₦airaland Forum

awesomeJ:
What's your basis for this correction?

As far as I'm concerned you're just assuming.

What the tax man has said is that once you reinvest, your cost basis becomes the new N100m, you thinking it'll be aggregate of all you purchased is an assumption.

Cos no where in the tax laws is aggregate cost meantioned.

You're fabricating it out of imagination.

Please bring facts to disprove this, so we can all learn.

As it is, you're just countering with your own interpretation, not really what the law says.

Aggregate cost is something that doesn't exist anywhere in the law.

Your tax is an annual event.
You will declare what you invest and what is your profit at the end of the year.
Then tax will be calculated based on your annual profit.

awesomeJ:
Also @Namaster, Imagine if I bought shares with N50m, sell for N100m, reinvest N90m and withdraw N10m.

Your interpretation expects me to pay the entire N10m as tax?

Abi how would you calculate?

If you used aggregate purchase, you would get N140m and sales of N100m, would you interpret that as a N40m loss when in reality there's a N50m profit?


I'm not trying to have a heated debate with you .

I would just like you to analyze different scenarios with your interpretation, so that we can all learn.

Also did you notice that the term aggregate despite being only used for sale, isn't even relevant to reinvestment. It's only relevant to determine whether or not you've reached N150m in sales for the year.


Please teach us. Since the very next market session will already be under these new laws.

The second part of the Section 34 I quoted addressed this:
(iii) proceeds from such disposal, notwithstanding the threshold in (i), are reinvested within the same year of assessment in the acquisition of shares in the same or other Nigerian companies, provided that tax shall accrue proportionately on the portion of the proceeds which are not reinvested in the manner stipulated in this subsection
[i][/i]

Another thing to note is that the issue of Capital Gain ONLY arises when there is actually a SALE.

If you used #50M to make #50M then reinvested #90M and took out #10M.

Only 1 transaction matters for CGT in this scenario. And that's the FIRST one.

Namaster:
AwesomeJ, understand this:

I am NOT trying to debate anything with you.

I am attempting to RECTIFY the wrong information you passed that could MISGUIDE people and potentially land them in legal trouble.

People could follow it and get in SERIOUS trouble.
Especially the rich people who do BIG transactions in the the NGX.

Best thing for people like that is to get a Tax Lawyer or a Tax Accountant.

Now on your first post:
What the tax man has said is that once you reinvest, your cost basis becomes the new N100m, you thinking it'll be aggregate of all you purchased is an assumption.

You are interpreting this to mean that a REINVESTMENT means a blank state.
That reinvestment wipes out the previous gain.

WRONG!

First thing you need to understand is that CHARGEABLE GAIN is computed on INDIVIDUAL transactions.
But the applicable taxes would be based on the AGGREGATE Portfolio.

I understand you sir.

I'm not saying reinvestment wipes out the gain.

I'm saying reinvestment makes the gain non liable to tax.

Isn't that what the law says?

awesomeJ:
Yes sir.

If I buy a stock with N50m in January, and by June, it's done 100% and is then valued at N100m

Even if I sell and have no plans to remain on the market, I will sell for N100m, then repurchase for N100m and resell for N100m.


Two transaction tranches:.
First leg: I entered at N50m and exited at N100m , N50m gains .

It won't be taxable cos I'm deploying the process into the second tranch.


Second tranch:

I entered and N100m and exited at N100m

No profits hence no tax.

Check again, cumulate transaction and profits will be considered. JIJO gang beware.

awesomeJ:
Are you confusing Tony for Otedola?

Abi are you referring to a different 750m USD?

were you not aware? (In wike's voice)

Namaster:
The second part of the Section 34 I quoted addressed this:
(iii) proceeds from such disposal, notwithstanding the threshold in (i), are reinvested within the same year of assessment in the acquisition of shares in the same or other Nigerian companies, provided that tax shall accrue proportionately on the portion of the proceeds which are not reinvested in the manner stipulated in this subsection
[i][/i]

Another thing to note is that the issue of Capital Gain ONLY arises when there is actually a SALE.

