Easily combine multiple files into one pdf document. The prompt issuance of the guidelines by the firs is a positive for tax and transfer pricing administration in nigeria. Tax considerations in mergers top law firm in nigeria. Simply put, a merger is a combination or integration of existing companies to form a single company. The consent of the board of the federal inland revenue service must be obtained for every merger and asset transfer in nigeria. Merger control laws and regulations covering issues in nigeria of relevant.
Nigerian tax authorities must continue to implement. Assessment of capital gain tax administration in nigeria. Generally, a merger is a legal consolidation of two companies into one entity either through a scheme of arrangement or a scheme of merger. Capital gains tax act, customs and excise tariff etc. Merger oa merger is the combination of two or more separate firms into a single firm xthe firm so formed can take any of the new identities. Notification is mandatory for acquisitions involving companies with assets or turnover of n500,000,000 and above which do not qualify for the exemptions referred to in 1. Property tax is generally a tax imposed by municipalities upon owners of real property within their jurisdiction based on the value of such property. The board was established under cita, section 3 of the income tax administration ordinance of 1958 and has since been subjected to series of amendment in order to yield maximum returns federal board of. Taxation patterns throughout history are largely explained by administrative consideration. Britains colonial administrations and developments. The administration of tax in nigeria is vested in the various tax authorities depending on the type of tax under consideration. Tax administration news latest breaking stories and top. Pdf this study investigates the impact of technology innovation on tax administration in nigeria. Each tier of government is saddled with the responsibility of collecting different taxes.
The result shows that all the various forms of taxes have both significant long run and shirt run impacts on revenue generation in nigeria. The guidelines are expected to ease mnes compliance with the cbcr from. Abstract this paper attempts to look at the nigeria tax administration and its capacity to reduce tax evasion and. Pdf law and practice of mergers and acquisition in nigeria. Ahuru department of economics and statisticsfaculty of social sciences, university of benin, benin city abstract the main objective of this paper is to ascertain the impact of tax reforms on tax revenue generation in nigeria. Challenges and prospects, a case study of lagos state board of internal revenue service, largest undergraduate projects repository, research works and.
Umoren and olokoyo 2007 studied merger and acquisition in nigeria. Jun 15, 2009 this study analyses the relevance and the problems of value added tax vat in nigeria. The government is also seeking for a way to incur minimal cost in the process of enforcing tax on nigerias. Abstract this paper attempts to look at the nigeria tax administration and its capacity to reduce tax evasion and generate revenue for development desire of the populace. The tax structure of any economy tends to vary substantially according to the level of development reflecting the availability of tax bases and.
In accounting, the public sector consists of the government, governmental organizations, parastatals and nongovernmental organizations among others. Chapter 2 conceptual framework of merger and acquisition. Mergers and acquisitions and banks performance in nigeria onikoyi idris adegboyega department ofbusiness administration, babcock university, ilishan remo, nigeria email. The finance act introduces changes to the companies income tax act, value. Banks consolidation in nigeria covenant university. The ntp is a document which sets broad parameters for taxation and ancillary matters connected with taxation in nigeria. There is no capital gains tax on the transfer of shares and this makes an acquisition by means of a transfer of shares more. Jun 14, 2017 value added tax vat was introduced by the federal government of nigeria and is provided for by the value added tax decree 102 of 1993 which became effective in 1994 which requires manufacturers, wholesalers, importers and suppliers of vatable goods and services to be registered within six months of commencement of business. A withholding tax is the tax required by law to be withheld by a party from each payment made to another contracting party from the income or services rendered. Analysis of performance pre and post consolidation of thirteen mega banks in order to consider if there had been improvements. By taiwo oyedele nigerias ranking has declined 3 places from 124 to 127 out of 8 countries in the latest global competitiveness index by the world economic forum. Search and screen birds of the same feather, they say, flock together.
Challenges and prospects, a case study of lagos state board of internal revenue service, largest undergraduate projects repository, research works and materials. Impact of tax administration on government revenue in a. The nigerian tax system has undergone several reforms geared at enhancing tax collection and administration with minimal enforcement cost. Understanding withholding tax wht in nigeria therefore, you must know about. Acquirer acquirer acquirer scenario identity acquirer target new identity. This study analyses the relevance and the problems of value added tax vat in nigeria. The federal government seeks to encourage noncompliant and partially compliant taxpayers to come clean and declare and pay their appropriate tax due to the government. That said, the prospects of mergers and acquisitions in nigeria have improved.
One around the turn of the twentieth century, the second peaking in 1929 the third in the latter half. Act and the expected impact of these changes on tax administration. The study examines the administration of companies income tax in nigeria. It requires clear perception of fiscal terms and concepts as well as. An overview of national tax policy and administration in nigeria. Tax administration and revenue generation of lagos state. Tax policy, tax legislation and tax administration. It is a clear statement on the principles governing tax administration and revenue collection. This shows that in a bid to establish an effective and efficient tax system. There must be a consensusadidem and compatibility of objectives between the merging firms otherwise the merger will fail. Tax policy forms the basis for tax laws while tax administration is the implementation of the tax laws. However the level at which the capital gain tax administration in nigeria tend to achieve its desired goals and objectives depends mostly on the tax office and the company that is operating in each state, also when an individual or company is been taxed by the federal board of inland revenue fbir such taxpayer is meant to give an accurate.
