The Nation Newspaper

Tag: assessment

  • Civil society groups begin good governance assessment in Osun

    AHEAD of September 22 governorship election in Osun State, three civil society groups have embarked on a public assessment project in Osun State. The project targets about 30,000 respondents on governance in the state for the past eight years.

    The groups said it was aimed at establishing deep public perception of the socio-political developments in the state for the past eight years.

    The project is being undertaken by three rights groups, the Civil Society Coalition for Mandate Protection, (CSC-MAP), the Nigerian Human Rights Community (NHRC), and the Green Peoples Environmental Rights Groups (GREPNET), a member of the International Alliance on Indigenous and Tribal Peoples of the Tropical Forest (IAITPTF), based in Thailand.

    In a release, which was signed by Comrade Oluwole Suleiman, Uche Obiora and Oladimeji Fatunla, the group stated that 10,000 questionnaires have been distributed to 500 volunteers picked across the 31 local government areas. Is said there is also an online version expected to reach a total of 20,000 people using Information Technology (IT).

    The project takes a look at cultural, socio-political and economic developments in the state from the perspectives of the people.

    The statement said: “We are adopting best practices in measuring good governance in Nigeria. Osun has been picked as a pilot project in Nigeria. We want the people to assess the government in the past eight years in a reflective and comparative sense. Every social strata in Osun will participate in the questionnaire including civil servants, students, peasants and the general public.”

    The groups stated that 10,000 questionnaires will be administered while the same assessment is being conducted online and that it is targeting a minimum of 20,000 people.

    The statement said the coalition is organizing training for some of the key leaders of the survey in the three senatorial districts of the state. The trainees will be responsible for administering the questionnaire to locals.

  • ‘Legislature’s budget secrecy affecting assessment of 2016 appropriation’

    The Accountant General of the Federation, Ahmed Idris, has blamed the inability of his office to determine the exact annual capital budget performance on the secrecy in the National Assembly’s budget.

    The AGF, who spoke at the 2017 budget defence of his office conducted by the Senate Committee on Finance, said it would be improper to say the actual budget performance of the Federal Government without the knowledge and disclosure of the National Assembly budget.

    Idris, however, gave the general performance of his office budget for 2016, taking into cognisance the three components of the appropriation, as 89.5 percent.

    He spoke while responding to the request of the committee that he provide it with the capital performance of national budget for 2016.

    The committee chairman, Senator John Owan Enoh, had said: “Let us take the liberty of over-sighting you and request that if you can, let us have the record of the total capital performance or delivery of the 2016 budget, not just of your office but all others.”

    The AGF said: “Distinguished senators, let me also say all these performances we are talking about, in terms of capital performance or delivery, it does not include capital component of statutory organisations.

    “Some of them, we don’t have their performances. For instance, I don’t have the capital performance of the National Assembly budget. But I know how much I release every month. So, it is the management that decides their capital. With this, it’s difficult to know the overall capital performance of national budget. “

    The committee demanded explanation for what it called “disproportionate release of funds to ministries, departments and agencies of government in the 2016 appropriation”.

    The committee also wanted to know why the 2016 budget performance of the Office of the Accountant-General stood at 72.2 per cent, while other agencies stood at between 60 and 70 per cent.

  • Buhari’s first year: an assessment

    Just a year ago, Nigerians voted-in Muhammadu Buhari and the expectations of the generality was a change from a visionless regime to a new but tested general, who had attempted to lead the nation democratically three times, but failed. However, through national cooperation among various political parties, who realised that their dream of leading the nation can only become a reality, if individual interests are swallowed for national interest; only then can they wrestle power from the ruling Peoples Democratic Party (PDP).

    So, the merger began like a dream, scorned by the ruling elites as a merger of strange bedfellows that could not last for six months. It however turned out to be the PDP’s Waterloo. By the time the party at the centre realised that they were living in fool’s paradise, it was too late to make amends. Even the trick of postponing the general election for another six weeks failed to save the President and his party; they suffered election defeat to the extent that the Godsday Orubebe’ effort to thwart the election like Ibrahim Babangida did to June 12, 1993election failed to materialise. Peoples Democratic Party (PDP) was swept out of power unceremoniously! Ever since, the party has remained in chains. Things have fallen apart and their centre could no longer hold even till date.

