The Nation Newspaper

Tag: Tax

  • Why tax on luxury goods cannot be implemented, by Adeosun

    The Federal Government has explained why it has not started taxing luxury goods as planned by the administration of former President Goodluck Jonathan.

    Addressing reporters on the state of the economy in Abuja at the weekend, Finance Minister, Mrs Kemi Adeosun said: “Taxing of luxury items was more of statement than a policy, there is no current tax position on luxury items but the committee that was inaugurated last week will look at putting the laws into place because issues of tax are legislative.”

    According to Mrs Adeosun, “that statement on taxing luxury items and private jets had no legal backing but we need laws in place to tax such items.”

    On the duplication of taxes, she noted that “that is one area where the Joint Tax Board (JTB) is working to harmonise taxes and where there is overlapping between federal, states and local governments they do need to be harmonised and that is part of the ease of doing business initiative because this is one of the issues that make businesses close down, so we are trying to harmonise taxes.”

    The government, she also said, “is trying to identify the agency that is best suited to collect taxes, “one agency can collect on behalf of others instead of different agencies because it is very expensive to collect taxes.”

    On charges, Mrs Adeosun said government is “trying to harmonise charges like the one collected for passports with both ministries of finance and interior working together to harmonise this and in the process block leakages.”

    The government two weeks ago said it was developing a new tax policy to show that Nigeria is open for business with a tax system that is easy to understand and comply with and reduces tax burden on small businesses.

    While inaugurating the committee, Mrs Adeosun stated that businesses react to tax policies and government was determined to ensure that the Nigerian tax policy “sends the right message being that Nigeria is open for business and is encouraging businesses with a tax system that is easy to understand and comply with.”

    She noted that “areas of our tax code and laws that are in need of review will be addressed as part of this exercise, as will modalities for simplifying our processes and reducing the tax burden on small businesses.”

  • NUPENG seeks tax holiday for investors

    NUPENG seeks tax holiday for investors

    President, Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), Comrade Igwe Achese, has appealed to the Federal Government to consider tax holidays and free land to genuine investors in the economy.

    He also advocated an efficient tax regime that would ensure that businesses, especially those owned by affluent Nigerians, were adequately taxed, as most of them explored the loopholes in the system to dodge payment of taxes.

    He said the government should use part of the recovered loot to pay verified contractors, especially those involved in road construction.

    Achese, who spoke in Lagos, said the measures were necessary to free the economy from its parlous state which the administration is still grappling with.

    In a related event, the Kaduna Zone of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) is to address challenges facing the oil and gas sector.

    This will be address at a workshop with theme: Global trend & security challenges in oil & gas industry in Nigeria, critical challenges and prospects from stakeholders’ perspectives.

    In a statement by the Chairman of Kaduna Zone of PENGASSAN, Comrade Abubakar Yusuf, the union said despite major advancements in labour and management relations in Nigeria in the past decades, there still persists distrust and antagonism among parties involved in industrial relations.

  • FIRS shuts firms in Lagos, others over tax debt

    The clamp down on tax  defaulting firms by the Federal Inland Revenue Service (FIRS) continued yesterday as its enforcement teams visited tax defaulting firms in Lagos, Nnewi and Kaduna.

    In Lagos, the FIRS sealed the office of Erin Petroleum Limited at Plot 1649 Olosa Street, Victoria Island. The firm has a tax indebtedness of over $10million. FIRS said the firm’s promise to offset the debt was not kept.

    Also sealed, was Newcross Petroleum Limited, located at Plot 17 LigaliAyorinde Street, Victoria Island, for owing $1.964million. Its Finance Director admitted that the  firm owed the amount, adding that it has paid $100,000 as a sign of commitment and pleaded for more time. The plea was ignored.

    Another firm shut, was Boron Oil Gas Limited, located at Block 110 Henry Ojogho Crescent, Lekki, which owed over N165million. According to Ann Erinne, Head of the Lagos Enforcement Team, the firm was sealed for reneging on its promise to pay N32million monthly to offset the debt. The Financial Controller told FIRS officials that the firm is currently experiencing cash flow problems.

