Tax auditing involves an independent examination of a taxpayer’s records, tax returns, payments, and other documents to ensure adherence to tax laws, rules, regulations, and compliance with accounting standards. Typically, an audit focuses on key areas crucial for an accurate assessment of a taxpayer’s tax obligations. This may include investigating signs of significant unreported income …
Overview of the FIRS The Federal Inland Revenue Service (FIRS) is a government body in Nigeria responsible for administering and collecting taxes from registered companies, whether based in Nigeria or offshore, that generate revenue within the country. All registered companies are mandated to file relevant tax returns and remit taxes, including Corporate Income Taxes and …
In its most fundamental essence, tax compliance is generally defined as the extent to which taxpayers adhere to tax laws. The pivotal question arises: does ‘compliance’ denote intentional or obligatory conduct? If taxpayers merely conform due to imminent threats or inducements, this may not qualify as genuine compliance, even if the entire tax is collected …
Navigating Tax Compliance: A Comprehensive Insight. Read More »
For those who have been following our publications, the topic of today’s discussion may sound familiar. However, if you are a new reader, you can catch up on our previous posts; a link will be attached at the end of this write-up. In this edition, we delve into the realms of tax audit and tax …
Understanding Tax Audit and Managing Tax Liability. Read More »
Navigating the landscape of Withholding Tax (WHT) on interest expenses can be intricate, and misunderstandings or oversights may arise in the process. To shed light on this matter, we’ve outlined eight key points for clarity on the deductibility of WHT on interest expenses in Nigeria: Inner Konsult Ltd. employs various tools to assist taxpayers and …
7 Crucial Insights on Withholding Tax (WHT) for Interest Expenses. Read More »
Transfer Pricing (TP) stands as the method employed by connected organizations or related parties to determine the pricing of goods, services, assets, intellectual properties, loans, and other transactions amongst themselves. This strategic financial practice is not just an economic tool but also a legal mechanism utilized by businesses to optimize their tax liabilities. When implemented …
Understanding Transfer Pricing: A Comprehensive Guide. Read More »
As businesses continually evolve to align with dynamic economic policies, corporate restructuring becomes a strategic imperative for entities seeking resilience, growth, or compliance with regulatory changes. Corporate restructuring may arise from various circumstances such as business failure, expansion goals, or regulatory mandates like increased minimum capital requirements for financial institutions. One of the most prevalent …
Navigating Tax Considerations in Mergers and Acquisitions: A Comprehensive Overview. Read More »
In the dynamic landscape of global trade, Export Processing Zones (EPZ) and Free Trade Zones (FTZ) have emerged as catalysts for international investment and economic growth. Countries worldwide, including Nigeria, recognize the pivotal role these zones play in fostering economic development. One common denominator among these zones is the implementation of tax incentives to attract …
The Finance Act of 2020 brought amendments to the Value Added Tax Act (VATA), specifically focusing on non-resident suppliers (NRS) making taxable supplies to Nigeria. Section 10 of VATA mandates registration and Tax Identification Number (TIN) acquisition for non-resident suppliers. The Federal Inland Revenue Service (FIRS) has issued comprehensive guidelines, effective from January 1, 2022, …
Simplified VAT Compliance Guidelines for Non-Resident Suppliers: An Overview Read More »
In its pursuit of increased foreign and local investments, Nigeria has strategically established Free Trade Zones (FTZs) – a practice not unique to Nigeria but embraced globally by countries like Tanzania, Libya, China Hong Kong, and others. Nigeria boasts 42 licensed FTZs, with 14 currently operational. A Free Trade Zone (FTZ) is a designated economic …
TAX IMPLICATIONS OF FREE TRADE ZONE TRANSACTIONS IN NIGERIA. Read More »
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