    Buhari has since been in the firing line. He is either being fired by the opposition for non-performance or he is being chastised for oppressing and suppressing the opposition with the instrumentality of the state; the Economic Financial Crimes Commission (EFCC). Those who are apolitical in their assessment of the presidency are liberally asking those that are before the court; are they in court because they were in opposition or they were in court because they have cases to answer? That is the basis on which this writer will be x-raying Buhari in the last one year.

    When Buhari came on board, he told those that wanted to listen that he intended to focus on three major areas in his administration; security, economy and corruption. Buhari seems to be saying, vision is the most desperate need Nigeria requires. That his vision focuses on the aforesaid three issues. That Nigeria is not in a hopeless situation, if only these three issues are well-handles. Buhari’s dream of a nation that can get rid of corruption and failure to do so will make corruption to kill Nigeria. A year later, Buhari might not have conquered corruption, as no nation can be totally corruption-free, but any serious nation must put things in place to cage and demobilise corruption with unbreakable iron cage, if progress is the goal. The question today is; how far has Buhari gone on corruption?

    Buhari’s War Against Corruption

    President Muhammadu Buhari has started well by digging out some can of worms, which no one ever envisaged would have been such gargantuan.  First, it was the Dasukigate; a scandalous security arms’ purchase that turned out to have been diverted into the hands of political associates of the outsted President Goodluck Jonathan. From the big fishes in the outsted political party, to the boot lickers in other minor political parties that needed fund for their survival and personal upkeep; from the top military hierarchy to the campaign managers and  ex-ministers, the billions of dollars of our oil monies were in daylight drawn out of the Central Bank on the instruction of the “Oga at the top”. Those of the thieves, who had not sold their consciences, have been returning stolen fund to the Buhari administration.  Those whose heart had been hardened are busy crying that it is only the opposition that is being tried for corruption, even when they were aware that the Senate President Bukola Saraki of All Progressives Congress (APC) is facing similar charges before the Code of Conduct Tribunal.

    Buhari has successfully shown to the nation that most of the public servants own the buildings in Abuja and other big cities in Nigeria from the proceeds of illegality and thievery; that a director in a Federal Ministry was collecting N50 million monthly as salary; that a female civil servant owns over 61 buildings in our nation; that a former minister bought a wrist watch worth N20 million with our money; that soak away is a strong room, where our leaders kept stolen dollars. Buhari has exposed how our leaders multiplied poverty among the populace, as they kept laundering our commonwealth abroad. The President has exposed the wickedness of our political class, who lived in opulence, when our hospitals had no drug and our youths were left to die during the Immigration recruitment exercise, after they had collected money from them in exchange of death and frustration.

    One year after, Buhari has successfully embarked on a war on corruption, by asking the judiciary to give him free hands to prosecute the pen robbers. He has told the National Assembly that it cannot be business as usual; that padding of budget will not receive his ascent; that things must be done with clear conscience before God and man. Buhari has told those that bother to listen that not even any member of his political party will be spared in the war against corruption.

    One year into Buhari’s administration, we have recovered, within our nation, billions of dollars, stolen by the oil barons.  We have recovered back into treasuries, billions of dollars stolen on the pretence of arms purchase. Our foreign allies, realising the sincerity and commitment of the President on accountability, are currently assisting us to regurgitate some of our stolen-hidden wealth in their banks.

    Those who claimed that Buhari has done nothing in his first year in office were either one of those who have cases to answer or those who see his war as a blockage against their notorious stealings.

    Buhari On Security

    Insecurity and insurgency in the nation might not have stopped completely, but the dimension of insecurity is not the same. About a year ago, Boko Haram insurgents were in control of some parts of Nigerian territories, with their flags flying.  They terrorised and abducted men and women in broad daylight without resistance. Borno, Yobe, Adamawa, Bauchi and other states in the North East of Nigeria were under real war. Life was made miserable for the citizenry by the insurgents. Millions of refugees were displaced from their homes. It was a daily harvest of deaths of the innocent lives. The then administration did not have the will to confront the insurgents. Rather than buying arms to fight the monsters called Boko Haram, our then leaders were stealing funds on the pretence of arms purchase, sending armless soldiers to confront well-armed insurgents and little by little, our soldiers were dying or fleeing from the battle front. Instead of doing the needful, the soldiers were being court-marshalled by conscienceless leaders, just because they wanted to keep their looted funds at the expense of the blood of the patriotic soldiers. Despite the effort of Femi Falana (SAN) to rebuke the top military officers for wrongly trying the soldiers before the court, yet, they jailed the innocent soldiers, but thanks to Buhari that set them free.

