TAX SERVICES

General private nurses in Nasarawa State have complained of harassment and multiple taxation hampering the work of nursing and maternity homes. Chairman of the Association of General Private Nursing Practitioners (AGPNP) in Nasarawa, Angbas Stephen, listed the issues in its run-in with state officials at a meeting of the association’s national executive council in Karu. He said one of their challenges is: “The harassment by the inspectorate unit preventing the use of ultra sound as a diagnostic instrument in our facilities.” Nasarawa regulation requires signage indicating facilities where surgeries can legally be carried out. “The placement of plaques on the frontage of nursing and maternity homes bearing the inscription ‘No surgery here/Babu fida a nan’ is derogatory to the image of the nursing practice,” said Stephen. He said the nursing homes were suffering multiple taxation from local government officials at the same time the state ministry of health had hiked fees for licence renewal, charging the same as for hospitals. “There are no differences in the renewal feeds from the hospital and lower cadre of the health establishment in the state. Whether a hospital or clinic, it pays flat rate annually apart from other taxations in the state,” said Stephen. The association also complained about barriers to upgrade, saying presently nursing-and-maternity homes were unable to be “upgraded to hospital status, if they have the ability to do so.” Despite the issues, Stephen said the association’s relationship with “our parent ministry is cordial.”   Source: daily trust

Barring any last minute delay, the Technical Committee of the National Tax Policy Implementation Committee (NTPIC) will soon present a Finance Bill and Policy Note to the Minister of Finance and Budget Planning. Indication to this was disclosed at the second sitting of the committee, Tuesday at the Federal Inland Revenue Service (FIRS), Headquarters in Abuja, by the Deputy Chairman of the technical committee, Dr. Bode Oyetude, who said that the sub-committee would finish its work in the next 10 to 15 days. “This is the second committee meeting we are having and we hope to bring it to a close in the next 10 to 15 days. We are working to put up a finance bill and policy note to the Minister of Finance, that would raise revenue and reduce the cost of doing business in Nigeria, deal with some areas of tax inequity, international taxation including profit shifting and base erosion”. At its inauguration, Executive Chairman of FIRS, Tunde Fowler, charged the technical committee to work harmoniously to achieve the desired result. “I charge the Chairman and members of the Technical Committee with the responsibility of accelerating the drafting and submission of a draft Finance Bill (and if deemed necessary, any draft Executive Order (s), to harmonise the various tax and excise law reform efforts. It is our expectation that the Technical Committee will work assiduously over the next few weeks to produce a singular set of fiscal measures that will be considered and approved by the reconstituted NTPIC. Once agreed, these fiscal measures are to be submitted to the Economic Management Team and the Federal Executive Council for approval and ultimate transmission to the National Assembly, for passage into law as part of the efforts to support the 2020 Executive Budget Proposal.” The general committee is headed by Fowler with the Comptroller-General of Customs, Ahmadu Ali, as the Deputy Chairman, while Ambassador Adeolu Dipeolu who is also the Special Adviser to President Muhammadu Buhari on Economic Matters in the Vice President’s Office is the Chairman of the Technical-Sub-Committee.   Source: Sun News

The Institute of Chartered Accountants of Nigeria has said its forthcoming conference will focus on Nigeria’s growth and sustainable development. ICAN said in a statement that eminent personalities would converge on Abuja next week for its 47th Annual Accountants’ Conference, with the theme ‘Building Nigeria for Sustainable Growth and Development’. It said the theme was specifically chosen to evolve ways to strengthen institutional framework to support government’s anti-corruption drive and to chart a new strategy to overcome security and infrastructural challenges in the country.  The institute said the lead paper, titled ‘Strengthening Institutional Framework to Support Anti-Corruption Drive’, would be delivered by the Kenyan anti-corruption czar, Prof. Patrick Lumumba, who would provide an insight into some of the key global trends and reforms aimed at enhancing transparency and accountability in state and economic institutions.  According to the statement, the second paper, ‘Disruptive Innovations: Challenges and Opportunities in the Accounting Profession’, hopes to dissect innovative technologies such as robotics, artificial intelligence, cloud computing, machine learning, block chain, data analytics, as the greatest disruptor of the accounting profession in this age.  ICAN noted that the Federal Inland Revenue Service recently issued letters of substitution to commercial banks in Nigeria, appointing them as tax-collecting agents for certain listed customers maintaining accounts with such banks.  It said the third paper, ‘The FIRS Power of Substitution: Critical Review and Matters Arising’, would review the legality or otherwise of the substitution powers of the FIRS to appoint banks as collecting agents and whether the FIRS has the power to instruct banks to freeze the account of tax defaulters.  The institute said a paper would also be presented on public accountability as a driver of transparent leadership and governance.  It said the paper would discuss issues bordering on accountability and proffer suggestions for improved public accountability to stimulate transparent leadership and governance in the country.  According to the statement, the conference will offer a platform for experts and professionals to rub minds on how to make accountability the watchword in governance and financial transactions.   Source: Punch