Mar 26, 2015 the consent of the board of the federal inland revenue service must be obtained for every merger and asset transfer in nigeria. Introduction accounting is the book keeping that enables one to keep track of ones assets, liabilities, capital, income and expenditure. Business reorganisation in nigeria key tax considerations. Faculty of business administration, university of lagos, nigeria. The federal government of nigeria through its treasury circular ref. Department of commercial law ahmadu bello university, zaria, kaduna, nigeria email. Nigeria foreign services, persons resident within the federal capital territory, abuja and persons employed in the nigeria police force other than in a civilian capacity are to pay their taxes to the federal inland revenue service.
The nigeria tax system, like any tax system, is a tripartite structure which comprises of. Firs issues guidelines for countrybycountry reporting in nigeria. The impact of tax reform on federal revenue generation in nigeria dickson. The fiscal year runs from 1 january to 31 december. One shilling and sixpence was the tax for income brackets. However, afribank was not left out, its profit after tax in 2007 was n6. Such authorities are the joint tax board, which is the apex unifying. Capital gains tax act 1990 world intellectual property. Tax implication of mergers and acquisitions vanguard news. Some merger actions are specified by law or by a regulatory body as was the case of recent bank consolidations in nigeria. The purpose is to further enhance the process of tax collection and administration in nigeria. Merger control 2020 laws and regulations nigeria iclg. Under a typical scheme of arrangement, the net assets and business of a company say a. Pre 2002 tax reform efforts the federal government had taken farreaching steps aimed at reforming the nations tax system before the pre 2002 reform efforts.
Institute of administration intergovernmental tax relations 110 pages. Value added tax vat was introduced by the federal government of nigeria and is provided for by the value added tax decree 102 of 1993 which became effective in 1994 which requires manufacturers, wholesalers, importers and suppliers of vatable goods and services to be registered within six months of commencement of business. The 183 days residency rule for liability to nigerian tax is to be reckoned on a. Understanding withholding tax wht in nigeria completefmc. The motive to accelerate investment, saving and economic growth and development in nigeria through the use of tax administration calls for the study. Taxation in nigeria is the three major tiers of government. Merger and acquisition activity in the united states has typically run in cycles, with peaks coinciding with periods of strong business growth. Pdf an assessment of the prospects of property tax. However, apart from its power to invalidate or void a merger, the fccpc has the power to impose administrative. In this context, competitiveness is defined as the set of institutions, policies, and.
Withholding tax in nigeria administration and rates. A survey of vatable nigerian organizations, firs staff and the publics was conducted to gain insights into the way vat is administered, its relevance in revenue generation, savings and consumption of. A company can choose any date for its accounting yearend but must file returns not later than six months after its accounting yearend. This study evaluated mergeracquisition as an intervention strategy in the nigerian banking sector. The corporate tax rate in nigeria stands at 30 percent. As a matter of fact, the negative attitude of most tax collectors can be linked to poor remuneration and motivation.
Tax evasion is a deliberate and willful practice of not disclosing full taxable income so as to pay less tax. Ministries, departments, and agencies mdas suffer from limitations in manpower, money, tools, and machineries to meet the ever increasing needs of individual taxpayers. How to merge pdfs and combine pdf files adobe acrobat dc. Three research questions were formulated for the study. The nigerian tax system has been taken through several reforms and modifications. Companies are deemed to be resident companies if they are registered or incorporated in nigeria. Trading economics members can view, download and compare data from nearly 200 countries, including more than 20 million economic indicators. Nigerian tax system and administration by alexander. The 1978 task force on tax administration headed by. According to soyode and kajola 2006, the problems of tax administration in nigeria are as follows. In other words, it is a contravention of tax laws whereby a taxable person. There is no capital gains tax on the transfer of shares and this makes an acquisition by means of a transfer of shares more tax efficient than the transfer of the targets assets.
This form of tax is reported to be one of the most stable sources of revenue to governments however. Mergers and performance of conglomerates companies in nigeria. Read all the latest news, breaking stories, top headlines, opinion, pictures and videos about tax administration from nigeria and the world on today. The administration and problems of value added tax in nigeria. Explanatory notes on withholding tax administration in nigeria. Parties to a small merger may voluntarily notify the sec of the merger at any time. Nigeria corporate tax rate data, historical chart, and calendar of releases was last updated on february of 2020 from its official source. Nigeria witnessed an unprecedented wave of mergers and acquisitions in its banking sector in the post1995 and 2009 periods as a result of regulatory mandates issued by the central bank of nigeria, aimed at strengthening the capital base of nigerian banks. Introduction taxation is machinery or process in which society and communities or group of individuals are contributing into an agreed sum which is important for the resolution, development and administration of the public. A minimum of 3,700 npower volunteers will be selected to work as community tax liaison officers to work in their states of residence with the states tax authorities. Statutory requirement under companies income tax act cita the cita in section 2912 cap 21, lfn, 2004 provides that no merger, takeover, transfer or restructuring of the trade or business.
The main objective of this study is to determine the impact of company income taxation on the profitability of. Administration of current taxes in nigeria vanguard news. The administration of the taxation of profits of incorporated companies in nigeria is vested in the federal board of inland revenue fbir. The 1978 task force on tax administration headed by alhaji shehu musa. Nigeria were merged into one administrative unit known as the colony and pro. There must be a consensusadidem and compatibility of objectives between the merging firms otherwise the merger.
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