    She added that it paid N27million in July and would pay the N5million balance for July as well as make full payment for August. She pleaded for more time, but her plea was rejected.

  • Lagos clamps down on tax defaulters

    Lagos clamps down on tax defaulters

    • 18 firms shut

    The Lagos State Internal Revenue Service (LIRS) has started a massive clampdown on corporate tax defaulters and evaders in Lagos.

    Last week, no fewer than 18 hotels and event centres were sealed off under the Hotel Occupancy and Restaurant Consumption Laws of Lagos State 2009.

    The affected hotels and restaurants were reportedly owing the government N91.2 million.

    LIRS Legal Services Director Mr. Seyi Alade warned during the state-wide tax enforcement that defaulting hotels, restaurants and event centres would face  the law if they failed to deduct and remit their taxes.

    According to him, failure to remit taxes due attracts very serious penalties that may lead to the sealing and the seizure of the goods and chattels of the affected entities.

    He said the LIRS gives a long time by issuing multiple notices to the taxpayers to inform and also remind them of their tax liabilities and only recalcitrant taxpayers are shut down as in the present case.

    He, therefore, urged all business entities operating in the state to ensure prompt remittance of their taxes to avoid the costly disruptions that could be visited on their businesses as a result of a distrain exercise.

    LIRS Chairman Mr. Folarin Ogunsanwo urged Lagosians to comply with tax laws, saying the state will bring to bring to justice any defaulting individuals and corporate bodies as the capacity of LIRS was not in doubt.

    The affected hotels include Zaaz Hotel, Cottage Hotel 2, Pcadilly Suites, Starfire Hotel, Le Parisian,  D Yard entertainment, Florida International Motel, Suite 29, Taesuites, Nufcam Hotel, Peaceland, Larex Hotel, Cristabol Place, Posh Spice, Hotel De Jas, Bec Ind Cathering Company Soul Centre and Atlantic Product Limited.

  • Tax policy ‘ll reduce SMEs’ burdens, says Fed Govt

    The Federal Government is developing a new tax policy that will open the country for business, Finance Minister, Mrs. Kemi Adeosun, has said.

    She said the new tax system will be easy to understand and reduce tax burden on small businesses.

    Addressing members of the tax review committee in Abuja yesterday, Mrs Adeosun said businesses react to tax policy and government is determined to ensure that the tax policy “sends the right message being that Nigeria is open for business and is encouraging businesses with a tax system that is easy to understand and comply with.

    “Areas of our tax code and laws that are in need of review will be addressed as part of this exercise, as will modalities for simplifying our processes and reducing the tax burden on small businesses.”

    Adeosun told members of the committee that the government was keen “to grow revenues and improve our tax collection; we are equally determined to ensure that our taxes are simplified. The task of growing tax revenue must be pursued with a human face and sustainability in focus.”

  • Canada slams extra 15% property tax on foreign buyers

    A new tax for foreign property buyers is being introduced in British Columbia in Canada in an attempt to cool escalating house prices.

    The 15 per cent foreign buyer tax came into effect  at a time when prices in the province’s capital city, Vancouver, are escalating.

    Indeed, the latest global cities index from international real estate firm, Knight Frank, showed that prices in the city have increased by 17.3 per cent in the mainstream market and by 26.3 per cent in the prime market in the year to March 2016.

    Policy makers have been looking at ways to cool price inflation in recent months and the new tax will relate to residential purchases in Metro Vancouver, an area that extends from Bowen Island to Maple Ridge/Langley Township.

    According to Knight Frank, in real terms the new tax will result in an extra $300,000 in property transfer tax based on a property bought for $2 million by a foreign citizen. This figure will rise to $1.5 million for a $10 million home.

    The latest government data shows foreign buyers, mainly from China, purchased more than $1 billion worth of property in British Colombia between June 10, 2016 and July 14, 2016 of which around 86 per cent was located in the Lower Mainland.