If you used #50M to make #50M then reinvested #90M and took out #10M.

Only 1 transaction matters for CGT in this scenario. And that's the FIRST one.

Your position is this:

In my two tranch example:

Total purchase for both tranches is N150
Total sale is N200m

Therefore N50m is tax liable.

I think that's correct.

Now what if tranche 2 is me buying new shares with the N100m proceeds from tranche 1, then I sell and withdraw N30m.

Then total purchase becomes N80m (first N50m plus the cost of the N30m portion I'm selling), while total sale is N130 (the first 100m plus the second N30m)

Taxable profit would then be N130m - N80m = N50m.

Are you saying they will charge me for a N50m tax when I'm only withdrawing N30m.


Don't you think this already violates the reinvestment relief the law provides?


Another nuance is by the time I file tax returns in March 2027 for instance if I claim I sold the shares in November 2026 and would still reinvestment before November 2027, do you think I'd still be tax liable?


Again, we're simply debating ideas for better understanding, no grouse at all.

Agbalowomeri:
I no fit touch fbn with a long pole Lol

Ote will soon do another dump.

pluto09:
Your tax is an annual event.
You will declare what you invest and what is your profit at the end of the year.
Then tax will be calculated based on your annual profit.

You seem not to understand the peculiarity of profits from disposal of shares.

What you're stating is straightforward for regular profits. Those arising from disposal of shares are handled differently.

awesomeJ:
I understand you sir.

I'm not saying reinvestment wipes out the gain.

I'm saying reinvestment makes the gain non liable to tax.

Isn't that what the law says?

NO.

The purpose of the REINVESTMENT Clause is to RETAIN money in the NGX.

The way you explained it made it sound like Oyedele collected billions from Tinubu just to design a BIG, FAT and extremely obvious LOOPHOLE.

The tax law FIRST looks at individual transactions.
Then AGGREGATE portfolio.
Then what you did with ANY gains from that portfolio.

What that means in numbers

Scenario 1.

1. A first transaction of #100M Sales Proceeds from a #50M cost price. That's a potentially chargeable gain of #50M.

2. FULL REINVESTMENT.

3. That's EVERYTHING you did in the NGX that year of assessment.

Your tax liability related to CGT for that year would be ZERO.

Scenario 2.

1. A first transaction of #100M Sales Proceeds from a #50M cost price. That's a potentially chargeable gain of #50M.

2. FULL reinvestment.

3. Sold new acquisition of #100M at #100M.

4. Withdraw.

5. PAY TAX!

That's because the New Laws are applicable on NET GAINS.
And for Net Gains to be a factor, you must be looking at a BIGGER picture, i.e, the portfolio.

So, first transaction has a gain of #50M.
And you broke even in the second deal so made #0 gain or loss.

Net Gain for your portfolio would be #50M-#0 =#50M.

That #50M would be subjected to tax.

Realized capital gains only, right? Do you have an annual filing requirement if you don't sell?

pluto09:
Your tax is an annual event.
You will declare what you invest and what is your profit at the end of the year.
Then tax will be calculated based on your annual profit.

Namaster:
NO.

The purpose of the REINVESTMENT Clause is to RETAIN money in the NGX.

The way you explained it made it sound like Oyedele collected billions from Tinubu just to design a BIG, FAT and extremely obvious LOOPHOLE.

The tax law FIRST looks at individual transactions.
Then AGGREGATE portfolio.
Then what you did with ANY gains from that portfolio.

What that means in numbers

Scenario 1.

1. A Frist transaction of #100M Sales Proceeds from a #50M cost price. That's a potentially chargeable gain of #50M.

2. FULL REINVESTMENT.

3. That's EVERYTHING you did in the NGX that year of assessment.

Your tax liability related to CGT for that year would be ZERO.

Scenario 2.

1. A Frist transaction of #100M Sales Proceeds from a #50M cost price. That's a potentially chargeable gain of #50M.

2. FULL reinvestment.

3. Sold new acquisition of #100M at #100M.

4. Withdraw.

5. PAY TAX!

That's because the New Laws are applicable on NET GAINS.
And for Net Gains to be a factor, you must be looking at a BIGGER picture, i.e, the portfolio.

