March 14, 2019

Lagos State generated N50.4 billion or 60.8 per cent of total N83.2 billion generated from Value-Added tax (VAT) into Federation Account in January 2019. According to documents related to the Federation Account Allocation Committee (FAAC), Federal Capital Territory (FCT) came a distant second with N18.9 billion. Oyo State was third on the list with a VAT collection of N3.0 billion for the month. Rivers and Kano were the only remaining states that crossed the billion naira make with N1.9 billion and N1.2 billion respectively. The document, however, revealed that the Nigeria Customs Service (NCS) also contributed N21.2 billion to the VAT pool during the month under review. Cumulatively, N205.2 billion has been generated into VAT account between January and February this year. This is N52.1 billion short of the projected N257.3 billion for the two month period. Meanwhile, Federal Inland Revenue Service (FIRS) repoted to the FAAC meeting which held on February 27 that it recovered N47.5 billion from waivers on taxes and penalties granted to some companies. A representative of FIRS told the meeting that a balance of N23,703.760,661.00 was still outstanding as at January 23, 2019.   Source: Tribune

As FIRS law demands, all limited liability businesses in Nigeria are to register for company tax TIN (Tax identification number) and VAT (Value Added Tax). To enforce taxation by FIRS, all limited liability businesses bank accounts and money therein, will not be allowed access by their owners after 15th March, 2019 until they register and pay current and arrears of tax based on bank cash transactions over the years, which is huge and devastating for businesses. In view of these, there are three options for businesses that have limited liability bank accounts: ( i) Register with FIRS for company taxes and VAT, and be prepared to pay arrears of tax calculated by FIRS based on your bank cash transactions over the years. ( ii) On or before 15th March, 2019, to withdraw cash, and pay same into either personal account or enterprise account that is not limited liability businesses; and not by transfer since a transfer will still be traced by FIRS via BVN and be taxed. (iii) Or engage a tax consultant for your company to be audited for the number of year it operated , how much tax ought to be paid, the tax due to be paid and tax clearance be collected. Please let our people operating numerous registered limited liability bank accounts be informed to take a step to avoid frustration and embarrassment   Source: Businesstrumpet

As the battle over unpaid $2billion tax arrears between MTN Nigeria and Attorney-General of the Federation (AGF), Abubakar Malami persist, the Chief Executive Officer of MTN Group, Rob Shuter, has said that the nation’s tax authorities have no particular quarrel with the firm various tax assessments. The telecommunication company boss also, said that the AGF is “playing games” over the federal government’s demand of $2 billion tax arrears from the company. Speaking at a conference call where MTN’s 2018 annual results were presented to executives and stakeholders of the company, Shuter said, “Now, of course, what’s odd about the Nigeria-situation is it’s not the Commissioner for Inland Revenue that we have the dispute with. It’s the Attorney General, who is really not mandated to collect the tax. “So the legal process is basically saying you’re playing a game that you’re not meant to be playing. And when we talk to the tax authorities they have no particular quarrel with where we are with our various assessments. “So either we get the thing chucked out early on and the issue is finished, or it is just one of these lingering things that roll around in the system for a while. And personally, I don’t know which way it’s going to play out. “I’m just absolutely adamant that we’re a responsible company, we have paid the taxes we had to pay, and the tax authorities themselves aren’t saying that we owe them anything. So I think we’ve just got to stare this one down.” Although, the hearing of the suit against the AGF first scheduled for November 8, 2018, has been adjourned to March 26. It would be recalled that in September 2018, Malami had written to MTN Nigeria, demanding a payment of $2 billion in tax arrears. He broke the amount down to a 10-year period for import duties, Value Added Tax (VAT) and withholding taxes on foreign imports/payments. MTN Nigeria had denied any wrongdoing, saying it had fully settled all outstanding taxes. The telco also sued the AGF.   Source: Dailytimes