TAXATION OF NOT-FOR-PROFIT ORGANIZATIONS- GUIDELINE & CLARIFICATION

A not-for-profit organization is an entity incorporated as a company limited by guarantee under PART A of the Companies and Allied Matters Act (CAMA) 2004 or registered under PART C of the Act, or under any other law in force in Nigeria, or registered under the laws of a foreign jurisdiction and approved as such in Nigeria.

As their name suggests, not-for-profit organizations (NPOs) are established to provide public goods and services or research in areas of altruistic value to society. They are not to carry on business to make profits for distribution to their members.

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FIRS PUBLIC NOTICE ON SUBMISSION OF CERTIFICATE OF ACCEPTANCE

A registered business in Nigeria will undoubtedly employ fixed assets to generate income. Revenue generated by any company is also expected to result from the use of assets, which, in turn, benefits the company. In Accounting, this is achieved by taking the total current liabilities, in form of short-term financial obligations from the total assets put to use while we ascertain the profit generated by these assets by taking the Net income against the Average Assets to determine the actual revenue flow into the Company which is as a result of the Capital employed.

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Taxation Of Telecommunications Companies: What You Need To Know

Over the years, the Nigerian telecommunications sector has taken a lead role in diversifying the economy of the country. It encourages sectoral growth by using the instrumentality of digitalization that has been brought about by the technological innovations in the telecoms space.

Despite all these, the Telecommunications operators in Nigeria still face prohibitive barriers to seamless implementation of digitalization in the country as they have been reported to be paying more than 40 different taxes and levies to various agencies of the government at the Federal, State, and Local level. According to the Tax and Enabling Business Environment in Telecoms Sector, the payment of all these levies and taxes is reducing the pace at which the sector is expanding in the country and thereby inhibiting digital inclusion and mobile penetration as the cost of all these taxes are mostly passed to the consumers.

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THE TAXAIDER NEWSLETTER VOL 4, ISSUE 4 (APRIL 2022)

When you ask people what personal development is, they might give you an answer like “being true to yourself” or “working to become the best version of yourself.” But sometimes, those answers don’t help you understand what it is.

I like to think of personal development as having a little internal dialogue on the matters that matter most. When something is bothering me, I like to discuss it with myself until it feels right. Sometimes this discussion is civil and rational, sometimes heated and emotional. Sometimes the conversation lasts a few days or weeks, sometimes it’s over in an hour. But after my internal dialogue on the matter is over, I usually feel empowered by my decision-making.

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STAMP DUTY ADMINISTRATION FOR FINANCIAL INSTITUTIONS IN NIGERIA: WHAT YOU NEED TO KNOW

Stamp duty is a levy on written and electronic documents or instruments. Stamp duties are levied on instruments on either Ad-valorem or flat rate basis and the body in charge of the administration of stamp duties is either the federal Inland Revenue Service (FIRS) (duties on instruments for transactions between corporate bodies and individuals, group, or body of individuals) or the State Internal Revenue Service (duties on instruments for transactions between individuals). 

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TAX DEDUCTIBILITY OF BAD AND DOUBTFUL DEBT: WHAT YOU NEED TO KNOW

An organization in the business of making profit and trade continuity will issue invoices, render a service, and carry out a particular function which is expected to have a direct impact on the inflow of the business. While carrying out the day-to-day operation of the business and in some unexpected situations, the proceeds from the services rendered or goods sold are either never paid or remain unpaid over a long period. 

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FIRS EXTENDS WAIVER OF INTEREST AND PENALTIES ON OUTSTANDING LIABILITIES

INTRODUCTION:

The Federal Inland Revenue Service (FIRS) via a public notice announced an extension of the deadline for filing Company Income Tax Returns due from January 2021 to November 2021 to 30th November 2021.

However, on 30th November 2021, FIRS via the Tax Pro-Max announced the suspension on interest and penalties for all taxes on back years assessment till 31st December 2021.

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