So, first transaction has a gain of #50M.
And you broke even in the second deal so made #0 gain or loss.

Net Gain for your portfolio would be #50M-#0 =#50M.

That #50M would be subjected to tax.

There's a post with another scenario, I would love to see your analysis on that.

The one where I withdraw just N30m and your approach says I should pay taxes on N50m

Me i know sabi book.

However, the law said

34 (1) (a) (i) "disposal proceeds, in aggregate,
is less than N150,000,000.............."


34 (1) (a) (iii) "........provide that tax shall accrue, proportionately, on the portion of the proceed which are not reinvested........."


This is my take:

1. In determining the taxable gain, proceeds shall be aggregated for the year of assessment.
Therefore, going by your example, total proceed is N100m.

2. Going by the 2nd section i quoted above, your taxable gain will the be proportionately determined base on the proportion of your proceed (10/100=10%) which you did not reinvest.
Therefore, 10% of the realised gain of N50m will mea your taxable gain is N5m.
The tax rate to be applied on the N5m will now depend on your tax band.

PLEASE NOTE.
Your 2nd purchase of shares (90m) has not crystalised for taxation as it is just an asset your acquired, until such a time you make disposal.
So, you can not bring it in as a cost of sale, as the revenue has not crystalised. As in, it is still an asset yiu are holding, there is no taxation on asset, rather income, which in this case of 90m has not crystalised.


JUST MY PERSPECTIVE PLS.

awesomeJ:
That's my understanding too.

But the aggregate buy that Namaster is saying wouldn't make sense in that case since it would be 140m buy vs 100m sale, going by his interpretation, are we to now reckon a N40m loss?

When he comes, he will teach us, with solid anchors for his interpretations.

awesomeJ:
Your position is this:

In my two tranch example:

Total purchase for both tranches is N150
Total sale is N200m

Therefore N50m is tax liable.

I think that's correct.

Now what if tranche 2 is me buying new shares with the N100m proceeds from tranche 1, then I sell and withdraw N30m.

Then total purchase becomes N80m (first N50m plus the cost of the N30m portion I'm selling), while total sale is N130 (the first 100m plus the second N30m)

Taxable profit would then be N130m - N80m = N50m.

Are you saying they will charge me for a N50m tax when I'm only withdrawing N30m.


Don't you think this already violates the reinvestment relief the law provides?


Another nuance is by the time I file tax returns in March 2027 for instance if I claim I sold the shares in November 2026 and would still reinvestment before November 2027, do you think I'd still be tax liable?


Again, we're simply debating ideas for better understanding, no grouse at all.

Let's break it down.

First deal is a #50M gain from a sales proceeds of #100M.

Second deal is a FULL reinvestment of #100M.

Third deal is a sale proceeds of #30M with ZERO gain or loss.

Your AGGREGATE would look like:

#50M gain +/-#0 =#50M.

So Tax Authorities would assume that #50M is your Chargeable gain from your activities for that year of assessment.

And ordinarily, the full #50M would be subjected to tax.

But since you only withdrew #30M, that's the portion that would be subjected to tax.

It's just like the law says.

mallamOmonile1:
Me i know sabi book.

However, the law said

34 (1) (a) (i) "disposal proceeds, in aggregate,
is less than N150,000,000.............."


34 (1) (a) (iii) "........provide that tax shall accrue, proportionately, on the portion of the proceed which are not reinvested........."


This is my take:

1. In determining the taxable gain, proceeds shall be aggregated for the year of assessment.
Therefore, going by your example, total proceed is N100m.

2. Going by the 2nd section i quoted above, your taxable gain will the be proportionately determined base on the proportion of your proceed (10/100=10%) which you did not reinvest.
Therefore, 10% of the realised gain of N50m will mea your taxable gain is N5m.
The tax rate to be applied on the N5m will now depend on your tax band.

