FAQs

1. Effective Provision of Infrastructural Facilities such as:
   • Good road networks
   • Efficient health care services
   • Functional delivery of educational services
   • Effective communicational facilities
   • Provision of water for domestic and irrigation
2. Security of Lives and Property
3. Issuance of tax clearance certification for processing of private and public transaction
   

N1,000 or imprisonment for 3 years collected renders false returns of amounts of tax collected or collects tax when not authorized (S 89 (a) & (b).

All individuals, business entities, communities, families, executors, trustees and self employed who receive or derive income in form of gain or profit either from trade, business, profession or vocation within or outside Nigeria shall be liable to Direct Assessment.

i. All taxable persons should file their returns within 90 days from the begining of every year including amount of tax payable PITA (S.44).

ii. Tax Authorities shall assess the taxable persons thereafter (PITA S.54).

iii. Notice of Assessment shall be served on the taxable persons. For Coperate Bodies, see guidelines as published by FIRS.

iv. Payment of Tax assessed and notified should be made as specified by the relevant tax authorities.

v. Receipts must be obtained for all payments made.

Pay-As-You-Earn is a method by which an employee pays income Tax on his earrings from employment and other sources in twelve monthly installments over the year. It is not a tax separate or different from personal Income Tax Law No 104 of 1993 (as amended to date).

This method of deducting income tax applies to all employees resident in all Status of the Federation and to all income from employment exercised in Nigeria by such residents, even if the employee is temporarily outside Nigeria (on leave or otherwise), or receives his pay outside Nigeria.

PITAS.3(1) (a): Subject to the provisions of this Act, tax shall be payable for each year of assessment on the aggregate amounts of each of which is the income of every taxable person for the year from a source inside or outside Nigeria, Including, without restricting the generality of the foregoing- Gain or profit from any trade, business, profession or vacation, for whatever period of time, such trade, business, profession or vacation may have been carried on or exercised.

• Failure to furnish returns, N200 plus N40,000 for everyday statement or Information, or during which the failure continues keep requested records s.86 (1)
• Failure to register for PAYE with N1,000 for the first month and the relevant Tax Authority N1,000 for each subsequent month and S.80 (5) and the premises shall be liable to be sealed up.
• Failure to deduct to remit within N5,000 plus the Tax deducted or 30days from the date of deductible and interest at prevailing deduction, the time the duty to commercial rate deduct arose S (73)
• Submission of false statement N5,000 or imprisonment for 5 years and returns (S 88) or both
• A tax officer who defrauds, embezzles, withholds tax N1,000 or imprisonment for 3 years collected renders false returns of amounts of tax collected or collects tax when not authorized (S 89 (a) & (b).

• Collect Annual returns forms from the Board for distribution to its employees;• Collect Tax tables and operational guidelines for computation and deduction of taxes.
• Deduct taxes correctly and remit to the Board as and when due;
• Ensure that the Annual Tax returns forms are properly and correctly completed by employees
• Issue tax receipt (Rev. 15) to employees at the end of the year;
• Allow officials of the Board to conduct Tax Audit and other Investigations when the need arises.
• Issue transfer certificate to employee leaving the organization;
• Complete the employers annual returns form (Rev. 9) and submit to the Board every January
• Duty to conduct withholding taxes on contracts, Rents, Dividends, Commissions, Interests, Direct fees etc and remit, same to the Board;
• To notify the Board of the commencement of the PAYE scheme and.

• To notify the Board of the closure or temporary suspension of operation.

• Collect Annual Return forms from the Board for distribution to its employees.
• Collect Tax tables to serve as a guide in the computation and deduction of taxes.
• Deduct taxes correctly and remit to the Board as at when due.
• Ensure that the Annual Tax Return Forms are properly and correctly completed by employees.
• Issue Tax receipts (Rev. 15) to employers at the end of the year.
• Allow officials of the Board to conduct tax audit and other investigation when the need arise.
• Issue transfer certificate to employee leaving the organization.
• Complete the employers Annual Returns Form (Rev.19) and submit to Board every January.
• Duty to deduct WHT on contracts rents, dividends, Commissions, interests directors fees, etc and remit to the Board.