It is worthy of note that the hearty cheers and warmth the beginning of a new year brought already seem like a distant memory today. I remember all the new year memes, challenges and posts that were met with fun, laughter and so much enthusiasm. 2020 was our year! It had so much in store. However, like a horror movie, the year seemed to unravel as the weeks went by, starting from the heat waves, the Australian wildfire, Volcanic eruptions and the most devastating of all, the Human Corona Virus (COVID-19) pandemic sweeping through countries with the force of a wildfire and hurricane combined. I am pretty sure we as a people will survive these times and I truly hope that a cure for the COVID-19 is in sight. I’ll like to advice everyone to stay safe, take proper preventive measures and stay at home.
In other news, the ongoing price war between Saudi Arabia and Russia if not curtailed could seriously impact the world economy. Its impact on Nigeria’s economy could be devastating with the possibility of another recession looming.Read More
For the first time in a while, I am writing this editorial from somewhere besides my office desk. I am writing from my reading table at home and this is not because I am on a holiday or just feeling lazy but because Miss Rona has confined me and so many others all over the world to our homes. I first heard the term ‘Miss Rona’ few days ago as is being euphemized in some quarters and for a second, I wondered why it wasn’t called ‘Mr Rona’ or ‘Sir Rona’.
In my amazing intern, Oladayo Olukowi’s words, the Corona Virus pandemic is currently sweeping the planet like a wildfire and a hurricane combined and it is scary to say the least. As at 6.55pm Nigerian time today, 26th March, 2020, there are 510,645 total cases and 23,079 total deaths reported worldwide. There have been 122,245 recoveries, however. Whichever way we choose to look at it, the world has been truly humbled by this reality. No one seems to have the answers and we are all united globally in our strong desire to surmount this challenge.
COVID-19 has proven to be more than a disease or global pandemic, it is proving to be the harbinger of an economic crisis of global proportion. Many businesses are being shut or slowed-down and industrial production and retail sales have suffered historical drops. True to its nature, man is fighting back; from controlling the disease, to curing the sick and trying to develop vaccinations against it. In responding to the economic downturns, some countries have designed both fiscal and monetary palliatives in the nature of laws or executive orders. Nigeria is one of such countries; its House of Representatives on Tuesday, March 24, 2020 passed a Bill to cushion the economic effect of the global pandemic. It is styled as “A Bill for an Act to provide for Relief on Corporate Tax Liability, Suspension of Import Duty on Selected Goods and Deferral of Residential Mortgage Obligations to the Federal Mortgage Bank of Nigeria for affixed term to protect jobs and alleviate financial burden on citizens in response to the economic downturn occasioned by the outbreak of COVID-19 disease” (the “Bill”). Our summary of the Bill is set out below.Read More
The Annual Individual PIT Filing Returns season is upon us and the due date which falls on March 30, 2020 is fast approaching. This in line with Section 41 of the Personal Income Tax Act, 2011, Cap P8 LFN 2004 as amended, Which states that a taxable person shall, without notice or demand, file a return of the income in the prescribed form and containing the prescribed information with the tax authority of the State in which they reside, within ninety (90) days from the commencement of every year.
This detailed piece will keep you informed and guide you on the steps to ensure you stay compliant and avoid the stiff penalties.
- What is PIT Filing Returns?
PIT Returns details all income earned by taxable persons in the preceding calendar year to the Relevant Tax Authority(ies) (“RTA(s)”) of the state in which the taxable person resides. For the 2020 PIT Filing Season the income earned in the calendar year January 1, 2019 to December 31, 2019 is to be filed with the RTA(s).
- Is Filing your PIT Returns the same as Paying your PIT?
No, it is not. Filing your PIT Returns involves providing your RTA with all relevant information on your 2019 income, and especially providing all information on the tax reliefs, deductions, exemptions and credits that you are entitled to, including PIT you might have paid.
- When is the deadline for Filing the 2019 PIT Returns?
Monday, March 30, 2020. This is in line with Section 41(3) of PITA, which states that the taxable person shall file with the RTA within ninety (90) days from the commencement of every year of assessment.
- Wash your hands frequently
Regularly and thoroughly clean your hands with an alcohol-based hand rub or wash them with soap and water.
- Maintain social distancing
Maintain at least 1 metre (3 feet) distance between yourself and anyone who is coughing or sneezing.
- Practice respiratory hygiene
Make sure you, and the people around you, follow good respiratory hygiene. This means covering your mouth and nose with your bent elbow or tissue when you cough or sneeze. Then dispose of the used tissue immediately.
- If you have fever, cough and difficulty breathing, seek medical care early
Stay home if you feel unwell. If you have a fever, cough and difficulty breathing, seek medical attention and call in advance.
- Stay informed and follow advice given by your healthcare provider
Stay informed on the latest developments about COVID-19. Follow advice given by your healthcare provider, your national and local public health authority or your employer on how to protect yourself and others from COVID-19.
Source: World Health Organisation
First things first, the Federal Government of Nigeria (FGN) is a Stakeholder in your Company’s Operations and at any point in time the FGN would want to ascertain if she has been receiving the right “cut” from your business operations. So, no need to fret whenever the FGN comes for an audit in as much as all necessary documentary evidence(s) are available.
It’s a stale news to say that Nigeria is currently seeking various means to diversify its revenue from oil to non-oil source which invariably has given rise to the increase in tax drive, consequently leading to an increase in the frequency of tax audits and investigation.
1. What is Tax Audit?
This is a process of examining a taxpayer’s record and documents in order to ascertain whether such taxpayer has appropriately assessed, reported and remitted its tax liability for the relevant year of assessment. Tax audit also seek to ensure that the taxpayer has fulfilled all other obligations as provided for under the relevant tax laws.
2. What is Tax Investigation?
Tax investigation can be described as an advancement from tax audit, it entails a more detailed examination by the tax authority in order to recover under charged tax in previous years due to an information/suspicion that the taxpayer might have evaded tax.