PLEASE NOTE.
Your 2nd purchase of shares (90m) has not crystalised for taxation as it is just an asset your acquired, until such a time you make disposal.
So, you can not bring it in as a cost of sale, as the revenue has not crystalised. As in, it is still an asset yiu are holding, there is no taxation on asset, rather income, which in this case of 90m has not crystalised.


JUST MY PERSPECTIVE PLS.

I agree with this 💯💯💯

Namaster:
Let's break it down.

First deal is a #50M gain from a sales proceeds of #100M.

Second deal is a FULL reinvestment of #100M.

Third deal is a sale proceeds of #30M with ZERO gain or loss.

Your AGGREGATE would look like:

#50M gain +/-#0 =#50M.

So Tax Authorities would assume that #50M is your Chargeable gain from your activities for that year of assessment.

And ordinarily, the full #50M would be subjected to tax.

But since you only withdrew #30M, that's the portion that would be subjected to tax.

It's just like the law says.

You're not clarifying.

Your analysis is saying N50m is taxable, and you're still saying N30m is what's taxable.

You haven't gotten this flow perfectly yet.

I am of the opinion that the N30m is a proportion of the proceed withdrawn which will be used to determine the proportion of the realised gain of N50m that will be taxable.

Therefore, since the proceed is 100m out of which only 30m (30%) was withdrawn, then ONLY 30% OF THE REALISED GAIN OF N50m becomes taxable in the current year of assessment.

Namaster:
Let's break it down.

First deal is a #50M gain from a sales proceeds of #100M.

Second deal is a FULL reinvestment of #100M.

Third deal is a sale proceeds of #30M with ZERO gain or loss.

Your AGGREGATE would look like:

#50M gain +/-#0 =#50M.

So Tax Authorities would assume that #50M is your Chargeable gain from your activities for that year of assessment.

And ordinarily, the full #50M would be subjected to tax.

But since you only withdrew #30M, that's the portion that would be subjected to tax.

It's just like the law says.

awesomeJ:
You're not clarifying.

Your analysis is saying N50m is taxable, and you're still saying N30m is what's taxable.

You haven't gotten this flow perfectly yet.

No.
My analysis says #50M is chargeable Gain.
But #30M is TAXABLE.

Understand:

NOT all chargeable gains are taxable.

The flow is PERFECT.

The issue is the N30m withdrawn has actually 2 components, THE COST AND THE PROFIT/GAIN. Therefore subjecting N30m to tax means you are taxing part of the seed.

Let use this other example to drive this home:
Cost 60m
Proceeds 100m
Amount withdrawn 50m

What then is the taxable gain, i hope you will not say N50m

Namaster:
No.
My analysis says #50M is chargeable Gain.
But #30M is TAXABLE.

Understand:

NOT all chargeable gains are taxable.

The flow is PERFECT.

Even me, I'm beginning to get confused.

@mallamOmonile1 and @Namaster, you guys should please carry on this debate.


Also talk about the case when at the point of filing returns for the N30m, I might still claim to plan on reinvesting before the 12 months elapses.


But the surest interpretation will be what the guidelines they release next year.

From what Taiwo said, once you repurchase, it's a new transaction altogether.

But a lot of people especially @streetinvestor2 don't trust Taiwo because of his suit.

Here’s an AI’s take on the issue

“ The "Withdrawal" Tax (Capital Gains Tax)
When you sell shares for a profit, it is now subject to Capital Gains Tax (CGT).
• The New Rate: Instead of the old flat 10%, individual investors will now be taxed at their Personal Income Tax (PIT) rate, which is a progressive scale capping at 25%.
• The "Small Investor" Exemption: You are exempt from paying this tax if your total profit (gains) from selling shares in a 12-month period is less than ₦10 Million.
• The Transaction Threshold: You are also generally relieved from CGT if your total sales proceeds (the full amount you sell, not just profit) are ₦150 Million or less in a year.”

If you’re not selling 150 million of stocks a year and making less or equal to 10 million a year then you’re tax exempt.

Any other scenerio and you might cough out a tax rate up to 25 percent

It looks like it’s progressive too and not fixed.