    Kidnapping is not yet over but there is a reduction in the magnitude. A lot needs to be done by providing jobs for the jobless youths and providing necessary welfare as enshrined in Section 14 (4) of the 1999 Constitution.

    Buhari needs to pay the security agents, provide them with modern training and be well-equipped for the job they are being assigned to perform. We cannot afford to use 18th century equipment to secure our nation in the 21st century. We need to emphasise to this government that security cannot be compromised.  Effort must be made now with all urgency to install effective and functional close circuit television in strategic positions in our cities.

    Buhari On Economy

    So far so good, the President has done his best to turn the economy around but not much has been achieved. Many reasons have been given, first being that the 16 years of PDP rule was too damaging on the economy; that the fall in the world market of oil price to a mono-economy like ours made it difficult for the President to make any meaningful impact on the economy.  Others felt that the rancour among the political leaders in the ruling party is a cog in the wheel of progress of Nigerian economy. Other were of the opinion that the APC was lacking in economic blueprint for the nation. Some hold the view that the President economic strategy is archaic; a command and structure that cannot work in a democratic nation.

    However, the China visit for economic collaboration with our nation on the invitation of investor on our core economic sector gave hope that Buhari knows his onions.

    There is no doubt that the present regime has faltered in the power sector and lacking in making fuel available for the people in its first year in office that have since negatively affected the welfare of the generality, the President must be advised to jettison the Minister of Petroleum portfolio, and face the business of the presidency.  The NNPC must also hands off importation of oil into the country and face the production of crude oil and strive to put the nation’s refineries in good shape. The people’s patience is running out, effort must urgently be made to reposition the devaluation of our currency, even when it was not officially devalued. The inflation rate is high, as prices of domestic needs products are skyrocketing. Buhari’s presidency has a long way to go over economy.  Salaries are no longer payable both at the state and the federal levels. And when a nation cannot afford the emoluments of its workers, it is a dangerous signal that such nation must strive to avoid bankruptcy.

  • Tanker drivers and training need assessment

    Tanker drivers and training need assessment

    The usually unresolved controversy between the drivers and their employers on brake management, load management, speed management and road worthiness of vehicles.

    1. Lack of in-depth knowledge of the components, workings, effects and dangers of alcohol, energy drinks, cannabis, and other forms of psychoactive drugs (including some categories of prescription drugs) as well as the effects of sex – in – transit and the use of sex enhancement drugs on driving.

    If FRSC, state governments and driving schools in Nigeria buy one million tankers and other articulated vehicles for the training of drivers, it will not solve 10 percent of the problems. Rather, it will result to a waste of resources unless the above – mentioned challenges are adequately and effectively addressed.

    I also want to suggest that all the transport companies that are operating fleets of articulated vehicles should be allowed to use their experienced drivers to train the newly employed drivers on how to drive or operate the vehicles as they have been doing in the past. They should also have driving range. The popular training system hitherto used includes accompanying the new drivers in journeys for hand – on training which is good. To become trailer drivers, they must have known how to drive smaller vehicles like buses with reasonable driving experience.

    All the articulated vehicle owners must however be compelled by the Federal Road Safety Commission (FRSC) and state governments to send all their drivers to  FRSC – accredited driving schools for mandatory capacity building training programmes where they will be deeply taught the above – mentioned topics among others and issued with “Certificate of Competence” by the driving schools (to be renewed annually).

    Arrested traffic offenders should be fined and promptly sent to driving schools for correctional training programmes without any iota of compromise.

    Driving schools however need to complement their training with computerised simulators designed for drivers of articulated vehicles, videos and other relevant driver education resources to enhance the effectiveness of their training programmes. Driving schools will surely be able to do this if their training opportunities currently being hijacked by the FRSC and some state government agencies are totally left for them to run.

    What is much more needed now is a result–oriented stakeholders forum which will include the Ministries of Transport (Federal & State), FRSC, VIOs, Association of Driving Instructors of Nigeria(the Umbrella Body of the Driving Schools in Nigeria], Transport/Haulage Companies and the various Transport Companies to proffer the short–term and long-term solutions to the challenges. The previous exclusion of driving schools from the stakeholders’ meetings is a very costly error which needs to be promptly corrected to achieve the desired goals.

    Without any iota of doubt, I am very confident that these prescription will drastically reduce and eventually eliminate the accidents involving the Drivers of articulated vehicles in Nigeria.

