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Passed 2019 Finance Bill: 20 sweeping changes that will affect your business, life

Passed 2019 Finance Bill: 20 sweeping changes that will affect your business, life

A Bill to amend various tax laws in Nigeria has just been passed at the National Assembly. This is the 2019 Finance Bill which was presented to the Legislature by President Muhammadu Buhari along with the 2020 Budget.

The bill will introduce sweeping changes to Nigerian tax system. It will also have large impact on your businesses and even personal life and finances.

Below are some of the important changes you should know about:

1. Excess dividend tax to apply only to untaxed distributions other than profits specifically exempted from tax and franked investment income

2. Small businesses with turnover less than N25m to be exempted from Companies Income Tax

3. A lower CIT rate of 20% to apply to medium-sized companies with turnover between N25m and N100m

4. Commencement and cessation rules modified to eliminate overlaps and gaps to avoid double taxation and complication during commencement

5. Minimum tax provisions amended to 0.5% of turnover and exemption only applies to small companies (less than 25m turnover), so non-resident companies will now pay minimum tax

6. Insurance companies can now carry forward tax losses indefinitely, deduct reserve for unexpired risks on time apportionment bases while special minimum tax for insurance has been abolished.

7. Bonus of 2% of tax payable (medium-sized companies) and 1% for large companies for early payment of CIT.

8. Introduction of thin capitalisation of 30% of EBITDA for interest deductibility. Any excess deduction can be carried forward for 5 years.

9. Deemed tax presence for non-residents with respect to imported technical and management services now taxable at a final WHT rate of 10%.

10. Any expense incurred to earn exempt income now specifically disallowed as a deduction against other taxable income.

11. Dividend distributed from petroleum profits now to attract 10% withholding tax

12. Banks to request for Tax Identification Number (TIN) before opening bank accounts for individuals, while existing account holders must provide their TIN to continue operating their accounts.

13. Email correspondences to be recognised for communicating with tax authorities.

14. The meaning of supply and definition of goods and services has been expanded to cover intangible items other than land, among others.

15. Specific requirement for VAT deregistration for discontinuing operations

16. Introduction of VAT reverse charge on imported services.

17. VAT registration threshold of N25 million turnover in a calendar year to be introduced

18. Remittance of VAT now to be on cash basis, that is, difference between output VAT collected and input VAT paid in the preceding month.

19. Compensation for loss of employment below N10m to be exempted from CGT.

20. Stamp duty on bank transfer to apply only on amount from N10,000 and above. Transfers between the same owner’s accounts in the same bank also to be exempted.

Call 0803 239 3958 for free financial consulting advice for your businesses.
Send your accounting articles to blog@skytrendconsulting.com.

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How Border closure is worsening Nigeria’s increasing inflation

How Border closure is worsening Nigeria’s increasing inflation

The Nigerian government has finally admitted that the closure of the nation’s land borders is contributing to rising inflation.

This is according to the nation finance minister, Zainab Ahmed.

Last week, the Nigeria Bureau of Statistics (NBS) released figures that showed that the consumer price index, which measures inflation, rose to 11.61% in October, an increase of 0.36 percentage points compared to 11.24% recorded in September.

That was the exact inflation rate recorded in May 2018 when the country was recovering from the recession and high inflation rate.

At the end of the federal executive council meeting on Wednesday, Ahmed told state house correspondents that inflation rose due to hikes in food prices arising from border closure.

“On inflation, headline inflation declined every month for several months before we noticed an optic in the last two months. And now headline inflation is at about 11:61 percent as at the end of October. The slight increase in this inflation between September and October is due to food inflation,” she said.

“The food inflation we are ascribing to prices of cereals, rice and fish. And part of the reason is the border closure but the border closure is very very short and temporary and the increase is just about two basis point. Remember there was a time inflation was nine percent and it grew to about 18 percent in January 2017 when we were in recession.

“The relationship between inflation, interest rates and growth is managed by the monetary authorities and is a management that is tracked on a regular basis.

