₦airaland Forum

The Presidency has disclosed that the Finance Bill 2022 has not mandated Nigerians to have a Tax Identification Number, TIN, before operating a bank account in the country.


The Finance Bill 2022 is currently before the Senate and House of Representatives.

But, some reports erroneously citing the bill said banks are mandated to ask for customers TIN before opening accounts.

The reports also claimed that existing customers would be required to submit their TIN to allow them continue operating their accounts.

However, a top source from the Presidency described the reports as inaccurate because the bill has no such provisions.


DAILY POST learnt from the source who was involved in the drafting of the bill some of the proposed change under the bill.

The source listed the changes which would be further defended at the National Assembly this week.

According to the source: “Capital gains tax at the rate of 5% to be applicable on disposal of shares in a Nigerian company worth N500m or more in any 12 consecutive months except where the proceed is reinvested in the shares of any Nigerian company within the same year of assessment. Partial re-investment will attract tax proportionately. Transfer of shares under the regulated Security Lending Transaction is exempted.


“Lottery and Gaming business to be specifically taxable under CITA including betting, game of chance, promotional competition, gambling, wagering, video poker, roulette, craps, bingo, slot or gaming machines and the likes.

“Companies engaged in petroleum operations including Midstream and Downstream operations will not be eligible for exemption on profits in respect of goods exported from Nigeria. Downstream companies were previously eligible under the old Upstream and Downstream classification.

“FIRS to be empowered to assess CIT on the turnover of a foreign digital company involved in transmitting, emitting, or receiving signals, sounds, messages, images or data of any kind including e-commerce, app stores, and online adverts.


“Capital allowance claimable on an asset is limited to the portion used for generating taxable profits. Assets partially used to generate taxable income will be eligible for pro-rata capital allowance except where the proportion of non-taxable income does not exceed 20% of the total income of the company.

“Any capital allowance or unabsorbed allowances brought forward by a small or medium company, other than a company under pioneer status, to be treated as having been claimed and consumed in each such year of assessment.

“The reduction of minimum tax rate from 0.5% to 0.25% of turnover (less franked investment income) is to be applicable to any two accounting periods between 1 Jan 2019 and 31 Dec 2021 as may be chosen by the taxpayer.

“Disputed tax assessment to be in abeyance until determination while undisputed tax assessment is to be paid within 30 days after service of the notice of assessment on the company except otherwise extended by the FIRS. Reference to provisional tax has been deleted in recognition of the well-established self-assessment tax regime.

“Withholding tax on interest earned from a unit trust to be treated as final tax. Only WHT on dividend is currently treated as final tax for local companies.

“The deployment of technology to automate tax administration including assessment and information gathering by FIRS to now include third party technology (previously only proprietary technology may be deployed). A penalty of N50,000 to be applicable where a company fails to grant access to FIRS in addition to N25,000 for each day the failure continues.

“FIRS to be the primary agency of the Federal Government responsible for the administration, assessment, collection, accounting and enforcement of taxes and levies due to the Federation, the Federal Government and any of its agencies except otherwise authorized by the Finance Minister.

“Any person or agency of the Federal Government must refer matters requiring tax investigation, enforcement and compliance to the FIRS. Relevant officers who violate the rule to be liable to a penalty of N10m and/or 5 years imprisonment on conviction.

“Deductible life assurance premium for personal income tax purposes to exclude a contract for deferred annuity.

“The Finance Minister, subject to the approval of the National Assembly, shall make regulations for the imposition, administration, collection, remittance, including distribution of arrears of stamp duty and Electronic Money Transfer levies collected between 2015 and 2019 fiscal years.

“Tertiary Education Tax to be payable within 30 days of service of assessment (currently 60 days).

“Non-residents making taxable supplies to recipients in Nigeria to have the primary obligation to charge, collect and remit VAT to FIRS. The VAT withholding obligation of Nigerian recipients now limited to where the non-resident or its appointed agent fails to collect the VAT.

“The exemption from VAT registration and compliance obligation applicable to small companies with annual turnover less than N25m to exclude companies engaged in upstream petroleum operations regardless of turnover.

