1. What Information is required under the CRS

Reporting Financial Institution (RFI) – Simply put, these are institutions located in participating jurisdictions that is not a Non-Reporting Financial Institution. As mentioned earlier they are depository institutions, custodial institutions, investment entities and specified insurance companies

Non-Reporting Financial Institution means a financial institution that is excluded from reporting and includes government entity, participation retirement fund, other low risk entity, an exempt collective investment vehicle and a Trust to the extent that the trustee is a RFI and reports all information required with respect to Reportable accounts of the Trust. A RFI is required to gather and share with the Federal Inland Revenue Service (FIRS) information about financial accounts held by individuals and corporate entities that are tax resident in a Common Reporting Standard (CRS) participating jurisdiction. The FIRS would in turn share this information with the participating jurisdiction in which the account holder is tax resident, the details include;

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Covid-19 and the Nigerian Employee Compensation Scheme (ECS)

Did it sneak up on us? Were we not ready? How could something so small have such an impact on our nation and the entire planet? The global economy has taken a big hit as businesses, schools, religious institutions and virtually every facet of life have witnessed a temporary halt. Lockdowns have been instituted in most of the countries affected by the Covid-19 pandemic as a proactive measure in combating the spread of the pandemic.  It is worrisome that no real solution has been found and the lockdown has become the last resort, at least until when or dare I say, ‘if’ a permanent solution is found. The situation has forced businesses to work remotely and thankfully technology has made that possible and seamless. However, some things cannot be solved with technology. For example, what happens if an Employee contracts the disease and such an Employee is required to be isolated in any of the isolation centers? How would an Employer deal with this loss of productivity?

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INTRODUCTION

The Federal Inland Revenue Service (or ‘The Service’) in its Public Notice (PN) of August 14, 2019 directed all companies, particularly those in the Fast-Moving Consumer Goods (FMCGs) Sector to deduct at source, Withholding Tax (WHT) and Value Added Tax (VAT) from compensations due to their distributors and customers.

These compensations referred to by the Service are marketing schemes and business promotion strategies deployed by companies to penetrate the market, promote their brands, build customer loyalty and ultimately grow revenue. As rightly noted by the Service in the Public Notice, these compensations are awarded to agents, dealers, distributors, retailers and can be in the form of cash payment, credit notes or even goods-in-trade. The critical points of this issue include:

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There is no doubt that COVID-19 hit all economies globally really hard. From the drastic decline in business activities to some organisations shutting down operations, the impact of the pandemic can hardly be ignored. To curb the rate at which the disease is rapidly spreading a number of countries have restricted movement with some implementing outright lockdowns.

I once heard that there are two things that are certain in this life; death and taxes. However, to mitigate the effects of the global pandemic, the governments of many countries have implemented monetary and fiscal measures; Nigeria is one of such countries and a number of palliative measures have been put in place, one of which is the proposed Emergency Economic Stimulus Bill 2020. Please read our thoughts on this Bill here in case you missed it. As it stands taxpayers still have to comply with their tax obligations either as it relates to tax filings or remittances.

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There is no doubt that COVID-19 hit all economies globally really hard. From the drastic decline in business activities to some organisations shutting down operations, the impact of the pandemic can hardly be ignored. To curb the rate at which the disease is rapidly spreading a number of countries have restricted movement with some implementing outright lockdowns.

I once heard that there are two things that are certain in this life; death and taxes. However, to mitigate the effects of the global pandemic, the governments of many countries have implemented monetary and fiscal measures; Nigeria is one of such countries and a number of palliative measures have been put in place, one of which is the proposed Emergency Economic Stimulus Bill 2020. Please read our thoughts on this Bill here in case you missed it. As it stands taxpayers still have to comply with their tax obligations either as it relates to tax filings or remittances.

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It is worthy of note that the hearty cheers and warmth the beginning of a new year brought already seem like a distant memory today. I remember all the new year memes, challenges and posts that were met with fun, laughter and so much enthusiasm. 2020 was our year! It had so much in store. However, like a horror movie, the year seemed to unravel as the weeks went by, starting from the heat waves, the Australian wildfire, Volcanic eruptions and the most devastating of all, the Human Corona Virus (COVID-19) pandemic sweeping through countries with the force of a wildfire and hurricane combined. I am pretty sure we as a people will survive these times and I truly hope that a cure for the COVID-19 is in sight. I’ll like to advice everyone to stay safe, take proper preventive measures and stay at home.

In other news, the ongoing price war between Saudi Arabia and Russia if not curtailed could seriously impact the world economy. Its impact on Nigeria’s economy could be devastating with the possibility of another recession looming.

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For the first time in a while, I am writing this editorial from somewhere besides my office desk. I am writing from my reading table at home and this is not because I am on a holiday or just feeling lazy but because Miss Rona has confined me and so many others all over the world to our homes. I first heard the term ‘Miss Rona’ few days ago as is being euphemized in some quarters and for a second, I wondered why it wasn’t called ‘Mr Rona’ or ‘Sir Rona’.
In my amazing intern, Oladayo Olukowi’s words, the Corona Virus pandemic is currently sweeping the planet like a wildfire and a hurricane combined and it is scary to say the least. As at 6.55pm Nigerian time today, 26th March, 2020, there are 510,645 total cases and 23,079 total deaths reported worldwide. There have been 122,245 recoveries, however. Whichever way we choose to look at it, the world has been truly humbled by this reality. No one seems to have the answers and we are all united globally in our strong desire to surmount this challenge.

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