Modified: This is in addition to the 10 percent withholding tax on withdrawal.

mallamOmonile1:
I am of the opinion that the N30m is a proportion of the proceed withdrawn which will be used to determine the proportion of the realised gain of N50m that will be taxable.

Therefore, since the proceed is 100m out of which only 30m (30%) was withdrawn, then ONLY 30% OF THE REALISED GAIN OF N50m becomes taxable in the current year of assessment.

I see where you are coming from.
But it's NOT correct.

This is where you are quoting from:

...provided that tax shall accrue proportionately on the portion of the proceeds which are not reinvested in the manner stipulated in this subsection

But you are applying a percentage to the Gain and NOT the proceeds as specified.
And that would result in lower tax compared to applying it to the proceeds as SPECIFIED.

Secondly, your scenario is ENTIRELY different from the one awesomeJ brought forward.

In his scenario, there are 3 different transactions.
First, there was a sales proceeds of #100M and a gain of #50M which represents transaction 1.

Then a full reinvestment (purchase of shares) of #100M which represents transaction 3.

Then a sale proceeds of #30M with a Cost of #30 which represents transaction 3.

The transactions in his scenario are CLEAR and easy to track.
There is ZERO need to complicate it with computations of percentages and proportions.



But YOURS require that.

Here's your scenario:

1. Sales proceeds of #100M and a gain of #50M.
2. He withdraws #30M and reinvests #70M.
3. Then you can calculate proportions.

In this case you have a formula of where Sales Proceeds = 50% Cost + 50% Gain.

So if he withdraws #30M, the taxable proportion would be 50% or #15M.


This should make everything CLEARER now.

Some people are overly PESSIMISTIC about the new tax laws based on wrong info.
Others, surprisingly, appear to be overly OPTIMISTIC about the new tax laws based on wrong info.

BOTH should be corrected.

People should make plans based on CORRECT info.

awesomeJ:
You seem not to understand the peculiarity of profits from disposal of shares.

What you're stating is straightforward for regular profits. Those arising from disposal of shares are handled differently.

Ok sir.

awesomeJ:
Even me, I'm beginning to get confused.

@mallam.Omonile1 and @Nam.aster, you guys should please carry on this debate.


Also talk about the case when at the point of filing returns for the N30m, I might still claim to plan on reinvesting before the 12 months elapses.


But the surest interpretation will be what the guidelines they release next year.

From what Taiwo said, once you repurchase, it's a new transaction altogether.

But a lot of people especially @streetinvestor2 don't trust Taiwo because of his suit.

You are RIGHT.

A serious committee would have released a comprehensive implementation guidelines BEFORE the law comes into effect.

Not questionable TV interviews.

In your case, your BEST bet is to talk to a Tax Consultant (lawyer or accountant) even after they release the guidelines.

You do BIG transactions.
Oyedele likes people who do BIG transactions.

My brother i am only giving my perspective to what affect all of us.
Remember i no know book too much sef.

The principles are clear and can be applied universally in every scenario.

In determining capital gain tax on disposal of shares:
1. Determine the aggregate proceed for the year of assessment.
2. Determine the NET gain for the year of assessment.
3. If there is 100% reinvestment, then the WHOLE (100%) gain in 2 above is tax free/exempt.
4. If however there is partial reinvestment, then you MUST express the amount WITHDRAWN as a percentage of the total proceed, whatever result you get in percentage terms, will be applied to the NET gain in 2 above to determine the taxable profit, which will then be taxed at the tax payer's relevant tax rate.

That's is the summary of my position.

So let me then apply those principles on the home work you gave me:

Proceed 100m
Gain 50m (by implication cost is 50m)
Withdrawal 30m
Reinvestment 70m

I ASSUME 100M PROCEED IS TAXABLE JUST FOR ACADEMIC PURPOSES.

MY ANSWER
Proportion of proceeds withdrawn is 30/100=30%.
Net gain is 50m
Therefore the taxable gain is 30% of 50m = 15m
The relevant tax rate will be applied on 15m.
Meaning, 35m of that gain of 50m is associated to the 70m reinvested and therefore tax exempt.

