THE TAXAIDER NEWSLETTER VOL 3, ISSUE 7 (JULY 2021)

First Thoughts: Between Self Determination and Freedom of Choice

As much as I do not particularly like to get political or join issues with the current realities on the nation’s administrative and political landscape, I have to admit I have been quite fascinated by the occurrences of the last few weeks. Two public figures have been at the center of the storm and interestingly, they come from two major parts of the country.

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Tax Compliance: What You Need To Know

The meaning of tax compliance in its most basic form is generally defined as the degree to which taxpayers comply with the tax laws.

There is the question whether ‘compliance’ refers to deliberate or obligatory conduct. In the event that taxpayers ‘agree’ simply because of critical dangers or provocation or both, this would not give off an impression of being a proper compliance regardless of whether 100% of the tax were raised in accordance with the ‘tax gap’ idea of noncompliance. All things being equal, it very well may be contended that effective tax administration expects taxpayers to comply willingly, without the requirement for enquiries, investigations, or the danger of utilization of legal or administrative sanctions. A more suitable definition of tax compliance might therefore be the taxpayers’ ability and willingness to comply with tax laws which are determined by ethics, legal environment and other situational factors at a particular time and place.  

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FIRS TAX AUDIT: WHAT YOU NEED TO KNOW

THE FIRS

The Federal Inland Revenue Service (FIRS) is an establishment of the Federal Government of Nigeria, saddled with the responsibility to administer taxes and collect the taxes due from all registered companies (either domiciled in Nigeria or offshore) that generate revenue from Nigeria. That said, all registered companies are obliged to file all relevant tax returns and remit all taxes (Corporate Income Taxes and Transactional Taxes) to the Federal Government of Nigeria through the FIRS.

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IMPACT OF TAXPROMAX ON TAXPAYERS WITH RESPECT TO TAX FILINGS

The initiative by the FIRS to ensure Taxpayers file their annual returns on FIRS’ TaxPro-Max barely a month to the deadline for CIT filing, which was due on June 30, 2021, leaves a bittersweet taste on the lips of taxpayers despite having the intention to provide taxpayers with a seamless return filing and tax remittance process. The TaxPro-Max website was designed with the sole purpose of tax filings (value added tax, withholding tax, withholding vat and companies’ income tax), remittances, and a database for evidencing Taxpayers’ Withholding Tax (WHT) credit position

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KEY THINGS TO KNOW ABOUT STATE INTERNAL REVENUE SERVICE(SIRS)TAX AUDIT

The State Internal Revenue Service (SIRS) is an establishment of the relevant State Government across Nigeria (including FCT) which is saddled with the responsibility of collecting income and employment taxes as well as enforcing tax laws at the state levels. All employers of labour are obliged to deduct, remit and file Personal Income Taxes (PAYE) in the case of employment taxes and also file transactional and consumption taxes such as Withholding tax (WHT) and Hotel Occupancy and Restaurant Consumption (HORC) to the Government through the SIRS. The due date for remittances of PAYE is the 10th of every month following the month of deduction. While the due date for filing of Annual Tax Returns(PAYE) is January 31st of every year.

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