Connect with us

BIG STORY

Bank Customers To Present Tax Card, TIN From January 2020

Peter Okunoren

Published

on

Evidence of tax payment will be a condition for operating a bank account from January, according to the Financial bill passed by the National Assembly.

The Bill, submitted to the lawmakers with Budget 2020 by President Muhammadu Buhari, is designed to improve the financial operations of the country and streamline the tax regime.

It is expected to be signed with the budget before the end of the month, to actualize the return to the January – December budget cycle.

According to a section of the Bill, banks will require anybody opening an account to provide his Tax Identification Number (TIN)

Those who already have accounts with banks will also be required to provide their TIN.

There are 30 million Bank Verification Numbers (BVN)-linked accounts.

The intention is to make sure that more people are captured into the tax net.

According to the Joint Tax Board, the tax identification number (TIN) is a unique identifier for an individual or a company for tax remittance.

The TIN is prepared by the tax office and issued for proper identification and verification.

Applying for TIN is free. The TIN generation process is real-time and should not exceed 48 hours after a request is submitted.

Another major feature of the Financial Bill is the hike in Value Added Tax (VAT) to 7.5 per cent from the extant five per cent.

Also in the bill, emails will be accepted by the tax authorities as a formal channel of correspondence with taxpayers.

The bill will also strategically “promote fiscal equity by mitigating instances of regressive taxation; reform domestic tax laws to align with global best practices; introduce tax incentives for investments in infrastructure and capital markets; support small businesses in line with the ongoing Ease of Doing Business Reforms; and raise revenues for the Government by various fiscal measures.”

Under the proposed Personal Income Tax Act: the bill will state that pension contributions no longer require the approval of the Joint Tax Board (JTB) to be tax-deductible.

The bill when signed into law, will remove the tax exemption on withdrawals from pension schemes except the prescribed conditions are met.

The bill will come up with a penalty for failure to deduct tax by agents appointed for tax deduction. This penalty is 10 per cent of the tax not deducted, plus interest at the prevailing monetary policy rate of the Central Bank of Nigeria (CBN).

The conditions attached to tax exemption on gratuities will be removed by the bill, meaning that gratuities are unconditionally tax exempt. The duties currently performed by the Joint Tax Board (JTB) as it relates to administering the Personal Income Tax Act, will now be performed by the FIRS.

Another penalty that will come into effect when the bill becomes law will be the penalty for the late filing of the Value Added Tax (VAT) returns.

The penalty for failure to register for VAT will be reviewed upwards to N50,000 for the first month of default and N25,000 for each subsequent month of default.

The penalty for failure to notify FIRS of change in company address will be reviewed upwards to N50,000 for the first month of default and N25,000 for each subsequent month of default. This penalty also covers the failure to notify FIRS of permanent cessation of trade or business.

Similar to the VAT amendment, the bill is also introducing Capital Gains Tax (CGT) exemption on Group reorganizations, subject to the following conditions being met.

They are:

Assets are sold to a Nigerian company and is for the better organization of the trade or business;
The entities involved are within a recognized group 365 days before the transaction, and the relevant assets are not disposed of earlier than 365 days after the transaction.

The current practice is that companies send an approval request letter under CITA S29(9) to the FIRS, and include a CGT exemption request. Currently, the CGT Act imposes CGT on compensation for loss of employment above N10,000.

The bill seeks to expand the coverage of this provision by renaming it “compensation for loss” and increase the minimum threshold from N10,000 to N10 million.

BIG STORY

BREAKING: Boko Haram Terrorists Execute Abducted Adamawa CAN Chairman

Peter Okunoren

Published

on

The Chairman of the Adamawa State chapter of the Christian Association of Nigeria, Rev. Lawan Andimi, has been executed by Boko Haram.

The news of the execution was broken by a seasoned journalist with close contact with Boko Haram, Ahmad Salkida, on Tuesday.

Salkida tweeted on his Twitter page: “To break some news items can traumatize. I’m battling with one of such. Reverend Andimi, abducted by #BokoHaram was executed yesterday. Rev. Andimi was a church leader, a father to his children and the community he served. My condolences go to his family.”

Rev. Andimi was taken hostage by the Boko Haram terrorists on January 3, 2020, during an attack on a major town in Adamawa State, Michika.

He was thereafter on January 6, 2020, shown in a video by the Islamic terrorist group pleading for his release.

