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Tag: Tax

  • VC calls for strengthening of Nigeria’s tax system, administration

    The Vice Chancellor of Kaduna State University, Prof. Muhammad Tanko, says Nigeria must strengthen its tax system to gain maximally from it.

     

    Tanko made the remarks in a presentation on “The Nigerian Tax and Administration” organised by the Department of History of the university, in Kaduna.

     

    The vice chancellor said government should continuously improve the nation’s tax system and administration, which presently is fraught with so many inadequacies.

     

    “There is no consistent policy that guides the tax system, no cooperation among tax authorities and no segmentation of tax payers that will help in knowing the tax payers.

     

    ” When you don’t know your tax payers, there is no way you can effectively generate revenue”,he noted.

     

    He however stated that the problems could be solved if government would imbibe the tax for service policy, where people see the services they paid for as tax.

     

    Tanko also mentioned that mobile or designated courts should be used to try tax defaulters, while an effective monitoring system should be adopted to track tax defaulters and utilisation.

     

    He suggested the use of religious education to encourage tax compliance and for government to include the issue of tax in schools curriculum to create necessary awareness on the importance of tax.

     

    In his remark, the Chairman, Kaduna State Internal Revenue Service, Mukhtar Ahmad said that the state has raised its revenue generation capacity after adopting new tax collection measures.

     

    He said that tax payers were made to pay through banks to reduce leakages, while the state had established a tax appeal committee where tax payers could lay their complaints on issues related to tax.

     

    Ahmad however expressed concern over the poor tax payment culture among Nigerians, saying most people shy away from paying tax.

    University of Benin recalls 5 rusticated students

     

  • President Trump fires Amazon with tweet missile

    US President Donald Trump has accused Amazon.com of not paying enough tax, taking advantage of the US postal system and putting small retailers out of business.

    Trump voiced the accusation against the retail giant in a tweet he posted on his official Twitter handle on Thursday.

    However, the president did not substantiate his accusation with evidence, and did not suggest any actions he would take.

    Trump has attacked Amazon and its Chief Executive Jeff Bezos several times, and his latest comment came a day after reports he was obsessed with the world’s largest online retailer and wanted to rein in its growing power, possibly with federal antitrust or competition laws.

    “I have stated my concerns with Amazon long before the Election. Unlike others, they pay little or no taxes to state & local governments, use our Postal System as their Delivery Boy (causing tremendous loss to the US), and are putting many thousands of retailers out of business!” Trump tweeted early on Thursday.

    Amazon shares fell as much as 4.5 percent in morning trade, but recovered and closed up just over 1 percent. The stock dropped 5 percent on Wednesday following the reports.

    Amazon is yet to comment on the tweet.

    The retailer and cloud computing pioneer is the latest company Trump has singled out for praise or condemnation

     

  • Saraki calls for review of Nigeria’s tax laws

    The President of the Senate, Dr Abubakar Bukola Saraki, has called for the urgent review of the nation’s tax laws, to achieve a more efficient and productive tax regime.

    Saraki gave the advice on Wednesday while inaugurating the Technical Committee on Reforming Nigeria’s Tax System at the National Assembly, Abuja.

    He said the Federal Government’s target should not only be that of increased revenue, but how to evolve a tax system that would be efficient.

    According to a statement by his Chief Press Secretary, Mr Sanni Onogu, Saraki said Nigeria should adopt a productive tax system, to grow her economy.

    He also lamented the existing duplications in the current tax regime and called on the committee to harmonise the various tax instruments in the country.

    “It is not just to increase revenue alone; I think it is also to address how efficient and the level of harmonisation of taxes across board, particularly as we operate a three tier system of government.

    “One of the difficulties or frustration you find from business people is where they have to pay similar taxes at the local, state and federal levels.

    “This at the long run makes business unproductive. I hope that at the end of the day you should have an approach that will bring in a system that is efficient.

    “A system that reduces all these barricades and the different challenges on the ease of doing business,” he said.

    He also called for the expansion of the technical committee to include major players in the private sector.

    According to him, “It is better to engage and get their input rather than giving them directives during the implementation of the expected reforms.”

    “We need to engage them rather than just giving them directives. I think there is need for the committee to expand its membership to include stakeholders from the private sector,” he stated.

    Leader of the Technical Committee and Director-General of the National Institute of Legislative Studies (NILS), Prof. Ladi Hamalai, said the outcome of the committee’s assignment would ease payment of taxes.

    “The expected report and pieces of legislation from the work of this Technical Committee will harmonise the various disparate legislations.

    “It would also facilitate the ease of paying taxes in the country and at the same time, impact on the overall ease of doing business,’’ Hamalai said.