I so submit sir.

Namaster:
I see where you are coming from.
But it's NOT correct.

This is where you are quoting from:

...provided that tax shall accrue proportionately on the portion of the proceeds which are not reinvested in the manner stipulated in this subsection

But you are applying a percentage to the Gain and NOT the proceeds as specified.
And that would result in lower tax compared to applying it to the proceeds as SPECIFIED.

Secondly, your scenario is ENTIRELY different from the one awesomeJ brought forward.

In his scenario, there are 3 different transactions.
First, there was a sales proceeds of #100M and a gain of #50M which represents transaction 1.

Then a full reinvestment (purchase of shares) of #100M which represents transaction 3.

Then a sale proceeds of #30M with a Cost of #30 which represents transaction 3.

The transactions in his scenario are CLEAR and easy to track.
There is ZERO need to complicate it with computations of percentages and proportions.



But YOURS require that.

Here's your scenario:

1. Sales proceeds of #100M and a gain of #50M.
2. He withdraws #30M and reinvests #70M.
3. Then you can calculate proportions.

In this case you have a formula of where Sales Proceeds = 50% Cost + 50% Gain.

So if he withdraws #30M, the taxable proportion would be 50% or #15M.


This should make everything CLEARER now.

I think I understand the position of mallamOmonile1, so let me try to use a different scenario to ask his question.
Assuming I got a loan of 60M (cost) to buy shares) and sold for 100M. I then withdraw 50M to try and pay back some of the loan while the balance of 50M is reinvested.

Is the tax man coming for his share of that 50M?

My response subject to correction of cause to this may be that you will have to show the tax man that you actually paid it to the loan source for you to be free of the tax.

But if it is not a loan but a direct application of his scenario, and I was just withdrawing the 50M I took from one of my accounts to quickly do jijo and was now returning it ...

Na wa ...

mallamOmonile1:
The issue is the N30m withdrawn has actually 2 components, THE COST AND THE PROFIT/GAIN. Therefore subjecting N30m to tax means you are taxing part of the seed.

Let use this other example to drive this home:
Cost 60m
Proceeds 100m
Amount withdrawn 50m

What then is the taxable gain, i hope you will not say N50m

Namaster:
I see where you are coming from.
But it's NOT correct.

This is where you are quoting from:

...provided that tax shall accrue proportionately on the portion of the proceeds which are not reinvested in the manner stipulated in this subsection

But you are applying a percentage to the Gain and NOT the proceeds as specified.
And that would result in lower tax compared to applying it to the proceeds as SPECIFIED.

Secondly, your scenario is ENTIRELY different from the one awesomeJ brought forward.

In his scenario, there are 3 different transactions.
First, there was a sales proceeds of #100M and a gain of #50M which represents transaction 1.

Then a full reinvestment (purchase of shares) of #100M which represents transaction 3.

Then a sale proceeds of #30M with a Cost of #30 which represents transaction 3.

The transactions in his scenario are CLEAR and easy to track.
There is ZERO need to complicate it with computations of percentages and proportions.



But YOURS require that.

Here's your scenario:

1. Sales proceeds of #100M and a gain of #50M.
2. He withdraws #30M and reinvests #70M.
3. Then you can calculate proportions.

In this case you have a formula of where Sales Proceeds = 50% Cost + 50% Gain.

So if he withdraws #30M, the taxable proportion would be 50% or #15M.


This should make everything CLEARER now.

Two gurus in the house, but one is claiming not to know book.

Thanks for your insights @Namaster and @mallamOmonile1.

Thanks @Namaster for balancing my overly optimistic views 😁

I think you made a small error here.
The taxable should be on profit and not the full amount, that percentage may become 60 and not 30.

mallamOmonile1:
I ASSUME 100M PROCEED IS TAXABLE JUST FOR ACADEMIC PURPOSES.

MY ANSWER
Proportion of proceeds withdrawn is 30/100=30%.
Net gain is 50m
Therefore the taxable gain is 30% of 50m = 15m
The relevant tax rate will be applied on 15m.
Meaning, 35m of that gain of 50m is associated to the 70m reinvested and therefore tax exempt.

