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.
Read More- Introduction:
- 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.
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”.
Read MoreA registered business in Nigeria that earns a legitimate income is captured under the Company Income Tax Act (CITA), Cap C21, LFN 2004 (as amended) to pay the tax due from all its revenue sources.
However, the provision of the Company Income Tax Act (CITA), Cap C21, LFN 2004 (as amended) exempts income or profits earned from some particular sources from CIT.
Read MoreAs 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:
Read MoreTreating 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.
Read MoreFirst 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.
Read MoreCompanies Income Tax Act, Cap C2, LFN 2004 (“CITA”) is the general income-tax administrative framework for companies in Nigeria.
However, due to the peculiarity of the insurance business, Section 16 of CITA is particularly dedicated to companies operating in the insurance sector. Section 16 of CITA explicitly addresses the specific income-tax administrative needs of the insurance companies.
Read MoreHello there
Welcome to another Tax Thursday.
You would agree with us that 2021 was an interesting year, and indeed a busy one. Just as the country was tackling its battles, the FIRS was also swamped with a few legal battles. Worthy of mention was the bid of some states majorly championed by Rivers State and Lagos State to get control over the collection and appropriation of VAT within their jurisdiction, and we all witnessed how this turned out. Additionally, just before the end of 2021, the FG released the Nigeria Finance Act of 2021, which introduced new taxes, levies, and tariffs.
Nigeria’s Federal Inland Revenue Service (FIRS) has issued a Public Notice [BO1] to lift its May 2021 suspension of Local Filing of Country-by-Country (CbC) Reports by Constituent Entities in Nigeria. Constituent Entities are the Nigeria-based subsidiaries and branches of Multinational Enterprises. Relevant Constituent Entities are now to, with effect from January 1, 2022, duly make their CbC Reports Local Filing with FIRS in compliance with Regulation 4 of the CbC Regulations 2018 (CbC Regulations).[BO2] You may recall that the obligation placed on relevant Ultimate Parent Entities (UPEs) under Regulation 3 of the CbC Regulations was never suspended.
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