August 28, 2019 – Sunmola David & CO

First African Chartered Accountant, Turns 100

Chief Akintola Williams, the first African to qualify as a chartered accountant, clocked 100 years yesterday, putting family, friends and well-wishers in celebration mood. Akintola Williams was born on August 9, 1919 into the family of Thomas Ekundayo Williams, a clerk in the colonial service, who later trained as a legal practitioner in London and set up his practice in Lagos. In 2009, he lost his wife of 60 years, Mabel Efuntiloye Williams with whom he had two children, Tokunbo and Seni. The young Williams had his education in the early 1930s at Olowogbowo Methodist Primary School, Bankole street, Apongbon, Lagos Island, Lagos, and CMS Grammar School, also in Lagos. The bright young man then went to Yaba Higher College on scholarship of UAC, and obtained a diploma in commerce. He moved overseas to England in 1944 to studied Banking and Finance at the University of London where he graduated in 1946 with a Bachelor of Commerce. He qualified as a chartered accountant in England in 1949. Akintola Williams returned to Nigeria in 1950, and served with the Inland Revenue as an assessment officer until March 1952, when he left the civil service and founded his firm, Akintola Williams & Co. in Lagos. Records show that the company was the first indigenous chartered accounting firm in Africa. In those days, the accountancy business was said to be dominated by five large foreign firms, with a few small local firms that were certified but not chartered accountants. Regardless, he had good business with indigenous companies like Nnamdi Azikiwe’s West African Pilot, K. O. Mbadiwe’s African Insurance Company, Fawehinmi Furniture and Ojukwu Transport. He also provided services to the new state-owned corporations, including the Electricity Corporation of Nigeria, the Western Nigeria Development Corporation, the Eastern Nigeria Development Corporation, the Nigerian Railway Corporation and the Nigerian Ports Authority. The growth path of the company became set with its first partner, Charles S. Sankey appointed in 1957, followed by a Cameroonian, Mr. Njoh Litumbe, who contributed to the firm’s expansion. Litumbe opened branch offices in Port Harcourt and Enugu, and later led the firm’s expansion overseas in 1964, opening a branch in the Cameroons, followed by branches in Côte d’Ivoire and Swaziland, and affiliates in Ghana, Egypt and Kenya. By March 1992, the company had 19 partners and 535 staff. Demand grew as a result of the Companies Act of 1968, which required that companies operating in Nigeria formed locally incorporated subsidiaries and published audited annual accounts. The drive in the early 1970s to encourage indigenous ownership of businesses also increased demand. The company acquired a computer service company and a secretarial service, and in 1977, the company entered into an agreement with Touche Ross International based on profit sharing. Williams was also a board member and major shareholder in a number of other companies. He retired in 1983. Between April 1999 and May 2004, Akintola Williams & Co. merged with two other accounting firms to create Akintola Williams Deloitte (now known as Deloitte & Touche), the largest professional services firm in Nigeria with a staff of over 600. Williams has deep roots in the development and growth of financial and other institutions in the country. He participated in founding the Nigerian Stock Exchange and the Institute of Chartered Accountants of Nigeria, where he was the first president. This was a projection of a leading role he played in 1960 in establishing the Association of Accountants in Nigeria, which goal was to train accountants. He was also the association’s first president. Regardless of old age, he never lost touch with these organisations. At a stock exchange ceremony in May 2011, he called on operators to protect the market and ensure there was no scandal. He said that, if needed, market operators should not hesitate to seek his advice on resolving any problem. Williams served Nigeria in several positions, including Chairman of the Federal Income Tax Appeal Commissioners (1958–68); member of the Coker Commission of Inquiry into the Statutory Corporations of the former Western Region of Nigeria (1962); member of the board of Trustees of the Commonwealth Foundation (1966–1975); Chairman of the Lagos State Government Revenue Collection Panel (1973) and Chairman of the Public Service Review Panel to correct the anomalies in the Udoji Salary Review Commission (1975). He also served in other spheres of human endeavor, including as President of the Metropolitan Club in Victoria Island, Lagos, Founder and Council member of the Nigerian Conservation Foundation. The Akintola Williams Arboretum at the Nigerian Conservation Foundation headquarters in Lagos is named in his honour. He was Founder and chairman of the board of Trustees of the Musical Society of Nigeria. Source: This days

