As most businesses in Nigeria are on lockdown, economic activities have reduced. Low economic activities hurt fiscal revenue and cash flow. To boost tax revenue, the Federal Inland Revenue Service (FIRS) has granted a palliative measure to taxpayers with outstanding tax liabilities from desk review, tax audit, and investigation. Taxpayers with outstanding tax balances will…
As at 31 March 2020, Nigeria confirmed 139 cases of coronavirus (COVID-19). The pandemic reduced the level of economic activities in Nigeria within a couple of days. Businesses and individuals providing non-essential goods as well as services were advised to close operations and stay at home. Social distancing, proper hygiene, and self-isolation were safety tips…
Nigeria has joined a host of other countries around the globe that have rolled out economic palliatives in response to the COVID-19 pandemic. Five (5) regulatory bodies have extended the time to file statutory returns while Nigerian lawmakers have proposed a Bill to improve the economic welfare of businesses and individuals. Federal Inland Revenue Service…
One of the objectives of the Nigerian tax system is Flexibility. Taxes in Nigeria should be flexible enough to respond to the changing environment. Taxpayers are a major stakeholder in the Nigerian tax system. Without taxpayers or taxable activities in the economy, there will be minimal need for tax authorities. Work-from-home policy, supply-chain interruptions, restricted…
Taxpayer identification number (TIN) is a unique number issued to a business or individual for tax purposes. After a new business registers with the Corporate Affairs Commission, the regulatory authority will generate TIN on the portal. A taxpayer can also verify TIN details and print a TIN certificate from the TIN Verification Portal. Section 3 of…
On 22 January 2020, the Tax Appeal Tribunal in South-South zone decided that a tax authority is not allowed to carry out PAYE tax audit on a taxpayer beyond 6 years except in cases of fraud, wilful default or neglect; in the case between DeltaAfrik Engineering Nigeria and Akwa Ibom State Board of Internal Revenue. …
The Federal Government of Nigeria (FGN) has published the Finance Act, 2019, in the Official Gazette. FGN amended the provisions of seven tax laws in a single Act. While President Muhammadu Buhari signed the Finance Act into law on 13 January 2020, the Minister of Finance earlier announced that the Act would be effective 1…
Recently, the Federal Inland Revenue Service (FIRS) issued a public notice on the filing of tax returns based on segment. Before a taxpayer can pay tax in Nigeria, the company or individual must register for taxes with the relevant tax authority. There are two types of tax authorities in Nigeria. First, FIRS administers taxes payable to the…
Paying taxes is one of the four parameters that need major reform in the Ease of Doing Business in Nigeria. A taxpayer in Nigeria needs 347.4 hours to complete the tax compliance cycle which makes the country ranks as 159th out of 190 economies. Research also shows that a higher amount of government control in…
President Muhammadu Buhari signed the 2020 Budget into law on 17 December 2019 within two months after the first presentation at the National Assembly. The 2020 Budget shows a total expenditure of ₦10.59 trillion while the total revenue is ₦8.31 trillion creating a deficit of ₦2.18 trillion. Federal Government will allocate more expenditure to provide…