“So if you reduce interest rate you expect more borrowing for investments in the real sector. But at the same time that also has the tendency of reducing money that is used for consumption on a day to day basis.

So it’s a balance that we continue to watch on a regular basis, we expect that this will be moderated as border closure impact fizzles out and also as the monetary authorities continue to support the MPR rate therefore ensuring that interest rates are not on the high side.”

Ahmed added that closure of the border is temporary, highlighting the benefits of closing the borders.

“I need to remind us that the border closure is temporary. We have really advanced in our discussions between ourselves and our neigbours. We expect that the outcomes of those discussions and agreements is that each party will respect the protocols that we all committed to and then the borders will be open again,” she said.

“What we are doing is important for our economy. We signed up to the African Continental Free Trade Area (ACFTA) agreement, we have to make sure that we put in place checks to make sure that our economy will not be overrun as a result of the coming into effect of the ACFTA. That is why we have this border closure to return to the discipline of respecting the protocols that we all committed to.”

Call 0803 239 3958 for free financial consulting advice for your businesses.
Send your accounting articles to blog@skytrendconsulting.com.

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Finance & Admin Manager Needed in a leading NGO in Lagos

Finance & Admin Manager Needed in a leading NGO in Lagos

This is a job announcement from Skytrend Consulting Ltd, an HR, accounting and business development organisation.

Our client, a leading non-profit organization working to infuse human rights into social and economic governance processes in Nigeria is seeking to recruit the service of a professionally qualified Finance & Admin Manager.

With head office located at the heart of Ikeja, Lagos, our client uses digital crowd-sourcing, research, policy analysis, advocacy, youth engagement, public interest litigation and community action to increase the participation of Nigerian youth, women and communities in the development of social and economic policy, and also help public authorities and corporate entities to put a human rights approach at the heart of their decision-making.

The right candidate must have a B.Sc (Hons) in accounting and must have not less than 5 years practical experience in a senior accounting position. He must be a goal getter, confident, with excellent oral and written communications skils.

If you think you meet the above criteria and you are at least 30 a years old, then send your CV to recruitment@skytrendconsulting.com not later than 5 days from the date of this announcement.

Call or WhatsApp 0803 239 3958 for free financial consulting advice for your businesses.
Send your accounting articles to blog@skytrendconsulting.com.

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Individuals can no longer purchase treasury bills

Individuals can no longer purchase treasury bills

The Central Bank of Nigeria has given a directive to banks and other financial institutions to stop the sale of treasury bills to individuals and small firms with effect from November 29.

Some bank officials who disclosed this to The PUNCH said only big corporate organisations would be allowed to do treasury bills investments.

According to Punch reports, the banks were already notifying their customers of the new directive.

The sources, however, said the existing treasury bills investments would be allowed to continue till the end of their maturity dates.

A bank official said, “Operators are trying to see if the November 29 deadline given for the implementation by the CBN could be extended, so as to create enough awareness. But there is no move for the reversal of the directive.”

An operator said the inaccessibility of treasury bills might lead to an increase in savings deposits of the banks, attracting interest rates below what the treasury bills offered.

A source from the CBN said the move was to stop the mop-up of funds from the system through the treasury bills.

He said, “Many people with huge cash prefer to keep their funds idle in treasury bills instead of investing the funds. Some people collect huge severance package, have huge funds but they have refused to invest the money.

“We want these funds to be useful in the economy so that they will be available in the banks and can be invested to create more jobs in the country.”

Call 0803 239 3958 for free financial consulting advice for your businesses.
Send your accounting articles to blog@skytrendconsulting.com.

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Bill to up VAT to 7.5% passes 2nd reading: See Its 5 strategic objectives

Bill to up VAT to 7.5% passes 2nd reading: See Its 5 strategic objectives

A bill seeking to raise value added tax (VAT) to 7.5% from 5% has passed second reading at the senate — but not without some drama.

