Finance Bill Makes TIN Mandatory For Banks’ Account Holders
The Finance Bill 2021 has made it mandatory for commercial banks to demand Tax Identification Number (TIN) from any individual seeking to open an account with them.
The bill also empowers banks to demand TIN from existing customers if they wish to continue to operate their accounts.
The bill also makes it mandatory for non-resident firms such Google and Twitter to pay taxes to the Federal Government of Nigeria.
The Leader of the Senate, Yahaya Abdullahi, stated this in his lead debate on the bill, sent to the National Assembly by President Muhammadu Buhari, last Tuesday.
He said, “Banks will be required to request for Tax Identification Number before opening bank accounts for individuals, while existing account holders must provide their TIN to continue operating their accounts.”
The proposed bill makes provision for payment of tax by foreign firms which derives their profits from Nigeria.
The firms are: Twitter, Google, Facebook and other social media platforms.
The bill read in part, “The bill makes provision for the Accelerate International Taxation Reforms to enhance the taxation of non-resident individuals and companies that nevertheless derive profits from Nigeria.”
Abdullahi also said the bill made electronic mails as the only channel that tax authorities would accept as a formal means of correspondence with taxpayers;
He added that proposed bill prescribes penalty for failure to deduct tax, noting that this would also apply to agents appointed for tax deduction.
Abdullahi said, “This penalty is 10 per cent of the tax not deducted, plus interest at the prevailing monetary policy rate of the Central Bank of Nigeria (CBN). The conditions attached to tax exemption on gratuities have been removed. Therefore, gratuities are unconditionally tax exempt.
“The duties currently performed by the Joint Tax Board as relates to administering the Personal Income Tax Act, will now be performed by the Federal Inland Revenue Service.
“This seems to be an error in the process of amendments to replace the word “Board” as it appears in Federal Board of Inland Revenue.”
He said the penalty for Value Added Tax late filing of returns increased to N50, 000 for the first month and N25, 000 for subsequent months of failure;
He said, “The penalty for failure to register for VAT is reviewed upwards to N50,000 for the first month of default and N25,000 for each subsequent month of default.
“The penalty for failure to notify FIRS of change in company address to be reviewed upwards to N50,000 for the first month of default and N25,000 for each of the subsequent months of default.
“This penalty also covers failure to notify FIRS of permanent cessation of trade or business. Quite significantly, the Finance Bill seeks to introduce sweeping changes to the tax laws covering seven different tax laws.
“Many of the changes are expected to have positive impacts on investments and ease of paying taxes especially for the MSMEs. Going forward, we hope that changes to the tax laws will be on an annual basis to ensure that Nigeria’s tax system continues to evolve in line with economic conditions”
On the Personal Income tax Act, the Senate leader said the amendment clarified that pension contributions would no longer require the approval of the Joint Tax Board to be tax-deductible;
He said, “On the other hand, the bill seeks to remove the tax exemption on withdrawals from pension schemes except the prescribed conditions are met.
Wike Urges Traditional Rulers To Engender Peace …As Awuse Heads Chiefs’ Council
Rivers State Governor, Nyesom Wike, has urged traditional rulers to engender peace in their domain at all times.
He maintained that no government can progress without peace, stressing that it is the responsibility of traditional rulers to always galvanize and support the growth of their various kingdom through the sustenance of peace.
Wike stated this during the presentation of certificate of recognition and staff of office to six newly recognised traditional rulers in the state in the presence of the new Chairman of Rivers State Traditional Rulers Council, His Royal Majesty, Nne-Nwe-Eli Emohua XIII (OLO IV), Ohna Sergeant Chidi Awuse , at Government House, Port Harcourt, yesterday.
Wike,who identified peace as necessary ingredient in the process of governance, warned the traditional rulers against using their position to harass companies operating in their domain.
He particularly admonished the Gbenemene Tai Kingdom, His Royal Majesty, King Samuel Lebara Aadum Nnee, who was recognized as first class traditional ruler to use his new position to enthrone peace in Tai Kingdom for the overall interest of the people.
The five other recognised traditional rulers are all in the second class category. They include His Royal Highness, Eze Chukwuemeka Victor Elvis Nmeham Woji Okocha Orlumeni XII, Nye Nwe-Ali Rumuorlumeni; His Royal Highness, Eze (Dr) Wobodo Sunday Jonah, Nye Nwe-Ali Ibaa/Obelle; His Royal Highness, Ohna Christian Okchineke Elechi, Nye Nwe-Eli Odegu; His Royal Highness, Eze Damian Azike Ejiohuo, Nye Nwe-Ali Rundele XII, Nogbo II; and His Royal Highness, Eze Christian Amadi Evekwuru – Eze Chigu Rumuekpe.
I’m Leaving Nigeria Better Than I Met It In 2015, Buhari Boasts …Apologises For Negative Impacts On Nigerians
President Muhammadu Buhari has said he was confident that he would be leaving office with Nigeria better in 2023 than he met it in 2015.
Buhari made this known in his farewell nationwide broadcast yesterday
“I am confident that I am leaving office with Nigeria better in 2023 than in 2015. I thank you all. And may God Bless the Federal Republic of Nigeria,” Buhari said.
He also appreciated millions of Nigerians who prayed and supported him during his illness in the first term of his office.
The President said he is constantly praying for those who helped him succeed and for Nigeria to thrive in peace.
