LIRS clarifies the definition of reasonable removal expenses for the purpose of tax exemption
The Lagos State Internal Revenue Service (LIRS) recently issued a public notice to all employers, company owners and their representatives, employees, high net worth individuals and other members of the public to clarify the definition of reasonable removal expenses for the purpose of tax exemption. LIRS cited Section 4(3)(c) of Personal Income Tax Act, LFN Cap P8 2004 as amended, which exempts “reasonable removal expenses” from tax.
Microfinance banks and the VAT legislation: Is there a case for exemption?
Introduction The primary aim of new National Tax Policy is to introduce new strategies that will enable government achieve its objectives of creating an enabling environment for businesses to thrive while simplifying the tax system. This underlying principle is expected to be applied in the purposive interpretation of ambiguous provisions of the tax laws.
Pioneer status incentive scheme in Nigeria: Wider coverage with weightier conditions – any grey areas?
The Federal Government of Nigeria approved the eligibility of 27 additional industries for possible grant of tax holiday under the pioneer status incentive at the Federal Executive Council meeting held on Wednesday, 2 August 2017. Following FEC’s approval, the Minister of Industry, Trade and Investment announced on Monday, 7 August 2017, the lifting of administrative suspension on approval of pioneer status incentive (PSI) application.
National Identification Number becomes a prerequisite for processing Nigerian passport
The Nigeria Immigration Service (NIS), on Wednesday, 2 August 2017, announced that with effect from 1 January 2018, individuals who intend to obtain Nigerian passports or renew expired passports would be required to provide their National Identification Number (NIN), issued by the National Identity Management Commission (NIMC).
Tackling tax leakages in the 21st Century – What lessons can Nigeria learn from the OECD (3)?
The last two editions of our InsideTax publication have focused on tackling tax leakages in the 21st century. Without doubt, the need for revenue authorities to develop awareness of possible sources of tax leakages in this era and evaluate tenable approaches at combating the problem cannot be over-emphasized. Specifically, in the last edition, we considered a common tax evasion scheme – sales suppression – vis-à-vis the various ways in which it can manifest, consequences and technology-based counter measures prescribed by the Organisation for Economic Cooperation and Development (OECD).
FG grants 27 new industries eligibility for pioneer tax incentive
The Federal Executive Council (FEC) of Nigeria has approved a new list of industries and products that could benefit from tax exemption available under the pioneer incentive scheme. Companies and products granted pioneer incentives enjoy three-year tax holiday which may be extended to five years subject to meeting required conditions.
Nigeria signs double tax agreement with Singapore
Pursuant to the approval given by the Federal Executive Council in 2016, the Federal Government of Nigeria signed a double taxation treaty (DTT) with the government of Singapore on Wednesday, 2 August 2017. The DTT is aimed at eliminating or providing relief for double taxation on income of companies and individuals that are resident in either country.
VAIDS: SEC moves to enforce compliance by CMO
The Securities and Exchange Commission (SEC or the Commission) on 25 July 2017, issued a general circular mandating Capital Market Operators (CMO) and Public Limited Companies (PLC) to ensure that they regularize their tax status under the Voluntary Assets and Income Declaration Scheme (VAIDS) recently signed by the Acting President – Professor Yemi Osinbajo.
Tackling tax leakages in the 21st Century – What lessons can Nigeria learn from the OECD (2)?
In our last edition of InsideTax publication, we explored the concepts of tax avoidance and tax evasion and the impact of tax leakages on government revenue. We also highlighted some ways through which tax evasion occurs in Nigeria.