afford a CFO/controller who can look for fraud signs and implement proper fraud protection controls. 14. Accountants know accounting. By outsourcing your accounting operations to a professional accounting firm, you’re effectively hiring a team of experts. Professional accountants know the tax codes and laws backwards and forwards—it’s their job. They work around the clock for your business by keeping up with the latest tax information, affording you full-time coverage for only part-time pay. Staffing options are considered and executed per task, so you’ll only have the most experienced and qualified individuals on your side, right where you need them. 15. Scalable options. When you outsource your accounting operations, it becomes simple to expand and grow your business or find places to cut down on spending. Accounting firms can provide you with lists of options, giving you valuable feedback and suggestions that will raise your profits at the end of the day. Whatever your long-term goals are with your business, earning more money—and keeping more of it—will help you achieve them. Essentially, outsourcing gives you tons of flexibility and options. Written by Managing Director , Inner Konsult Ltd. Accountancy, Tax and CAC services www.innerkonsult.com Whatsapp 08038460036
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| Business › Sme And Every Business Need Cash Flow To Survive by OfflineDirectry(op): 4:39pm On May 10, 2016 |
SME AND EVERY BUSINESS NEED CASH FLOW TO SURVIVE Whether you are running an existing or start up a new company, you need a very good cash flow to succeed According to Dun & Bradstreet: "90% of small business failures are caused by poor cash flow. Put simply, not enough cash coming in the door and too much going out." Take note of the following to improve on your cash flow otherwise you are goner! INVOICING AND COLLECTIONS Send invoices right away. It is important that you get cash coming into your business as quickly as possible. When you confirm a sale, email an invoice out right away that your customer can pay. Where a customer makes a part payment make sure you send a reminder on outstanding or receivables. Make it easy for your customers to pay. You need to have a good invoicing method that makes it easy for your customers to pay as soon as they receive the invoice. Include your bank account details so that the customer can lodge in check or transfer fund into your designated bank account. Only offer discounts as a last resort. I'm not talking about factoring your accounts receivable, as that is rarely a good decision. If you really need cash badly, offer a small discount like 3%-5% if the invoice is paid today. If you feel you are not going to collect and a discount might change that, then some money is better than no money. And make sure that the terms and condition on cash discounts is properly spelt out so that you do not lose out the discount even when the customer did not make the payment on time. DON'T MAKE BAD DECISIONS WITH THE CASH YOU DO HAVE Hold off on paying your bills until as late as possible. While this seems like common sense, most business owners don't follow this advice. You may reschedule the payment to a later date but make sure that it did not affect your credibility negatively. KEEP PROPER AND ACCURATE RECORDS You can make use of www. InnerKonsult.com an accounting , audit and tax consultants in Nigeria to keep your record. You would not need to waste your time on record keeping 1. Always sort your bank account by cleared status. 2. Make sure accounts receivable (invoices to customers) and accounts payable (bills from vendors) are always up to date. 3. Any fixed, recurring payments that hit your bank account automatically should be entered into your records. 4. Estimate the cost of any large variable expenses that you expect to hit your bank account as they get closer. A good example of a large variable expense is payroll. www.innerkonsult.com Accounting, Tax, Audit and CAC professional service provider in Nigeria 0803-846-0036
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| Business › Small Business Accounting Services by OfflineDirectry(op): 9:15pm On May 07, 2016 |
Small business accounting services make sure that the best is provided to the business owners when it comes to maintaining the financial records of the business. It maintains the records in such a manner that on the whole the business never faces an issue in this regard. To make the idea more enchanting it is also advised to all the small business to get a very professional pack of small business accounting services so that whenever the business needs this service the most it is always there to make sure that a helping hand is provided to the business. Small business accounting services is not just the name of record keeping, managing transactions and recording invoices. It is a very large concept that has embedded within itself the professionalism and the overall maintaining of the structure in the best possible manner. To make sure that the small business accounting services is working in the best interest of the business it is advised to always choose the company that has a proven track record in this regard to ensure smooth and on time working. Following are some of the ideas that should be given importance before any such firm is hired to do the business: 1. Experience Managing accounts is not a child’s play and for the same reason a start up business should never hire a company that has no experience in the field. Small businesses have no room for error so they never do an experiment in this regard. Unlike large organizations the small startups or even established businesses are never recommended to do so as their financial sources are not as large as the companies who are called corporations. Making the best use of resources is only possible if a company with immense field and hands on experience is hired to do the job. 2. Assistance It is one of the best deals that a small business can get while ordering small business accounting services and it should also be considered. The accountant should also act as a financial advisor to the company and should also make sure that the same is added to the job description in this regard. The company hired to perform the work should also provide necessary assistance in this regard to make sure that the business as well as the owners are on the right track. Good accountants always ensure that the business plan works in accordance with the set up of the charter of the company. 3. Business growth It is one of the best processes that are related to the idea of small business accounting services. It means that the best is provided to the business during the growth stage so that they become fully aware of the capabilities of the person or the contractor being hired in this regard and also make sure that the business focus on other areas that are of extreme importance. www.InnerKonsult.com Tax, accounting and audit service 08038460036