    The foreign buyer tax will also apply to corporations that purchase residential real estate and the British Columbia Government has the power to examine the citizenship status of directors and the beneficiaries of corporate profits in deciding whether to add taxes. The resulting revenue from the new tax will be spent on housing affordability projects.

    However, Knight Frank points out that some loopholes exist and details as to how it will be policed remain unclear. For example, the tax itself relies on buyers self reporting their nationality and providing a social insurance number, backed up by new auditing procedures and penalties. However,  it is unclear whether a resident with citizenship could buy a property by proxy for a family member living abroad.

    “There is no doubt that the new law will cool sales volumes and prices as foreign buyers absorb the additional cost implications. It is worth noting that the planned legislation also allows the BC cabinet to alter the foreign tax rate by between 10 per cent and 20 per cent at a later date and expand it to outside the Lower Mainland,” the firm explained.

  • FIRS shuts more firms in Lagos, Abuja over tax debt

    FIRS shuts more firms in Lagos, Abuja over tax debt

    The Federal Inland Revenue Service (FIRS) continued its tax compliance exercise in Abuja and Lagos, shutting the premises of defaulting companies.

    In Abuja, the FIRS team, led by Chinazor Edeh, shut down the office of Taleveras, an energy firm operating from the Maitaima area of the city.

    A warrant of distraint presented by the team indicated that the company is owing over N667 million in tax liabilities.

    Before sealing off the company, Edeh told its the Chief Security Officer (CSO), the highest ranking official available, the firm has failed pay the balance of its tax liabilities after it paid N50 million, following the sealing off of its premises in May.

    Edeh explained that the FIRS was not interested in sealing off the company, but to ensure that the tax is paid.

    But the CSO said the company is incapable of defraying the liabilities, as it has not been able to pay salaries. Consequently, the enforcement team ordered the staff to vacate the premises and proceeded to seal off the company.

    Also sealed by the enforcement team is Jardin Nigeria Limited, a landscaping/ project management company, with an office at Abuja’s Transcorp Hilton Hotel.

    The company owes over N129million in taxes. An official of the company, who identified himself simply as Mr. Olu, admitted that the company owes, but argued that some state governments owe the company over N2 billion.

    Edeh advised the company to pay 50 per cent of its tax liabilities and reach agreement with FIRS on a structured payment of the balance.

    In Lagos, two companies were shut in the Ikeja area by the FIRS team, led by Anita Erinne.

    First to be shut was Guarantee Petroleum Company, located at 21 Salvation Road, off Opebi Road.

  • PPPRA pushes for fuel tax

    •Refineries’ privatisation 

    The Petroleum Products Pricing Regulatory Agency (PPPRA) has said the imposition of taxes on petroleum products such as petrol, diesel, kerosene and gas is capable of boosting Federal Government’s revenue.

    It also urged the government to sell the refineries and ‘Downstream Logistics Facilities’ as another way of shoring up revenue.

    According to a report the agency submitted to the Ministry of Finance  at the conclusion of a two-day National Revenue Retreat in Kano, the PPPRA said the introduction of taxes on petroleum products will supplement the revenue lost due to the fall in oil prices.

    The report showed that the average national daily consumption of fuel stood at 45 million litres, diesel-nine million litres and aviation fuel, 1.5 million litres.

    It showed that there were three different taxes that could be charged, which the PPRA’s pricing template did not currently accommodate. These are Highway Maintenance, Government Tax, Import Tax and Fuel Tax.

  • Odumosu takes on tax in new TV series

    Odumosu takes on tax in new TV series

    known for his fast-paced thrillers, movie producer Jimi Odumosu is out with a new blockbuster series focusing on tax matters. Tagged ‘Special Tax Investigations Department (STID)’ , the new baby of Odumosu who shot into the Nigerian film consciousness in the 1980s for his film, Evil Encounter, focuses on goings-on in corporate Nigeria regarding taxes.

