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EU Partners FIRS to Deepen CSOs Tax Knowledge, Compliance
Determined to ensure accountability and transparency as part of its good governance drive in Nigeria, the European Union has engaged with the Federal Inland Revenue Service to deepen the knowledge of Civil Society Organisations on tax responsibilities and compliance.
The project captured under the European Union’s “Agents For Citizen-Driven Transformation,” ACT, provides a veritable platform for CSOs operating in the country to engage the FIRS on the tax regulations that govern their operations and how to ensure seamless compliance in line with approved guidelines.
The Federal Inland Revenue Service, FIRS, has clarified that civil society organisations, CSOs, including non-governmental organisations and cooperative societies have responsibilities under the tax laws to fulfill their tax obligations irrespective of the nature of their operations.
FIRS and the Joint Tax Board, JTB, in a webinar jointly organised by the FIRS and the European Union-funded, British Council-managed Agents for Citizen Driven Transformation, EU-ACT, programme emphasised that CSOs have the responsibility to file tax returns and statement of affairs; adding that the tax authorities would demand payment of taxes from CSOs only when the CSOs were engaged in businesses and make profits from the business ventures.
Executive chairman of FIRS, Muhammad Nami, represented by the coordinating director, compliance support group of FIRS, Dick Irri, in declaring the webinar open, said that FIRS would continue to partner with stakeholders in its drive to educate taxpayers on their responsibilities.
Director of the tax policy and advisory department of FIRS, Temitayo Orebajo, in his presentation on tax obligation of CSOs refuted claims by some individuals that CSOs have no tax obligation.
“There is a penalty for CSOs for not filing and there is a penalty for late filing. Whether you (CSOs) have something to do or not, you have the responsibility to file.
“After one year you are registered, in order not to run foul of the law, you need to go and file at least your statement of affairs. It may be just one page document”, he said.
Orebajo said that CSOs include organisations, institutions and companies engaged in ecclesiastical, charitable, benevolent, literary, scientific, social, cultural, sporting or educational activities of a public character, adding: “all CSOs are expected to register for tax purpose and obtain Taxpayer Identification Number, TIN.
“The following documents are required for tax registration: A copy of the registration certificate issued by the Corporate Affairs Commission, CAC, or any other instrument of registration; Certified True Copy, CTC, of memorandum and articles of association, constitution or rules and regulations governing the CSO; list and profiles of the Trustees/Board members nominated and other relevant documents.”
Deputy director of tax policy and advisory department, Olatunji Olabode, said that CSOs should file returns and pay taxes (where applicable) at MTOs closest to them or use the TaxPro Max Solution.
He added that with the introduction of TaxPro Max solution, CSOs can file returns and pay taxes from the comfort of their homes and offices.
Corroborating in his presentation, Orebajo noted: “NGOs are required to register for tax at designated FIRS Medium Tax Offices (MTOs) in their respective geopolitical zones. For Lagos: MTO Lagos Island; For North-Central: FCT MTO Abuja; for North-East and North-West: MTO Kano; South-East: MTO Enugu; for South-South: MTO Port Harcourt and for South-West: MTO Ibadan.”
“Section 55(1) of CITA mandates every company in Nigeria including CSOs to file annual tax returns. A tax return comprises: an audited account, tax and capital allowances computations and a true and correct statement in writing containing the amounts of its surplus from each and every source computed; a completed self-assessment form; particulars as may be required in the form with respect to profits, allowances, reliefs, deductions required; a declaration to be signed by a trustee, director, secretary or any authorised person of the organisation that the information contained in the return is true and correct; the period for filing returns shall be as stipulated in the relevant tax laws”, he said.
A representative of the JTB and its Head, Legal, Nneka Esomeju added that CSOs who are registered as individuals or Business Names or any other law at sub-national level should also comply fulfil their tax obligations under the Personal Income Tax Act and relevant with the State Board of Internal Revenue.
“If any CSO is not registered or overseen by the FIRS, they should register and file their returns and pay taxes (where applicable) to the State Board of Internal Revenue.
Not being registered with FIRS or CAC does not mean that you are exempted from taxes. She also clarified that any individual who earns income beyond the threshold of the minimum wage should pay taxes irrespective of the status of the individual.
Arewa Voice gathered that the programme also gave an opportunity for the CSOs to engage the Nigerian tax agency on parts of tax laws that concern them and how they could comply effectively and seamlessly.
The European Union Agents for Citizen-Driven Transformation (EU-ACT) Programme works with civil society organisations, CSOs, to enable them to be credible and effective drivers of change for sustainable development in Nigeria.
Its work focuses on strengthening the system of CSOs, networks and coalitions to improve their internal, external, and programmatic capabilities.
EU-ACT works with CSOs in 10 states selected across the six geo-political zones in the country: Adamawa, Borno, Edo, Enugu, the federal capital territory (FCT), Kano, Lagos, Plateau, Rivers and Sokoto.
The Programme also focuses on providing a platform for multi-stakeholder dialogue for an improved, effective, and inclusive regulatory environment for the operation of CSOs in Nigeria.
