A tax expert, Chimenka Ezeribe, on Wednesday in Kano made clarifications on some misconceptions on tax administration in Nigeria, emphasizing that Withholding tax (WHT) is a separate tax type, regarded as an advance payment of income tax (CIT or (PTI).
The tax expert, who made the clarification, as Guest Speaker at an Enlightenment programme, organized by the Federal Inland Revenue for Civil Society groups on Basic tax information, FIRS tax processes and operations, pointed out that Not-for-Profit Organizations are not required to pay tax.
According to him, the Federal Inland Revenue collects four per cent tax from non-oil sources, adding that tax payers cannot get excess tax paid.
“If a tax payer disagrees with an assessment, raised by the Revenue authorities. he/she has the right to it to the board or the relevant tax authority within a specified number of days from the date on the notice of the assessment.”
“If a tax payer is aggrieved by any assessment or demand notice, issued by FIRS, such person may appeal against such a decision to the Tax Appeal Tribunal (TAT), within the period stipulated under the Act.”
In addition, Ezeribe stated that Small Scale Enterprises need to note that there are tax exemptions for small businesses, with an annual turnover of less than N25 million, adding that start-ups in thieir early stages should also be aware that a lower income company taxrate of20 per cent id granted to compaies, whose yearly income between N25 million and N100 millio.
Meanwhile, he disclosed that FIRS has deployed a new tax administration system, TaxPromax, as well as created a new department on data mining and intelligence toward a tax friendly culture in the country.
