Understanding Investment Allowance

An investment allowance is an allowance granted to a company that has incurred an expenditure on plant and equipment. Section 32 (1) of the Companies Income Tax Act Cap C21 LFN 2004 (as amended) provides that where a company has incurred an expenditure on plant and equipment, there shall be allowed to that company an... Continue Reading →

Turnover basis of assessment: What the law says…

Section 55 of the Companies Income Tax Act Cap C21 LFN 2004 (as amended) mandates every company including those granted exempted from incorporation and those exempted from paying tax under the Act, to file a self-assessment return with the Federal Inland Revenue Service (herein referred to as "Service") and such return to contain the following:... Continue Reading →

Stamp Duty: What has changed?

One of the tax laws amended by the Finance Act 2019 is the Stamp Duty Act Cap S8 LFN 2004 (as amended). One of the few amendments to the Act is the inclusion of electronic documents in the list of instruments liable to stamp duty. Also, certain bank deposits and transfers are now liable to... Continue Reading →

Artificial Transactions: Anti-abuse Guidelines

Section 22 of the Companies Income Tax Act Cap C21 LFN 2004 (as amended) empowers the Federal Inland Revenue Service (FIRS) to disregard any fictitious or artificial disposition* or transactions that reduces or would reduce tax payable by any taxable entity, and direct adjustments as appropriate. In the words of the law: Where the Service... Continue Reading →

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