Tax & Business Matters - Nigeria

Happy holidays!

2020 has been a year like no other, at least in our lifetime. When being alive is a miracle like no other year! The year that taught us the real meaning of uncertainty but also showed us that we are limitless! 

.Happy holidays and cheers to a better 2021.

FIRS to close tax waivers window by 31 December 2020

The FIRS has indicated that all concessions for waivers of penalty and interest on outstanding tax liabilities will come to an end by 31 December 2020. This implies that any unresolved or unpaid tax liabilities arising from tax audits and other reviews by the FIRS will attract applicable penalties and interest from January 2020.

See notice attached below:

Download FIRS tax waiver notice 2020

 

Tax Appeal Tribunal says withholding tax is not applicable on certain transactions in the ordinary course of business

The WHT Regulations provide that “all types of contracts and agency arrangements other than sales in the ordinary course of business” are subject to WHT at 5%. This means that sales in the ordinary course of business would not be subject to WHT. However, the WHT Regulations do not define what qualifies as “sales in the ordinary course of business”.

The TAT held that what constitutes "sales in the ordinary course of business" is a question of fact and provided the following guidance for the determination  –

1. Whether the activity was contained in the memorandum and articles of association of the company
2. The type of industry the taxpayer operates in
3. The history and antecedents of the taxpayer and
4. The frequency of carrying out the activity.

Read our alert and a copy of the judgement below:

Download PwC Tax Alert_TAT says no WHT on certain contracts

Download TAT Judgement re WHT on Sales in the ordinary course of business