TAX SERVICES

The Tax Appeal Tribunal sitting in Abuja, on Tuesday fixed Aug. 16, for Report of Settlement a suit filed by a company, “M FIFTEEN” Consultants against the Federal Inland Revenue Service (FIRS) and one other. The company dragged the FIRS, before the Tax Appeal Tribunal over alleged double taxation. Also joined in the suit are the Independent Electoral Commission (INEC) and the Nigeria Police. The company, said it was dissatisfied with the FIRS assessments of its Tax Liability. The Chairman of the tribunal, Mrs Alice Iriogbe, fixed the date after the appellant’s counsel, Mr Ifegbunachi Onwo, said parties had started and were currently taking steps to settle out of court. Iriogbe said: “since parties are disposed to settlement, the matter is adjourned until Aug. 16 for Report of settlement or continuation of hearing”. Earlier, Onwo sought for an adjournment to enable parties to meet and cement details. Also, the respondent’s counsel, Mr Adebayo Ogunmola, told the tribunal that there was a partial position as the appellant counsel had called him twice but parties have not been able to meet, he further stated that they were fully disposed to settlement and hoped it would not be a total waste of time. Also, INEC’s counsel, Mr Nnamdi Onyenwu, submitted that he was ready to incorporate the first respondent counsel’s position and was ready to align with the decision of other parties. NAN also reports that the company specifically said that it was dissatisfied with an intent letter by the FIRS imposing a tax liability of N14. 662 million on it without due consideration of all the material and available facts. The company further stated that the N7. 9 million captured as part of the tax liability have already been deducted at source by the FIRS and the police from the contract sum of the appellant. The company argued that it would amount to double taxation if FIRS expected the appellant to pay same again. It therefore sought the order of the tribunal to declare as null and void, the intent letter by FIRS dated April 7, 2014 . The company also sought an order of the tribunal directing INEC and the Police to show evidence of remittances to FIRS of the sums deducted from the payments made by the appellant in respect of contract executed. The appellant also asked the tribunal to direct that credit should be given to the appellant in respect of the tax deductions made on payments due to it from the INEC and the Police totalling N7. 9 million. The company further sought an order directing FIRS to issue it a tax clearance certificate which was withheld for the 2006 to 2011 year of assessment. Source: Leadership

A law firm, SimmonsCooper Partners, alleged by a newspaper report to be associated with or involved in a N100 billion tax evasion scandal with Alpha Beta Consulting Limited, has refuted the allegations and given the newspaper 72 hours to retract the accusation or face legal actions for defamation and malicious falsehood. The report alleged the law firm, formerly headed by Prof. Yemi Osinbajo SAN, before he was elected the Vice President of Nigeria, served as Company Secretary to Alpha Beta Consulting Ltd. In a statement signed by the Managing Partner of SimmonsCooper Partners, Mr Dapo Akinosun, yesterday, the law firm refuted the story, stating that it is not involved neither does it have a link with the alleged tax evasion. He further stated that the firm has never been retained by Ocean Trust Limited to offer secretarial services as alleged by the newspaper report. “As is custom with filings as Company Secretary, there is no acceptance letter by the firm consenting to the purported appointment, or any other filing undertaken by the firm as Company Secretary at the registry of the Corporate Affairs Commission”, he said. Akinosun acknowledged Osinbajo as a “one-time senior partner” of the law firm who resigned from the firm upon his election as Vice President of Nigeria, in line with international best practices. “SimmonsCooper Partners is a product of the combination of her members’ intellectual capital, industry and integrity garnered for several years. We are proud that Osinbajo continues to epitomize these values even in public service. “SimmonsCooper Partners intends to seek redress to the fullest extent available in law and has requested the newspaper to do all of the following: Remove from publication in their entirety the defamatory publication and all online threads to prevent further harm to the firm’s business; produce an apology and a declaration that the allegations referred to are false and defamatory and cause such apology to be published in each of the forums which have given or could give reason for our complaint; make proposals for the payment to us of damages for the harm caused to our reputation; and undertake to actively monitor and delete any newly published defamatory content relating to the firm. “If the defamatory publication and threads are not permanently removed and the above undertakings are not complied within the stipulated period, SimmonsCooper Partners reserves the right to undertake further action as appropriate.”   Source:  guardian

