Tax preparation services

The Oyo State Governor, Mr Seyi Makinde, has pleaded for the support of different stakeholders operating in the state on adequate deductions, prompt remittance of taxes and other levies to fulfil his promises on provision of social amenities, enduring infrastructure, regular payment of government obligations and other amenities. Makinde stated this during a one-day sensitisation workshop on computations, deductions and remittances for Federal and State Ministries, Departments and Agencies as well as tertiary institutions in the state held at the House of Chiefs, Secretariats, Ibadan. The governor, who was represented by the Executive Chairman, Oyo State Internal Revenue Service, Mr John Adeleke, reiterated that the intention of the present administration was not going to overburden any business enterprise but would ensure government gets its “fair share of eligible tax revenue.” Makinde said, “Presently, the fluctuations and other complex gyrations of the international oil market and the global economy means unstable and often lower revenue from federal allocation. “The need to look inward to generate enough internal revenue to cater for the much societal demand has never been this much. We count on companies and other businesses to ensure they regularly deduct and remit their employees’ PAYE tax to our treasury. “This will ensure mutual reciprocation of right and duties on the part of all parties. I regard such complying institutions, business and contractors as friends of my government and corporate citizens of this state of enduring opportunities.”   Source: Punch

Indications emerged on Sunday that the Chief of Staff to President Muhammadu Buhari, Mr. Abba Kyari, has queried the Executive Chairman of the Federal Inland Revenue Service, Mr, Babatunde Fowler, over alleged discrepancies in tax collections from 2015 to 2018. A letter dated August 8, 2019, and addressed to the FIRS chairman, which was signed by Kyari, asked Fowler to explain reasons for ‘significant’ variances in budgeted collections and actual collections of tax in 2015, 2016, 2017 and 2018. In the concerned years, the actual amount collected as tax fell below the budgeted target. In 2015, actual collection was N3.7tn, while the budgeted target was N4.5tn. A similar shortfall occurred in 2016, when actual collection was N3.307tn, less than the N4.95tn budgeted target. Also, in 2017, the FIRS collected a total of N4.027tn, less than the set target of N4.89tn. In 2018, actual collection was N5.32tn, while the budgeted target was N6.7tn. Fowler was appointed chairman of the FIRS in August 2015, but his appointment was confirmed by the Senate in December of the same year. The query covers the period he has been in office. His tenure is expected to expire at the end of August, going by the date he was appointed, although there are also suggestions that the expiry date could be December, the month his appointment was confirmed.   Source: Punch

The National Board of Revenue (NBR) has taken an initiative to introduce a mobile application and software, aiming to check cases of tax evasion and increase the number of taxpayers. The revenue-collecting authority thinks launching of the app and software will bring dynamism into the revenue administration, and help bring a large number of eligible taxpayers under the tax net, an NBR senior official told the news agency. According to the existing income tax law, any business entity and service-providing person must hang the taxpayer identification number (TIN) in their offices or business organisations. But it is not practised properly, which causes confusion as to whether the business or service-provider have their TINs or not. “That’s why NBR is planning to make it mandatory to hang tax payment certificate,” said the official. He said using the software, all 649 tax circles will be linked to the mobile app. Through this app, anyone will be able to check whether the tax payment certificate is genuine or effective, or an expired one. “With the app, it will even be possible to lodge complaints with the respective tax circle,” he said. The NBR official hoped when businessmen see customers checking whether they have paid taxes or not, they will feel obliged to pay their taxes. “As a result, revenue collection will increase and tax evasion cases will come down,” he said. Through the app, it would be possible to check the status of tax payment and the certificate will automatically be cancelled in absence of regular payment. Ineffective certificate means the particular person or organisation does not pay tax. “There’s no need to provide extra information in this regard,” the NBR official said. He also mentioned that NBR is trying hard to increase the number of taxpayers to one crore within the next two years. As part of the initiative, a tax survey has started. “Enhancing capability in technology will help us bring more dynamism into tax administration,” the official said.   Source: The Daily Star

Apple is heading to court next month to fight a 13 billion euro ($14.4 billion) tax bill handed down by the European Union in 2016. Europe’s General Court will hear Apple’s appeal on Sept. 17 and 18, Bloomberg reported Friday. The case relates to the bill that the EU Competition Commission ordered Ireland to recoup in August 2016. The commission asserted that the tech giant had an unfair advantage that allowed it pay less tax than it should in Ireland, where its EU headquarters are located.  Apple CEO Tim Cook denounced the tax bill as “political crap” and vowed to appeal. The US government tried, but failed, to intervene. Ireland, which has a tax system that attracts many US tech companies to its shores, also disagrees with the EU’s decision and will argue alongside Apple in court. Apple has already started repaying some of the money the EU says it owes. The money is currently in an escrow account. The company didn’t respond to a request for comment. The case is one of several current appeals against Europe’s tax decisions related to multinational companies. A spokeswoman for the Competition Commission declined to comment.   Source: Cnet