    Members of the committee include representatives of the Federal Inland Revenue Service (FIRS) and Manufacturers Association of Nigeria (MAN).

    Others are Nigerian Association of Chambers of Commerce and Industry, Mines and Agriculture (NACCIMA) and state commissioners of finance.

     

  • Rivers to sanction businesses for failure to comply with tax reforms

    Rivers state government says any business in the State that fails to comply with its tax reforms would be appropriately sanctioned.

    The State Governor, Nyesom Ezenwo Wike, made this known on Monday during the flag off of the Rivers State Tax Management (RIVTAMIS), which Wike said is a bid to enhance the ease of doing business and eliminate multiple taxations in the State.

    The Governor also launched the issuance of the Rivers State Tax Identification Number (RIVTIN) and received the First RIVTIN Card from the Executive Chairman of Rivers State Internal Revenue Service, Mr Adoage Norteh.

    Speaking at the Flag off of RIVTAMIS and RIVTIN, Governor Wike said that the innovations are part of his administration’s commitment to entrenching platforms for the ease of doing business.

    He said that the new tax reform packages will identify all formal and informal businesses in the state, noting that the details will help the State Government plan for development.

    According to the governor, with the digital platforms, tax payments can be made from anywhere.

    “From First April 2018, all businesses are required to obtain their RIVTIN to pay taxes, levies and fines to the Rivers State Government.

    “All banks have been mobilised to generate RIVTIN for all those who want to make payments to the Rivers State Government. Any business that fails to comply by June 1, 2018 will be appropriately sanctioned,” he said.

    Chairman of Rivers State Internal Revenue Service, Mr Adoage Norteh said the tax place has been sanitised to check multiple taxations.

    He said that the process will facilitate the tax payment process, enhance self service and improve the revenue of the state.

    “Right from the comfort of your office, you can obtain your tax clearance certificate and tax exemption “, he said.

    The Rivers State Internal Revenue Service Chairman said that the tax payer has a duty to reciprocate the tax friendliness of the State Government.

    President of Port Harcourt Chambers of Commerce, Mines and Industry, Mr Emi Membere-Otaji said that the business community is pleased by the innovations that have eliminated multiple taxation.

    Spokesman of Heritage Bank, Mr FB Briggs assured the State Government that banks will cooperate to ensure that the programme succeeds.

    Highpoint of the occasion was the presentation of RIVTIN to Governor Wike and selected Commissioners and Special Advisers.

     

  • Tax: FG targets property owners in highbrow areas

    Tax: FG targets property owners in highbrow areas

    The Federal Government has extended its searchlight on tax evaders with net-worth properties in highbrow areas of major cities.

    Recall that the Federal Government on July 1, 2017 granted tax payers a nine-month grace to regularise their tax status under the Voluntary Assets and Income Declaration Scheme (VAIDS).

    However on Monday, a source in the Presidency told reporters that the government through its data mining agency “Project Lighthouse” had received documents on property owners across the country from state governments.

    The first set of property owners that will come under scrutiny for tax compliance are owners of buildings in Maitama, Asokoro, Garki ll, Wuse ll in the Federal Capital Territory (FCT) and those on Banana Island and its environs Magodo, Lekki, Ikoyi in Lagos state.

    The source revealed that tax records and bank account details of these property owners are being reviewed by the team of “Project Lighthouse.”

    The source said “the extension of the searchlight on these property owners is not unconnected with Illicit Financial Flow (IFF). Most of these people are diverting their incomes to properties and are not paying taxes.”

    It was further learnt that some state governments in collaboration with the federal government have provided electronic searchable data base for individual and corporate property owners with the following key information: Name of owner, plot number, location and Certificate of Occupancy (CofO) number.

    It was also leant that the federal government is extending the searchlight to other northern states, the south east and the south-south regions.

    The decision to go after highbrow property owners the source said, is because “it has been observed that their life style does not reflect in their tax payment.”

    Last week, the federal government played to prosecute tax evaders from April 1. Under the VAIDS programme, state governments will be major beneficiaries of the programme because after the recovery, the money will go to the states, which is why the states are cooperating with the federal government on the scheme.

     

  • President Trump threatens to tax European auto imports

    U.S. President Donald Trump kept up pressure on trading partners on Saturday, threatening European automakers with a tax on imports if the European Union retaliates against his plan to slap tariffs on aluminum and steel.

    Trump’s tweet suggested he is refusing to yield to U.S. business interests and foreign trading partners alarmed at the prospect of a trade war that rattled financial markets this week.

    “If the E.U. wants to further increase their already massive tariffs and barriers on U.S. companies doing business there, we will simply apply a Tax on their Cars which freely pour into the U.S.,” Trump wrote on Twitter.“They make it impossible for our cars (and more) to sell there. Big trade imbalance!”