The Joint Tax Board (JTB) Chairman, Mr. Tunde Fowler, on Thursday, expressed optimism that 45 million Nigerians would be within the taxpayers’ net before the end of the third quarter of 2019. Fowler disclosed this at the inauguration ceremony of the new South West Regional National Taxpayer Identification Number (TIN) registration system and consolidated national taxpayers’ database in Lagos. Fowler, who is also the Executive Chairman, Federal Inland Revenue Service (FIRS), explained that the new system would promote a tax-friendly environment. He noted that the last four years had seen the expansion of the tax base from 10 million to 20 million tax payers with the potential for an increase of up to 45 million before the end of the third quarter. The JTB boss added that there had been growth in the Internal Generated Revenue of states by 46.11 per cent from N800.02 billion in 2016 to N1.16 trillion in 2018. According to him, growth in FIRS collections increased by 53.81 per cent from N3.30 trillion in 2016 to N5.32 trillion in 2018; with the 2018 total collection of N5.32 trillion being the highest collection ever in the history of FIRS. He said non-oil revenue accounted for 54 per cent with a collection of N2.85 trillion during the period. “We hope that this gesture will encourage state governments to also promptly remit all Withholding Taxes and VAT due to the Federation Account,” Fowler stated. Fowler said the new system would reinforce the laudable efforts of the present administration towards building a robust tax-revenue system, promoting a tax-friendly environment. He added that the system will also ensure a sustainable and inclusive economy for all Nigerians. Fowler noted that the new tax system, while improving the efficiency and output of the entire tax administration process, was meant to provide convenience to both the taxpayers and the tax administrator. He said the new system guaranteed that each taxpayer’s details were readily available to them at their fingertips all times. Fowler stated that the South West Geopolitical Zone was the largest contributor to total IGR collection at the sub-national level with 45.6 per cent contribution in 2018. He added that Lagos State had continued to carve a niche for itself in terms of innovation and dynamism in tax administration. Fowler said the new system would consolidate the efficiency and effectiveness of the tax administration process. The JTB Executive Secretary, Mr Oseni Elamah, said the dynamics of change globally, especially as it related to information and communications technology had made it imperative that domestic tax-revenue the administration met up with emerging trends. Elamah said the new TIN Registration System and its consolidated database of individual and corporate taxpayers’ had been designed to form the foundation upon which the nation’s automated tax administration system was built. “The new system is a web-based solution that offers access to authorised users to initiate a TIN request from the comfort of their homes/offices real-time online, verify their tax status and print their TIN certificate. “It is a transparent system that assures timely and accurate collection and recording of basic identification data. “It also permits the tax administrator to understand its taxpayer base for effective revenue projections and other planning activities. “By leveraging on existing data from relevant identity management agencies, the new system reduces the burden of multiple registrations of taxpayers as well as promoting the ease of doing business and paying taxes,” Elamah said. Also speaking, Lagos State Governor, Mr. Babajide Sanwo-Olu, said identity management (IM) had been a major challenge in virtually all spheres of activities in the country and tax administration was no exception. Sanwo-Olu stated that the new JTB National TIN Registration System was a welcome addition to reforms focused on taking identity management and tax administration in Nigeria to the next level. He agreed that Nigeria’s tax revenues continued to underperform their actual potential, and that Nigeria tax-to-GDP ratio was one of the lowest in the world at less than seven per cent. The governor commended JTB for rising up to the challenge with the introduction of a smart, innovative and technology-driven the solution that was credible and had the added benefit of universal acceptability.   Source:  Daily times