    And on Sunday, the pilot titled A Can Of Worms which was produced by  Jimi Odumosu Productions and Affadot Studios was screened to a select audience at Sheraton Hotel, Ikeja, Lagos. Present at the event were former first lady of Lagos, Dame Abimbola Fashola, president of the Chartered Institute of Taxation of Nigeria (CITN), Ms Teju Somorin, the vice president of CITN, Ms Jumoke Simplice, notable actor Sadiq Dabba, Yinka Ogundaisi, President, Director Guild of Nigeria, (DGN), Fred Amata, Lilian Amah Aluko and AJ Dagga Tolar among others.

    With office settings, night life, secrets and killings, the viewer is submerged into the world of taxation and the many intrigues surrounding it. In the episode, Niger Motors is involved tax evasion. And a murderer from a past business is also on the loose. In the course of the movie, an STID official is unto the case but he is brutally killed while working at the office at night. The Niger Motors’ Chief Accountant is also killed after a night out. The killer’s attempt on the owner of Niger Motors however, is not successful. In all these, the police efficiently tracks the killer, eventually nabbing the otherwise efficient ‘soldier’ and exposing the tax crime.

    Lauding the producers of the movie, Ms Somorin said she was impressed and said the movie would go a long towards educating Nigerians on tax issues. She also said the Federal Inland Revenue Service, the 36 state tax bodies and tax bodies outside the country would be interested in the movie.

    “We should try as much as possible  promote this film to as many tax authorities as possible,” she said.

    Produced by Jimi Odumosu and Abdulkarim Adeniyi Yusuf, A Can Of Worms stars actors such as Tope Tedela, Najite Dede, Vanessa Kanu, AniIyoho, Paul Utomi, Godswill Uchechukwu, Baaj Adebule, Christian Paul, Chris Biyibi, Sandra Eze, Gregory Ojefua, Dotun Yusuf-Abdulkarim and others.

    “Producing a film of this kind is never easy in a country like Nigeria, and you have to have a certain appetite for high risk to put your personal money into a project of this sort,” said Odumosu, the writer, producer and director of the series, who said he enjoyed working on police and medical series.

    “But I like to think of myself as a true Artist who has great passion for his craft.”

    Odumosu who started his career at the Nigeria Television Authority in 1977, producing series such as Village Headmaster and For Better For Worse, was a pioneer force in the debut of Lagos Weekend Television in the 1980s. His movie and TV productions include Fiery Force, Head Of State, The Morning After and Doctors’ Quarters.

     

     

  • FIRS shuts Atlas Petroleum over $1.5m tax debt

    FIRS shuts Atlas Petroleum over $1.5m tax debt

    • Unseals Costain W/Africa Ltd 

    An enforcement team of the Federal Inland Revenue Service (FIRS), yesterday shut the headquarters of Atlas Petroleum International Limited over the firm’s tax liabilities totaling $1,5million.

    On arrival at the office, located at 1 Chris Madudike Drive, Lekki, Lagos, the FIRS enforcement team, led by Mrs. Ruth Mandeun, met only one employee of the company.                                  The employee pleaded with the team to allow him get in touch with the General Manager of the company, but his pleas were rejected.   Also, the GM’s pleas on arrival  were rejected.

    The team leader advised that he should visit the Ikoyi office of the FIRS to resolve the matter, saying the company was informed on Monday that it should pay a substantial part of its tax liabilities by Wednesday,or risk being shut down.

    Also on yesterday, FIRS officials, led by Anita Erinne, visited companies it sealed on Wednesday. Out of the companies sealed by the team on Wednesday, only Costain West Africa, located at 174, Funsho Williams Avenue, Lagos, was unsealed at 1pm on Thursday.

    The management of the company informed the FIRS team that it had paid part of the taxe liabilities. Erinne said she was aware that the company had paid and ordered its gates unlocked. She, however, explained that she would confirm the exact amount paid by the company.