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Tax › Income tax questions

 December 22nd, 2015  | Tax

Income tax questions

Accounting Services Lagos

Since its launch the Nigerian Inland Revenue System has made sure that the income tax questions are not only made easy but the related processes are also made trouble-free. However is it also to be noted that in July 2014 a very important decision has been taken in this regard which has been imposed on all the nonresident companies that are working in the country and according to this amendment not only the income tax questions have been updated but now these companies also need to make sure that audited financial statements are also presented with the income tax returns and it has been made effective to make sure that the tax evasion issues are curbed in full. If the company has submitted the tax returns without the proper documentation attached then it is very important to note that the all such returns should be filed with updated income tax questions templates as well as the related statements that have been submitted must also be resubmitted to make sure that the return filed is exactly in line with the requirements of the Nigerian government. It has also been mentioned by the FIRS that in certain case where there is no need of resubmitting the documents as well as the income tax questions. But in order to do that the FIRS will directly contact with the relevant company and if has not been done then all the nonresident companies need to make sure that the best is provided to the Nigerian government to make sure that they are never audited by the FIRS directly which most of the companies avoid and does not want to happen. It has also been made clear by the FIRS that the taxpayers that are affected by this decision must take effective steps to make sure that the issue is resolved for them and they get their tax returns and related income tax questions filed in time. FIRS has also made it clear that as there are no branch profits tax in Nigeria so all the nonresident companies that are operating with their branches in Nigeria should also file the tax questions that are related to their branches as separate entity and if it is not done then the companies will be penalized accordingly. It has also been mentioned by FIURS that if the company for any reason is not able to submit the revise income tax questions as well as the audited statements then an authentic statement showing the profit that a company has earned in this regard should be attached with the income tax return files. All these changes that have been made derived their roots from the section 55 of the CITA Act according to which a taxpayer ensures that the returns are filed based on actual statements. Formerly this was just restricted to Nigerian companies but the scenario has been changed since the tax evasion issues reported to the Nigerian Department of Commerce.

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