The Lagos Internal Revenue Service (LIRS) following a tax audit for 2013 and 2014 years of assessment issued a Notice of Refusal to Amend (NORA) to Nexen Petroleum Nigeria Limited (“the company”). The LIRS assessed the company to additional liabilities on the grounds that the company had under remitted Pay As You Earn (PAYE) tax by taking statutory tax relief for Voluntary Pension Contributions (VPCs) made by its employees to pension fund administrators (PFA). Pension: The Tax Appeal Tribunal’s decision addressed the following key issues: That all pension contributions, including voluntary pension contributions without any limit, are tax deductible There is no requirement for the employer to ensure that VPC was not withdrawn by the employee within a period of time to qualify for tax deduction on the contribution. That the agency responsibility of an employer to deduct and remit PAYE does not extend to any tax that may become payable upon withdrawal of voluntary pension contributions by an employee from the PFA. This implies that where any withdrawal of voluntary pension is taxable, it is the employee who will be responsible for the tax. It does not however preclude the tax authority from appointing a valid agent (including the employer) for future deduction of any applicable tax on such withdrawal.   Source: Mondaq

Tunde Fowler, Chairman, Federal Inland Revenue Service (FIRS) has announced the possibility of the agency to increase the country’s tax base by over 100 percent to 45 million before the end of  Q3 2019, a target which would hopefully expand the country’s low tax revenues. Nigeria’s has a low tax base currently put at about 20 million with its tax to GDP one of the world’s lowest at 7 percent, according to official figures. Fowler speaking at the official flag off of the new National Taxpayer Identification Number (TIN) Registration System on Monday in Abuja, said that the tax-revenue administration has evolved into a Systematic and deliberate process that is underpinned by the availability of accurate and reliable data and would now help expand the database of the taxpayers He said “The new tax revenue administration system entails deliberate and strategic planning initiatives with the potential for an increase of up to 45 million before the end of the third quarter of 2019”. The chairman explained that the new reality drives the desire by the Joint Tax Board to ensure that the identification of individuals and corporate bodies in Nigeria is achievable adding access to credible and reliable data is essential to ensure that the revenue potentials of the country is maximally harnessed. “The role that data plays in today’s world cannot be overemphasized, and for the revenue potentials of the country to be maximally harnessed, it is also essential to facilitate the ease of doing business and for the nation to achieve its overarching economic objectives in line with the Economic Recovery and Growth Plan (ERGP)”. “We are confident that the new system will add immense value to tax-revenue administration in the country, not only in terms of processes and procedures, but in terms of efficiency and ensuring a coordinated and systematic approach towards managing revenue generation as well as tax information sharing between and among tax authorities both within and outside the country”, he added.  Fowler speaking further stressed  that the new system also provides lmménse benefits to the taxpayers as it provides consolidated database as well as facilitates ease of compliance and limits the incidence of double taxation and is a prerequisite for a number of transactions such as sale and purchase of immoveable property, registration of vehicles’ applications for plot of land. “While we are yet to take delivery of taxpayer data from some of the organizations such as the Central Bank of Nigeria (CBN) via the Nigeria InterBank Settlement System (NIBBS), and the National Identity Management Commission (NIMC), we believe that today’s ceremony will reinforce the need for us to work together as one to promote the Economic and Recovery Growth Plan of the President”, he said. He noted the achievements made so far said the agency has recorded expansion of the tax base from 10 million to 20 million taxpayers in 2018, as well as growth in the IGR of States by over 46.11% from N800.02 billion in 2016 to 141.16 trillion in 2018 and growth of FIRS collections from N3.30 trillion in 2016 to N5.32 trillion in 2018; with the 2018 total collection of N5.32 trillion being the highest collection ever In the history of the FIRS. In the Tax Administration Section of World Bank ‘Ease of Doing Business’, Nigeria moved up positively by 25 points during the period and it is expected that the country would further move up the rankings by the time the review for 2019 is published. “Today’s event which has brought together all Tax Authorities with a common vision and goal, is poised to change the financial profile of Nigeria and particularly, lay a strong financial foundation to fund government at all tiers beyond aid, grants and borrowing”   Source: Business day