-
Powers of Revenue Authorities to Call for Returns and Demand for Information under Sections 46 and 47 of the Personal Income Tax Act 1993
0₦2,500.00Ifeanyi Ujah, in his article, Powers of Revenue Authorities to Call for Returns and Demand for Information under Sections 46 and 47 of the Personal Income Tax Act 1993, examines the extent and limitations on the powers of Revenue authorities to call for Returns and Demand for Information under the PITA. Revenue authorities are clothed with the powers to enforce the provisions of PITA and ensure optimum collection of all taxes due to the government under the relevant tax laws. To actualize the above statutory mandate, the revenue authorities are further conferred with the powers under sections 46 and 47 of the Personal Income Tax Act 1993 (as amended) (PITA) to give notice requiring a person to deliver any return or information specified in the notice. Recently, companies have been issued with notices from revenue authority of some states, requiring them to deliver the Nationwide Payroll of their employees, with their appointment letters for the purpose of determining their compliance with the tax remittance obligations on the employees. This raises concerns over the extent of the powers of revenue authorities to call for returns or demand for information under PITA, vis-à-vis the scope of duties owed by companies/recipients of such notices to the revenue authorities. Ujah examines these powers within the purview of the provisions of PITA. He posits that the powers are not unlimited, rather they are circumscribed by the principle of residency which determines the respective tax enforcement jurisdictions of the revenue authorities to collect the income taxes on the taxpayers under PITA. Accordingly, no person (individual or corporate) is bound to honour any notice issued by the revenue authorities in furtherance to the enforcement of tax obligations under PITA, where the notice purports to call for return or demand for the information of taxpayers who are not resident within the territory or state of the relevant revenue authority.
-
An Analysis of the Six-year Limitation Period for Tax Assessment in Nigeria
0₦2,500.00Agbada S. Agbada, in his article, An Analysis of the Six-year Limitation Period for Tax Assessment in Nigeria, examines the six-year limitation period for tax assessment in Nigeria. To ensure that the prescribed amounts of taxes are paid by taxpayers, tax authorities are generally empowered to issue additional assessments on taxpayers where they discover or are of the opinion at any time that a taxable person liable to tax has not been assessed or has been assessed at a lesser amount than that which ought to have been charged. This means that a tax authority may assess a taxpayer for as many times as may be necessary to ensure an adequate taxation of the taxpayer. However, the assessment powers of tax authorities are subject to a six-year limitation period and are required to be exercised within this timeframe. This limitation period is however laden with exceptions that seem to negate the substance and essence of the limitation. Agbada analyses the six-year limitation period with a view to ascertaining the true effect of the relevant statutory provisions prescribing the limitation period.
-
The Robots Are Here: Gloomy Picture on Personal Income Tax for Nigerian States?
0₦2,500.00Christopher Okafor Esq, in this article, The Robots Are Here: Gloomy Picture on Personal Income Tax for Nigerian States, examines the emergence of robots in the workplace with its potentiality for job losses and a reduction in taxable revenue. The emerging phenomenon which some have described as the fourth industrial revolution is in the form of automation which is manifested in the production of robots that can execute the same tasks as human beings. The problem with the automation is that as they are immensely adopted, they equally displace human workers. Though there is a debate that robots will fully replace human workers, much of the debate is founded on extrapolations with little or no hard evidence to support. However, what is disturbing about this debate is the projected revenue shortfall that will ensue if and when robots take over human jobs. To this end, another debate has cropped up on whether to tax robots to make up the projected shortfall. Every side of the debate does have points worthy of evaluation. Okafor evaluates some of the arguments but could not help but agree that the danger of loss of jobs is real, while the second order effects of projected shortfall in revenue collection from labour taxes is equally real. Okafor agrees with the point that robots need to be taxed. Not just robots that take over human jobs but all robots that can execute jobs human beings can execute.