    The United States imposes a 2.5-percent tariff on cars assembled in Europe and a 25-percent tariff on European-built vans and pickup trucks. Europe imposes a 10-percent tariff on U.S.-built cars.

    Trump criticized Europe in remarks at a fundraiser, according to video posted online Saturday, and suggested they would not increase tariffs.

    “The European Union: brutal. They’ve been brutal to us,” Trump said at a Florida fundraiser.“They’ve banded together in order to beat the United States in trade.”

    Trump did not respond to questions about tariffs or other topics upon returning to the White House Saturday.

    In a speech Friday night at Harvard University, European Commissioner for Competition Margrethe Vestager said the EU will respond to the tariffs“to defend European industry, and the world trading system,” according to a copy of her remarks. She called the Trump action“one-sided protectionist measures, which hurt, not just jobs, but the whole system of rules that makes our global economy work.”

    German automakers Volkswagen AG, Daimler AG and BMW AG build vehicles at plants in the United States. BMW employs more than 9,000 workers in South Carolina and is one of the state’s largest employers.

    The United States accounts for about 15 percent of worldwide Mercedes-Benz and BMW brand sales, while it accounts for 5 percent of VW brand sales and 12 percent of Audi sales.

    The United States had a $22.3 billion automotive vehicle and parts trade deficit with Germany in 2017 and a $7 billion deficit with the United Kingdom, according to U.S. government data.

    Last year, Germany’s automotive trade association said“the United States would be shooting itself in the foot by imposing tariffs or other trade barriers.”

    Trump’s threat comes amid mounting transatlantic tension on trade.

    On Thursday, Trump said the United States would apply duties of 25 percent on imported steel and 10 percent on aluminum to protect domestic producers.

    Major automakers say the move will hike the cost of cars and trucks.

    The next day, European Commission President Jean-Claude Juncker told German television that“We will put tariffs on Harley-Davidson (motorcycles), on bourbon and on blue jeans – Levis.”

    Canada also has said it will retaliate for any tariffs on steel and aluminum.

    Trump had tweeted on Friday that trade wars are good and“easy to win,” roiling U.S. financial markets.

    In January 2017, Trump warned German car companies he would impose a border tax of 35 percent on vehicles imported to the U.S. market.

     

    REUTERS

  • Lagos State Govt. shuts 20 hotels, events centres for evading tax

    The Lagos State Internal Revenue Service has shut 20 hotels, restaurants and event centres for tax evasion.

    The Director of Legal Services of the LIRS, Mr Seyi Alade, made the disclosure in an interview with the News Agency of Nigeria on the sidelines of a tax law enforcement exercise, conducted in Lagos on Tuesday.

    Alade said the affected firms owed the State Government a total of N295.49 million, adding that the state had started full enforcement of all aspects of the tax laws on tax defaulters.

    He named some of the shut facilities as Bienvenue suite Ltd., Ajaxbel Hotel, Mayor Hotel, Lafun suites, Darahamson Guest Palace, Mozarella Hotels, among others.

    According to him, sealing of hotels and other facilities will be eradicated, due to the coming into operation of the Hotel Occupancy and Restaurant Consumption (Fiscalisation) Regulation, 2017.

    He said the new regulations had made it mandatory for all hotels, restaurants, event centres and other entities liable to consumption taxes, to allow integration of the Electronic Revenue Assurance Systems (ERAS).

    “ERAS is a software application or device that issues invoices and receipts to consumers, bearing a unique QR code, detailing the items and/or services ordered and in an embedded automation of consumption tax remittance in real time.

    “It is a measure that will allow the LIRS to have efficient oversight of all sales transactions undertaken through these entities.

    “The system offers transparency to the entire management and operational system of the entities and it is also of immense benefit to the tax collecting agents.”

    According to Alade, this is not a new law, but a compliance machinery with the existing Hotel Occupancy and Restaurant Consumption Law of Lagos State, towards aligning with global best practice in the use of technology and automated solutions.

    He noted that the system was long in operation in countries like Kenya, Rwanda, among others, adding that Lagos State could adopt it to enhance effectiveness of its taxation and revenue generation system.

    He warned that failure to be integrated into the ERAS platform was an offence punishable with fines and jail terms upon conviction by court.

    He appealed to business entities liable to consumption taxes to endeavour to be integrated into the ERAS platform and ensure prompt remittance of taxes to avoid disruptions to their businesses.

     

     

  • Municipality insists Churches must pay off $187m tax debts

    The Jerusalem Municipality intends to recover 650 million shekels (almost 187 million dollars) from Christian denominations as taxes for their real estate located in the city, Mayor Nir Barkat has said.

