THE TAXAIDER NEWSLETTER VOL 4, ISSUE 7 (July 2022)

First Thoughts: The Weight of Things Unsaid

There isn’t so much weight behind the words themselves; it’s the fact that we know what the right answer is, but don’t want to say it. The questions start to pile up, and before you know it, there are so many unanswered questions that they seem to be weighing us down like a ton of bricks.

 If you want to change your life, you must learn how to let go of all those things which are holding you back from living your best life possible.

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National Inspector-General for Tax Crimes Commission Bill

Introduction:

Recently, a Bill for an Act to establish the National Inspector-General for Tax Crimes Commission (the Bill) has scaled the second reading at the Federal House of Representatives. The Bill, which was sponsored by Senator Orji Uzor Kalu, seeks to address revenue leakages emanating from non-payment and underpayment of taxes; irregularities in the assessment, reporting, and remittances of taxes; to prevent and combat tax-related crimes; to plug all leakages in the tax administration system; and to ensure the protection of taxpayer’s rights.

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Taxation of Income on Securities: Notice of Change in Law + Administration

Taxation of Income on Securities: Notice of Change in Law + Administration

The Update:

Lagos State’s Internal Revenue Service (LIRS) recently issued two Public Notices.

The first Public Notice  notified the public of the expiration of Nigeria’s 10years personal income tax (PIT) exemption on income earned on securities. The exemption which ended on January 1, 2022, was by virtue of the PIT (Exemption of Holders of Bonds and Short-Term Government Securities) Notice, 2011]  (PIT Exemption Notice). The PIT Exemption Notice which took effect on January 2, 2012, exempted from PIT, the income or interests earned on:

  • all short-term securities, such as treasury bills and promissory notes issued by the Federal Government of Nigeria (FGN); and
  • bonds issued by corporate bodies and Government, that is, Federal, State, Local and Supranationals.
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Nigeria to Begin Post-VAIDS Enforcement

Introduction:

In a Press Release dated July 12, 2022 and captioned: “Post-VAID: JTB, FIRS Commences Full-Scale Enforcement on Defaulters” (the Press Release), Nigeria’s Federal Inland Revenue Service (FIRS) announced that it would, in collaboration with Nigeria’s Joint Tax Board (JTB), “immediately commence a “full-scale Enforcement Exercise” on defaulting taxpayers.” Essentially, FIRS and JTB intends to begin the prosecution of taxpayers who did not take advantage of Nigeria’s Voluntary Assets and Income Declaration Scheme (VAIDS, or the Scheme).

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Nigeria’s 2022 Pro-Health Taxes

Nigeria’s 2022 Pro-Health Taxes

By a Circular dated March 1, 2022 (the Circular), Nigeria’s Honourable Minister of Finance, Budget, and National Planning, Dr. (Mrs.) Zainab Shamsuna Ahmed, announced Nigeria’s President Muhammadu Buhari’s approval of the country’s 2022 Fiscal Policy Measures (the Measures). The Measures broadly comprised of, the:

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