Tobi Aminu – Page 60 – Sunmola David & CO

ICAN Nominates Owoyemi For Award

In recognition for his contributions to the development of the accountancy profession in the country, the Institute of Chartered Accountants of Nigeria (ICAN) has nominated Otunba Lateef Owoyemi, for year 2019 ICAN Award in the Members’ Category. According to a letter personally signed by Alhaji Razak Jaiyeola, president of ICAN, the honour is for Owoyemi’s outstanding contributions to the ideals of the “institute, which include accountability, professionalism, integrity, exemplary leadership and nation building.” The president of the institute added that Owoyemi, who is a former president of the institute, was particularly being honoured for his selfless service towards the growth and development of the accountancy profession in Nigeria. Jaiyeola stated that the award ceremony would take place at Eko Hotels and Suites, Lagos, on April 13, 2019. The president of ICAN disclosed that nominations were received from members of the institute and were carefully reviewed by a committee of the council, which came up with the final recommendations. Source: Independent

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Tax Defaulters To Lose Property To Govt — FIRS Boss

Tax news / Tobi Aminu

Individuals and corporate bodies found guilty of tax evasion are to henceforth lose their properties to the Federal Government, the Chairman, Federal Inland Revenue Services (FIRS), Babatunde Fowler, has said. This was as he equally disclosed that the tax agency surpassed its target for 2018 by generating a total of N5.32 trillion. Fowler disclosed this on Tuesday at a roundtable between the House of Representatives Joint Committee on Aides and Loans, Finance and Appropriations and relevant ministries and agencies on the 2019–2021 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Papers (FSP) in Abuja. While appraising his agency’s performance for the 2018 fiscal calendar, Fowler said the court had, for the first time, granted leave to the service to confiscate properties belonging to tax defaulters and liquidate same with a view to recovering government taxes. “We’ve gotten a court order to start the sale of property of tax defaulters for the first time, and we’re working at commencing that to recover what’s owed to government. “We have shown increased sales in the various tax nets, but we had to slow down, and we’re working on over 55,000 accounts and generating an estimate of about N746 billion. “And, as we continue to use technology to improve the collection process, VAT (Value Added Tax) will continue to improve in remittances and increase revenue flow,” he said. The tax boss also disclosed new innovations being employed to improve tax collection with regards to the deployment of e-services which, he said, were improving ease of compliance by 25 points. “We’re working with the EFCC (Economic and Financial Crimes Commission) on the joint tax board to improve compliance and collection. “Property owners have also been netted and a total of N4.3 billion can be realised in Abuja and Lagos alone,” he said. Source: Independent

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N2b lawsuit: I was forced to pay N7m to FIRS

Tax news / Tobi Aminu

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

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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

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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

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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

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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

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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

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FIRS in N2bn lawsuit over alleged illegal shutdown of company

Tax news / Tobi Aminu

Mr Bharat Vora, a Plaintiff, on Monday prayed a Federal High Court in Abuja to award him N2 billion against the Federal Inland Revenue Service (FIRS) for shutting his business. Vora, the Managing Director of Mutunci Company Nig. Ltd., also asked for the refund of N7 million that he paid FIRS to re-open his factory which they have failed to. The plaintiff, who was prosecution witness number three, and who was led in evidence by his counsel, Mr Sepirido Peters, identified the bundle of exhibits numbered 1-165 given to him by his lawyer. The exhibits, which reflected the stage of proceedings, contained the witness statements on oath, his tax clearance certificates, invoices, ledgers, original copies of sales books, audited documents, among other exhibits. The exhibits were all marked as PW2 (a), 3(aa), 3 (ii) and others. According to Peters, the FIRS “asked the plaintiff to pay taxes on money he never earned,’’ which led to the eventual shut down of the company in 2016. Counsel to the FIRS, Mrs Efe Lawrence, however, did not oppose the identification of documents by the witness. The plaintiff said in his statement that his company was incorporated under the laws of the Federal Republic of Nigeria and carried out operations in Kaduna State. He said they had been in the business of manufacturing and sale of pipes and other accessories. He said that based on a request by the FIRS, he had agreed for a tax audit on the company’s accounts for 2011 and 2012. He said the audit, which began in July 2013, led to the closure of his business in 2016 over payment of taxes on monies he never earned. Source: Pulse

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NIMASA’s tax dispute with NLNG returns to high court

Tax news / Tobi Aminu

The Court of Appeal, Lagos Division, on Friday, set aside a judgment of the Federal High Court in Lagos which exempted the Nigerian Liquefied Natural Gas Limited from levies payable to the Nigerian Maritime Administration and Safety Agency under the NIMASA Act, Cabotage Act, Marine Environment (Sea Protection Levy) Regulations, and other laws of the federation. In a lead judgment by Justice Mohammed Garba, the appellate court ordered the return of the case file to the Federal High Court for fresh hearing. NIMASA’s lead counsel, Chief Lateef Fagbemi (SAN), had contended that the Federal High Court did not give his client fair hearing before arriving at its decisions. The dispute between the NLNG and NIMASA stemmed from the alleged refusal of the NLNG to pay three per cent of the gross freight on all international out-bound and in-bound cargoes carried by ships chartered by the NLNG and its wholly-owned subsidiary company as contained in the NIMASA Act 2007. NIMASA alleged that “the NLNG disregarded the country’s maritime laws, particularly sections of the NIMASA Act that mandates payment of levies based on gross freight on exports and imports and the Cabotage Law.” “Since its inception, the NLNG has cherry-picked our laws. All efforts to get the management to meet its obligations to NIMASA have been treated with impunity,” NIMASA contended. NIMASA had sued the NLNG, praying the court to interpret the relevant provisions of the NLNG (Fiscal Incentives, Guarantees and Assurances) Act, CAP N87, Laws of the Federation of Nigeria 1990, and the NIMASA Act of 2007. In an October 3, 2017 judgment by Justice Mohammed Idris (now Court of Appeal Justice), the Federal High Court in Lagos held that NLNG was not liable to pay three per cent gross freight on in-bound and out-bound cargoes and sea protection levies, among others. But the displeased NIMASA appealed, contending that it did not get a fair hearing. Source: Punch

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