News & Education
Section 14 (3) & (4) of the Value Added Tax Act introduced a self-account provision for all supplies for which VAT was not charged. Section 14 (3) of the Act provides that: A non-resident company shall include the tax in its invoice and the person to whom the goods are supplied in Nigeria shall remit... Continue Reading →
Paragraph 8 of the Second Schedule to the Companies Income Tax Act Cap C21 LFN 2004 (as amended) provides that capital allowance shall only be granted to a company in a year of assessment if at the end of the year, the company is the owner of the asset and that the asset was in... Continue Reading →
Section 24(1) of the Companies Income Tax Act Cap C21 LFN 2004 (as amended) provides that: There shall be exempt from the tax- a. the profits of any company being a statutory or registered friendly society, in so far as such profits are not derived from a trade or business carried on by such society;... Continue Reading →
It is a common knowledge that dividend is an investment income. While dividend is generally liable to Withholding tax deduction at source, some dividend payments are exempted from tax, one which is dividend distributed by a unit trust (Companies Income Tax Act). There is a provision in the Companies Income Tax Act Cap C21 LFN... Continue Reading →
In business, some companies prefer to lease certain assets to an outright purchase. The reasons for this may range from the need to preserve cash flow (i.e. flexible payment terms) to enjoying the technical expertise of the original owner of the asset. In accordance with the International Financial Reporting Standard (IFRS) 16, depending on some... Continue Reading →
Unit trusts are types of collective investment schemes where investors with the same investment objectives pool their financial resources together for the purpose of making large scale investments within the scope of the investment objective. The Investment and Securities Act (ISA), 2017 defines a collective investment scheme as “a scheme in whatever form, including an... Continue Reading →
In the business world, it is possible for an expense/liability already allowed for tax purposes to be refunded/waived either partly or in whole. Section 28 of the Companies Income Tax Act Cap C21 LFN 2004 (as amended) and Section 22 of the Personal Income Tax Act Cap P8 LFN 2004 (as amended) provide that, such... Continue Reading →