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| Business › Companies Income Tax by OfflineDirectry(op): 9:04pm On May 07, 2016 |
CompaniesIncome TaxAct in Nigeria is collected from both Nigerian as well as foreign companies. The rates are however different for both entities. Nigerian companies needs to pay tax based on their worldwide income whereas the foreign companies need to pay tax on their profits that are being made as a result of their business activities. The corporate tax rate is 30% in Nigeria which has been same after the 2011 amendment as well. Company income tax is one of the most important sources of revenue collection for the Government of Nigeria. In the country the tax charging is governed by the CITA or the Companies Income Tax Act 1990 which amended in 2004. Chargeable profits It is one of the most important provisions of the Companies Income Tax Act. According to this following are some of the ways of earnings of the companies that are charged with tax: 1. All trade and business related activities without considering the time for which they have been carried are taxable. 2. Rent and all the premiums that are arising from the company operations are also charged with tax when it comes to Companies Income Tax. In this regard the period of rent is not considered by the government. 3. The dividends that are distributed to the share holdersof public limited companies are also taxable. This is the provision 1C of the Nigerian Companies Income Tax Act where it has also been mentioned that all interests, royalties and discounts are also charged with tax. 4. The source of annual profit that does not fall within the categories mentioned above is also charged with tax. 5. Any amount the company receives in terms of profits according to the provisions that are mentioned within the income tax act is also taxable. 6. All short term fund raising acts performed by the company is also considered to be taxable under this act. It includes Federal Governmentsecurity, treasury bonds, saving and debenture certificates are also charged under this act. Where the tax has to be paid 1. All the Nigerian based companies need to make sure that the tax is paid at the source of designated bank. Once the payment has been received an e-ticket is issued which the company needs to present at the tax office within the jurisdiction of which the company office lies. The e-ticket is always issued once the payment has been captured by the bank system. 2. All the foreign companies need to make sure that the tax is deducted at source to the designated banks in this regard. 3. You can also make use of Nigeria Federal government tax online payment It serves as a means of reducing time and cost of compliance for the taxpayers and reducing interface between the taxpayers and tax authorities. It provides added convenience for taxpayers who will now sit at the comfort of their homes and offices and upload their tax returns on the e-Tax Pay Solution platform,” he further explained. All Nigerian companies submit annual tax returns in relation to the Companies Income Tax Act whereas the foreign companies need to make sure that the withholding tax is deducted from the profits they make within Nigeria. Once the returns are filed by these companies it becomes their tax. www.InnerKonsult.com Nigeria Accounting, Tax, Audit & Investigation service 08038460036,
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| Business › Audit Reports by OfflineDirectry(op): 8:45pm On May 07, 2016 |
In Nigeria the audit reports are standardized and they are governed by the rules and regulations that have been defined by the FRC or the Financial Reporting Council of Nigeria. This institution was established in the year 2011 and since then it has made sure that all the financial documentation of companies working in Nigeria is standardized which also includes the audit reports. Federal Ministry of Trade and development is the body under whose command and control this institution works to make sure that the companies abide by the rules and regulations of the government while compiling their financial documents. There are certain objectives of the FRC according to which not only it works but also makes sure that these objectives are fulfilled all the times especially when it comes to the companies audit reports. Some of them are listed below: a. While compiling the audit reports the interests of the investors as well as stakeholders should be protected. b. Companies requiring financial assistance are not only guided but it is also made sure that the best interest of the business is protected all the time. c. FRC ensures that the audit reports published make sure that the good corporate governance is being preserved all the times when it comes to public as well as private sectors. d. The accuracy of the financial reporting is also ensured by the FRC and it also includes the internal as well as external audit reports. e. The financial reporting done by the company is credible and audit reports being the most important part is also emphasized. f. The quality of audit as well as the related audit reports must also be increased in this regard. Since inception FRC has made sure that the best practices