The federal executive council (FEC) approved an increase in VAT in September.

The bill entitled: ‘Nigeria tax and fiscal law, 2019’, is sponsored by Yahaya Abdullahi, senate majority leader.

After Abdullahi moved a motion for the commencement of debate on the bill and read his lead paper, some senators complained that they did not know what the proposed legislation entails because they did not have copies of it.

Earlier, the senate leader said the bill is seeking five objectives.

“The bill has five strategic objectives, the first one is to promote fiscal equity by mitigating instances of regressive taxation. The second one is to reform domestic tax laws to align with global best practices,” Yahaya said.

“The third is to introduce tax incentives for investment in infrastructure. The fourth objective is to support ongoing ease of doing business reforms and the fifth objective is to raise revenues for government including proposal to increase the value added tax (VAT) from 5% to 7.5%.”

Call 0803 239 3958 for free financial consulting advice for your businesses.
Send your accounting articles to blog@skytrendconsulting.com.

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Buhari signs $1.4bn deep offshore bill into law

Buhari signs $1.4bn deep offshore bill into law

President Muhammadu Buhari has signed the bill seeking to amend the deep offshore and inland basin production sharing contract (DOIBPSC) act into law.

The bill seeks to amend the act by reviewing the sharing formula to accrue more benefits to the federal government.

Nigeria is projected to earn an additional income of $1.4 billion annually from international oil companies operating in the country if the bill seeking to amend a particular section of the act is passed into law.

Buhari signed the much anticipated law from his residence in the UK where he is on a private visit.

Writing via his Twitter handle, he described the new law as “a landmark moment for Nigeria”.

Although Nigeria signed the first set of PSCs in 1993, while the DOIBPSC was enacted in 1999, failure to review the PSC act has reportedly caused the country to lose about $28 billion.

The amendment of section 16 of the production sharing contract act would generate at least $500 million as additional revenue for the federal government in 2020, and an estimated $1.4 billion as from 2021.

In a separate statement, the presidency quoted Buhari as saying with the new law, Nigeria will now receive its “fair, rightful and equitable share of income from our own natural resources for the first time since 2003″

“All this time Nigeria has failed to secure its equitable share of the proceeds of oil production, for all attempts to amend the law on the distribution of income have failed. That is, until today,” he said.

“Rapid reductions in the cost of exploration, extraction and maintenance of oil fields had occurred over these 25 years, at the same time as sales prices have risen.

“A combination of complicity by Nigerian politicians and feet-dragging by oil companies has, for more than a quarter-century, conspired to keep taxes to the barest minimum above $20 per barrel – even as now the price is some three times the value.

“Today this changes. For the first time under our amended law, 200 million Nigerians will start to receive a fair return on the surfeit of resources of our lands. Increased income will allow for new hospitals, schools, infrastructure and jobs.”

The president added that the amendment signals the beginning of beneficial relationship with oil company partners: “one that benefits all – starting with the Nigerian people”.

Call 0803 239 3958 for free financial consulting advice for your businesses.
Send your accounting articles to blog@skytrendconsulting.com.

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IPPIS: What really is it and why ASUU is afraid of it!




IPPIS: What really is it and why ASUU is afraid of it!

The Federal Government and the Academic Staff Union of Universities have engaged in fierce war of words over the government’s decision to make universities embrace the Integrated Payroll and Personnel Information System.

President Muhammadu Buhari had, during the 2020 budget presentation at the National Assembly on October 8, ordered that all public sector workers must register for the IPPIS to save cost and fight corruption by blocking leakages in the Federal Government’s salary payment structure.

But ASUU had, last week, opposed the President’s directive, saying the IPPIS negated the law of university autonomy.

Here’s what you need to know about the IPPIS and ASUU’s reasons for resisting it.

The IPPIS

• IPPIS Secretariat is a Department under the Office of the Accountant-General of the Federation

• It is responsible for payment of salaries and wages directly to government employee’s bank account with appropriate deductions and remittances of third party payments.

