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Category: Tax

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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DETERMINING ARM’S LENGTH INTEREST RATE ON INTER-COMPANY LOANS IN NIGERIA

INTRODUCTION For most companies, the transfer of funds in form of loans from one business unit to another is a common phenomenon. The advantages of inter-company loans are favorable to the company as they largely control the terms of such loan. To this end, companies involved in inter-company loans are expected to stay compliant with […]

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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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EXAMINING THE AMENDMENTS TO THE STAMP DUTIES ACT

The world is evolving, perhaps faster than we can imagine. Technology has placed human transaction on a fast pace and as such transactions are being carried out without parties involved meeting physically. Social interactive applications have become the new normal for business transactions as well as for the effective execution of contracts. In response to […]

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