April 8, 2019 – Sunmola David & CO

N2b lawsuit: I was forced to pay N7m to FIRS

A prosecution witness, Mr Bharat Vora, told a Federal High Court Abuja that the Federal Inland Revenue Service(FIRS) forced him to pay to seven million Naira to reopen his company. Vora, Managing Director of Mutunci Company Nigeria, during cross examination by the FIRS counsel, Mrs Efe Lawrence, said that the FIRS collected the money but did not reopen his business. He said that the service shut down his company in 2016 due to tax on discounts he never benefited from. Vora said he was not aware that the submission of tax returns does not stop the FIRS from re-auditing his company. He also said he was also not aware that issuance of tax clearance certificate does not preclude the FIRS from re-auditing his company. Vora, said that the discounts he gave were not purported discounts, but were reflected in the company’s sales day book, ledgers and invoices. He said the invoice documents were not brought to court because “it would amount to such a huge bundle of documents.’’ The witness said he had nothing to hide by not bringing the invoices to court because the sales books were a direct reflection of what were in the invoices. Testifying on what goes on in the tax computation, the witness mentioned gross price, prices, discount, transport and net income sales etc. On discounts displayed in his invoices, Vora said they were categorically displayed in the invoices. He said he was aware the FIRS was empowered to charge tax on all transactions except on “exempted transactions.’’ He maintained during cross-examination that his company only gave discounts to a select few and not to the general public because it was the company’s policy. Vora is seeking two billion Naira as damages from the FIRS for illegally shutting down his pipe manufacturing and sales company in 2016. He is also asking for the refund of the seven million Naira the FIRS forcefully collected from him with a promise of reopening his business. Justice Inyang Ekwo adjourned hearing of the defence until April 3. Source: PM News

N2b lawsuit: I was forced to pay N7m to FIRS Read More »

Anambra Laments N600m Tax Debt by Firms, Begins Enforcement of Payment

Tax news / Tobi Aminu

The Anambra State government has lamented that it is being owed as much as N600 million in tax by companies, schools, hotels and other business concerns operating in the state, most of which have bluntly refused to pay up. The Chairman of Anambra State Internal Revenue Service, Dr. David Nzekwu, stated this on Tuesday, during the enforcement of a court order, which empowered the board to seal off some companies that were indebted to the state government. Nzekwu said some of the companies where the order were being enforced owed taxes for years without remitting them, the reason it approached a state High Court to force the companies to pay up. “We are owed N600 million by defaulting companies in the state, and the court has given orders for us to seal the premises of such companies, and that is what we are doing today. We are not molesting anyone, but simply sealing off their premises to ensure they pay up,” he said. The revenue board, which was in Awka, Onitsha and Nnewi for enforcement, sealed off Sabrud Consortium, producers of prepaid electricity meters in Awka, which owed over N5 million from January 2011 to December 2016, Divine Favour Pharmaceutical Company, Nkpor, which also owed N5 million from 2010 to 2015 and Nelly New Town Hotels and Suites which owed N8 million. Other companies also sealed off included: Ejiamatu Microfinance Bank, Ojoto; Eteleson Industries, Ogbunike; and Delendu Aluminium Manufacturing company, Onitsha, said to have evaded tax to the tune of N8 million between 2016 to 2017. Nzekwu lamented that most of the monies owed the state could help the governor, Chief Willie Obiano, in his good works in the state. He explained that the expectation of every new company was to register within six months of operation and render their tax returns in respect to companies and individuals’ financial strength. He also stated that the companies would incur additional cost as a result of the sealing off of their premises, adding that breaking the seal was a huge offence that could land one in prison. The state Governor, Obiano, had recently during a meeting with civil servants promised to pay the new minimum wage, while also urging the state revenue services to work hard to increase the internally generated revenue of the state, which he hoped to make the payment. Source: Thisdays

Anambra Laments N600m Tax Debt by Firms, Begins Enforcement of Payment Read More »

SWAN pledges to promote Accountancy among female Nigerians

TAX SERVICES / Tobi Aminu

The Society of Women Accountants of Nigeria (SWAN) Kwara Chapter, on Tuesday pledged the commitment of the association to continue stimulating the desire of young Nigerian females in Accountancy profession. Dr Khadijat Yahaya, the pioneer Vice-Chairperson of the chapter made the pledge in Ilorin during her inauguration and that of other members of the Executive Committee of the association. The News Agency of Nigerian (NAN) reports that Yahaya was sworn in by the National Chairperson, Mrs. Folake Onabolu, at the University of Ilorin. She said that the association would step up on its enlightenment programmes, advocacy, and award of scholarships, among other interventions. Yahaya, who is a Senior Lecturer at the Department of Accounting, UNILORIN, expressed joy on her emergence. She explained that the organisation would not relent in its efforts at assisting the society in several ways including promoting professionalism and financial discipline amonng female accountants. While performing the inauguration, Mrs. Folake Onabolu commended the Ilorin Chapter of the society for its outstanding achievements since its formation a few years back. The SWAN Chairperson, who was represented by Mrs. Njeoma Sam-Oburu, said the Ilorin Chapter was the second to be inaugurated in Kwara State and the ninth in the entire country. She said SWAN came into being on April 28, 1978, as a body not out to compete with any professional organisation in the field of Accountancy, but to complement the activities of the Institute of Chartered Accountants of Nigeria (ICAN). Related news Medical alumni donate N2m sporting facilities to Unilorin She, therefore, urged the chapter to make its impacts felt more in the calibre of emerging female Accountants through the quality of their service delivery to enhance the growth and development of the nation. In his own remarks, the Chairman of the Ilorin District of the Institute of Chartered Accountants of Nigeria (ICAN), Mr Abel Aiyedogbon, commended the university for its numerous contributions in the production of distinguished accountants who are contributing meaningfully to the progress of the nation’s economy. Source: Sundiatapost

