March 1, 2019

No Person/Firm Can Collect Tax/Levy On Behalf Of Any Government In Any Part Nigeria

NO PERSON/FIRM CAN COLLECT TAX/LEVY ON BEHALF OF ANY GOVERNMENT IN ANY PART NIGERIA. Taxes/Levies are serious issues in any part of the world. They are created by government and their prices/amounts are certain and predictable. In Nigeria, all taxes/levies must be created by law and be assessed and collected by either Federal, State or Local Governments. None of the governments can engage, authorise, delegate, use or appoint any person, firm or group to assess or collect taxes/levies on its behalf. The only appropriate tax authorities empowered and allowed to assess and collect taxes/levies in Nigeria are the Federal Inland Revenue Services(FIRS), the State Board of Internal Revenue and Local Government Revenue Committee, by whatever name they call themselves in the respective states and local governments across Nigeria. As well as an Ministry, Government department or any other Government body charged with responsibility for assessing or collecting a particular tax. NOTE, that no State Government (including its House of Assembly) or Local Government has powers to make any law or Bye-Law that will allow the appointment and engagement of any person/firm in the assessment or collection of any tax/levy in any part of Nigeria. I have seen several persons and firms parading letters of engagement from some tax/levy agencies of government, such person should be properly guided. If you have tax/levy issues/challenges, kindly talk to your lawyer or tax consultant. It is your right to know. My authorities are sections 2 and 5 as well as the Schedule to the Taxes and Levies (Approved List for Collection) Act, 1998 and the Schedule to the Taxes and Levies (Approved List for Collection) Act, (Amendment) Order 2015. Also Sections 4(5), 7(5), Paragraphs 7, 8 and 9, Part II of Second Schedule and Paragraph 1(J) of the Fourth Schedule to the Constitution of the Federal Republic of Nigeria, 1999.   Source: Thenigerialawyer

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Custom Agents Tackle Shipping Companies over Illegal Taxes

The National Council of Managing Directors of Licensed Customs Agents (NCMDLCA) has called on the federal government to take urgent steps and stop the recent additional shipping charges by shipping companies called “the government and port taxes”. According to the agents, by the action, the shipping companies had violated the provision of the Convention of World Trade Organisation (WTO) Articles VIII 3(b). In a petition addressed to the Minister of Transportation, Rotimi Amaechi and signed by its national president, Mr Lucky Amiwero, the body said the additional shipping charges was introduced through circular issued by shipping companies to their customers dated October 28, 2016, which is being implemented. The customs agents added that the increase captioned “Government & Port Taxes,” was charged at N38,000 per container without any government intervention in line with the provision of the legislative instruments and the memorandum of understanding (MoU) signed by all the stakeholders. The provision of the law authorises the carrier to hand over the goods to the consignee at the port of discharge without any cost, as all cost are embodied in the freight paid by importer based on the law. “Any other charges introduced by the shipping companies, contravenes the provision of the convention of WTO Articles VIII 3(b), the domestic laws and regulation, the practice constitutes very high percentage of charges that is not tied to service, which is a contributory factor to the high clearing cost that necessitate the diversion of Nigerian bound vessels to neighbouring West African ports,” Amiwero said. He added: “The shipping line is an agent to the carrier who are double agent in Nigeria, collecting from their principal-(carrier) and from the Nigeria importers, shipping line charges, without any operational cost like the provision of the following: Non-provision of terminal space, non -provision of equipment, non-provision of security and non-provision of staff. “There is the need to stop the present increase and any other charge that is not tied to services in line the United Nations Convention on Carriage of Goods by sea (Ratification and Enforcement) Act 2005, WTO Articles VIII and the various domestic laws and regulation in Nigeria.” The Association of Nigeria Licensed Customs Agents (ANLCA) recently accused shipping companies and terminal operators of sabotaging the Nigerian economy by charging fees that are unfounded and increasing the cost of doing business at the nation’s ports in favour of other countries. Former president of ANLCA, Olayiwola Shittu, had stated this when the Managing Director of the Nigerian Ports Authority (NPA), Ms Hadiza Bala-Usman paid a courtesy visit to ANLCA in Lagos. Shitu, said shipping companies and terminal operators have increased charges claiming that the NPA has increased its due. Some of the charges, he stated, included: shipping due departing charges, facility charge and others. He said: “There is also the sea protection levy that is also being charged by the Nigeria Maritime Administration and Safety Agency (NIMASA). At the end these charges are transferred to the consumer, making life unbearable for them “Shipping companies and terminal operators are reaping us off charging all manners of fees. They believe Nigeria is big and they can get all the monies they want from the country to service other West African region. We have it on good authority that what the shipping companies get from Nigeria is what they rely on for survival because of the next- to-nothing charges they get from other countries in Africa. “Again, the demurrage they are charging in Nigeria; they don’t have the facility to support it, they are required to have holding bays they don’t have. It does not matter if the fault is theirs or not – you are still charged demurrage. Their charge is the cause of the high cost of doing business at the port and this is affecting the Nigerian economy.” They also urged the NPA to consider the illumination of the ports as they cannot clear cargo at night ANLCA also accused the NPA security personnel of aiding touts and beggars at the port while denying their members entrance to the port. “We were asked to get gate pass and we have complied. Severally, I have had to go to the gate to intervene when the NPA official are harassing our members who has genuine gate pass whereas beggars and touts are allowed to move freely within and outside the port premises. I want you to take it into consideration and put an end to this anomaly,” he said.   Source: Thisday  