• Such third party payments include the Federal Inland Revenue Service, State Boards of Internal Revenue, National Health Insurance Scheme, National Housing Fund, Pension Fund Administrator, Cooperative Societies, Trade Unions Dues, Association Dues and Bank Loans.

• IPPIS claims that its main aim is to pay accurately and on time within statutory and contractual regulations.

• There are 459 Ministries, Departments and Agencies on IPPIS Platform as at 31st June, 2017.

• The department is responsible for processing and payment of salary to over 300,000 Federal Government Employees across the 459 MDAs.

• IPPIS aim is to enrol into the platform, all Federal Government MDAs that draws personnel cost fund from the Consolidated Revenue Fund.

• Since inception of the IPPIS project in April 2007, the department has saved the Federal Government of Nigeria billions of Naira by eliminating thousands of ghost workers.

Meanwhile the Federal Government says the October deadline it gave all ministries, departments and agencies of government to enrol in IPPIS stands. The Accountant-General of the Federation, Ahmed Idris, describes the ASUU’s opposition to the compulsory migration of all federal government staff to the IPPIS as an “open endorsement of corruption”.

He states: “ASUU opposition to IPPIS is an open endorsement to corruption in the Nigeria University system as the IPPIS platform will not allow employment of workers at will without compliance to due process on employment.”

He notes that the IPPIS, a policy of government for which President Muhammadu Buhari directed that all MDAs drawing their salary from Consolidated Revenue Funds should join by the end of October 2019, was aimed at saving costs and wastages.

The AGF, who said other unions in the universities, had complied, advised ASUU to do same before the deadline. He said: “To meet the deadline of government, the process of enrolment is on-going; we, therefore, urge all university staff to ensure they enrol on to the IPPIS platform.

“It is a known practice all over the world that employees are entitled to their salaries and wages as at when due. That notwithstanding, there is nowhere employees dictate to their employers as to how he or she should be paid as being dictated by ASUU.”

What ASUU says about the IPPIS

• It violates existing laws and autonomy of the university

• It is World Bank-designed exploitative template

• IPPIS does not make provisions for payment of arrears of promotion, study leave allowance, and responsibility allowance, among others

• It is designed to phase out university lecturers above 60 years against the new policy where professors retire at 70 years

• IPPIS is a one-size-fits-all approach tainted with corrupt tendencies

Battle line drawn

Meanwhile, the Federal Government has warned that anyone who fails to register for the IPPIS by October 31 would not be paid.

ASUU fires back: “No pay, no work.”

But the Vice-Chancellor of the University of Ilorin, Prof. Sulyman Abdulkareem, knocked ASUU for rejecting the IPPIS.

The vice-chancellor, during a press conference in the university, supported the Federal Government on the IPPIS.

Abdulkareem said, “ASUU’s logic is not clear to me. I wonder why ASUU is taking a different position after attending a meeting with the representatives of all the five unions in the nation’s university system with the representatives of the Federal Government where they were adequately briefed on the new policy.

“I want to appeal to members of ASUU not to delay the October salary of the staff of federal universities with their action because the new system will not change their salaries. It is only the nomenclature that is changing.”

He explained that with the IPPIS, the Federal Government would maintain the payment of its employees’ salaries without cheating them.

The vice-chancellor stated, “What probably is the fear of many of the academic members of staff is that the system would expose them for not working for the money they earn in their primary place of engagement.”

Call 0803 239 3958 for free financial consulting advice for your businesses.
Send your accounting articles to blog@skytrendconsulting.com.

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A B C of treasury bills: Investing and making good money

A B C of treasury bills: Investing and making good money

What are Treasury Bills?

Treasury bills are guaranteed short-term government debt instruments issued by CBN on their behalf to finance expenditure. There are typically 3 tenures available: 91 days, 182 days or 364 days.

The bills are issued at discounted prices for maturity periods after which the government buys them back at full price.