  • Centenary awards: An assessment

    Celebrating Nigeria’s centenary 1914-2014 has come and gone. One of the highlights of the celebrations was the award of centenary honours for 100 people who distinguished themselves in one area or the other. The categories of people celebrated according to government publication include:

    1.          Heroes of the struggle for Nigeria’s independence/pioneer political leaders;

    2.          Pioneers in professional callings/career;

    3.          Pioneers in commerce and industry;

    4.          Promoters of democratic transition in Nigeria;

    5.          Heroes in global sports competitions;

    6.          Accomplished pioneer public servants;

    7.          Accomplished contemporary entrepreneurs;

    8.          Distinguished academics;

    9.          Internationally acclaimed artists, literary icons and journalists;

    10.        Outstanding bravery and public spiritedness;

    11.        Outstanding promoters of unity, patriotism and national development;

    12.        Exemplary service in the promotion of peace and excellence.

    These were the areas in which 100 people were singled out for centenary honours. For some curious reasons, Queen Elizabeth II, Frederick John Dealtry Lugard and Lady Flora Louis Lugard were the first three to be honoured before the 100 Nigerians. May I say that I was glad that my late brother, Professor Kayode Osuntokun, a distinguished neurologist and neuro-scientist who died almost 20 years ago at a very young age was honoured. To God be the glory. Because of this, I had the opportunity to get a copy of the publication and citations on the awardees. What struck me is the lopsidedness in some of the categories. There were only nine academics who were honoured whereas under the category of artists there were 18 of them double the number of academics. However, three of these so called artists like Soyinka, Achebe and John Pepper-Clark double as academics. In the category of artists/musicians, the omission of Dr. Victor Olaiya was striking. I do not think of any Nigerian who would place Fela Anikulapo-Kuti and Osita Osadebe over Victor Olaiya in the history of music in Nigeria. I was also surprised that it is in this category of internationally acclaimed artists, literary icons and journalists that Alhaji Yusuf Maitama Sule and Professor Akinlawon Ladipo Mabogunje, Dr. Barnabas Sanyaolu Oloruntoba and Justice Mariam A. Mukhtar, current chief Justice of Nigeria were placed. This must have been a mistake. I know Professor Mabogunje very well; I do not think he will enjoy being in this category of artists. I think Maitama Sule and the Chief Justice and Dr. Oloruntoba belonged in the group of public servants while Professor Mabogunje should have been grouped along distinguished academics. In the category of outstanding bravery and public spiritedness, I was amazed at the absence of the late Colonel Adekunle Fajuyi who paid the ultimate price to protect his guest, the late head of state, General Johnson Aguiyi-Ironsi. It is amazing that a young man, Michael Chukwugekwu Iroka would have been honoured for saving a man from being burned to death in an inferno in Makurdi, an action which obviously deserves a commendation but not a centenary award over and above Colonel Fajuyi’s bravery of July 1966. In the category of heroes in global sports competitions, I expected to see Hogan Bassey, the first Nigerian to win a world championship in Boxing. I also expected to see Emmanuel Ifeajuna, the first Nigerian commonwealth gold medallist in high jump. In the section on heroes of the struggle and pioneer political leaders, names of Dr. R.A.B. Diko, the founder of the original JamiyahMutanen Arewa and Sir Kashim Ibrahim, the first governor of northern Nigeria are missing. I also expected at least to see a section for outstanding traditional rulers which would have included apart from Sir Abubakar, the Sultan of Sokoto, Oba Aderemi, the Ooni of Ife and Oba Akenzua of Benin. I also believe that Chief S.L. Akintola, the premier of the west and a member of the first federal cabinet of 1957, Dr. Michael Okpara, the premier of eastern Nigeria at independence should have been included along with Sir Ahmadu Bello. Since this document is an historical document it should have been prepared by an historian because too many errors are contained in it. For example on page 18, the first Nigerian lawyer, Christopher Sapara Williams is not from Ogun State, he was an Ijesha man from Osun State.