First African Chartered Accountant, Turns 100 Read More »

Tax Strategies for Fund Investors

Tax news / Tobi Aminu

Taxes are a greater drag on net investment returns than expenses and fees, according to a study by Rob Arnott of Research Affiliates. Most investors leave a lot of money on the table by overlooking important tax tricks of funds and focusing on taxes only near the end of the year. Don’t let that happen to you. Review these simple rules about mutual fund taxes and keep them in mind all year. As markets change, consider tax-wise actions to take with your funds. You want to own the right assets in the right accounts when possible. Owning the right investments for you comes first. To the extent you can, own the assets in the most tax efficient accounts for them. If most of your money is in an IRA or 401(k), you might not be able to have all the right assets in the right accounts. That’s one reason I recommend tax diversification. It’s a good idea to have taxable accounts, tax-deferred accounts and tax-free accounts. A good general rule for putting the right assets in the right accounts is to hold assets that already receive tax advantages in taxable accounts. Stocks, mutual funds and other assets you’ll hold for more than a year should be in taxable accounts to take advantage of long-term capital gains. Stocks that pay qualified dividends usually should be in taxable accounts. Tax-deferred accounts should hold assets that earn short-term capital gains and taxable interest. Tax-free accounts, such as Roth IRAs, also should own these types of assets. Real estate investment trusts (REITs) are a hybrid but generally should be held in tax-deferred or tax-free accounts. You might want to hold treasury bonds or treasury-only mutual funds in taxable accounts, because their interest is exempt from state income taxes. Those are general rules. Let’s move beyond those basics to a higher level of mutual fund tax planning. You know that a mutual fund avoids income taxes by distributing to shareholders most of its net interest, dividends and capital gains. Only the shareholders are taxed on the income. Shareholders on the date of the distribution pay the taxes. If you buy shares in a taxable account the day before a distribution, the distribution will be included in your income for the year, though it really is a return of your investment. The net asset value of the shares is reduced by the amount of the distribution. When you’re investing or considering an investment in a mutual fund, know its regular distribution dates. You want to make new investments just after, not before, a distribution. Source: Investor king

Tax Strategies for Fund Investors Read More »

Tax revenue recovery: Presidential panel, FIRS partner

Tax news / Tobi Aminu

The Special Presidential Investigation Panel for the Recovery of Public Property (SPIP) is to panel with the Federal Inland Revenue Service (FIRS), to recover tax revenues from companies who hitherto have been evading payment. Ms Lucie-Ann Laha, the panel spokesperson in a statement issued in Abuja on Friday, said that the Panel Chairman, Mr Okoi Obono-Obla, made this known when he received Mr Tunde Fowler, the FIRS Chairman on a visit. Obono-Obla urged the FIRS to work with the panel to recover taxes and royalties owed the Federal Government by several oil companies amounting to billions of dollars. He informed Fowler that the panel had uncovered about 1,500 properties in Dubai, UAE, owned by Nigerians for which due taxes were not being paid to the Nigerian government. The FIRS Chairman confirmed that both agencies had indeed been working together in the past. Fowler said that the deployment of ICT to the FIRS operations had among other things, reinforced internal controls which also helped to reduce fraud and bottlenecks in tax administration. Source: P.M news

Tax revenue recovery: Presidential panel, FIRS partner Read More »