For example, let’s say you buy a 182-day N200,000 treasury bill at a discounted rate of N180,000. The Federal Government of Nigeria writes an IOU for N200,000 and agrees to pay back in 182 days. You don’t get any monthly interest payments, rather you make your money back when the bond is purchased back from you at full price. In this case the T-Bill pays 11% interest rate (N20,000/N180,000 = 11%) over the 182-day period.

How are Treasury Bills Sold?

Treasury Bills are sold through a bi-weekly auction conducted by the CBN. Buyers are requested to quote bids following which the average minimum bid is selected.

Where can I purchase T-Bills?

T-Bills are sold via commercial banks and official agents such as merchant banks, and sales are open to individuals and corporate investors.

Is there a minimum purchase amount for T-Bills?

It depends on the bank. Some banks offer a minimum of N50,000, while some offer a minimum of N500,000.

How can I buy T-Bills?

First, you will need to complete an application form issued by your bank or an approved discount house such as Kakawa Discount House Ltd. You will need to submit your application early, as most banks are required to submit applications received by the Wednesday before the dates announced by CBN – which you can get on the CBN website or in the dailies. Alternatively, your bank might be able to provide you with notifications ahead of time.

When completing the application form, you will be requested for a discount rate – which is the percentage by which the face value of the bill is discounted by. Current rates in Nigeria are around the 12% – 14% mark. You can request for this rate to either be set by your bank, or specified by you (under the “stop rate” section of the application form). If you do however choose to specify a rate which is significantly higher than what the CBN is prepared to offer, your bid will fail.

Various banks will offer you various stop rates/discount rates, depending on how much you want to invest and how long you want to invest it for so it is a good idea to shop around and not go with the first offer you receive. Do your research and select a bank carefully as people have reported banks offering as low as a 2.4% discount rate. As at October 2015, unverified informal accounts suggest that Firstbank seems to have the best bid rate for a 91 day tenure at 9.5%.

How do I calculate the return on my investment on T-Bills?

It is very easy to calculate the returns on your investment, and how this is paid. If for example you purchase T-Bills worth ₦100,000 at a 10% discount rate, CBN only debits your account of ₦90,000. At the end of the maturity period, you are paid your face value sum of ₦100,000.

Can I sell my T-bills before it matures?

It is possible to sell your T-Bills
before it maturity using the OTC market. Because this is governed by the forces of demand and supply, you might make a loss if you choose to sell them before their maturity date.

How secure are T-Bills?

As T-Bills are based on full faith of the Federal Government of Nigeria, they are considered one of the most secure investments to make. They can also be used as collateral, and are accepted by all banks.

Call 0803 239 3958 for free financial consulting advice for your businesses.
Send your accounting articles to blog@skytrendconsulting.com.

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ENTREPRENEURSHIP: 10 Reasons you should never apply for a job




ENTREPRENEURSHIP: 10 Reasons you should never apply for a job

A lot of people often have the notion that looking for and applying to start a job and getting employed and paid is the next best thing after graduating from higher institution. In fact young graduates have the illusion about the often talked about white collar job which will apparently give you all the “happiness you require” after getting your higher education certificate.

However this article written by Steve Pavlina proves otherwise. He says a job only keeps you in bondage and the income you receive therein are only for dummies.

I read this article over 10 years ago and I have successfully set up two thriving organizations thereafter. For this reason, I want to share with my readers so they too can benefit from it and never allow themselves become slaves to any job master anywhere. I am convinced you will never remain the same after this. Happy reading!

It’s funny that when people reach a certain age, such as after graduating college, they assume it’s time to go out and get a job. But like many things the masses do, just because everyone does it doesn’t mean it’s a good idea. In fact, if you’re reasonably intelligent, getting a job is one of the worst things you can do to support yourself. There are far better ways to make a living than selling yourself into indentured servitude.