related to financial reporting are preserved. The resident as well as the nonresident companies makes sure that they always consult FRC before any type of decision related to financial reporting is undertaken or implemented. The expert advice of FRC I like a boon to the companies which makes sure that the best interest of financial reporting is not only maintained with audit reports but the interest of the company is also preserved. According to the scope of the work there are several advantages of FRC out of which some are listed below: a. FRC ensures that the accounting practices of public as well as private sector is in line with the principles defined and therefore it reduces the volatility of the audit reports and the related errors. b. It is the professionalism of the FRC that always reduces the risk of financial market crises and therefore negative economic growth is also reduced to a great extend. c. Easy access of credit is made possible by FRC and it is done by making sure that the audit reports and the related accounting practices are made safe, secure and transparent. d. Last but not the least the FRC also makes sure that new job opportunities are created within the economy. www.innerkonsult.com 0803 846 0036
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| Business › Accounting For Small Business 6 Points To Note by OfflineDirectry(op): 10:31am On May 03, 2016 |
The idea of accounting for small business is a complex one as the related department as well as the overall structure of the company should be in line with the requirements of the company to make sure that the outcome is the one which makes sure that the business financial forecasts are the best ones. On the other hand the company that has been hired to carry out accounting for small business should also be the one that understands the requirements that are industry related and carry out the work for the organization that is considered to be the best. The client organization also ensures that the work that has been carried out is outsourced to the company that has significant experience to carry out similar tasks as well. There are certain characteristics that are related to the organizational behavior as well as structure which should be looked for once the accounting for small business has to be outsourced in this regard. As mentioned earlier the phenomenon related to accounting for small business is not easy and therefore it is should be carried out in an extreme professional manner making sure that the following characteristics are also observed in this regard so that maximum advantage is taken by the company that is spending money in this regard to make sure that at the year end the audit is made simpler and a straightforward manner: Accounting for small business in Nigeria is not an easy task to perform as it makes sure that the best is provided to the business owners and at the same time it also ensures that the best services are also provided to the business owners. In Nigeria most of the businesses take very good care of their finances and the tax returns due to the fact that they maintain a state of the art team that makes sure that accounting for small business is not a big deal at all. In order to ensure that the best services are enjoyed by all the businesses when it comes to accounting for small business it is advised to follow the below mentioned steps so that the process not only remains safe and secure but also gives the best to its owners: 1. Keeping things separate It is the first and foremost thing that a business needs to follow to make sure that the things never get complex in this regard. In simple words it is to be noted that all the expenses that are not related to the business should be recorded separately to ensure that the main accounting for small business is never disturbed. These expenses include paying school fees or a personal expense. To keep the accounting for small business in order it is advised to always record them as a transaction so that the records are kept and maintained in the best possible manner. 2. Calling the best talent As explained earlier accounting for small business is not an easy task as most of the business owners think. Highly experienced talent is therefore required to ensure that the recording and book keeping is done in a manner which is exactly on line with the requirements of the business. Accountants are the most trusted employees of the small businesses hence they should be the ones that are experts of the field so that unexpected never occurs and the transactions are recorded accordingly. 3. Software related help In the past when the software programs for the accounting firms or employees were not developed there was a significant chance of human error leading to bad book keeping. Accounting for small business therefore requires the best possible way to make sure that human error is almost eliminated. This can be done in the best manner by making sure that the automated software programs are used for the business. These software programs also ensure that the business and personal expenses are kept as separate as possible and it can also handle all the backend crossover expenses as well. 4. Daily check All the small business owners should make sure that the finances are checked every week for at least 30 minutes and during this time noting else should be prioritized. All the important income and cash flow statements should be checked which ensures that the accounting for small business becomes an idea that helps the business instead of becoming burden. 5. Reporting The reporting is one of the most basic features of accounting for small business and the organization that has been hired to do the work should make sure that the client is always kept up to date when it comes to daily progress and the related ideas about which the client should get themselves aware. Making the idea of accounting for small business the best one is only possible if the reporting is done within time and in line with the requirements of the organization so that the element of trust remains there and the relationship becomes stronger than ever. The element of reporting is of great help when it comes to quality work within the given timelines. 6. Accountability The organization carrying out accounting for small business should keep itself ready for the element of accountability and this should be the first and foremost feature of the contract that is signed between the two organizations who start to work in this regard. This will also ensure that the outsourced work meets the quality and the end product is one that is desired by the organization that is spending money in this regard. Once it has been done them quality as well as on time service is no match at all. This element of accountability will also ensure that systematic procedures are introduced to get the work done in quicker, faster and effective manner. www.InnerKonsult.com Nigeria Accounting, Tax, Audit & Investigation service 08038460036,
