Tobi Aminu

The Chartered Institute of Taxation of Nigeria, CITN, has berated firms and government agencies for tax default. Ikemefuna Ede, President, CITN, expressed concern over an audit report indicting the National Assembly and some government agencies over tax default. Speaking during the annual general meeting of the institute, Ede said the development was “worrisome” and contradicted government efforts in enforcing compliance from individuals and corporate organisations. “Of momentous concern to the institute was the revelation from an audit report by Auditor-General of the Federation submitted to the National Assembly in 2018 that the Presidency; both chambers of the National Assembly; the Economic and Financial Crimes Commission; and over 100 other ministries, departments and agencies defaulted in remitting various taxes, including VAT and withholding taxes deducted from their contractors and PAYE of their members of staff.” Ede, however, expressed satisfaction at the financial position of the organisation. Samuel Agbetuyi, treasurer, CITN, presented the 2018 financial position at the meeting. The finances showed that the professional tax body grew its total income by 43 percent from N399 million in 2017 to N570 million in 2018. The breakdown showed that the organisation recorded 62 percent increase in membership fees from N167.361 million to N270.6 million, while self-financing programmes had an increase of 40 percent from N172.95 million to N242.566 million between 2017 and 2018 respectively. In the year under review, however, it experienced dip in the money market, especially on treasury bills and fixed deposit, resulting in “significant fall in the investment income representing 33 percent decrease”. The total expenditures for the year under review showed the organisation incurred 28 percent increase over 2017.   Source: Real news Magazine

The Rivers State Internal Revenue Service has warned professionals and artisans operating in the state to avoid mistaking their professional fees and dues for state taxes and levies. RIRS Chairman, Mr Adoage Norteh, who issued this warning during a two-day interactive session with professionals and artisans in Port Harcourt, the capital, explained that professional fees and levies were meant for their unions, taxies and levies were meant for the development of the state. Norteh pointed out that while taxes to the state remained compulsory and defaulters could be arrested and prosecuted, the same could not be said of professional dues that are paid to professional bodies or artisan associations. He also said it was wrong for unions to collect taxes from their members and pay to the RIRS, adding that such act was unacceptable. He said, “Taxes are not union or association dues. When we talk about payment of tax; it is one that is compulsory for everybody that is qualified to pay tax. “There is a big difference between association dues like professional fees and state taxes. We must not mistake one for the other. “Again, some unions want to collect taxes from their members and pay to us, this is not acceptable. The unions and professional bodies are not tax assessors.” Norteh also urged tax payers to avoid paying taxes through anybody, adding that taxes were to be paid into a recognised state account by tax payers. He added, “It is expected that you as a tax payer must find out the source of a tax before you pay. Don’t pay cash to anybody; pay to a recognised account of the state.” The RIRS chairman also dismissed the belief in some quarters that collecting taxes would drive away businesses from the state, adding that habitual tax evaders were always at the forefront of criticising government. He urged those, who were unfairly assessed in the area of tax payment, to object and seek reassessment within 30 days of getting such tax evaluation. In his remark, a professional architect, Mr Asombe Egwuonu, observed that some of the tax demands in the state were high, adding that some persons could decide to operate from their homes if the situation did not change. Egwuonu, however, thanked RIRS for organising the interactive session to sensitise the people to a new tax regime in the state.   Source: Punch

The Tax Appeal Tribunal, South East Zone yesterday ruled that gratuities are tax exempted under the Personal Income Tax Act (PITA). Nigerian Breweries PLC in 2017 filed an appeal before the tribunal challenging the decision of the Abia State Board Internal Revenue to tax gratuities paid to its employees, contending that the Abia government erred when it assessed its employees to tax on gratuities paid by them. It argued through its counsel, Moshood Olajide that gratuities were no longer taxable, and therefore, remained the extant position in the PITA 2011 (as amended) and urged the tribunal to discharge the assessment notice issued by the respondent and declare that by virtue of Decree 1996, all gratuities in tax are exempted. But, Abia state government through its counsel, Obike Onyemeru urged the tribunal to dismiss the appeal and sustain the demand notice. Delivering judgment in the appeal, the three-man panel of tribunal agreed with the submissions of the appellant and resolved the three grounds in his favour. Chairman of the tribunal, Chukwuemeka Eze who read the judgment cited the decision of the supreme court which held that “it has been settled principle of statutory interpretation that although schedules of a statute can be useful handmaid in construing the provisions of a statute, they cannot however be interpreted to over-rule the plain words in the body of the statute,” and held that Paragraph 18(b) of the 3rd Schedule to the PITA does not apply to the appellant.   Source: Guardian

In line with its commitment to deepen the capacity and growth of businesses in Nigeria, particularly Small and Medium Scale Enterprises (SMEs), First City Monument Bank (FCMB) will next week in Lagos, host a seminar on tax matters. The seminar, tagged, “Tax Enforcement and Implications on Businesses in Nigeria,” is aimed at equipping entrepreneurs with requisite knowledge on taxation by promoting the exchange of ideas between tax regulators and businesses on existing and emerging tax matters to ensure compliance and avoid sanctions. The one-day seminar would have in attendance SMEs operating in various sectors, including, trading, manufacturing, agribusiness, renewable energy, creative industry, digital technology, healthcare, schools and individuals running businesses in their personal names or accounts. The Guest Speaker is the Director of Enforcement, Federal Inland Revenue Service (FIRS), Mr. Emeka Obiagwu. In a statement, FCMB said topical issues relating to the country’s tax system and laws as well as other fiscal policies that impact on the profitability and overall success of businesses would be discussed at the seminar by the guest speaker and other professionals. It would also provide an opportunity for entrepreneurs to understand their rights and responsibilities, especially as regards taxes, such as withholding tax and value added tax, among others. There would also be a session by FCMB Pensions Limited to enlighten participants on new pension initiatives in the country, the implications for SMEs and the attendant benefits. Responding to inquiries about the seminar, the Executive Director, Business Development of FCMB, Mrs. Bukola Smith, was quoted to have reiterated the commitment of the bank to go the extra mile to empower businesses with relevant technical and financial know-how that would boost their performance and contribution to national development. According to her: “As the dynamics of taxation continues to change in Nigeria, we recognise that many businesses, especially SMEs, in the country are not equipped with the requisite information and knowledge to discharge their responsibilities in this area appropriately. “It is based on this reality that we decided to organise a seminar on tax matters, which will go a long way towards helping SMEs to understand taxation and the processes involved better.”   Source: This days