Here are some reasons you should do everything in your power to avoid getting a job:

1. Income for dummies
Getting a job and trading your time for money may seem like a good idea. There’s only one problem with it. It’s stupid! It’s the stupidest way you can possibly generate income! This is truly income for dummies.

Why is getting a job so dumb? Because you only get paid when you’re working. Don’t you see a problem with that, or have you been so thoroughly brainwashed into thinking it’s reasonable and intelligent to only earn income when you’re working? Have you never considered that it might be better to be paid even when you’re not working? Who taught you that you could only earn income while working? Some other brainwashed employee perhaps?

Don’t you think your life would be much easier if you got paid while you were eating, sleeping, and playing with the kids too? Why not get paid 24/7? Get paid whether you work or not. Don’t your plants grow even when you aren’t tending to them? Why not your bank account?

Who cares how many hours you work? Only a handful of people on this entire planet care how much time you spend at the office. Most of us won’t even notice whether you work 6 hours a week or 60. But if you have something of value to provide that matters to us, a number of us will be happy to pull out our wallets and pay you for it. We don’t care about your time — we only care enough to pay for the value we receive. Do you really care how long it took me to write this article? Would you pay me twice as much if it took me 6 hours vs. only 3?

Non-dummies often start out on the traditional income for dummies path. So don’t feel bad if you’re just now realizing you’ve been suckered. Non-dummies eventually realize that trading time for money is indeed extremely dumb and that there must be a better way. And of course there is a better way. The key is to de-couple your value from your time.

Smart people build systems that generate income 24/7, especially passive income. This can include starting a business, building a web site, becoming an investor, or generating royalty income from creative work. The system delivers the ongoing value to people and generates income from it, and once it’s in motion, it runs continuously whether you tend to it or not. From that moment on, the bulk of your time can be invested in increasing your income (by refining your system or spawning new ones) instead of merely maintaining your income.

This web site is an example of such a system. At the time of this writing, it generates about $9000 a month in income for me (update: $40,000 a month as of 10/31/06), and it isn’t my only income stream either. I write each article just once (fixed time investment), and people can extract value from them year after year. The web server delivers the value, and other systems (most of which I didn’t even build and don’t even understand) collect income and deposit it automatically into my bank account. It’s not perfectly passive, but I love writing and would do it for free anyway. But of course it cost me a lot of money to launch this business, right? Um, yeah, $9 is an awful lot these days (to register the domain name). Everything after that was profit.

Sure it takes some upfront time and effort to design and implement your own income-generating systems. But you don’t have to reinvent the wheel — feel free to use existing systems like ad networks and affiliate programs. Once you get going, you won’t have to work so many hours to support yourself. Wouldn’t it be nice to be out having dinner with your spouse, knowing that while you’re eating, you’re earning money? If you want to keep working long hours because you enjoy it, go right ahead. If you want to sit around doing nothing, feel free. As long as your system continues delivering value to others, you’ll keep getting paid whether you’re working or not.

Your local bookstore is filled with books containing workable systems others have already designed, tested, and debugged. Nobody is born knowing how to start a business or generate investment income, but you can easily learn it. How long it takes you to figure it out is irrelevant because the time is going to pass anyway. You might as well emerge at some future point as the owner of income-generating systems as opposed to a lifelong wage slave. This isn’t all or nothing. If your system only generates a few hundred dollars a month, that’s a significant step in the right direction.

2. Limited experience
You might think it’s important to get a job to gain experience. But that’s like saying you should play golf to get experience playing golf. You gain experience from living, regardless of whether you have a job or not. A job only gives you experience at that job, but you gain “experience” doing just about anything, so that’s no real benefit at all. Sit around doing nothing for a couple years, and you can call yourself an experienced meditator, philosopher, or politician.

The problem with getting experience from a job is that you usually just repeat the same limited experience over and over. You learn a lot in the beginning and then stagnate. This forces you to miss other experiences that would be much more valuable. And if your limited skill set ever becomes obsolete, then your experience won’t be worth squat. In fact, ask yourself what the experience you’re gaining right now will be worth in 20-30 years. Will your job even exist then?