    It is curious that Chief Simeon Adebo did not make the list under public servants. Chief Adebo was an exemplary civil servant, the first permanent representative of Nigeria in the United Nations and later under secretary in the UN. For the sake of historical record, Chief Adebo should have been on the list. The president of course had stated that a list like this could not have been done without mistakes and had pleaded for understanding for any serious error of omission. I also find it very interesting, to say the least, the citations of President Olusegun Obasanjo and General Sani Abacha. For example, on page 89, we are told that “Obasanjo’s first wife, Mrs. Oluremi Obasanjo is the mother of his oldest children.” On the same page we are also told that “Mrs. Stella Obasanjo lost her life a day after abdominoplasty in Spain.” It went on that the doctor who performed this was sent to one year imprisonment and made to pay $176,000 to the family of the bereaved. It added that Obasanjo has many other children at home and abroad. In the same paragraph, it stated that “Stella was not the first wife Obasanjo lost, that he lost another one, Linda in 1987.” As if this was not enough, on page 88 on the citation of Professor Ade-Ajayi, reference was incongruously made to Obasanjo and that during the protests and riot called Ali-must-go, Akintunde Ojo was shot by the police at the University of Lagos and “his mother was rumoured to be a mistress of Obasanjo”. Whoever wrote this tried hard to damage the image of Obasanjo. And I asked myself, why is that necessary in a document on the centenary of the Nigerian awards. I was intrigued by the citation on General Abacha. He was said to have been responsible for increase in Nigeria’s foreign exchange reserves and that “his regime became the first to record unprecedented economic achievements” and that he reduced inflation rate he inherited from Babangida from 54 percent to 8.5 percent between 1993 and 1998. Whoever prepared this document must have done it tongue in cheek because the same week this celebration was going on, the United States government announced the seizure of 648 million dollars stolen Nigerian money lodged by Abacha in several accounts in the US and this is on top of the billions spirited away by him into Swiss accounts. I take exception in celebrating General Abacha’s so called achievement because I and others suffered terribly under him, and in spite of our going to the Oputa panel, we got no restitution. This document was prepared apparently by a junior officer and the document was not vetted by a superior officer of intellect. This is not good enough. Whatever we do in the name of our country, we must always bear in mind that records are for posterity and as well as for the international community to see the way we do things in our country. A document perfunctorily produced and full of errors and omissions does not do our image any good.

  • Assessment procedure(1)

    Assessment procedure(1)

    The overriding objective of assessment function is to ensure that all taxpayers, within a defined tax jurisdiction, are brought into the tax net and assessed correctly in order to plug all possible leakages. Generally, taxpayers are categorised according to the legal status of their businesses which includes the following:

    • Individuals/Enterprises, usually sole proprietorship or self-employed

    • Partnership, association of two or more persons coming together in business to make profit.

    • Corporate entities/public companies, usually limited by shares

    • Non-Governmental Organisations (NGOs), usually unlimited or limited by guarantee.

    A brief description of each of the above business entities will help in the understanding of their respective duties and obligation under the tax laws.

    Individual/Enterprises: This is a taxable person who is chargeable to tax in his own name or in the name of a receiver, or his agent. Usually, the tax affairs of this category of taxpayers are to be handled by the State Internal Revenue Service (SIRS), where the taxable person domiciled or resides. Individuals are assessed to tax under the Personal Income Tax Act (PITA).

    Partnership: This category of businesses is assessed to tax under the Personal Income Tax Act (PITA) in the same manner as individuals/enterprise. In Nigeria, Partners are assessed in their individual names, based on the share of partnership profits allocated to them.

    Non-Governmental Organisations: These are non-profit making organisations which are qualified for income tax exemption under Section 23(1)(i) of CITA C21 LFN, 2004). They are often unlimited or at best limited by guarantee. These types of organisations have duty to apply for exemption. The form in which NGOs are registered determines which Tax Authority will handle their tax affairs.

    Corporate Entities/Public Companies: These are limited liability companies or public companies registered with profit – motive in mind. Their tax affairs are being handled by the Federal Taxing Authority.

    Assessment function in an Integrated Tax System is agreed to include filing and assessment duties with respect to all taxes being collected by that office among which are: PPT, CIT, VAT, WHT, CGT etc.

     

    Classes of assessment

    Assessments are normally raised on the Income or Profit of companies or corporation raising from trade or business carried on in Nigeria. Assessment is to be imposed on the ‘‘Profit’’ of an enterprise in relation to an accounting period. There are two (2) principal classes of assessments, namely;

    Self-Assessment:- This assessment scheme aims at shifting the duty of raising of assessment to the taxpayers themselves. Under this system, the taxpayer is expected to accompany its tax returns with self-assessment notice and an evidence of payment to the FIRS through appropriate designated collecting bank.

    Government Assessment:- This is an assessment raised on behalf of the Government by the Tax Authorities, examples of which are:

    • Assessment raised in accordance with audited accounts and computations filed by the taxpayers.