Why we disagree with MTN — FIRS

TAX SERVICES / Tobi Aminu

MTN Nigeria has said it took the Federal Inland Revenue Service before the tax tribunal to seek clarification over its right to deduct tax from the regulatory fine imposed by the Nigerian Communications Commission (NCC) in 2015. In its reaction to PREMIUM TIMES enquiries Monday last week, the tele-mobile firm said the decision to approach the tribunal followed a technical disagreement with the tax agency. The MTN said the dispute was rooted on how the fine should be treated for tax purposes by the FIRS. In October 2015, the NCC imposed a N1.04 trillion (about $5.2 billion) fine on MTN for failure to disconnect 5.1 million unregistered subscribers from its network. However, following the intervention of the presidency in the matter, the fine was reduced to N330 billion. MTN completed the payment on May 31, 2019. Dispute with FIRS But, in anexclusive interview with PREMIUM TIMES, the FIRS Chairman, Tunde Fowler, disclosed that despite that MTN has since paid the fine to the Federal Government, the matter was not yet resolved. According to Mr Fowler, the unresolved issue with FIRS has to do with MTNs dispute whether it has a right to deduct tax from the fine or not. The MTN took a position that the fine or penalty should be tax-deductible. (But), the FIRS said that does not make sense. One cannot be given a penalty or fine, which is a punitive measure, and the company is saying it is tax-deductible so that it will get a tax credit on that, Mr Fowler told PREMIUM TIMES in his office in Abuja. He said the FIRS told the MTN management such deductions cannot be made, as fines and penalties for regulatory infractions are revenues to the federal government and are not subject to any tax deduction. The FIRS Chairman said although the MTN made the payment in protest, the position of the revenue agency on the fine and penalty will not change until a court of competent jurisdiction gives its final ruling on it. Initially they (MTN) made the payment on account. The FIRS said, no, it is not on account, but it is tax due to government, he said. The alternative is for MTN to go to court and let the court (maybe Supreme Court) say the FIRS was wrong, and that such fines or penalties are tax-deductible, Mr Fowler said. MTN reports to NSE. The MTN did not respond to PREMIUM TIMES enquiries on the matter. Its spokesperson requested time to cross-check the information and revert. He did not. But, on Friday, the telecoms firms made a regulatory filing with the Nigerian Stock Exchange titled: Announcement regarding status of taxes relating to the 2015 Fine. The filing on Tuesday, dated August 2, was signed by its Company Secretary, Uto Ukpanah, read: Our attention has been drawn to media reports regarding the status of taxes relating to the 2015 fine imposed on MTN Nigeria Communications Plc (MTN). We acknowledge that there is a technical disagreement between MTN and the Federal Inland Revenue Service (FIRS) as to how the fine should be treated for tax purposes. However, while the monies have been paid to FIRS, we have taken the disagreement to the Tax Tribunal set up by FIRS Chairman and Minister of Finance, and are awaiting a decision. MTN remains fully compliant with Nigerian tax laws and will abide by the findings of the tribunal. The company is committed to meeting its fiscal responsibilities and contributing to the social and economic development of Nigeria. Since incorporation in 2001, MTN has invested more than NGN2 trillion into the Nigerian economy and has paid more than NGN 1.7 trillion in taxes, levies and other regulatory fees.a Source: xtreme

Why we disagree with MTN — FIRS Read More »

Ebonyi FIRS scores taxpayers in the state high on compliance

Tax news / Tobi Aminu

The Federal Inland Revenue Service (FIRS) in Ebonyi State has scored taxpayers in the state high on compliance. The revenue agency said although majority of taxpayers in the state are civil servants, they have been remitting their tax into government coffers accordingly. Speaking in an interview in Abakaliki, Kenneth Effiong, tax controller, Abakaliki MTSO FIRS, also decried the absence of manufacturing companies in the state, which he said was a major challenge facing the agency in the state. He said most residents of the state are working-class, unlike in other states where there is a high concentration of businessmen and companies. “Ebonyi taxpayers are trying. I give them 60 percent, but we have challenges. Number one, Ebonyi State is not a business area and another thing, the people of Ebonyi, most of them are government workers,” Effiong said. “We do not really have businessmen in Ebonyi. And the ones we have are contractors; their tax comes when they are able to carry out contracts (projects) unlike in other states that we have industries and major businesses,” he said. Effiong disclosed that from time to time the FIRS goes to educate taxpayers in the state, adding that the current enlightenment programme going on in the state would last for five days. “We go out to educate taxpayers on tax matters and possibly bring them into tax payment. A lot of businessmen out there are complaining that they are not educated, are not being put through on what tax is all about. So, with the backing of the management, we now decided to use three days to go out and educate taxpayers on tax matters which is a routine job here as tax office,” he said. Effiong maintained that tax awareness, which is a routine exercise, helps the taxpayers to pay their value added tax on or before 21st of every month. He said within the week during the awareness exercise in Abakaliki, some shops had been closed down by the enforcement team for failure to pay their tax. The tax controller urged the taxpayers to try to pay their tax in time and avoid paying money to individuals to avoid falling into the hands of touts. Rather, he said, they should pay to banks that IFRS deals with directly. He said his office is open for enquiries and further directive as may arise. Source: Business day

Ebonyi FIRS scores taxpayers in the state high on compliance Read More »