Consider this. Which experience would you rather gain? The knowledge of how to do a specific job really well — one that you can only monetize by trading your time for money — or the knowledge of how to enjoy financial abundance for the rest of your life without ever needing a job again? Now I don’t know about you, but I’d rather have the latter experience. That seems a lot more useful in the real world, wouldn’t you say?

3. Lifelong domestication
Getting a job is like enrolling in a human domestication program. You learn how to be a good pet.

Look around you. Really look. What do you see? Are these the surroundings of a free human being? Or are you living in a cage for unconscious animals? Have you fallen in love with the color beige?

How’s your obedience training coming along? Does your master reward your good behavior? Do you get disciplined if you fail to obey your master’s commands?

Is there any spark of free will left inside you? Or has your conditioning made you a pet for life?

Humans are not meant to be raised in cages. You poor thing…

4. Too many mouths to feed
Employee income is the most heavily taxed there is. In the USA you can expect that about half your salary will go to taxes. The tax system is designed to disguise how much you’re really giving up because some of those taxes are paid by your employer, and some are deducted from your paycheck. But you can bet that from your employer’s perspective, all of those taxes are considered part of your pay, as well as any other compensation you receive such as benefits. Even the rent for the office space you consume is considered, so you must generate that much more value to cover it. You might feel supported by your corporate environment, but keep in mind that you’re the one paying for it.

Another chunk of your income goes to owners and investors. That’s a lot of mouths to feed.

It isn’t hard to understand why employees pay the most in taxes relative to their income. After all, who has more control over the tax system? Business owners and investors or employees?

You only get paid a fraction of the real value you generate. Your real salary may be more than triple what you’re paid, but most of that money you’ll never see. It goes straight into other people’s pockets.

What a generous person you are!

5. Way too risky
Many employees believe getting a job is the safest and most secure way to support themselves.

Morons.

Social conditioning is amazing. It’s so good it can even make people believe the exact opposite of the truth.

Does putting yourself in a position where someone else can turn off all your income just by saying two words (“You’re fired”) sound like a safe and secure situation to you? Does having only one income stream honestly sound more secure than having 10?

The idea that a job is the most secure way to generate income is just silly. You can’t have security if you don’t have control, and employees have the least control of anyone. If you’re an employee, then your real job title should be professional gambler.

6. Having an evil bovine master
When you run into an idiot in the entrepreneurial world, you can turn around and head the other way. When you run into an idiot in the corporate world, you have to turn around and say, “Sorry, boss.”

Did you know that the word boss comes from the Dutch word baas, which historically means master? Another meaning of the word boss is “a cow or bovine.” And in many video games, the boss is the evil dude that you have to kill at the end of a level.

So if your boss is really your evil bovine master, then what does that make you? Nothing but a turd in the herd.

Who’s your daddy?

7. Begging for money
When you want to increase your income, do you have to sit up and beg your master for more money? Does it feel good to be thrown some extra Scooby Snacks now and then?

Or are you free to decide how much you get paid without needing anyone’s permission but your own?

If you have a business and one customer says “no” to you, you simply say “next.”

8. An inbred social life
Many people treat their jobs as their primary social outlet. They hang out with the same people working in the same field. Such incestuous relations are social dead ends. An exciting day includes deep conversations about the company’s switch from Sparkletts to Arrowhead, the delay of Microsoft’s latest operating system, and the unexpected delivery of more Bic pens. Consider what it would be like to go outside and talk to strangers. Ooooh… scary! Better stay inside where it’s safe.

If one of your co-slaves gets sold to another master, do you lose a friend? If you work in a male-dominated field, does that mean you never get to talk to women above the rank of receptionist? Why not decide for yourself whom to socialize with instead of letting your master decide for you? Believe it or not, there are locations on this planet where free people congregate. Just be wary of those jobless folk — they’re a crazy bunch!