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| Business › Accounting For Small Business (SME) by OfflineDirectry(op): 5:54pm On Apr 23, 2016 |
Small business owners must keep a very close watch on the daily activities that are being carried out in relation to their business to make sure that their business activities remain in line with their desires. It will also make sure that the idea of accounting small business also gets to new heights as it will be carried out under the direct command and control of the business owner. Small businesses are very important for the country so almost all the countries provide special privileges to them making sure that there is no hindrance in their expansion as well as growth. If the business is too small then it is always advised to adopt the ways that are cost effective and accounting small business should be carried out by the owner himself to get the best results. If the business is medium in size then it is advised to make sure that the accounting small business services that are hired follow certain rules and regulations which are considered to be extremely important for every industry. It also makes sure that the credibility of the hired organization is also judged by considering these factors. To make the idea more effective and efficient there are certain questions which the business should ask itself before the services of accounting small business are hired as they are no necessary in all cases and the business can also get the work done in a far better manner. Following are some of these: 1. Does the business needs this service? It is one of the first and foremost questions that a business should ask itself before the service have been hired. Accounting small business can be easy and difficult at the same time for the same entity and hence making the idea one of the best requires a business to jot down all the points due to which the service is being hired. Once it has been done the business should ensure that the solution to all the issues is sought. If majority of issues can be solved in house then it is advice take the lead and do the work of accounting small business done on its own rather than hiring a company and increasing the expense. 2. Is the service hired credible enough? For carrying out accounting small business service it is advised to always hire a company that has the best connections in the industry and they know the industrial needs in the best possible manner to make sure that the best is done to the business in this regard. It will also make sure that the best organization with the most positive reviews is hired to get the work done in the best possible manner. The idea can be enhanced by making sure that company being hired for accounting small business task is also judged according to their skill set. www.InnerKonsult.com Nigeria Accounting, Tax, Audit & Investigation service 08038460036,
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| Business › Company Income Tax Questions by OfflineDirectry(op): 11:47pm On Apr 10, 2016 |
There are several income tax questions that a user needs to answer in relation to the returns that are filed with the government. The income tax returns are always filed according to the questions and answers that lead the government towards the fact that the tax calculation is done in a straight forward manner without concealing any information whatsoever. These income tax questions are of vital importance as they make the authorities aware that the tax return calculated by the person through any means is accurate and exact. To make the idea more appealing the Nigerian government has categorized the income tax payers into several categories to make sure that the best is provided in terms of information when it comes to income tax questions and the related filing of the tax. Based on the conditions that are set by the Nigerian government it is very important to note that the categories in this regard are two major ones and they are classified as Self Employed which means the businessmen and the individuals under which all the people other than businessmen fall. There are tens of thousands of income tax services working in the country which make sure that the income tax questions which are asked by the government as per the requirements are correctly answered so that the business or individual is never liable for tax evasion. These income tax questions also make sure that the stats are developed by the government and the tax policies are implemented in the best possible manner. The user is therefore required to answer all these questions correctly and as per the instructions that are provided by the government so that not only the income tax return is accepted but the user also submits it within time to make sure that the late fees are never charged. The income tax questions are also asked as per the business structure and the sole proprietorship has to answer the questions that are related to their structure and same rule applies to the company as well. When it comes to large organizations the income tax questions are mostly related to the business structure, excise duties, income tax reporting systems, export charge, payroll systems and the deductions that the business has enjoyed in the past. The income tax companies that are working within the country also make sure that the related topics are always covered and the user gets the idea about the topic as well so that the related questions are answered in a well defined and straightforward manner. It is therefore advised to all income tax payers of any class and kind to go through the return forms that they have to make sure that the important income tax questions are answered as per the will and discretion of the government. |