SWAN pledges to promote Accountancy among female Nigerians Read More »

CAC Lauds NASS on CAMA Bill 2019

CAC SERVICES / Tobi Aminu

The Corporate Affairs Commission (CAC) has once more applauded the National Assembly on the transmission of the Companies and Allied Matters (CAM) Bill 2019 to the President for assent. This was in consonance with the provision of the Acts Authentication Act Cap. A2, Laws of the Federation of Nigeria 2004. The CAMA Bill 2019 which seeks to repeal the extant statute (The Companies and Allied Matters Act, Cap C20, Laws of the Federation of Nigeria 2004) and enact another statute in its place represents one of the biggest piece of legislative review in the history of National Assembly. The assent of the long awaited Bill would remain a monumental achievement, and one of the important reform agenda of the Buhari’s administration, according to a statement. The bill would greatly enhance the ease of starting and growing business in Nigeria, ensure more appropriate regulation for micro, small and medium scale enterprise, enhance transparency and shareholder engagement; align regulatory framework with international best practice for competitiveness and, in the context of a global economy, make Nigeria an investment destination of choice by attracting and growing investments. The new law would allow the right of one person to form a company, make the use of common seal optional for companies, dispense with the statutory declaration of compliance by legal practitioners for registration of companies, disclosure of beneficial ownership, amongst others. Source: Thisdays

CAC Lauds NASS on CAMA Bill 2019 Read More »

2019 CAM Bill will allow one person form company – CAC

CAC SERVICES / Tobi Aminu

The Corporate Affairs Commission (CAC) has explained that the Companies and Allied Matters (CAM) Bill 2019 will allow an individual to form a company and make use of Common Seal option for companies. The Commission said the Bill will also greatly enhance the ease of starting and growing business in the country and ensure more appropriate regulation for Micro, Small and Medium Scale Enterprise. “It will enhance transparency and shareholder engagement; align regulatory framework with international best practice for competitiveness and, in the context of a global economy, make Nigeria an investment destination of choice by attracting and growing investments,” he said. According to him, the Bill will also dispense with the Statutory Declaration of compliance by Legal Practitioners for Registration of Companies, Disclosure of Beneficial Ownership amongst others. In a statement by Head, Public Affairs Godfrey Ike on Monday in Abuja, the Commission said it is in consonance with the provision of the Acts Authentication Act Cap. A2, Laws of the Federation of Nigeria 2004. Source: Blueprint

2019 CAM Bill will allow one person form company – CAC Read More »

Tax: Nigeria, others lose $200bn per annum to unfair global corporate tax system —IMF

TAX SERVICES / Tobi Aminu

THE International Monetary Fund (IMF) has said that Nigeria and other countries outside the Organisation for Economic Co-operation and Development (OECD) group lostabout $200 billion annually due to unfair global corporate tax system exploited by companies to shift profits to low-tax location. IMF President, Christine Largade disclosed this last week while speaking on Corporate Taxation in the Global Economy at the Peterson Institute for International Economics, Washington D.C. Stressing the need for new corporate tax rules across the globe, Largade said: “It may be difficult, but it is possible to create a corporate tax system that better reflects the changes in the global economy.” Highlighting three major reasons for urgent reform of global corporate tax system, she said: “First, the ease with which multinationals seem able to avoid tax, and the three-decade long decline in corporate tax rates, undermines faith in the fairness of the overall tax system. “Second, the current situation is especially harmful to low-income countries, depriving them of much- needed revenue to help them achieve higher economic growth, reduce poverty, and meet the 2030 Sustainable Development Goals. Advanced economies have long shaped international corporate tax rules, without considering how they would affect low-income countries. “IMF analysis shows, for example, that non-OECD countries lose about $200 billion in revenue per year, or about 1.3 percent of GDP, due to companies shifting profits to low-tax locations. These countries need a seat at the table. The Platform for Collaboration on Tax, a joint effort by the IMF, World Bank, OECD and the UN is helping on this front. “Third, an impetus for rethinking international corporate taxation stems from the rise of highly profitable, technology-driven, digital-heavy business models. These business models rely heavily on intangible assets, such as patents or software that are hard to value. They also demonstrate that assuming a link between income and profits and physical presence has become outdated. ‘This in turn has sparked fairness concerns. Countries with many users or consumers of digital services find themselves with little or no tax revenue from these companies. Why? Because they have no physical presence there. So, we clearly need a fundamental rethink of international taxation. Yet this means countries must work together. Making progress requires coordination among all, and in the right direction.” Source: Vanguard

Tax: Nigeria, others lose $200bn per annum to unfair global corporate tax system —IMF Read More »