-
The Constitutionality of the Administrative Penalties Under Sections 18 and 19 of the Finance Act 2023
0₦2,500.00Ifeanyi Ujah, in his article The Constitutionality of the Administrative Penalties Under Sections 18 and 19 of the Finance Act 2023, examines the constitutionality of Sections 18 and 19 of the Finance Act 2023 which amended Sections 51, 52 and 53 of the Petroleum Profit Tax Act (PPTA). The article examines the propriety of those administrative penalties introduced by the amendment against the background of the 1999 Constitution of the Federal Republic of Nigeria. It concludes that these administrative penalties constitute a usurpation of the judicial powers of courts and a legislative infringement on the fundamental human rights to fair hearing.
-
A Review of the Withholding Tax Regime for Bonds in Nigeria
0₦2,500.00Ayodele Ashiata Kadiri and Abdurrahman Nasir Salis, in their article, A Review of the Withholding Tax Regime for Bonds in Nigeria, examine the withholding tax regime for bonds in Nigeria. They underscore the state of tax exemptions for bondholder between 2011 and 2021. However, from 1st January 2022, the landscape for the taxation of income on bonds has undergone significant developments. First, a number of the exemptions enjoyed between 2011 and 2021, being time bound, ceased to be operative as of 1st January 2022. Second, each year between 2019 and 2022, a Finance Act was passed to make extensive amendments to extant tax statutes. Third, the Federal Inland Revenue Services (the “FIRS”) issued a notice in 2022 setting out changes to the withholding taxes payable under the various double taxation treaties which Nigeria is a party to. In order to provide clarity to bondholders, prospective investors and other stakeholders in the debt securities capital market, the authors have extensively reviewed the current withholding tax regime on bonds, with commentaries and suggestions as applicable.
-
Mergers Capital Gains Tax Relief: CGTA Section 32A — Repealed, Untouched, Needed?
0₦2,500.00Professor Gbolahan Elias, SAN, Principal G.E. Elias & Co. in his article, Mergers Capital Gains Tax Relief: CGTA Section 32A — Repealed, Untouched, Needed? revisits the issue of Capital Gains Tax Reliefs in mergers and acquisitions. He explains the ambit of Section 49 of the Finance Act (2019) (“FA 2019”) which introduced a new head of capital gains tax relief in mergers and other corporate re-organizations contexts. He compares the provision with section 49 in the 1993 Capital Gains Tax Act and identifies ambiguity about whether or not the old relief in the contexts in Section 32A of the Capital Gains Tax Act (1993) still applies alongside the new changes. Professor Elias argues that the two regimes of relief from capital gains tax for mergers and other corporate re-organizations continue to apply side-by-side, and that more heads of relief from the tax would be welcomed. He analyzes the text, structure, aims and history of the statutory provisions and the example of other jurisdictions in support of his contention.
-
A Critique of the Deposit Requirement in Order V Rule 1 of the Federal High Court (Tax Appeal) Rules, 2022
0₦2,500.00Muhammad Abdulmumin, Ayolola Ayodeji and Ijeoma Ubechu, all of Babalakin & Co, in their article, A Critique of the Deposit Requirement in Order V Rule 1 of the Federal High Court (Tax Appeal) Rules, 2022, examine the provision of the Federal High Court (Tax Appeal) Rules 2022 (the FHCTAR) which introduces the compulsory payment of security deposits by appellants (taxpayers/tax debtors) who seek to prosecute appeals from the Tax Appeal Tribunal to the Federal High Court. Abdulmumin et al in their brilliant article, critically review Order V Rule 1 of the FHCTAR, its constitutionality, and other relevant legal issues.
-
Counting the Cost and Consequences: Lessons for Nigeria from Canada, South Africa, and the UK, on Small Companies’ Income Tax Rates
0₦2,500.00Stanley Omotor, senior consultant at KPMG Law LLP Canada, a law firm affiliated with KPMG LLP Canada, in his article, Counting the Cost and Consequences: Lessons for Nigeria from Canada, South Africa, and the UK, on Small Companies’ Income Tax Rates, examines the small companies zero corporate income tax (CIT) rate in Nigeria, in comparison with similar tax incentives existing in Canada, South Africa, and previously in the United Kingdom. Omotor shows that contrary to reasons often canvassed by policymakers for introducing zero and low CIT rates, evidence shows that the implications of such CIT rates often defeat the purpose for their introduction because such CIT rates result in unintended consequences to the tax system by encouraging tax arbitrage behaviours and inappropriate tax avoidance arrangements. Drawing from the experiences of other countries, Omotor posits that it is not a good idea to provide zero CIT rates for small businesses in Nigeria, given its severe implications for the Nigerian economy.