News
Corruption: ICPC Threatens Sanctions as 330 MDAs Fail Financial, Governance Tests
Independent Corrupt Practices and Other Related Offenses Commission (ICPC), has revealed that none of the Ministries, Departments, and Agencies (MDAs), in the country complied fully with ethical standards, policies, and anti-corruption measures in the passing year.
This was following the findings from the Commission’s Ethics and Integrity Compliance Scorecard (EICS) for the MDAs.
The Commission warned that henceforth, non-compliant MDAs will face necessary actions, including enforcement, to ensure adherence to government directives.
According to the EICS scorecard released on Thursday in Abuja by Demola Bakare, ICPC spokesperson, no MDA out of 330 MDAs that were assessed through physical deployment by ICPC teams achieved full compliance.
The EICS serves as a preventive tool used to assess and enhance the compliance of MDAs with ethical standards, policies, and anti-corruption measures.
Findings from the report indicated that no MDA achieved full compliance, while 29.55 per cent of MDAs captured attained substantial compliance, and 51.62 per cent had partial compliance.
The report also observed that 15.91 per cent showed poor compliance, while 292 per cent were non-compliant.
According to the report, common gaps included a lack of whistle-blower policies, strategic plans, and effective stock verification units, adding that many MDAs failed to conduct any forms of system studies or render financial and audit reports.
Commenting on the report, Bakare noted: “This year, 2024, the tool covered 323 responsive MDAs, with 15 MDAs non-responsive and categorised as high corruption risk.
“It is imperative to inform you that this initiative has yielded some positive and value-driven impacts, and these are, but not limited to, increased awareness and compliance with anti-corruption measures, enhanced competition among MDAs to meet criteria, and improved procurement processes and data reliability.
“The Commission recognises the MDAs with substantial compliance and will continue deploying these tools to promote integrity and accountability.
“Non-compliant MDAs will face necessary actions, including enforcement, to ensure adherence to government directives. We are certain that these efforts will continue to underline ICPC’s dedication to enhancing good governance and preventing corruption.”
News
Dangote Refinery Denies Liquidity Challenges, Dismisses NNPCL’s $1Bn Loan Claim
Dangote Petroleum Refinery and Petrochemicals (DPRP) has dismissed claims that the Nigerian National Petroleum Company Limited (NNPCL) used a $1 billion loan secured through a crude forward sale agreement to support the refinery during a liquidity crisis.
In a statement on Wednesday, Anthony Chiejina, company’s chief branding and communications officer, said the NNPCL’s stance was a distortion of the facts.
“We would like to clarify that this is a misrepresentation of the situation as $1bn is just about 5% of the investment that went into building the Dangote Refinery,” Chiejina said.
Chiejina stated that the refinery’s decision to enter into a partnership with the NNPCL was based on the recognition of “their strategic position in the industry as the largest offtaker of Nigerian crude” and at the time, the sole supplier of petrol into Nigeria.
“We agreed on the sale of a 20% stake at a value of $2.76 billion. Of this, we agreed that they will only pay $1 billion while the balance will be recovered over a period of 5 years through deductions on crude oil that they supply to us and from dividends due to them,” Chiejina said.
“If we were struggling with liquidity challenges we wouldn’t have given them such generous payment terms. As at 2021 when the agreement was signed, the refinery was at the pre-commission stage.”
According to the statement, the agreement would have been cash-based rather than credit-driven if the refinery struggled with liquidity issues.
The refinery’s spokesman said the NNPCL was subsequently unable to supply the agreed 300,000 barrels a day of crude (bpd).
He stated that the shortfall was because the NNPPC “had committed a greater part of their crude cargoes to financiers with the expectation of higher production which they were unable to achieve”.
“We subsequently gave them a 12-month period for them to pay cash for the balance of their equity given their inability to supply the agreed crude oil volume,” he said.
“NNPCL failed to meet this deadline which expired on June 30th 2024. As a result, their equity share was revised down to 7.24%. These events have been widely reported by both parties,” he said.
News
9mobile Addresses Recent Service Outages, Apologizes for Inconvenience
9mobile has apologized for the recent service outages experienced by its valued customers which has affected their ability to provide voice, data, internet services. “We understand the frustration these disruptions have caused and deeply regret the inconvenience.
“Our technical team has identified the root causes of the outages including a fire incident at our Main Data Centre in Lagos last night which severely impacted services especially in the Lagos and South-West. We are grateful for the swift intervention of the Lagos State Fire Service, which helped prevent further damage.
“Prior to the fire incident, our network experienced major fibre interruptions leading to varying degrees of outages. We had a fibre cut on the backbone links in Lagos which led to a total data outage across the country.
“This was followed closely by two vandalism incidents in Lagos and Abuja, leading to total service outage in South-West and data service outage in the North. Services have now been fully restored in the North & South-South States while restorations work is ongoing in others. We expect to fully restore services as soon as possible”
At 9mobile, customer satisfaction is remains top priority. “We value the trust you place in us and appreciate your patience and understanding during this challenging time. Customers who continue to experience issues can reach out to our customer service team via our social media touchpoints or our experience centres”.
Once again, we sincerely apologize for the disruption and thank you for your continued support.
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