I so submit sir.

Dear Awesomej

In response to the bolded:

I like to read the law and not interviews. The law said
S34(1) a (i)
"Disposal proceeds, in aggregate, is less than 150,000,000 and the chargeable gain does not exceed 10,000,000 in any 12 consecative months"

My take,
There is a double aged sword in that section, it is "12 consecative months". Why do you think they refuse to say 'year of assessment'. I laugh in french. Although, the 2 are both 12 months, but in application, they might not be the same. I THINK THAT 12 MONTHS IS THERE TO TAKE CARE OF TRADERS LIKE LOCOMOTIVE🤣🤣🤣🤣

SO
Remember tax is on preceeding year bases, i advice you reinvest your proceed within same year if your GOAL is to enjoy your exemption. Just thinking it might be difficult to convince the tax man that " i will reinvest in the next 12 months"

By the way, there is no such word as 'next' in the section we read.

IF however your goal is to minimise your tax on gains and also make withdrawal, then


May be you sale, reinvest in a high cap stock that doesnt fluctuate....1st leg
Then sale the high cap stock same price or even minimal loss bcs of transaction cost...2nd leg.
PROVIDED THAT THERE IS AT LEAST 13 MONTHS GAP BETWEWN THE 1ST AND 2ND LEG SO AS TO AVOID AGGREGATION

See free consultancy😂😂😂😂😂🤸🤸🤸🤸

Wetin i sabi sef, i no know book sef

awesomeJ:
Even me, I'm beginning to get confused.

@mallamOmonile1 and @Namaster, you guys should please carry on this debate.


Also talk about the case when at the point of filing returns for the N30m, I might still claim to plan on reinvesting before the 12 months elapses.


But the surest interpretation will be what the guidelines they release next year.

From what Taiwo said, once you repurchase, it's a new transaction altogether.

But a lot of people especially @streetinvestor2 don't trust Taiwo because of his suit.

mallamOmonile1:
Dear Awesomej

In response to the bolded:

I like to read the law and not interviews. The law said
S34(1) a (i)
"Disposal proceeds, in aggregate, is less than 150,000,000 and the chargeable gain does not exceed 10,000,000 in any 12 consecative months"

My take,
There is a double aged sword in that section, it is "12 consecative months". Why do you think they refuse to say 'year of assessment'. I laugh in french. Although, the 2 are both 12 months, but in application, they might not be the same. I THINK THAT 12 MONTHS IS THERE TO TAKE CARE OF TRADERS LIKE LOCOMOTIVE🤣🤣🤣🤣

SO
Remember tax is on preceeding year bases, i advice you reinvest your proceed if your GOAL is to enjoy your exemption. Just thinking it might be difficult to convince the tax man that " i will reinvest in the next 12 months"

By the way, there is no such word as 'next' in the section we read.

IF however your goal is to minimise your tax on gains and also make withdrawal, then


May be you sale, reinvest in a high cap stock that doesnt fluctuate....1st leg
Then sale the high cap stock same price or even minimal loss bcs of transaction cost...2nd leg.
PROVIDED THAT THERE IS AT LEAST 13 MONTHS GAP BETWEWN THE 1ST AND 2ND LEG SO AS TO AVOID AGGREGATION

See free consultancy😂😂😂😂😂🤸🤸🤸🤸

Wetin i sabi sef, i no know book sef

You're right.

What I'm certain of is that we will exploit that reinvest clause to its last limit.


There are folks who are already covered by the N150m threshold, but the rest of us, na that reinvest we will exploit as much as legally possible.


Even complicated scenarios beyond what Mr Taiwo envisaged will still arise.

Your point about every withdrawal having principal and profit components is also super valid.


Let's just see what their initial guidelines will look like.

Aradel Aradel Aradel

It's next movement will certainly touch 1000 with a support above 900

Aradel Aradel Aradel

It's next movement will certainly touch 1000 with a support above 900.

I know you have already taken good position already and waiting for it to fly