-
The Propriety of the ‘Comply Before Complain Rules’: Wherein Lies the Fundamental Rights of the Taxpayers?
0₦2,500.00Ifeanyi Ujah, a legal practitioner and tax consultant, in his article, The Propriety of the ‘Comply Before Complain Rules’: Wherein Lies the Fundamental Rights of the Taxpayers? observes that there has recently been a flurry of rules and legislation which directly circumscribes the taxpayers’ fundamental right to access the Tax Appeal Tribunal and the courts to contest the assessment or determination of their tax liabilities. This is a result of the introduction of the “obey before complain rules” found in the Fifth Schedule to the Federal Inland Revenue Service (Establishment) Act 2007 (FIRS Act), the Tax Appeal Tribunal (Procedure) Rules 2021 (TAT Rules), the Federal High Court of Nigeria (Federal Inland Revenue Service) Practice Directions 2021 (FHC-FIRS-PD) and the Federal High Court (Tax Appeal) Rules 2022 (FHC-TA Rules). Ujah examines the validity of these provisions as well as their impact on the rights of taxpayers to access justice.
-
Carbon Taxation as a Lever for Advancing Environmental Pollution Control in Nigeria
0₦2,500.00Dr Kayode Oyende, Senior Lecturer, Department of Public and Private Law, Lagos State University, Nigeria in his article, Carbon Taxation as a Lever for Advancing Environmental Pollution Control in Nigeria, explains that a carbon tax is imposed on the price of carbon and its products, which have been established to be responsible for emissions arising from the burning of carbon products, thereby leading to the increase in Green House Gases. Dr Oyende notes that environmental pollution and degradation have arisen because of the indiscriminate destruction of the environment due to the anthropogenic activities of humans in their quest for development. These activities, if not checked, will lead to increased carbon emissions. Carbon taxation is one of the ways of checking this menace by imposing taxes on the production of these carbon-causing substances.
-
The VAT War in Nigeria: An Analysis of the Likely Implications of AG Rivers State v FIRS
0₦2,500.00Emma Ndiyo, Counsel at IOLA Legal Services, weighs in on the VAT debate in her article, The VAT War in Nigeria: An Analysis of the Likely Implications of AG Rivers State v FIRS. She discusses some of the implications of the recent decision of the Federal High Court in AG Rivers State v FIRS which has raised issues on the Federal Government of Nigeria’s constitutional powers on taxation generally and imposition of Value Added Tax (VAT) in particular. In reviewing AG Rivers State v FIRS, Emma highlights the historical development and administration of VAT in Nigeria. She reviews the Supreme Court decisions in AG Ogun State v Aberuagba and AG Lagos State v Eko Hotels on the taxing powers of the Federal Government and the federating states. She concludes with her thoughts on steps for improved tax administration in the country.
-
Attorney General of Rivers State v Federal Inland Revenue Service: Which Level of Government in Nigeria Has the Power to Impose or Collect Value Added Tax?
0₦2,500.00Dr Jirinwayo Jude Odinkonigbo of Templars and Faculty of Law University of Nigeria, in his article, Attorney General of Rivers State v Federal Inland Revenue Service: Which Level of Government in Nigeria Has the Power to Impose or Collect Value Added Tax?notes that since the inception of the 1999 Constitution of Nigeria, there have been debates over the taxing powers of the different levels of government, especially with regards to the Value Added Tax (VAT). For the first time and contrary to a prevailing general perception in the country, the Federal High Court in Attorney General of Rivers State v Federal Inland Revenue Service held that the Federal Government does not have the power to impose or collect VAT. The Court decided that only a State Government or its agency is empowered under the Constitution to collect VAT. Dr Odinkonigbo reviews this vital decision, highlighting its pros and cons and offering suggestions on how the legal impasse could be resolved according to the spirit of the Constitution.
