September 19, 2019

Zamfara appoints new revenue board chair

The Zamfara State Government has approved the appointment of Hajiya Lubabatu Isa Mayana as the new Executive Chairman of the Zamfara State Internal Revenue Service (ZIRS). The appointment, according to a statement, took effect on August 16, 2019, replacing Ibrahim Abdulnasir. Hajiya Lubabatu who is a fellow of the Chartered Institute of Taxation of Nigeria (CITN) and holds a B.Ed (Economics) from the Usman Danfodio University (UDU), Sokoto. Until her appointment to the position, she was the Director (Tax Audit and Investigation) of ZIRS. She is bringing with her over 20 years of robust working experience garnered in various capacities within the Zamfara State Civil Service   Source: Daily trust

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Polaris Bank Floors Abia Govt at Tax Appeal Tribunal

Polaris Bank Limited, which was formerly operating as Skye Bank Plc, has won its case against the Abia State Government over a N1.528 billion tax assessment disagreement brought before a tax appeal tribunal sitting in Enugu State. The lender had taken the Abia State Board of Internal Revenue to the tribunal, seeking to determine if the agency followed due process provided in tax laws and regulations in dealing with it. According to Polaris Bank, it wanted to know if the state government was entitled to collect development levy and business premises levy without enabling state’s laws and whether the tax agency was entitled to collect penalty and interest based on any of the notices it served. After listening to the arguments of the parties, Chairman of the appeal tribunal, Mr Chukwuemeka Eze, said, “From the foregoing, the tribunal resolves all the issues in favour of appellant and consequently granted reliefs 1 to 6 of the appellant.” On issue six, the appeal tribunal said from its decision of June 20, 2019 in Nigeria Breweries PLC V. Abia State Board of Internal Revenue, the notice and grounds of appeal by the respondent were competent. He noted that one of the takeaways from that decision is that the respondent is a juristic person. He, however, advised tax payers not to wait for a tax audit before discovering and paying monies under remitted. Mr Eze also said that a tax authority does not impose tax, but tax legislations; while a tax authority collects as stipulated in section 1 of PITA. “You should be mindful of how your approach to tax issues will impact on investment in your State. Giving a taxpayer 48 hours or 7 days or any other period less than what the statute provides and changing assessment figures like the colour of a chameleon reduces the confidence of the taxpayer in the tax system.  “There is need to adhere to the provisions of PITA and relevant regulations in your dealing with taxpayers,” the tribunal chief said.   Source: Business post

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ODSG Collaborates With CITN On Tax Sensitization

The Ondo State Government has urged it’s citizens to make tax payment a priority for it to improve on the infrastructural projects in the state. Arakunrin Oluwarotimi Akeredolu stated this while declaring open a one day sensitization programme organized by the Ondo State Internal Revenue Service (ODIRS) in collaboration with the Chartered Institute of Taxation of Nigeria (CITN) for Informal Sector in the Economy, at the State Information Technology Agency (SITA), in Akure the state capital. The Governor who was represented by the Commissioner for Finance, Mr. wale Akinterinwa, commended the President of the CITN for the collaboration between the Institute and the Internal Revenue Service of the state, described the programme as timely to enlighten the stakeholders on the essence of tax payment in the state. Arakunrin Akeredolu noted that the developed countries did not find themselves where they were today, but they were able to develop through honesty and prompt payment of their various taxes by the citizenry. The State Head of Service, Mr. Dare Aragbaiye in his remarks lauded the coming together of the various associations for the good of the state, saying it would expand the tax net as well as boosting the Internally Generated Revenue (IGR) of the state. In his address, the Chairman, of the State Revenue Service, Mr. Tolu Adegbie welcomed all the stakeholders and explained that the collaboration with the CITN as a professional body is to enlighten the stakeholders on various taxes, the need to pay, when & how and penalties for defaulters. Mr. Adegbie informed the stakeholders of the laws that backed payment of taxes, categories and the rates earmarked for each group that would be made available for every individual as soon as possible. Earlier in her speech, the President and Chairman of Council, CITN, Mrs. Dame Simplice, who was represented by Dean, Tax Administration & Policy Faculty CITN, Mrs. Banke Akanni, said one of the key element missing in tax mobilization effort in the country is the seeming disconnection between the taxpayers and the tax authorities, resulting in low tax compliance that could be bridged by continual enlightenment of the stakeholders on payment of taxes. The President pointed out that the programme was to provide clear and simple terms in various taxes applicable to corporate entities and individuals, the mode of filing returns, due dates for filing and penalties for default. Mrs. Simplice emphasized the need for taxpayers to fulfill their obligation in line with the relevant tax laws administered by the tax authorities at all levels as against the old method of citizen depending on government to provide needed amenities before paying taxes. Responding on behalf of the stakeholders, the State President, National Association of Proprietors of Private Schools, Chief Deric Ijidakinro and the State Chairman, Nigeria Automobile Technicians Association (NATA), Mr. Babatunde Sobande, thanked the state government for the development and promised to contributes their own qoutas for the development of the state.   Source:  Punch