    • Administrative assessment based on physical assessment of the company or profit perceived to be fair and reasonable.

    • Protective/jeopardy assessment.

    • Amended/additional assessment.

     

    Types of assessment

     

    Assessments based on taxpayers’ returns

    These are assessments based on the information contained in the taxpayer’s returns. The tax computations together with the capital allowances computations are enclosed along with the audited accounts and such assessment could either be self-assessment or government assessment.

     

    Minimum tax

    Minimum Tax is payable by every company in Nigeria when the total profits of the company from all sources have produced on tax, or tax payable which is less than the minimum tax specified by the law. However, the followings are exempted from the payment of minimum tax:

    • Companies engaged in agricultural trade or business.

    • Companies with at least 25 per cent imported equity capital.

    • Any company for the first four (4) years of its commencement of business.

    The rates applicable to companies which are liable to minimum tax is the highest of any of the following:

    • 0.5 pwe cent of Gross Profit

    • 0.5 per cent per cent of Net Assets

    • 0.25 per cent of Paid-up Share Capital

    • 0.25 per cent of Turnover of up to N500, 000.

    If however the turnover is higher than N500, 000, the minimum tax payable will be the highest of the above plus 0.125per cent of the excess of the turnover above N500, 000.

    Treatment of Capital Allowances when Minimum tax is applicable

    It is important to note that in any year of assessment when minimum tax is chargeable, the capital allowance due in that tax year must be adjusted against the profit of that year along with the unabsorbed balances brought forward. This treatment is adopted to ensure that the charging of minimum tax does not preclude the deduction from assessable profit and the utilisation of capital allowances for that year. The position of the law is that capital allowances should be deducted as far as possible, from the assessable profit of that year and the unabsorbed portion, if any, shall be carried forward.

     

    Minimum tax on dormant cases

    Minimum Tax is justified on the theoretical premise that every asset should generate an income and it is applied as an anti-tax avoidance measure. This tax is sometimes referred to as asset tax. Already, it is being applied in that manner during periods of dormancy in the sense that minimum tax is computed and charged on net asset or share capital, whichever is the higher of the two. The aim of this clarification is to ensure uniformity in the application of the law on minimum tax with respect to dormant cases. Minimum tax should be computed although the assessment may be raised when the business eventually recommences.

     

    Best of judgment assessment

    This is raised where audited accounts and other relevant returns are not submitted within the stipulated time in line with the tax law. It is usually based on “fair and reasonable’’estimate of income/profit of the preceding year’s results reported by the company.

     

    Amended/revised assessment

    Where accounts are submitted and the basis of the assessment is faulted, the original assessment earlier made is revised or amended in line with the new information as disclosed in the tax computations.

     

    Additional assessment

    The Board is empowered to examine the returns submitted by taxpayers in order to ensure that the presentation of the accounting details conform with provisions of the Income Tax Act. Unapproved claims and allowances discovered are disallowed and added back to profit. This, in addition to other information will form the basis for additional assessment. All rules and regulations governing other assessments also apply to additional assessments.

     

    Jeopardy/protective assessment

    These assessments are raised on the ground of expediency. If the relevant tax authority is of the opinion that such assessments are necessary for any reason of urgency, which may include the following:

    • Where a case referred to the Board for ruling is yet to be determined.

    • Imminent liquidation of a company or an intention to dispose of its valuable assets, the result of which may cripple its operation.

    • Imminent sale or transfer of trade/business of the company to another.

    • Intended remittances to foreign partners.

    • Payment being made to a taxpayer who had hither to been evading tax.

    • Imminent escape by a taxpayer to foreign counties.

    • in all other cases of emergency.

     

    Assessment on turnover

    Under Section 30(1) (a) and (b) of CITA C21 LFN, 2004, the Board is empowered to assess on the turnover of the taxpayer’s business. Where it appears that the trade or business produces no assessable profits or declare turnover that is less than might be expected to arise from such trade or business. Such an assessment is made by assuming a fair percentage of turnover as assessable or adjusted profit for the year to which capital allowances and other deductions are charged before arriving at total profit, And then applying the current rate of tax to determine tax due for the year.

     

    Assessment levied on dividend provision where no tax is computed or payable

    Section 19 of CITA empowers the Board to raise assessment on amount of dividend paid to shareholders as if such dividend declared is the total profit of the company for the year of assessment to which the accounts relates. Such a situation may arise where a company declares dividend to its shareholders when it has no tax payable reported as a result of:

    • No total profits; or

    • Total profits which are less than the amount of dividend paid.