Many fleets, businesses, transit agencies and school districts eagerly await the beginning of the September congressional work period, the next opportunity for Congress to extend the expired Alternative Fuels Tax Credit. Preserving our environment must be a national priority, and investment in proven on-road technology depends on maintaining cost efficiency. The credit on the sale of certain alternative transportation fuels is key to ensuring fleets, delivery trucks, waste-hauling vehicles, school and transit buses operate on clean alternative fuels. It allows businesses, large and small, to invest in cleaner but more expensive vehicles. The credit has lapsed for over 20 months, even though it has bipartisan support in both chambers. Congressional action is crucial. We ask that these tax credits be extended as soon as possible to restore consistency, clarity and parity in the federal tax code — so that fleets have added incentive to switch to clean, abundant domestic fuels such as propane autogas and natural gas.   Source: Autonews

Dangote and other private companies are set to access 50% of expenditure in tax credit from the Federal Inland Revenue Service (FIRS). According to FIRS executive chairman, Tunde Fowler, the plan is to solve infrastructural deficit in the country by reducing the actual amount of tax to be paid by private companies, while these companies also share the cost of infrastructural projects with the Government. The details: While speaking in Abuja, Fowler stated that more than 10 local companies had applied for the scheme to receive 50% of expenditure in tax credits. He said the plan was to make sure that those companies get 50% of expenditure in tax credit.   Providing further details on the biggest benefactors from this arrangement, Fowler stated that only two companies have benefitted from the partnership of receiving tax credits for infrastructure projects thus far, Dangote Group was mentioned and another anonymous company. Alluding that the arrangement may reduce the amounts he collects,  “It may reduce the amount of my collections initially, but … as I expand my tax net, I would make up for that reduction, we believe we would generate more revenues from the additional infrastructure that would be created,” he stated.   Improving Revenue: Basically, oil revenue has been depleting in recent times with high cost of debt servicing, and the government has been making moves to explore other sources to boost revenue away from crude sales.   Fowler, speaking further said a move to include value added tax (VAT) on all online transactions was expected to come into force in January 2020. He said e-commerce was, at present, a tax loophole.   “There are a lot of areas that are not yet captured, I believe that Nigeria should review the VAT rate to 7.5%,” he said, though any such change would have to be implemented by the government.”  What this means: The tax credit scheme was signed into law, under an executive order, by President Muhammadu Buhari in January. With the arrangement, companies who agree to share the cost of infrastructural projects with the Government will not have to worry about paying 50% of cost incurred on road construction and related public goods.   Source: Nairametric

The Technical Committee of the National Tax Policy Implementation Committee will soon present a bill to the Minister of Finance and National Planning, Mrs Zainab Ahmed, that will harmonise all taxes to enhance ease of doing business in the country. The Deputy Chairman of the committee, Dr Bode Oyetunde, said this during the second meeting of the group, held at the head office of the Federal Inland Revenue Service. Oyetunde said that the sub-committee would finish its work in the next 10 to 15 days, adding that the bill would lead to an increase the country’s revenue.  The bill when approved by the finance minister would be sent to the Federal Executive Council for consideration and approval before it would be forwarded to the National Assembly for legislative scrutiny. Oyetunde said the bill when approved would also assist the Federal Government in reducing the cost of doing business in the country. He said the bill, when passed into law by the National Assembly, would also deal with some areas of tax inequity, as well as address some grey areas in international taxation such as profit shifting and base erosion. Base erosion and profit shifting refers to corporate tax planning strategies used by multinationals to move profits from higher tax jurisdictions to lower tax jurisdictions, thus eroding the tax base of the higher tax jurisdictions. He said, “We are working to put up a finance bill and policy note to the minister of finance that will raise revenue and reduce the cost of doing business in Nigeria; deal with some areas of tax inequity; deal with some areas in international taxation like profit shifting and base erosion.” The general committee is headed by the Executive Chairman of FIRS, Tunde Fowler, while the Comptroller-General of Customs, Hameed Ali, is the deputy chairman. The Special Adviser to President Muhammadu Buhari on Economic Matters in Vice President’s Office, Adeolu Dipeolu, is the chairman of the technical sub-committee. Fowler had during the inauguration of the technical sub-committee charged members to work harmoniously to achieve the desired results.   Source: Punch