Stats: 3,187,135 members, 7,931,883 topics. Date: Monday, 26 August 2024 at 01:53 PM |
Nairaland Forum / Nairaland / General / Business / How To Avoid Paying Taxes In Nigeria. (3075 Views)
Benue: Dangote Calls For Review Of Taxes, Levies / Lagosians Have 8 Days To Pay Their Taxes Or Face Prosecution / FIRS Shuts Firms In Warri, Lagos, Ilorin Over Unpaid Taxes (2) (3) (4)
How To Avoid Paying Taxes In Nigeria. by fourtuna(f): 9:35pm On Jan 19, 2015 |
A vibrant industry known as tax planning or tax avoidance has developed in the field of taxation as a consequence of the cardinal rule of interpretation of taxing statutes. A person who is in charge of his own business, for instance should know what he may be required to pay as TAX when earns profit and the tax allowances he may derive in respect of his capital expenditure. He should be able to take advantage of the opportunities afforded him by law to offset his losses. Many tax incentives which the law offers to businessmen are to be claimed specifically. So, a person who wishes to take advantage of these must, therefore be familiar with the relevant laws. In the field of revenue law, any arrangement whereby a private person or a businessman lawfully eliminates or reduces his tax burden is referred to a tax planning or tax avoidance. Tax Avoidance is the systematic way of organising one's affairs with a view to minimising one's tax obligation as much as possible. Without much ado,let us look at various forms,loopholes and provisions one can use to avoid paying tax. 1) REGISTER AS A NON GOVERNMENTAL ORGANISATION OR AS A TRUST Companies registered as Limited by Guarantee are exempted from paying tax in Nigeria. For example; Churches, Mosques e.t.c. Organisations that are into charitable causes though do not pay taxes they are not expected to pay divdends to their owners. Note that transations made by them that results in a profit can equally be taxed. 2) WHT receipts Withholding tax is one of the most popular form of taxation in nigeria. It is paid on contract on supplies, services,director's fees, dividends, interest e.t.c For example; IF Mr A during the year a total of N2m has been deducted from your receipts by your clients as withholding tax. In the same year,MR A's liabilites have been calculated as N10m. Before you pay the tax liability of N10m, Mr A MUST deduct the N2m that the Tax Authorities had deducted from your receipts during the year. Explanation:- The N2m that what withheld at source is seen as an advance payment of your tax and is kept as a credit for Mr A. So to enjoy the benefit of the credit, Mr A must obtain a WHT Credit Note from your client, without this you cannot deduct the N2m before the FIRS. 3) LOSSES In business, there are times when you make losses in any given year. These losses can be used to reduce the tax payable at periods when profits will be made. For example, IF Mr Ayo had made an aggregate loss of N1.0m in the last year, then in the current year, Mr Ayo then makes a taxable profit of N1.5m . Rather than being taxed on the N1.5m, Mr Ayo would be taxed on the N500,000 only thus getting a relief of N1m. This is the reason why it is so important to keep proper records and make regular filings of your accounts and annuals returns. 4)Try and Invest in business that are wholly export oriented Dividends and profits obtained from business that are wholly export oriented are exempted from being taxed in Nigeria. Any business that soley exports the dividends paid out to its shareholder will not be subjected for tax. Also, if a supplier supplies in raw materials that is exclusively required for the manufacture of exports then the profit made by that supplier will also be exempted from tax. Note that such company must provide a Certificate of Purchase of Inputs to the Supplier. This Tax Avoidance methods are not conclusive, but if applied strictly, and with the help of a Tax consultant would add good value to a business. |
Re: How To Avoid Paying Taxes In Nigeria. by cremeandchic: 10:03pm On Jan 19, 2015 |
You do know that tax evasion and avoidance is a crime in Nigeria right? |
Re: How To Avoid Paying Taxes In Nigeria. by fourtuna(f): 10:53am On Jan 20, 2015 |
Please understand this carefully. Tax Avoidance is Legal while Tax Evasion is illegal. Where u arrange your affairs with a view of minimizing your tax it is called Tax Avoidance whereas where you deliberately avoid paying your tax obligation, you have committed a crime by evading tax and can be prosecuted. So if u can use the loopholes in the taxing statutes to your own benefit with the aid of a Tax Consultant/ Lawyer, you are safe. 4 Likes |