    In all case where dividend is declared, officers should always compare the total profits to the amount of dividend declared.

     

    Other assessments/levies

    There are other levies or imposition usually encountered in the course of assessment duties, among which are:

    Penalty for late returns:

    Penalty is normally imposed when a taxpayer’s audited accounts and tax computations are submitted late to the Revenue Authority. The amount of penalty at present is N25,000 for the first month in which the failure occurs and N5000 for each subsequent month of failure. It is a form of assessment raised whenever the returns are submitted late. The amount is subject to review from time to time at the discretion of government.

     

    Pre-operational levy:

    This is levy imposed on companies which fail to commence business within six months after their incorporation. The levy is N20, 000 in the first instance and N5000 for any other year, if it still has not commenced business.

    It is to be levied when the taxpayer applies for the Tax Clearance Certificate (TCC). Pre-operational levy should not be imposed for any previous years when the company did not apply for TCC; neither should it be raised in arrears to cover earlier years.

     

    Education tax levy:

    This is a levy being imposed on all taxable companies in Nigeria to assist Government in the development of education in Nigeria. It is charged at the rate of two pwe cent of the assessable profit and should be assessed alongside the normal tax assessment for each year. Pioneer Companies are usually not assessed to Education Tax in view of the income exemption status from tax payment that they enjoy during the pioneer period.

     

  • Assessment: Absentee teachers to face sanction, says Oshiomhole

    Assessment: Absentee teachers to face sanction, says Oshiomhole

    Teachers in Public Primary and Secondary Schools in Edo State who failed to show up for the Assessment exercise organized by the state government may have their names deleted from the state’s payroll, Governor Adams Oshiomhole has said.

    Speaking, Wednesday, while receiving the report of the exercise from the Teachers’ Assessment Committee led by Prof Dennis Agbonlahor, former Vice Chancellor, Ambrose Alli University, Oshiomhole said “I can readily tell you is that no teacher will remain in the pay roll of Edo State Government if we have not assessed him and convinced that he is indeed a fit and proper person to be entrusted with the classroom or the particular subject which our pupils are asked to learn.”

    He said: “this for us is not politics; it is to stress the essence of governance and prepare our kids for the future for the inevitable role they have to play.

    “Flipping through the report it is clear that you did a thorough job, painstakingly analyzing all the issues like elder statesmen and good educationists in spite of the harassment and subtle threat and you remained focused on the assignment and in the end, you have come out with a report that, I believe, will help us to have greater insight into the challenge of managing an efficient and reliable primary and secondary education.

    “Even more importantly, you have ideas of what we have to do with the outcome and you gave a set of options. I believe the innocent children whose future is an issue and their parents and guardians, their spirit, their wishes to prepare their children for the future, our God will reward you for helping to advise on how best we can help to protect their future”, he said.

    Oshiomhole said “I want to assure you that having generously obliged your time, and courageously carried out this assignment, we will have the political will to deal with all the issues. We are in politics to drive change. I do not think it is enough for someone to say that was how I met it. I want to be remembered for a guy who took the difficult decision and at the end paid the price.

    “I like to assure you that once we have started, there is no stopping and no one is going to block us till we get to that point where we are convinced that as government we have done enough to secure the future of the Edo children.

    “I will invite you back when we have formed an opinion on what we will do next.”

    Earlier, Chairman of the 7-member Assessment Committee, Professor Dennis Agbonlahor said the committee carried out the task and made all the necessary recommendations to ensure that the workforce of teachers in Edo State are properly trained and retrained.

    “Those who failed to participate should be made to do so at the next available opportunity. It is in their interest to do so. We thank the government for the opportunity given to us to serve in this capacity,” he said.

    Other members of the committee are Prof. Abigail Imogie, Prof Ikponwonse Ogie, Prof Noah Musa, Prof Sunny Omobude-Idiado, Prof Lilian Salami and Prof Austin Osunde.

     

  • AfDB used old data for assessment, says Fed Govt

    AfDB used old data for assessment, says Fed Govt

    Government yesterday hit back at the African Development Bank (AfDB), saying its statistics was at variance with the present realities in the country.

    The AfDB, in its latest report, wrote off Nigerian economy, saying its statistical growth did not translate into job creation or poverty alleviation. It said unemployment rose from 21 per cent in 2010 to 24 per cent in 2011.

