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Category: Corporate Tax

LISTING REQUIREMENTS FOR ENTITIES ENTITLED TO TAX DEDUCTIBLE DONATIONS

INTRODUCTION For the purpose of ascertaining assessable profits of a company for tax purposes in Nigeria there is allowed deductions of donations made by such a company to certain entities. These entities have been defined under Section 25 (5) of the Companies Income Tax Act CAP C21, LFN 2004 (as amended) (CITA) as  Public funds, […]

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FIRS GUIDELINES ON THE TAX TREATMENT OF NGOs

INTRODUCTION  The Federal Inland Revenue Service (“FIRS”) recently issued information circular no: 2021/01 (“the Circular”) for the purpose of clarifying the tax treatment of Non-Governmental Organisations (NGOs) and the application of the provisions of the Companies Income Tax Act (CITA) Cap. C21 LFN 2004 (as amended), Personal Income Tax Act (PITA) Cap.P8 LFN 2004 (as […]

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EXAMINING THE FIRS CIRCULAR ON THE CHARGEABILITY OF VAT ON SERVICES PROVIDED BY FINANCIAL INSTITUTIONS

INTRODUCTION Value Added Tax (VAT) is regulated by fiscal legislation in the Value Added Tax Act CAP V1, LFN 2004 (as amended). VAT has however, not been defined by the Act. The Federal High Court in Nigeria per Hon. Justice Saliu Saidu in the case of SAIPEM CONTRACTING NIGERIA LTD & 2 ORS V. FEDERAL INLAND […]

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BASIC TAX COMPLIANCE REQUIREMENTS FOR NON-RESIDENT ENTITIES

INTRODUCTION Although residence is the basis for taxation in Nigeria and taxes are payable on the world wide income of all resident persons, this does not however preclude non-residents from being liable to pay taxes in Nigeria where such liability is deemed to have arisen. Tax liabilities in this regard would usually ensue from transactions […]

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TAX CONSIDERATIONS IN MERGERS AND ACQUISITIONS

INTRODUCTION Owing to changes in government policies and the current business climate in Nigeria, companies are required to be strategic in order to remain competitive, while also enhancing growth and profitability. Corporate restructuring or reorganisation is a critical tool required to achieve business efficiency and optimisation. Corporate restructuring refers to any transaction whereby all or […]

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TETRA PAK WEST AFRICA LIMITED v. FIRS – TAX APPEAL TRIBUNAL DEFINES SALES IN THE ORDINARY COURSE OF BUSINESS AND LIMITATIONS OF THE APPLICATION OF WITHHOLDING TAX.

INTRODUCTION On 30th November 2020, the Tax Appeal Tribunal (the “Tribunal”) sitting in Lagos delivered judgment in the case of Tetra Pak West Africa Limited v Federal Inland Revenue Service with appeal number: TAT/LZ/WHT/007/2019. It defined what constitutes “ordinary course of business” for the purpose of determining withholding tax (WHT) liability. SUMMARY OF THE FACTS The appellant in […]

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AN APPRISAL OF THE AMENDMENTS BY THE FINANCE ACT 2020

INTRODUCTION The Finance Act 2020 amends some provisions of fourteen (14) legislations, however, the focus of this article shall be a brief discourse on the key amendments contained in the Finance Act 2020 of the following Acts: Companies Income Tax Act; Personal Income Tax Act; Value Added Tax Act; Capital Gains Tax Act; Companies and […]

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THE LEGAL 500 : TAX COUNTRY COMPARATIVE GUIDE (NIGERIA)

The Legal 500’s Country Comparative Guides are produced in association with the World’s leading lawyers and gives the in-house community a practical overview of the laws and regulations in key jurisdictions, for specific practice areas. Each country chapter is written by a renowned firm in an easy to use Q&A format. The Hot Topic articles […]

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HIGHLIGHTS OF THE NEW COMPANIES AND ALLIED MATTERS ACT 2020

INTRODUCTION The signing of the Companies and Allied Matters Act, 2020 (“CAMA, 2020”) into law by President Muhammadu Buhari on the 7th of August, 2020 rides on the successful enactment of the Finance Act which fundamentally repositions Nigeria tax legislations and the enactment of the Federal Competition and Consumer Protection Act of 2019 which represents […]

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