Agencies collecting taxes must be monitored, says Nigerian Senate

The Finance Bill 2020 has scaled first and second readings at the Senate. President Muhammadu Buhari, Tuesday transmitted the legislation to the Senate for consideration and passage. The bill which was sponsored by the Senate Leader, Yahaya Abdullahi (APC – Kebbi North) was referred to the Committees on Finance; Customs; Trade and Investment; and Public Procurement for further legislative work.

The bill, among other things, seeks to amend over ten tax-related Acts. Part of the amendments in Section 19 of the Value Added Tax Act which increases the penalty payable by a taxable person for non-remittance within the specified period from five percent to ten percent. Section 28 of the same Act also increases the penalty for failure to give notice of change of address or permanent cessation of business from N5,000 to N50,000 in the first month and N25,000 in subsequent months.

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A new Section 8 of the Act was provided to cater for the registration of a taxable person upon commencement of business. The penalty for failure to register has been increased from N10,000 to N50,000 in the first month and from N5,000 to N25,000 in the subsequent months. A new Section 8 of the Act was provided to cater for the registration of a taxable person upon commencement of business.

The penalty for failure to register has been increased from N10,000 to N50,000 in the first month and from N5,000 to N25,000 in the subsequent months. The time within which a taxable person is required to register with the service is, however, not specified under the new law as the law simply hinged the time “upon commencement of business.”

On ensuring compliance with Value Added Tax requirements, he added that a new section 15 was introduced to make it compulsory for companies with a turnover of N25 million or more to render their tax on or before the 21st of every month.

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