THE TAXAIDER NEWSLETTER VOL 2, ISSUE 11 (NOVEMBER 2020)

First Thoughts:

The Downward Spiral and the Glimpse of hope.

So early last week, we had the official confirmation that Nigeria had sunk into recession yet again, the second one in five years. This was courtesy of the nation’s GDP contracting by 3.6 percent in Q3 2020 after shrinking by 6.1 percent in the previous quarter. According to the International Monetary Fund (IMF)’s forecast, the Nigerian economy will contract by 4.3 per cent this year, which would be the largest contraction in nearly 40 years. What a year it has been!

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Internal Generated Revenue by State Government in H1 2020: Summary

Internal Generated Revenue by State Government in H1 2020: Summary

The realities of the Covid-19 pandemic affected internally generated revenue across various states in Nigeria but in spite of the significant drop in revenue, the economy has rapidly gotten back up from the Q1 to the Q2.

The National Bureau of Statistics recently published the Internally Generated Revenue at State level for the Half year of 2020. The 36 states and FCT IGR figure hits N612.87bn in H1 2020 compared to the N693.91bn recorded in 2019. This shows us a negative growth of -11.7% from the previous year.

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How to Avoid the Cost of Non-compliance of Taxes in 2021

Value Added Tax (VAT): The Major Highlights

A quick question for you.

Have you ever tried to play smart and ended up regretting it? Chances are you have. Well that is exactly how it feels when you fail to remit your taxes by the due date, and it comes biting back.

Let us take a little trip down memory lane. The Value Added Tax (VAT) Decree of 1993 was the first to introduce VAT to the Nigerian economy. Since then, it has witnessed series of amendments including the most recent Finance Act 2019. The amendments are geared towards ensuring simplicity and compliance. The regulation that currently governs the administration of VAT in Nigeria is the Value Added Tax Act CAP V1 LFN 2007 (as amended) and the Finance Act 2019.

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