“Appointment of the FIRS to assess, collect and enforce the payment of Nigerian Police Trust Fund levy. The Act enacted in 2019 imposed a tax of 0.005% on the net profit of companies operating in Nigeria.

“Amendment of the National Agency for Science and Engineering Infrastructure Act to remove the requirement for commercial companies to pay a levy of 0.25% of turnover annually to the Fund. Primary sources of fund to be limited to 1% of the Federation Account.

“Mandatory payment of gross revenue collected by federal ministries, departments or agencies to the federation account or consolidated revenue fund as the case may be except otherwise authorized by law. Any officer who violates this requirement may be liable on conviction to imprisonment of up to 5 years or a fine of N5m or both.

“Amendment of the Fiscal Responsibility Act to enable government borrow for “critical reforms of significant national impact”. Currently, government at all tiers are only empowered to borrow for capital expenditure and human development. Capital expenditure is defined as spending on an asset that lasts for more than one financial year. Human development and critical reforms are not defined.”

Source: https://dailypost.ng/Finance-Bill-2020:-Nigerians-dont-need-TIN-to-operate-bank-account-Presidency

TIN is only for a country where laws work and the citizens see what their tax money is being used for. You people can't even give proper account of free oil money na TIN una wan enter? Glad it's not mandatory.

Thanks for crypto — no smart new generation kid keeps important money in Nigerian banks anyway.

They should just ban all these yeye betting companies for life. They are heavily milking Nigerians.

Useless set of people why are they confusing themselves

K

I hope this is true, cuz I was beginning to wonder how they intend to request for TIN from the unemployed and students who own bank accounts.

FG can lie too much, useless Policies up and down

Radarada

Nibo la tun ja si bayi o?

Fg should train their media cows very well, they where already defending the stupid statement.

So many discombobulated polices.

Africa is Weak
We may be colonized again


https://www.youtube.com/watch?v=Ruku3yDRvFc


https://www.youtube.com/watch?v=pmXSi6_vFAI

Every Nigerian pay tax in one way or the other.
You buy from super market, local market, online and even services, VAT is included in your bill

They had better deny this, the earlier.

verybadmouth:
They should just ban all these yeye betting companies for life. They are heavily milking Nigerians.

Nigerians love them, that is why they exist.

Besides, legal gambling is saner and better than the illegal alternative which is controlled by criminal elements and filled with violent folks.

As much as I like your idea, if we ban bet9ja, bet9ja would take their business offshore and continue in secret. (The internet has made that possible)

Who de circulate all these fake news. Could it be that the Government will bring a policy that is bad, then deny it after receiving bashing from people?

adenigga:
Source: https://dailypost.ng/Finance-Bill-2020:-Nigerians-dont-need-TIN-to-operate-bank-account-Presidency

Somersaulting government.

Many APC urchins posess no mind of their own. They just blindly align with any policy from the govt.

OK. Misinformation don too much for this country.

lol I fear cos I don't know wetin we neva register for diz country...

verybadmouth:
They should just ban all these yeye betting companies for life. They are heavily milking Nigerians.

Abi you don bet with your live savings ?

Soso990240:
Who de circulate all these fake news. Could it be that the Government will bring a policy that is bad, then deny it after receiving bashing from people?

We will know na. Because I don't think they can change it overnight as it has been submitted to the national assembly

I no trust fG on this statement. Time shall tell

So who started this lies again?

verybadmouth:
They should just ban all these yeye betting companies for life. They are heavily milking Nigerians.

Lol.


They should ban people's businesses because there are some losers in the market


What of people who have gained from the same market?

egoldman:
Somersaulting government.

This one swims and drinks fake news!

Youroba Muslims were already defending this �

Ok

Jokers

Sometimes I keep on wondering what the components of the Nigerian government is.

It is like they don't work in tandem before dishing out useless news

adenigga:
Source: https://dailypost.ng/Finance-Bill-2020:-Nigerians-dont-need-TIN-to-operate-bank-account-Presidency

I know dem no fit try am. Wetin concern TIN with bank account. Thank God dem wise small.

Bmaster:
Lol.


They should ban people's businesses because there are some losers in the market


What of people who have gained from the same market?

which foolish business. 95% of people are loosing. If people are winning, these businesses will have shut down.