Re: How To Avoid Paying Taxes In Nigeria. by CashdownNG: 8:33pm On Jan 20, 2015 |
cremeandchic:. this is what happens when etisalat gives free mb and the person is probably a minor.. any dumb as.s knows that tax shelters and evasions are two different things or did she say how to evade taxes in Nigeria? Chai!! no wonder we have a country like this, we no dey read at all;!!!! 4 Likes 1 Share |
Re: How To Avoid Paying Taxes In Nigeria. by cremeandchic: 10:21pm On Jan 20, 2015 |
fourtuna:Thanks for clarifying. I used to think Tax avoidance meant under-reporting ones income as a way to reduce tax liability. |
Re: How To Avoid Paying Taxes In Nigeria. by cremeandchic: 10:24pm On Jan 20, 2015 |
CashdownNG: Now read this carefully CashdownNG, let this be the last time you quote my post and insult me on Nairaland or anywhere else. The next time you try it, i'll make sure we both get banned. |
Re: How To Avoid Paying Taxes In Nigeria. by ebamma(m): 10:30pm On Jan 20, 2015 |
cremeandchic:hmm |
Re: How To Avoid Paying Taxes In Nigeria. by cremeandchic: 10:32pm On Jan 20, 2015 |
ebamma:What? |
Re: How To Avoid Paying Taxes In Nigeria. by ebamma(m): 10:34pm On Jan 20, 2015 |
cremeandchic:no be me find u trouble oh |
Re: How To Avoid Paying Taxes In Nigeria. by cremeandchic: 10:36pm On Jan 20, 2015 |
ebamma: Why you come dey quote me? Lol. Una too like to dey bully person for this Nairaland. |
Re: How To Avoid Paying Taxes In Nigeria. by CashdownNG: 11:17pm On Jan 20, 2015 |
cremeandchic: you attacked someone who might be enlightening someone out there ...I simply set you straight but If you think your threats in a faceless forum can faze me, then you're more deluded and beyond redemption than I earlier thought . get a life. or at least let those making use of theirs so so in peace. |
Re: How To Avoid Paying Taxes In Nigeria. by cremeandchic: 11:34pm On Jan 20, 2015 |
CashdownNG: As intellectual as you claim to be, u actually sound very stupid. U are probably blind or in your bid to get cheap popularity and score stupid points, u decided to close ur eyes to d fact that my statement had a question mark. The op was civil enough to set me straight and make me better understand the subject but a senseless old man like you who should be attending to his family's needs was quick to jump into the thread to start insulting me. God punish that your paralyzed fingers you used to type that shit. Its a public forum, people have diverse views on stuffs and we are all here to learn. Be there forming mr smart know-it-all. If they ask you to produce your certificate now, shame no go gree you. Foolish ape. Quote me again you here, i still they use me ipad reply you, when i carry my laptop, me and you no go sleep tonight. Limit your verbal and physical abuses to your wife at home. Don't come here trying shit with me. Ar.se wipe. |
Re: How To Avoid Paying Taxes In Nigeria. by CashdownNG: 12:03am On Jan 21, 2015 |
cremeandchic: first and foremost my marital status is none if your concern next, for all the crap spewed above, you acknowledge that you goofed and you're simply too pig-headed to admit it. I'm a well educated dude by the way but that does not stand in my way to learn, which takes humility kindly note instead of wasting your precious mb trying to save a crappy image of class you're trying to build here why not take to the romance section or any where you kids play. being ignorant is not a crime, staying should be the greatest crime of them all. 4 Likes 1 Share |
Re: How To Avoid Paying Taxes In Nigeria. by tonytony208(m): 5:09am On Jan 21, 2015 |
The topic should be "How to pull your country down" 1 Like |
Re: How To Avoid Paying Taxes In Nigeria. by cremeandchic: 8:09am On Jan 21, 2015 |
CashdownNG: Well educated my foot. You are still being dumb. I'm too pig-headed to admit i goofed? What kind of glasses do u wear? Are you that broke that you cannot get a replacement and start reading correctly? I clearly stated up there what i used to think tax avoidance was and even thanked the op for setting me straight. Why are you so miserable? I'm not d cause of your unemployment so free me abeg. You guys just come here to pour your frustrations on people. Even if i made a mistake, couldn't you have corrected me nicely instead of adding derogatory words like pig headed, dumb and all of that. That speaks a lot about your person; typical frustrated, mannerless African man. And even after warning you to stop quoting me and insulting me, you still decided to flex your muscles. Your education is a waste my dear friend. If you don't know how to communicate and act with civility in public, then you are no different from those agberos on d street. Take your frustratIon somwhere else okay? Cos you are messing with the wrong person. 1 Like |
