THE TAXAIDER NEWSLETTER VOL 3, ISSUE 8 (AUGUST 2021)

First Thoughts: To Give or Not to give unto Caesar

Sometime last week, I came across a meme on social media. It was basically a screenshot of a WhatsApp conversation where the first person said “Hello, my name is Caesar” and the response of the other person was “Caesar, abeg wetin be your own no dey my hand o!” If you’re a student of the Bible or did some CRK at some point in school, you would remember the part where the Pharisees in a bid to test Jesus Christ asked him if it was right to pay taxes unto Caesar. Jesus responded with the line “Give unto Caesar what is Caesar’s and unto God what is God’s” and that is how that powerful quote came about.

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Capital Gains Tax: What You Need To Know

“The tax on capital gains directly affects investment decisions, the mobility and flow of risk capital… the ease or difficulty experienced by new ventures in obtaining capital, and thereby the strength and potential for growth in the economy”. John F. Kennedy

Capital Gains Tax (CGT) is a tax on the profit obtained from disposal or exchange of certain kinds of assets. In Nigeria, Capital Gains Tax is charged at a flat rate of 10% of chargeable gains. It is governed by Capital Gains Tax Act, Cap CI LFN 2004 (as amended). All chargeable assets are subject to Capital Gains Tax when disposed at a gain, except those specifically exempted by the Act. This includes disposal on decorations awarded for valour and gallant conduct, life insurance policy, Nigerian government securities, stock and shares, etc.

Allowable expenditure for the purpose of CGT comprises of but not limited to fees, commissions or remunerations paid for professional services, as well as cost of transfer.

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