    “The debts for commercial space owned by churches exceed 650 million shekels.

    “We will no longer demand that the citizens of Jerusalem bear this burden and subsidise this colossal debt,” Barkat said in a statement, by the mayor’s office press service.

    The municipal authorities demand that Christian denominations pay municipal taxes for all real estate, except for churches themselves, and have already started arresting bank accounts, demanding a penalty for previous years.

    “In Jerusalem, everyone is equal before the law – Christians, Muslims and Jews.

    “The Church of the Holy Sepulcher, like all the churches of Jerusalem, synagogues and mosques, is exempt from municipal tax.

    “There are no changes in this respect,” Barkat said.

    The mayor noted, however, that commercial buildings such as hotels, retail and office space were subject to municipal tax, regardless of who owned them.

    In response, Church leaders accused the city authorities of violating the long-standing status quo and closed the Temple of the Holy Sepulcher for pilgrims and tourists in protest.

     

  • El-Rufai, Adeosun meet Kaduna business leaders, tax payers

    Executive Governor of Kaduna State, Mallam Nasir el-Rufai and the Honourable Minister of Finance, Mrs. Kemi Adeosun, will on Thursday, March 1, meet with business leaders, business owners and tax payers in Kaduna over the Voluntary Assets and Income Declaration Scheme (VAIDS).

    The Kaduna State Government is hosting the VAIDS Stakeholders’ Symposium, which is expected to have in attendance Executive Chairman of the Federal Inland Revenue Service (FIRS), Babatunde Fowler; members of the State Executive Council, members of the State House of Assembly and traditional rulers.

    Also invited to the sensitisation meeting are business owners and groups, tax advisers, captains of industries, professional and artisan bodies, and other strategic economic groupings within Kaduna State and environs.

    The Minister of Finance, Mrs. Kemi Adeosun, has identified regular tax payment by Nigerians as fundamental to the growth and development of the country.

    She noted that predictable tax revenue inflow would lead to more investment by the Federal and State Governments in infrastructure and job and wealth creation across the nation.

    “Payment of taxes is a fundamental requirement for our growth story. Nigeria has a very poor scorecard in tax payment. When oil came, we abandoned the old systems of tax collection that provided most of our infrastructure since colonial days.

    “Currently, we have just 14 million tax payers out of 70 million who are economically active. So, many people who should be paying are not paying anything. It is the development of taxes that will help the States and the Federal Government to achieve their true potentials,” the Minister said.

    She advised tax payers to take advantage of the tax amnesty opportunity to regularise their tax profiles, adding that tax defaulters would be subjected to investigations as well as made to face criminal prosecution for tax offences.

    The VAIDS programme, which commenced on 1st July, 2017, provides opportunity for tax payers to voluntarily and truthfully declare their assets and incomes before the March 31st, 2018 deadline.

    The Scheme embraces all Federal and State taxes such as Companies Income Tax, Personal Income Tax, Petroleum Profits Tax, Capital Gains Tax, Stamp Duties, Tertiary Education Tax, Technology Tax, Tenement Rates, and Property Taxes.

    It also covers all back taxes for the last six years in line with the statutory periods of limitation under the relevant tax statutes.

     

  • Gov. Ambode orders payment of taxes, levies through banks from March 1

    Gov. Akinwunmi Ambode of Lagos State on Monday directed that all taxes and levies due to the state government should now be paid through the banks and online banking platforms from March 1.

    Ambode gave the directive shortly after paying his personal Land Use Charge at the Guaranty Trust Bank (GTB) in Opebi area of Ikeja.

    He said that this would reduce fraud and also encourage people to embrace the cashless policy.

    “In order to ensure that government improves on quality of service to the people, effective from March 1, no payment of taxes will be made by cash anymore across the state.

    “Tax payers should be able to pay every legitimate bills through all payment channels at their convenience.

    “The transaction process is going to be everyday, anytime and no weekends and do not pay into wrong hands anymore,” Ambode said.

    He said that all the multi-layer platforms were to be deployed and used by all government ministeries, agencies, parastatals, associated companies and units henceforth.

    “All local governments must quickly adjust their collection machinery to eliminate all leakages,” he directed.

    The governor, who described the payment of taxes as an investment for the future, urged all residents to perform their civic responsibility, pledging that every kobo paid would be judiciously utilised.

    “I have just invested my quota by paying my land use charge and residents should join me by courageously making a decision for prosperity and pay all their due taxes.

    “Lagosians with your full support, there is evidence that every kobo paid in taxes has been productively utilised for infrastructural renewal and development of the state in last two and half years,” Ambode said.

    The governor was immediately presented a certificate of payment for the land use charge.