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Critical Tax Considerations for Mergers and Acquisitions
In the current Nigerian business environment, companies face the need to adopt effective strategies to maintain competitiveness, ensure growth, and enhance profitability. Business restructuring is one such strategy to achieve optimal performance. Inefficient business structures, coupled with external factors like poor infrastructure and adverse government policies, can pose significant challenges to companies. Additionally, regulatory requirements…
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Transfer of Business Interests: Understanding the Tax and Regulatory Considerations for Asset Transfers
During the life cycle of a business, decisions to acquire or divest business lines may be made to create synergies or improve financial performance. In the telecommunications industry in Nigeria, major companies engaged in significant asset transfers, selling off around 30,000 base transceiver stations tower assets in deals exceeding US$300 million in 2014/2015. Economic challenges,…
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Effective taxation of the Nigerian informal sector
The Nigerian tax authorities, led by the Federal Inland Revenue Service (FIRS) and State Internal Revenue Services, have been actively working to enhance tax collections and increase government revenue through various schemes and tax amnesty programs. Despite these efforts, the level of tax compliance in Nigeria remains relatively low. A recent report from the International…
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Assessing the implication of Revised Transfer Pricing Regulations on Intangibles
Intangible assets are crucial for businesses, serving as key differentiators that drive revenue, manage costs, or achieve both objectives. Businesses often make substantial investments in developing, enhancing, maintaining, and protecting unique and valuable intangibles to gain a competitive edge. For instance, technology companies invest in Research & Development (R&D) for breakthrough technologies, while consumer markets…
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Elevating Wealth Management: Exploring the Effectiveness of Private Trust Arrangements in Financial Planning
Are you earning income through various streams or investments? Do you want to ensure the tax efficiency of your investments and facilitate a smooth wealth transfer to future generations? If so, strategically managing your investments through a well-structured and properly managed investment vehicle can be a solution. High-net-worth individuals (HNIs) often have diverse investments, including…
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Tax health checks: How important can they be?
Like individuals, businesses should undergo periodic health checks to ensure their survival. This is particularly crucial in the current economic landscape, where the Nigerian government is striving to generate substantial non-oil revenue. With a targeted non-oil revenue of ₦5.51 trillion in 2020, businesses need to proactively address tax compliance and potential risks. This becomes even…
