TAX SERVICES

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

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

Traders at the Abakpa Main Market, Abakaliki, have denied the allegation of tax evasion of levelled against them by officials of the Ebonyi State Government as the reason for invading the market and compliance. The traders spoke at a press conference in Abakaliki on Friday and urged the public to discountenance the allegation of tax evasion by the government. Southern City News recalls that violence erupted between the government officials and the traders when revenue agents forced their way into the market to enforce payment compliance. Mr Pius Mbam, who spoke on behalf of the group, said that traders at the market were law-abiding and always paid their taxes and other government approved revenues promptly. He stated, “We don’t have a problem with the government over tax payment or payment of any approved revenue in the market. Traders in the market are law-abiding, responsible and peaceful citizens, who pay their taxes to the government regularly. “We pay the N14,000 monthly business premises levy and stall fees to the Ebonyi Local Government Council. At no point has the Ebonyi State Government, its agents or privy has approached traders at the market through their leaders or individually over tax evasion or revenue default. “It is strange to us to hear that traders, who are peaceful and law-abiding, attacked Ebonyi revenue collectors, who came to enforce revenue payment compliance and to sanction those who refused to pay their taxes, including the business premises levy. “We are using this medium to inform the world that at no time did traders at the Abakpa Main Market, Abakaliki, defaulted in the payment of taxes or payment of any approved revenue. “We challenge government to show evidence of its claim. “Mr Peter Oba, who is not a shop owner or trader in the market, was brought in and imposed on the traders.” Meanwhile, the Special Assistant to the Governor on Internally Generated Revenue, Martin Ukwuegu, has insisted that the government revenue agents went into the market to enforce revenue payment compliance and denied that no trader was killed during the exercise.   Source: Punch

The popular Abakpa Market in Abakaliki, the Ebonyi State capital, was shut down on Wednesday, following the alleged death of an apprentice. The victim was said to have been beaten to death by persons suspected to be thugs who reportedly accompanied government officials to the market to enforce payment of tax on behalf of the state government. Our Correspondent gathered that the Ebonyi State Government task force had gone to the market to press the marketers to pay their taxes, a situation which resulted to an uprising that eventually led to chaos. During the pandemonium, the source said, policemen drafted to the area teargassed the marketers, even as the aggrieved markers were said to have responded by hauling stones and other dangerous materials. An eyewitness recounted, “Government officials had come around to demand for tax. “When they got to a man’s shop, he was said to have demanded to know what the matter was. This reportedly made one of the thugs who followed the government officials to slap the shop owner. “The man retaliated and they started beating the man, leading to his death. “Policemen have since taken over the market and the market is currently shut down. The Ebonyi State Police Command said it could not confirm the incident as of the time of filing this report. The Command’s spokesperson, Loveth Odah, told journalists in Abakaliki on Wednesday that she would not comment on the matter because her men were yet to return from the crisis scene. Reacting to the incident, the Special Assistant to Ebonyi State Governor on Internally Generated Revenue, Okwuegu Martin, denied the death of one of the traders. He explained that the state government had given the traders several notices to pay up. “They had refused to comply, until the task force embarked on the enforcement drive,” Martin said.   Source: Punch

Tax payment is compulsory for every business owner in Nigeria as well as employed Nigerian citizens. However, it is impossible to pay your tax or open a corporate bank account without your tax identification number (TIN). So, in this article, we will take you through the process of how to get TIN in Nigeria either as an individual or a company. Generally speaking, to get your TIN in Nigeria, all you need to do is:     Visit the nearest FIRS office     Request for the relevant documents or forms involved     Fill the forms correctly     Return the completely filled form to FIRS     Present your valid ID card e.g International passport, National ID card, Voters Card or Drivers license     Submit your passport and fingerprints Nevertheless, we have broken down this process to answer the frequent questions people ask about tax identification number. Ensure you read till the end. What is Tax Identification Number (TIN)? Basically, TIN is a unique number given to an individual, a registered business or incorporated companies for the purpose of tax payment. Usually, the number is issued by the tax office for proper identifications and order. Why Should I get A TIN? TIN is the prove you have to show that you are a registered tax payer in Nigeria. In addition to that, TIN helps you to avoid double taxation because your payment can be traced and verified. Not only that, TIN is required for:     Government loans     Foreign exchange     Tax clearance certificate     Opening corporate account     Application for certificate of occupancy     Application for trade, import and export licenses     Registration of Motor Vehicles   Source: Entrepreneur

A global attempt by more than 120 countries to find a way to more fairly tax global internet giants is moving ahead despite individual countries’ deciding to impose their own tax, says the head of the international organization leading the project. Angel Gurria, secretary general of the Paris-based Organization for Economic Cooperation and Development, said Sunday at the Group of Seven summit in France that “what we are seeing is a very strong and a very clear signal of wanting to find a multilateral solution.” France introduced a 3% tax last month on digital companies that may be headquartered elsewhere but do billions in digital business such as advertising and retail in France. That includes companies like Google, Amazon and Facebook but also big Chinese and French online businesses too. The move has angered U.S. President Donald Trump, who is threatening tariffs on French wine in retaliation. The aim of the French tax is to stop the companies from setting up regional headquarters in low-tax jurisdictions to limit their exposure in high-tax countries like France. The French government says it will drop the tax if there’s a solution in the OECD process, which aims for a result by the end of 2020. France and other countries that have moved toward a tax on digital companies have said they would “sunset” their measures, meaning they would drop them if the OECD talks lead to a result. Under the OECD framework countries are working on a better way to define where companies are taxes. There is also a parallel effort to make sure that multinational corporations pay a minimum level of tax. The 36-country OECD is a source of economic data and brings together member and partner countries to work together on key global issues.   Source: Dayton Daily News