He said, “I also want to use this opportunity to express my appreciation to a good number of Nigerians who provided their support and encouragement to help me navigate the exciting journey in moving Nigeria forward.
“I cannot and will not forget the millions who prayed for me during my illness in my first term of office. I am constantly praying for you and for Nigeria to thrive in peace.
“As I retire home to Daura, Katsina State, I feel fulfilled that we have started the Nigeria Re-Birth by taking the initial critical steps and I am convinced the in-coming administration will quicken the pace of this walk to see a Nigeria that fulfils its destiny to be a great nation.”
The President also apologised to Nigerians over the negative impact some of his economic policies inflicted on them.
He noted that some of his policies caused “temporary pain and suffering” to Nigerians.
According to him, “some of the decisions were difficult choices, the measures were taken for the overall good of the country”.
Buhari explained that, “In the course of revamping the economy, we made some difficult choices, most of which yielded the desired results.
“Some of the measures led to temporary pain and suffering for which I sincerely apologise to my fellow countrymen, but the measures were taken for the overall good of the country”.
Buhari will hand over power to Bola Tinubu, the president-elect, this morning.
Wike Honours El-Rufai, Fayemi, Fubara, Others
The outgoing governor of Rivers State, Chief Nyesom Wike, has conferred the highest Rivers State honours, the Grand Service Star of Rivers State (GSSRS), on eight personalities in the country.
The recipients include governors of Imo State, Hope Uzodimma; Mallam Nasir El-Rufai (Kaduna) and Rivers’ governor-elect, Sir Siminialayi Fubara.
Others were the governors of Kebbi State, Abubakar Atiku Bagudu; Mohammed Badaru Abubakar (Jigawa); former governors of Akwa Ibom, Godswill Akpabio; John Olukayode Fayemi (Ekiti), and Senator Abdulaziz Abubakar Yari (Zamfara).
Governor Wike, while delivering his valedictory speech at a State and honours award night in Port Harcourt on Saturday night, said the second, third, and fourth- categories of honourees cut across a broader spectrum of society.
The governor said the seven governors and former governors honoured by the State belong to the country’s highly intelligent, committed, and hardworking servant-leaders who have distinguished themselves in public service with phenomenal performance records.
“Most of all, they are prominent power brokers among the Governors of the All Progressives Congress (APC), who signed, undertook, and worked day and night to deliver our collective aspirations for a southern president in the 2023 general elections at significant risks to their political lives.
“Their lives, reputation, exploits, and achievements are like open books, so we all know who and what they are, what they stand for, and which interests they represent and project. They have proven to be leaders made for the times rather than the ones the times and circumstances accidentally produced.
“We honour and celebrate these fellow compatriots’ inspirational achievements, exemplary leadership, profound service, love for the motherland, and contributions to national cohesion, democracy, equity, and justice”, Wike said.
The governor noted that the inception of his administration was rough and turbulent, because the then outgoing governor, Rotimi Amaechi, was very hostile and rancorous.
According to him, he also met an empty State treasury, huge public debts, a hostile political environment, and a hostile Federal Government that turned against his government, courtesy of the former governor.
“He initially struggled to prevent us from being sworn in by going to three different courts for restraining orders. When this failed, he challenged our electoral victory and had it nullified at the tribunal and the Court of Appeal.
“Our mandate was restored by the Supreme Court after nearly one year of legal battles. But, all three senatorial seats, a sizeable number of the House of Representatives, and over half of the State House of Assembly seats were nullified, leaving the State without representation at the National Assembly and a functional State House of Assembly. Our candidates for these offices were later subjected to a series of tempestuous re-runs before some managed to reclaim their mandates”, he recalled.
Wike accused Amaechi of laying social and economic landmines such as the shut down the State House of Assembly complex and courts with the sole intent to cripple his administration.
He alleged that having decimated the State’s governance institutions, Amaechi shifted his targets to the State’s treasury, including the statutory reserved funds, and emptied it with impunity.
According to him, “He (Amaechi) sold our valued assets, realized over $415,000,000.00 (four and fifteen million United States Dollars), and siphoned it entirely out of the State’s treasury in under two weeks. He embarked on some bogus projects he never intended to execute but to serve as conduit pipes to fritter State resources for himself, political cronies, and business partners.
“The less than one-kilometre monorail project, the multi-story Karibi-Whyte Hospital, the new Rivers State University, the Greater Port Harcourt City, and the M10 road projects are some of the elephant projects he purportedly initiated but failed at foundation levels after expending billions of public funds. He piled up debts by stopping to pay contractors and salaries to civil servants and other categories of workers, including pensioners and sportsmen and women.”
Despite initial challenges that beset his administration, the governor said he was able to overcome them to reposition the judiciary, delivered unprecedented 12 flyovers and constructed over 900 kilometres of Trunk-A roads and over 200 kilometres of internal roads across the State.
The governor boasted that Rivers State would remain a Peoples Democratic Party (PDP) State for the foreseeable future, saying however, that the interest of Rivers State transcends political party confines and affiliations.
He maintained that it is the right of the people of Rivers State to participate in decision-making at the highest level as well as follow the political path that guarantees a better deal for the State and people.
“Accordingly, we made the right choice when we opted for unity, equity, fairness, and justice in our consideration for a Southern Presidency during the 2023 general elections. I assure you that we are in the right direction. Rivers State is politically connected to the Centre and will be better for it more than ever this time. There is nothing to regret.”
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