| Business › Accounting For Small Business (SME) by OfflineDirectry(op): 11:39pm On Apr 10, 2016 |
Gone are the days when only the large business associations and organizations used to focus on their accounts carefully making sure that every aspect abides the accounting standards. In this modern era of advanced science and technology the phenomenon of accounting services for small businesses has also gained new heights and it has made sure that the best is always acquired from this particular department in every possible way. Now the idea of accounting services for small businesses has been taken to new horizons and there are number of factors that affect this idea. The small businesses are now looking forward to make long term and strong relationships with the investors and for the same reason they are exposing the related information in full so that not only the investors are attracted but they also help the company in expanding their business. In this world of globalization even the small businesses are expanding their operations worldwide and the internet has made it possible for them to achieve their targets while the owner just sits in his office which means expansion without hassle. The accounting services for small businesses are therefore becoming more important as the small businesses now look for cross border relations. The accounting standards that are now being developed are the ones that fulfill the requirements of all company branches and sectors that are located at geographically distinct locations. To get the best out of the financial department the small business should focus on below mentioned points: 1. End to end accounting solutions End to end processes in relation to accounting services for small businesses allows the owners to get result as per their need and demand. It also allows the small business to make sure that powerful analytics are established and full advantage of the existing accounting process is taken in the best possible manner. These solutions also allow the company to make sure that the processes are standardized and the company also keeps a good eye on the business processes that consume the revenue. Cost effectiveness is also another factor that is associated with all end to end accounting processes and therefore and it is something that every small business desires. 2. Automation With sound accounting strategy the related business processes are not only automated but the chance of error is also reduced to great extend. Not only the external accounting relationship becomes sound but the internal operations are also made smooth and in line with the business requirements. Policy compliance of the company therefore gets strong if good accounting services for small businesses is hired and given full authority to perform the actions in the best interest of the business. Industry based specific solutions ease the life of the business and gets the results within no time at all.
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| Business › Accounting For Small Business 6 Points To Note by OfflineDirectry(op): 11:28pm On Apr 10, 2016 |
The idea of accounting for small business is a complex one as the related department as well as the overall structure of the company should be in line with the requirements of the company to make sure that the outcome is the one which makes sure that the business financial forecasts are the best ones. On the other hand the company that has been hired to carry out accounting for small business should also be the one that understands the requirements that are industry related and carry out the work for the organization that is considered to be the best. The client organization also ensures that the work that has been carried out is outsourced to the company that has significant experience to carry out similar tasks as well. There are certain characteristics that are related to the organizational behavior as well as structure which should be looked for once the accounting for small business has to be outsourced in this regard. As mentioned earlier the phenomenon related to accounting for small business is not easy and therefore it is should be carried out in an extreme professional manner making sure that the following characteristics are also observed in this regard so that maximum advantage is taken by the company that is spending money in this regard to make sure that at the year end the audit is made simpler and a straightforward manner: Accounting for small business in Nigeria is not an easy task to perform as it makes sure that the best is provided to the business owners and at the same time it also ensures that the best services are also provided to the business owners. In Nigeria most of the businesses take very good care of their finances and the tax returns due to the fact that they maintain a state of the art team that makes sure that accounting for small business is not a big deal at all. In order to ensure that the best services are enjoyed by all the businesses when it comes to accounting for small business it is advised to follow the below mentioned steps so that the process not only remains safe and secure but also gives the best to its owners: 1. Keeping things separate It is the first and foremost thing that a business needs to follow to make sure that the things never get complex in this regard. In simple words it is to be noted that all the expenses that are not related to the business should be recorded separately to ensure that the main accounting for small business is never disturbed. These expenses include paying school fees or a personal expense. To keep the accounting for small business in order it is advised to always record them as a transaction so that the records are kept and maintained in the best possible manner. 