1. Here is a recap of my Top Twelve Tax Topics for 2018. I have selected the major developments that shaped Nigeria’s taxation landscape in 2018. Follow the thread. #TaxRecap2018
2. Tax Appeal Tribunals were reconstituted in July 2018, with one each in the 6 geopolitical zones, Lagos and Abuja, totaling 8. The Tribunals will help to accelerate the resolution of pending and new tax cases. More details here http://blog.deloitte.com.ng/federal-government-reconstitutes-the-tax-appeal-tribunal/ #TaxRecap2018
3. Voluntary Offshore Assets Regularisation Scheme (VOARS) was introduced with a view to combating money laundering and tax evasion. The scheme which kicked off in October 2018 is opened for one year. The predecessor Voluntary Asset and Income Declaration Scheme (VAIDS) was extended by 3 months to make it a one year scheme which ended 30 June 2018. http://blog.deloitte.com.ng/analysis-and-implications-of-nigerias-new-executive-order-on-voluntary-declaration-of-offshore-assets/ #TaxRecap2018
4. Nigeria released a revised Transfer Pricing Regulations in 2018 which introduced additional compliance obligations for taxpayers and increased penalties for non-compliance. http://blog.deloitte.com.ng/firs-issues-public-notice-on-implementation-of-the-revised-2018-transfer-pricing-regulations/ #TaxRecap2018
5. Multi-National groups with Nigeria tax-resident ultimate parent or constituent entity having consolidated revenue of N160b or more are now required to submit Country by country report with stiff penalties for non-compliance. It’s a major step towards implementing OECD’s BEPS program. http://blog.deloitte.com.ng/an-overview-of-nigerias-2018-income-tax-country-by-country-reporting-regulations/ #TaxRecap2018
6. The VAT law was modified in 2018 by an Executive Order which grant VAT exemption for residential property leases or rentals, public transport services and life insurance premiums. There is an ongoing controversy on the exemption status of VAT on domestic airline tickets. http://blog.deloitte.com.ng/fec-approves-executive-orders-on-vat-and-excise-duties-alongside-five-amendment-bills/ #TaxRecap2018
7. Nigeria introduced changes to excise duty regime for alcoholic beverages and tobacco products in 2018 with a shift from ad-valorem to specific rate taxation for beer, stout, wines and spirits. Cigarettes and tobacco would still be taxed on an ad-valorem basis but would as well be subject to specific rates of duty. https://blog.deloitte.com.ng/federal-government-approves-changes-to-excise-duty-regime/ #TaxRecap2018
8. Lagos State Government introduced a new Land Use Charge Law in 2018 which consolidated all property and land based rates/charges into a single property charge. The law generated public outcry from various interest groups which resulted in the downward review of the charges. https://blog.deloitte.com.ng/lagos-state-government-announces-changes-to-the-land-use-charge-law/ #TaxRecap2018
9. President @MBuhari assented to the Double Taxation Agreement between Nigeria and Spain in January 2018. Many other tax treaties, including those with Ghana and Cameroon which were concluded in 2018, are awaiting legislative ratification and final executive assent before becoming operational. https://blog.deloitte.com.ng/nigeria-signs-double-tax-treaty-with-spain-into-law/ #TaxRecap2018
10. FIRSNigeria initiated withholding tax (WHT) reconciliation exercise in order to clean-up taxpayers’ records as part of the process towards automating the process. There was an initial threat that taxpayers who failed to comply with the directive before 30 August 2018 run the risk of forfeiting their tax credits but this was later clarified. http://blog.deloitte.com.ng/loss-of-wht-credit-looms-as-firs-mandates-taxpayers-to-reconcile-their-withholding-tax-credit-position-in-15-days/ #TaxRecap2018
11. Registered businesses in Nigeria were mandated to obtain new VAT certificates and display same at their business premises while customers were asked to report VAT collectors who fail to comply with this directive to @FIRSNigeria http://blog.deloitte.com.ng/firs_mandates_taxpayers_obtain_vat_certificates_display_premises/ #TaxRecap2018
12. Initiatives aimed at uncovering eligible taxpayers who failed to register for tax purposes or submit inaccurate tax returns led @FIRSNigeria to authorize bank accounts of many taxpayers to be frozen. This action sent shock waves into the system and impacted some taxpayers who maintained that their tax records are up to date. http://blog.deloitte.com.ng/federal-inland-revenue-service-provides-clarification-on-recent-tax-developments-at-a-stakeholder-meeting/ TaxRecap2018
13. Nigeria’s ranking in the World Bank’s annual Paying Taxes improved from 171 to 157 in the 2019 report, a gain of 14 spots. Paying Taxes is one of the areas covered under the World Bank’s Doing Business ranking where Nigeria’s overall position dropped by one point to 146 out of 190 economies covered. http://blog.deloitte.com.ng/world-bank-doing-business-report-2019-nigeria-records-mixed-fortunes/ #TaxRecap2018
14. Here is one of the articles that showcased other various developments within the tax space and the need to strike a delicate balance between tax penetration and economic recovery. http://blog.deloitte.com.ng/taxing-nigerias-fledgling-economy-between-tax-penetration-and-economic-recovery/ #TaxRecap2018
15. At the end of 2018, Nigeria’s registered taxpayer has grown to about 20m and more are being added through database consolidation, data mining (project lighthouse) and other initiatives. What other notable tax news is missing on my? Share your views. #TaxRecap2018
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