The Federal Inland Revenue Service (FIRS) issued a Public Notice today, 14 August 2019, directing taxpayers, particularly companies in the Fast Moving Consumer Goods sector, to deduct and remit withholding tax and value added tax on the “compensation” due to their distributors, dealers and agents.  The FIRS defines “compensation” to include commission, rebates, etc., granted in the form of cash, credit note or goods-in-trade.  The FIRS claimed, in its Public Notice, that some companies have not been complying with the provisions of the Companies Income Tax (Rates, etc. Deduction at Source (Withholding Tax) Regulations S.1 10 1997 (sic) and Paragraph 3.8 of its Information Circular No. 2006/02 of February 2006.  The FIRS, therefore, noted that it would commence monitoring of compliance with its directive by relevant companies.   Source: Proshare

The Benue state Board of Internal Revenue Service (BIRS) Sunday said it will clamp down on illegal tax collectors. BIRS also stated that it has arrested one Aga Peter for impersonating as a staff of the revenue Board. Chairman of the board, Andrew Ayaban in a statement issued Sunday said the suspect, Mr  Peter was arrested with the assistance of the Police at an illegal check point at Tor Mkar in Konshisha local government area of Benue state, collecting illegal taxes from unsuspecting members of the public.   He said the impersonator at the time of arrest was found in possession of a fake BIRS identity card and illegal receipts with which he defrauded unsuspecting victims. He said the board under his leadership was committed to end the regime of illegal tax activities adding that the gesture has already started yielding results. Ayabam said, in order to reposition the revenue board, he abolished all revenue check points and terminated the contracts by underperforming tax consultants.    Source:  Blueprint

Tobacco-Free Club (TFC), University of Abuja chapter,  has called on the Federal Government to increase tobacco tax to 70 per cent of the commodity’s retail price. Mr Izang Lawrence, former President of the Club, made the call on Monday at a campaign to enlighten Nigerians on the national tobacco control act of 2015, in Abuja. “The government must significantly increase tobacco tax to be at par with the World Health Organisation (WHO) recommended level of 70 per cent of the retail price over the next five years,” he said. He recalled that in October 2005, Nigeria ratified the World Health Organisation Framework Convention on Tobacco Control (FCTC). “The framework recommended many effective ways of controlling tobacco in its various stages and protecting public health. “Till date, a lot of the recommendations of the FCTC, which Nigeria is a signatory to are yet to be implemented by government,” Izang said. According to him, one of the recommendations of the FCTC is about 70 per cent tax increase. But in Nigeria, it is currently around 20 per cent. Izang also called for stiffer laws to prohibit the sale of tobacco to minors and smoking in public places. “We want the prohibition of sale of tobacco products to and by anyone below age 18 and ban on sale of cigarettes in single sticks. “Our tobacco control group will never be tired of asking the government to significantly increase tobacco tax. “The present tax regime is insignificant and insufficient to lead to price increases and will definitely not reduce consumption. “We want prohibition of smoking anywhere on the premises of a child care facility, educational facility and health facility; and other prohibited areas for smoking include playground, amusement parks and other public spaces. “We also want prohibition of tobacco advertising, promotion and sponsorship of any kind,” he said. He urged the Federal Government to begin the process of earmarking a significant fraction of tobacco tax and levies for tobacco control and to educate smokers of the dangers of smoking. Izang described earmarking a fraction of the revenue accruable from tobacco taxes and levies as one of the best practices effective for the promotion of public health. He added that the National Tobacco Control Act 2015 provided for the setting up of the Tobacco Control Fund to implement the National Tobacco Control Regulations. “Nigeria has approved the tobacco control regulations, which will make it possible for the Federal Ministry of Health to implement and enforce the Nigeria Tobacco Control Act of 2015. “We ask that the Federal Government to start the process of earmarking a significant fraction of tobacco taxes and levies for tobacco control and national health coverage,” he said. According to him, the National Tobacco Control Act 2015 provides for the setting up of the tobacco control fund and up till now it has not been implemented. Kenneth Amah, President, TFC, University of Abuja, stressed the need to create more awareness on the dangers of tobacco smoking. Amah said that government had reviewed the standard for cigarettes to include the complete ban on cigarettes with characterizing favour, including menthol.   Source: Sun News