Continue Reading

BIG STORY

Documentary On Oshiomhole’s ‘Dark Side’ Out January 30 —- Edo Ex-Speaker

Avatar

Published

on

The immediate past speaker of the Edo State House of Assembly, Alhaji Kabiru Adjoto, says he is set to release a three-hour documentary, “exposing Mr. Adams Oshiomhole’s dark waters.”

But the Oshiomhole camp says the former Edo governor has done no wrong.

Speaking in an interview with the News Agency of Nigeria (NAN) in Benin on Monday, Adjoto said the documentary would be shown to the public on Jan. 30 in Abuja.

Adjoto, who described Oshiomhole as his long-time political confidant, said the documentary would expose Oshiomhole’s “dirty malfeasance in his days as governor of Edo State.

He said that the documentary was part of his planned nationwide campaign against Oshiomhole, who is currently the national chairman of the ruling APC.

Adjoto disclosed that the three-hour documentary highlighted some shady deals allegedly carried out by Oshiomhole in Edo’s Central Hospital contract and the N30 billion Benin Storm Water project.

The former speaker named other questionable projects executed during the Oshiomhole era as the airport road contract and some other transactions, handled by Oshiomhole at the tail end of his administration.

“The problem I have with Oshiomhole is not personal but a disagreement over the reversal of initially professed democratic principles.

“Every atom of principle he preached and benefited from is a sharp contrast to what he is championing today.”

Adjoto claimed that he had the backing of critical APC stakeholders, including seven governors, whom he said, had thrown their weight behind the ‘Oshiomhole must-go-campaign, which he said, would hit the streets soon.

Commenting on the forthcoming Edo APC governorship primaries, the APC chieftain reiterated that any team sent by Oshiomhole to conduct the primaries would be vehemently rejected.

He said that the rejection of Oshiomhole was because the APC national chairman had been suspended from the party and that he lacked constitutional powers to preside over any affair of the party.

“Oshiomhole should be ready for a Zamfara showdown in Edo State if he makes an attempt to spearhead the primary process because he is behind the crisis bedeviling the party in Edo State.’’

He said that Oshiomhole’s suspension from the party had been ratified in his ward, local government and the state’s executive committee of the party.

The former lawmaker noted that the incumbent, governor, Mr Godwin Obaseki, must enjoy the right of first refusal during the primaries, otherwise the process would be enmeshed in catastrophe.

He disclosed further that he would be meeting with notable traditional rulers in Oshiomhole’s senatorial zone, including the Otaru of Auchi, to inform them of the looming consequences that would face the “suspended national chairman of the party if he failed to retrace his steps.

“Without mincing words, the next few weeks will be very interesting.

“After the release of the Oshiomhole documentary, Nigerians would judge if he’s qualified to lead a party, whose principal trademark is fighting corruption,” Adjoto added.

He advised the four APC governorship aspirants against falling into what he called “Oshiomhole’s crafty political web’’.

Adjoto said he would meet with the aspirants to make them see the reason to queue behind Obaseki for the common good of Edo people.

But reacting to allegations of fraud against Oshiomhole, a member of the Oshiomhole camp, Mr Henry Idahagbon, said that Obaseki and the current Secretary to the Edo Government, Mr Osarodion Ogie, should also be included in any fraud charge against Oshiomhole.

Idahagbon, who was Attorney-General and Commissioner for Justice during Oshiomhole’s administration said that every project executed during Oshiomhole’s era was approved by Obaseki as the chairman of the administration’s economic team.

He said that the contracts cited by Adjoto were over 90 percent completed by Oshiomhole before he left office, dismissing accusations against the APC national chairman as unfounded.

Edo State is set for governorship elections in August this year.

(NAN)

Continue Reading

BIG STORY

Supreme Court Affirms Tambuwal’s Victory

Avatar

Published

on

The Supreme Court on Monday upheld the election of Governor Aminu Tambuwal of Sokoto State as the validly elected governor of the state.

In a unanimous judgment, a seven-member panel of the court dismissed the appeal filed by the candidate of the All Progressives Congress (APC), Ahmed Aliyu, for lacking in merit.

In the lead judgment, Justice Uwani Abba Aji held that the appellant grossly failed to prove that Tambuwal’s election was fraught with irregularities.

The court held that the appellant simply dumped documents on the court

Continue Reading

Most Popular