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Nigeria’s Tax Revenue: Plucking the low hanging fruits!

Recently, the National Bureau of Statistics (NBS) published Nigeria’s H1-19 Value Added Tax (VAT) report. According to the report, VAT revenue rose 12.0% y/y to N600.9bn, in H1-19. This as the Federal Inland Revenue Service (FIRS) continues to double efforts to increase tax revenue, amid FG’s dwindling and volatile oil revenue. Recent comments from the FIRS chairman on the introduction of VAT charges on online transactions by January 2020, showed that VAT is at the centre of the tax revenue drive. While we await official circulars from the FIRS, the agency had since clarified that only online businesses that do not currently pay VAT are liable. With the above in mind, we see this as a low-hanging fruit that would help shore up government revenue going forward. Also, if properly implemented, we do not expect this to worsen the progress already witnessed on online payment, as VAT is also paid on cash transactions. However, with 18 of 28 sectorial classifications contributing below 1.0% each to aggregate VAT generated in H1-19, the need to boost productivity across the economy comes to fore. Beyond VAT, mobilizing tax revenue in Nigeria is also hinged on finding a way to capture Nigeria’s massive informal sector where the contribution to the tax basket has been largely sub-optimal while doubling down on efforts to clamp down on tax evaders.   Source: Brandspur

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Operating Illegal Tax Points In Benue State

The culprits, Atime Orlu, Terhide Kumbul and Mzehemen Jaga were arrested at Luga in Gboko, near Tyogbenda Msa, in Ushongo and Awajir in Konshisha respectively. In furtherance of its resolve to eradicate illegal tax points, the Benue state special taskforce on illegal road blocks in collaboration with the Benue state police command, has arrested three persons. The culprits, Atime Orlu, Terhide Kumbul and Mzehemen Jaga were arrested at Luga in Gboko, near Tyogbenda Msa, in Ushongo and Awajir in Konshisha respectively. They were caught operating illegal tax points and extorting the unsuspecting public. They will be charged to court today Monday, 2nd Sept. 2019. It could be recalled that Executive Chairman Benue Internal Revenue Service (BIRS) Mr. Andrew Ayabam had on assumption of office announced a clamp down on all illegal tax points and activities in the state towards sanitizing the tax system. Meanwhile it has further maintained that there exist only 10 tax points in the state, namely: Zaki Biam Inspection Point-Ukum LGA Katsina-Ala Head Bridge Inspection Point – Katsina Ala LGA Branch Atser Inspection Point – Vandeikya LGA North Bank Inspection Point- Makurdi LGA Ade-Igwu, Ogbadibo Inspection Point- Ogbadibo LGA Achoho Inspection Point- Konshisha LGA Adoka Inspection Point- Otukpo LGA Ogobia Inspection Point- Otukpo LGA TyogbendaMsa Inspection Point- Ushongo LGA Naka Inspection Point- Gwer-West LGA   Source:  Lasgidi Online

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