    But yesterday, Minister of Information Labaran Maku in a statement, said Nigeria remains the highest destination for Foreign Direct Investment (FDI) inflows into Africa over and above South Africa and Egypt.

    According to him, this is a direct result of the fundamental reforms being implemented under President Jonathan’s Transformation Agenda.

    He said the AfDP based its report on 1996-2010 statistics which is behind time and does not reflect the real achievements/results of government’s tackling poverty and unemployment in Nigeria in the last three years.

    The AfDB report, the minister added, presented poverty, inequality and unemployment in Nigeria without the appropriate and illuminating global context.

    The minister added that Nigeria was recently honoured for meeting the Millennium Development Goal (MDG) of reducing people living in absolute hunger by half well ahead of the 2015 target set by the United Nations.

    Maku said the report failed to capture all the holistic measures put in place to address the economy which include job creation, health reform, power reform and Poverty.

    He said:”We are confident that these measures which were not covered by the AfDB report, have contributed significantly to reducing poverty and inequality in the country.”

    “The AfDB report based on 1996-2010 statistics is therefore behind time and does not reflect the real achievements/results of this administration in tackling poverty and unemployment in Nigeria in the last three years. “

    He added: “This government has undertaken significant policy reforms targeted at addressing the challenges identified in the report. These policy interventions have contributed positively to turning things around beyond the picture painted in the report.

    “Poverty is a national challenge that transcends the whole country cutting across party divides. In reality, the responsibility of fighting poverty does not rest solely with the Federal Government. States and Local Governments share in this responsibility too. State governments hold the key to fighting poverty in their states. Dealing with poverty as a partisan phenomenon would be trivialising the problem. All hands need to be on deck to fight poverty. Federal Government efforts are mainly at the policy level, while actual projects/programmes are carried out by the states. In spite of this, Federal interventions to reduce poverty have taken place in Agriculture; Health; Education; Housing; Communication Technology; Works; Transportation and other sectors of the economy.

    “The AfDB report presents poverty, inequality, and unemployment in Nigeria without the appropriate and illuminating global context. Yet, these three challenges have increasingly become global issues, which policymakers around the world are grappling with everyday. For example, South Africa’s unemployment rate and Gini Coefficient, which measures the dispersion in income and wealth among individuals, is 26% and 0.63, respectively, compared to Nigeria’s 24% and 0.45.”

     

  • Flood: World Bank to conduct post disaster needs assessment

    Flood: World Bank to conduct post disaster needs assessment

    •Hydrogeologists want installation of alarm system

     

    The National Emergency Management Agency (NEMA), in collaboration with the World Bank and some international donor organisations, will soon conduct a post- disaster needs assessment following the flood that recently ravaged 28 states in the country.

    The Director-General of NEMA, who was represented by the Director of Finance and Account, Mr. Hakeem Akinbola, said this yesterday in Abuja at the orientation workshop for officials of the State Emergency Management Agencies (SEMAs), as well as Ministries of Agriculture, Environment and Housing.

    He said: “The workshop is intended to provide participants with adequate skills, knowledge and techniques on how to handle the challenges.

    “It will also afford the Federal Government and international community the opportunity to execute plans and actions for rehabilitation, reconstruction and recovery of the communities affected by flood.”

    The United Nations Country Resident Coordinator, Mr. Daouda Toure, said the post disaster needs assessment seeks to assess the impact of natural disasters on infrastructures as well as people.

    He said the assessment would compile information on economic damage, losses and human impacts of the disaster on communities.

    Toure noted that the World Bank and European Union would support the Federal Government in the spirit of the 2008 joint agreement on post crisis cooperation.

    The Nigeria Association of Hydrogeologists (NAH) has called for the installation of early warning alarm systems in the hydrological stations connected through the satellite to alert the country to impending flood.

    It also wants the hydrological areas of the Federal Ministry of Water Resources to be recognised as the unit water resources management.

    This was contained in a communique issued at the end of the 24th annual conference of NAH held in Benin City.

    The association, in the communique signed by its President, Dr. Abubarkar Iliya, called for the establishment of modern hydrological stations to monitor and quantify the volume of runoff water likely to cause flood.

    It reads: “We should undertake a post-flood environmental impact assessment of the areas inundated by flood and carry out a survey of the submerged boreholes in the areas with the aim of rehabilitating and cleaning them up.”