Re: How To Avoid Paying Taxes In Nigeria. by Nobody: 8:46am On Jan 21, 2015 |
Truly, ignorance is a disease 2 Likes |
Re: How To Avoid Paying Taxes In Nigeria. by BloomLee: 9:05am On Jan 21, 2015 |
Hire yourself a trustworthy Experienced Accountant,or learn it. |
Re: How To Avoid Paying Taxes In Nigeria. by CashdownNG: 3:21pm On Jan 21, 2015 |
cremeandchic: first and foremost I'm not some old senile person like you are trying to paint here. you said cremeandchic: cremeandchic: first and foremost I'm not some old senile person like you are trying to paint here. you said "You do know that tax evasion and avoidance is a crime in Nigeria right?" the reeks of pride and aloofness... just keep quiet. I have a business to run perhaps why myself and the op can resonate but as you take a long epistle for a small reply that I make it is in my best interest to end it here after all, we can't be in the same circle in real life so let's keep this our dirty secret. I leave with the words of El Rufai in conclusion from what I've discovered "silence is the best answer for fools" goodbye. 1 Like 2 Shares |
Re: How To Avoid Paying Taxes In Nigeria. by cremeandchic: 5:27pm On Jan 21, 2015 |
CashdownNG:What's ur circle? of course, i can't be in d circle of unemployed, frustrated fools. And yes, i do have a business, it involves slapping some e-sense into uncouth nit-wits like u. Now u realize that silence is a good answer? Was ur brain on sabbatical when u decided to attack me first and the second time even after i warned u off me? I already dumped u in yesterday's trash bin but looks like ur so-called business is going through a period of recession so i'll gladly engage u and keep u busy. I'm nice like that. |
Re: How To Avoid Paying Taxes In Nigeria. by Ademat7(m): 7:13pm On Jan 21, 2015 |
OP pls continue cos am following religiously and leave those "two-fighter" |
Re: How To Avoid Paying Taxes In Nigeria. by fourtuna(f): 4:07pm On Jan 22, 2015 |
Ademat7: If u re-read mi post and you till dnt understand then send your questions to mi email; camelotchambers@gmail.com for further explanation. Thank u. |
Re: How To Avoid Paying Taxes In Nigeria. by Ademat7(m): 4:39pm On Jan 22, 2015 |
fourtuna:I understand d concept u r explaining but like I said a situation whr their post disturb u from attending to pple's Qs is what I want u to avoid. |
Re: How To Avoid Paying Taxes In Nigeria. by fourtuna(f): 4:51pm On Jan 22, 2015 |
Ademat7: Thank u so much for your reply. Godbless! |
Re: How To Avoid Paying Taxes In Nigeria. by fourtuna(f): 3:02pm On Jan 26, 2015 |
.......... |
Re: How To Avoid Paying Taxes In Nigeria. by fourtuna(f): 10:12am On Jan 30, 2015 |
............... |
Re: How To Avoid Paying Taxes In Nigeria. by Tradesrunner(m): 11:50am On Jan 31, 2015 |
This post is for unpatriotic fellows |
Re: How To Avoid Paying Taxes In Nigeria. by fourtuna(f): 12:11pm On Feb 02, 2015 |
Tradesrunner: U must be a Bloody illiterate can't u just simply read the post instead of open your dirty mouth to say rubbish. Silly nigerians! |
Re: How To Avoid Paying Taxes In Nigeria. by fourtuna(f): 1:15pm On Feb 11, 2015 |
................... |
Re: How To Avoid Paying Taxes In Nigeria. by Nobody: 1:41pm On Feb 11, 2015 |
very romantic tif goig on.. OMG!! so frisky right now from reading all this ![]() ![]() ![]() ![]() ![]() |
Re: How To Avoid Paying Taxes In Nigeria. by fourtuna(f): 3:27pm On Feb 12, 2015 |
Whew!!!!!!!!!!!!!! |
Re: How To Avoid Paying Taxes In Nigeria. by fourtuna(f): 10:46pm On Feb 21, 2015 |
........................... |
Re: How To Avoid Paying Taxes In Nigeria. by fourtuna(f): 12:56pm On Mar 01, 2015 |
.............. |
I Need Hawkers For Products I Import From Uk / Pls Advice And Info Needed Opening A Mini Cyber Cafe / Will you like to be an Exporter of Nigeria foodstuffs???
(Go Up)
Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health religion celebs tv-movies music-radio literature webmasters programming techmarket Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) Nairaland - Copyright © 2005 - 2024 Oluwaseun Osewa. All rights reserved. See How To Advertise. 70 |