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Personal income tax act in Nigeria: things everyone should know

crucial part of the everyday life of every person. We encounter taxes everywhere: at work, in a supermarket, and even at home. However, personal income tax is the most important of them. We have gathered all the vital information about it so that you understand all the intricacies of the law. Income tax image: pixabay.com Source: UGC If a thought about calculating and paying your personal income tax scares you, do not worry. Luckily, you have us to help you with this issue. Read on and become a fearless master of taxes. What is personal income tax and personal income tax act? To start off, we should understand what a tax is. It is an obligatory payment all citizens of a country must make to a government. A government, in turn, uses this money to improve and sustain the functioning of a country and the life of its residents. Personal Income Tax (PIT) is a kind of obligatory levy that all individuals who gain any type of profit are obliged to pay. These people usually either are employed or have their own enterprises with or without employees. Personal income taxpayers also can be self-employed people. Money coins Image: pixabay.com Source: UGC All profits of the Nigerians fall under taxation. Even if you earned your money working for a foreign company and this revenue has a foreign origin, the levy is applied if the money is remitted to Nigeria. However, artists and athletes who earned money abroad are not obliged to pay the levy for these funds. They pay the levy only for money earned on the territory of Nigeria. Foreigners also pay the tariff only for funds earned in Nigeria. Personal Income Tax Act is the amendment of the Personal Income Tax Cap P8, LFN 2004. This law is relevant to levies and taxpayers. In Nigeria, taxpayers are all people who earn salaries or gain any kind of profit out any other sources of money. Your rights and obligations as a taxpayer Coins Image: pixabay.com Source: UGC As a taxpayer, you can demand from the authorities to be informed about what your levy money was spent on. Also, you are able to request any information about the procedure of paying the levies and all related matters, the authorities must fulfil this request. Having rights never goes alone without having certain obligations. In the case of PIT, all individuals must not keep in secret their sources of revenue and the amount of money they make. Also, based on your salary, you should pay your tariffs in time and calculate correctly the amount of taxes you have to pay. If you have, under any circumstances, failed to pay a PIT, certain penalties will be applied. 10% of the sum of levies not duly paid will be added to your obligatory payments. Additionally, you will be forced to cover all expenses related to the attainment of the funds not initially paid to the government. There are two ways by which the PIT can be paid. The first one is PAYE or pay-as-you-earn method. It applies to all people who work full-time for an employer. In this case, the employer is obliged to pay the levy for you by subtracting it from the salary you earn. Thus, you get your money with levies deducted already. By the way, employees who earn less than N300,000 a year must apply for a return of the levy. The second way is applied to self-employed individuals or those people owning a business and is called self-assessment or direct assessment. In this case, such individuals calculate the levy themselves and pay it to the relevant tax authority directly. Personal income tax rate in Nigeria In Nigeria, the rate of the PIT depends on the amount of money a person makes in one year. For the first N300,000, the levy rate is 7%. If a person makes another N300,000, then the rate increases to 11%. The next N500,000 escalate the deductible tariff rate to 15%, and subsequent N500,000 heighten it to 19%. The next N1,600,000 raises the levy rate to 21%. Then, in case a person receives another portion of revenue over N3,200,000, the rate soars to 24%. What is income tax in Nigeria? Money to pay Image: pixabay.com Source: UGC You should not confuse personal income tax with income tax (IT) or companies income tax (CIT). CIT is applicable to corporations and similar organisations. Such companies are entitled to pay the IT at the rate of 30% of their annual income. All corporations located in Nigeria are liable to this kind of taxation. Personal income tax in Nigeria can be a tricky matter. All Nigerian citizens have to pay this levy if they gain any revenue. The rate of the levy depends on how much money an individual makes. Your employer can pay PIT if you are an employee, or you have to calculate and pay it yourself if you are a self-employed person. Paying the tax on time is crucial. In the other case, unpleasant penalties will be applied. DIsclaimer This article is intended for general informational purposes only and does not address individual circumstances. It is not a substitute for professional advice or help and should not be relied on to make decisions of any kind. Any action you take upon the information presented in this article is strictly at your own risk and responsibility!   Source: Legit

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