2022 PAYE RETURNS FILING: 4 IMPORTANT THINGS TO KNOW

PAYE

Filing of PAYE for employers of labour is a seasonal exercise. It comes in the first month of every year. Employers of labour are mandated by section 81 of the Personal Income Tax Act (PITA) to file annual returns which contains the income paid to their employees, PAYE deducted and remitted to the relevant tax authorities on behalf of the employees in an assessment year. In this piece we would review the PAYE returns filing process as this is what is required first before the PIT filing returns.

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OECD BEPS Action Plan: How has Nigeria Faired?

Introduction:

Base Erosion and Profit Shifting (BEPS) actions were developed in the context of the Organisation for Economic Cooperation and Development (OECD) /G20 BEPS Project. The 15 BEPS actions equip governments with domestic and international rules and instruments to address tax avoidance, ensuring that profits are taxed where economic activities generating the profits are performed and where value is created.

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LIRS Tax Audit Exercise: Are Your Books in Shape?

Introduction:

The steadily plummeting revenue accruing to the Government annually has led to the need to diversify the country’s revenue generation portfolio by exploring prospects of non-crude-oil-related revenue generating activities and undertaking thorough well-thought-out measures to block revenue leakages in the economy. Hence, the attempts being made to tighten the country’s fiscal policy measures and to fish out non-conforming taxpayers.

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FIRS APPOINTS TELCOS AND DEPOSIT MONEY BANKS AS AGENTS FOR THE PURPOSES OF VAT COLLECTION

By a Public Notice titled ‘Value Added Tax Act (CAP V1, LFN 2004) (as amended): Appointment of Certain Companies to Withhold VAT’, the Federal Inland Revenue Service (FIRS) informed the public of the appointment of MTN, Airtel, All Money Deposit Banks (As Defined by the CBN Guidelines) (Appointees) as agents to withhold Value Added Tax (VAT) charged on all taxable supplies made to them effective 1st January 2023.

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Mergers – Procedure for obtaining Consent of the FIRS & Tax Considerations

  1. Introduction:
  1. By virtue of the Federal Competition and Consumer Protection Act, 2018, a merger occurs when one or more undertakings directly or indirectly acquire or establish direct or indirect control over the whole or part of the business of another undertaking. A merger may be achieved through the purchase or lease of shares, interest, or assets of one of the merging parties by the other; (ii) amalgamation or other combination of the undertakings of the merging entities; or (iii) joint venture.
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Mandatory Retirement Savings Account (RSA) Now Accessible before Retirement

Introduction:

The National Pension Commission (PenCom) recently issued and approved the immediate implementation of the Guidelines on Accessing RSA Balance For Payment of Equity Contribution of Residential Mortgage by RSA Holders (Guidelines). The Guidelines were issued pursuant to Section 89(2) of the Pension Reform Act 2014 (PRA), which provides that “a Pension Fund Administrator may, subject to guidelines issued by the Commission, apply a percentage of the pension assets in the retirement savings account towards payment of equity contribution for payment of residential mortgage by a holder of Retirement Savings Account”.

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BAD DEBTS AND ITS PROVISIONS IN LINE WITH FIRS PRACTICES

As an organization, it is almost a norm to incur bad debts in the process of running a business. Bad debt can be defined as an expense arising from the company’s account receivables becoming unretrievable/ uncollectible. This is an operational and financial risk associated with the daily running of a business and the account receivables should be assessed for impairment on a forward-looking basis and reported in the financial statements for each year at the financial year-end in line with International Reporting Standards (IFRS) 9 which is on “Financial Instruments”. A lot of reasons can be factored into account receivables becoming uncollectible thus becoming bad such as:

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WHY YOU SHOULD TAKE TAX PLANNING SERIOUSLY

Treating taxes as an afterthought can lead to some expensive mistakes. People who fail to plan and end up paying more than they should on their taxes feel frustrated when that happens. There are a lot of ways to avoid these issues from arising, and tax planning is one of them.

Tax planning entails a financial strategy designed for tax efficiency. The goal is to reduce one’s tax liabilities and maximize the use of tax exemptions, tax rebates, and benefits. In addition, tax planning involves making financial and business decisions that reduce the tax burden. By taking advantage of all beneficial provisions under tax laws, you can legitimately reap the maximum benefits.

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THE TAXAIDER NEWSLETTER VOL 4, ISSUE 1 (JANUARY 2022)

First Thoughts: Trusting Your Gut

I’ve been there, and I’m sure you have too. You knew something was up, but you didn’t listen to your gut and now you’re regretting it.

Telling yourself that you are “just being paranoid” or “paranoid for no reason” doesn’t help, it only makes you feel worse.

The reality is that your gut is never wrong. Your gut is a completely dependable source of information about what is going on around you. It may not be consciously accessible, but it is always there, assessing what is going on around you. And it knows before your conscious mind does, whether something feels right or not.

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