One of the main challenge facing the Nigeria Police is funding. President Muhammadu Buhari recently signed a new Act that creates additional source of revenue for the Nigeria Police. The Nigeria Police Trust Fund (Establishment) Act, 2019 aims to create a special intervention fund for the training of the Nigeria Police personnel, provision of equipment,…
The National Office for Technology Acquisition and Promotion (NOTAP) has automated the process for registering technology transfer agreements. As a regulatory body established under the NOTAP Act of 2004, NOTAP monitors the transfer of foreign technology into Nigeria. Other functions include evaluating and registering technology transfer contracts between a company and a foreign entity. Regulatory…
The Tax Appeal Tribunal (TAT) on 21 August 2019 ruled that a taxpayer can pay a tax audit liability when the process for issuing the assessment is in line with the tax law; in the case between Polaris Bank Plc. (Polaris) and the Abia State Board of Internal Revenue (ABIABIR). ABIABIR issued a demand notice…
Federal Inland Revenue Service (FIRS) has issued a public notice that requires companies to deduct withholding tax (WHT) and value added tax (VAT) on payment to agents, dealers, distributors, and retailers. Companies, especially those in the Fast Moving Consumer Goods (FMCG) industry are expected to deduct WHT and VAT at the correct rates on compensation,…
Federal Inland Revenue Service (FIRS) has issued a notice on how it intends to recover unpaid tax from certain companies. These are companies that are yet to regularize their tax affairs despite the lien placed on their corporate bank accounts. The notice serves as a final reminder as FIRS raised a public alert earlier in…
Our previous article discussed the theory of capital allowance in Nigeria. Now, we shall consider four (4) examples on how to calculate capital allowance in Nigeria. Question 1: In January 2022, Company Bee bought plant and machinery for NGN 5,000,000. The financial year of Company Bee ends on 31 December. Calculate the capital allowance….
On 24 June 2019, the Court of Appeal (CoA), supported the ruling of the Federal High Court (FHC), in Vodacom Business Nigeria Limited (Vodacom) and Federal Inland Revenue Service (FIRS) on the issue of value-added tax (VAT) on imported services rendered by a non-resident company outside Nigeria. A non-resident company (NRC) is a company incorporated…
As a fiscal measure to encourage investment in the capital market, the Federal Government of Nigeria issued the VAT (Exemption of Commissions on Stock Exchange Transactions) Order, 2014 (Exemption Order) on 25 July 2014. The Exemption Order amended the First Schedule of the Value Added Tax (VAT) Act 2004. All commissions on capital market transactions…
The Court of Appeal has overruled the decision of the Federal High Court (“FHC”) in Stanbic IBTC Holdings Plc (“Stanbic”) vs Financial Reporting Council of Nigeria (FRCN) & Anor (2015), which declared that failure to get approval from NOTAP for the registration of a contract made the contract illegitimate and invalid. Hence, Stanbic could not…
June is one of the busiest tax filing seasons in Nigeria. It is the deadline for filing companies income tax (CIT) returns for taxpayers with financial year-end of 31 December. For companies with connected persons, it also the deadline for filing the Transfer Pricing (TP) returns. Specifically, the due date for filing the CIT and…