2. Calling the best talent As explained earlier accounting for small business is not an easy task as most of the business owners think. Highly experienced talent is therefore required to ensure that the recording and book keeping is done in a manner which is exactly on line with the requirements of the business. Accountants are the most trusted employees of the small businesses hence they should be the ones that are experts of the field so that unexpected never occurs and the transactions are recorded accordingly. 3. Software related help In the past when the software programs for the accounting firms or employees were not developed there was a significant chance of human error leading to bad book keeping. Accounting for small business therefore requires the best possible way to make sure that human error is almost eliminated. This can be done in the best manner by making sure that the automated software programs are used for the business. These software programs also ensure that the business and personal expenses are kept as separate as possible and it can also handle all the backend crossover expenses as well. 4. Daily check All the small business owners should make sure that the finances are checked every week for at least 30 minutes and during this time noting else should be prioritized. All the important income and cash flow statements should be checked which ensures that the accounting for small business becomes an idea that helps the business instead of becoming burden. 5. Reporting The reporting is one of the most basic features of accounting for small business and the organization that has been hired to do the work should make sure that the client is always kept up to date when it comes to daily progress and the related ideas about which the client should get themselves aware. Making the idea of accounting for small business the best one is only possible if the reporting is done within time and in line with the requirements of the organization so that the element of trust remains there and the relationship becomes stronger than ever. The element of reporting is of great help when it comes to quality work within the given timelines. 6. Accountability The organization carrying out accounting for small business should keep itself ready for the element of accountability and this should be the first and foremost feature of the contract that is signed between the two organizations who start to work in this regard. This will also ensure that the outsourced work meets the quality and the end product is one that is desired by the organization that is spending money in this regard. Once it has been done them quality as well as on time service is no match at all. This element of accountability will also ensure that systematic procedures are introduced to get the work done in quicker, faster and effective manner. www.InnerKonsult.com Nigeria Accounting, Tax, Audit & Investigation service 08038460036,
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| Business › Companies Income Tax In Nigeria by OfflineDirectry(op): 9:07pm On Jan 01, 2016 |
To file income tax in Nigeria has been made very easy by the government and for the same reason it is also to be noted that in the recent years the economy has seen an increase in the income tax earnings of the government. Formerly the file income tax laws were not strict and the entities were taking advantage to avoid tax in this regard. To file income tax there are several precautions that the entities need to practice to make sure that the tax is filed in line with the requirements of the government of Nigeria. To make the process easier for the tax payers the government has also directed several national as well as private banks to make sure that the entities that come to file income tax are treated in the best possible manner. To understand the file income tax idea following are some of the most important entities that are to be considered in this regard: 1. Company Tax Each and every company beside gas and petroleum sector needs to make sure that the tax return is filed within the proper time that has been designated by the government each year. Companies need to make sure that 30% of total profit is paid to the government in terms of taxation and it is also to be noted that every company is also liable to pay 2% assessable tax to the government which is termed as educational tax. The fiscal year in Nigeria is from 1st January to 31st December but the company can file the tax when its own accounting year ends. The period shall not exceed 6 months from the end date of the accounting year. 2. Petroleum sector The petroleum sector needs to make sure that the 30% of total income is paid as tax when it comes to downstream operations. It is also to be noted that the petroleum sector needs to make sure that to file income tax returns the US dollars are used as currency. The company filing the petroleum tax needs to ensure that the return in filed within 2 months according to the accounting year the company follows. It is also to be noted that the tax of these companies is payable in 12 monthly installments if they are not in a position to pay the tax immediately. 3. Capital gains tax Capital gains arising from the asset disposal are taxed at the rate of 10%. The capital gain tax is also never charged if the asset is disposed off and the new one of similar genre is purchased instead. The value of the new asset is then determined and the tax is charged accordingly to make sure that the government records remain up to the mark. Capital losses are also not charged against normal trading income. In most of the cases it is also to be noted that to charge the capital gain tax inflation is never recommended. www.Innerkonsult.com Accounting, Tax, CAC and Audit service in Lagos Nigeria WhatsApp 08038460036
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