9. Loss of freedom
It takes a lot of effort to tame a human being into an employee. The first thing you have to do is break the human’s independent will. A good way to do this is to give them a weighty policy manual filled with nonsensical rules and regulations. This leads the new employee to become more obedient, fearing that s/he could be disciplined at any minute for something incomprehensible. Thus, the employee will likely conclude it’s safest to simply obey the master’s commands without question. Stir in some office politics for good measure, and we’ve got a freshly minted mind slave.

As part of their obedience training, employees must be taught how to dress, talk, move, and so on. We can’t very well have employees thinking for themselves, now can we? That would ruin everything.

God forbid you should put a plant on your desk when it’s against the company policy. Oh no, it’s the end of the world! Cindy has a plant on her desk! Summon the enforcers! Send Cindy back for another round of sterility training!

Free human beings think such rules and regulations are silly of course. The only policy they need is: “Be smart. Be nice. Do what you love. Have fun.”

10. Becoming a coward
Have you noticed that employed people have an almost endless capacity to whine about problems at their companies? But they don’t really want solutions — they just want to vent and make excuses why it’s all someone else’s fault. It’s as if getting a job somehow drains all the free will out of people and turns them into spineless cowards. If you can’t call your boss a jerk now and then without fear of getting fired, you’re no longer free. You’ve become your master’s property.

When you work around cowards all day long, don’t you think it’s going to rub off on you? Of course it will. It’s only a matter of time before you sacrifice the noblest parts of your humanity on the altar of fear: first courage… then honesty… then honor and integrity… and finally your independent will. You sold your humanity for nothing but an illusion. And now your greatest fear is discovering the truth of what you’ve become.

I don’t care how badly you’ve been beaten down. It is never too late to regain your courage. Never!

Still want a job?
If you’re currently a well-conditioned, well-behaved employee, your most likely reaction to the above will be defensiveness. It’s all part of the conditioning. But consider that if the above didn’t have a grain of truth to it, you wouldn’t have an emotional reaction at all. This is only a reminder of what you already know. You can deny your cage all you want, but the cage is still there. Perhaps this all happened so gradually that you never noticed it until now… like a lobster enjoying a nice warm bath.

If any of this makes you mad, that’s a step in the right direction. Anger is a higher level of consciousness than apathy, so it’s a lot better than being numb all the time. Any emotion — even confusion — is better than apathy. If you work through your feelings instead of repressing them, you’ll soon emerge on the doorstep of courage. And when that happens, you’ll have the will to actually do something about your situation and start living like the powerful human being you were meant to be instead of the domesticated pet you’ve been trained to be.

Happily jobless
What’s the alternative to getting a job? The alternative is to remain happily jobless for life and to generate income through other means. Realize that you earn income by providing value — not time — so find a way to provide your best value to others, and charge a fair price for it. One of the simplest and most accessible ways is to start your own business. Whatever work you’d otherwise do via employment, find a way to provide that same value directly to those who will benefit most from it. It takes a bit more time to get going, but your freedom is easily worth the initial investment of time and energy. Then you can buy your own Scooby Snacks for a change.

And of course everything you learn along the way, you can share with others to generate even more value. So even your mistakes can be monetized.

Call 0803 239 3958 for free financial consulting advice for your businesses.
Send your accounting articles to blog@skytrendconsulting.com.

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New soft drink tax: Its implication for you and your business

New soft drink tax: Its implication for you and your business

Nigerian government is set to introduce soft drink tax in further bid to expand its revenne base. Nigerians and experts have however been reacting.

The Nigeria Employers Consultative Association, (NECA) Lagos Chamber of Commerce and Industry and financial experts say more Nigerians may lose their jobs and some producers of carbonated drinks will likely close shop as a result of poor sale should the Federal Government implement its planned imposition of tax on soft drinks.

Minister of Finance, Budget and National Planning, Zainab Ahmed has said in Washington DC, United States on Thursday on the sidelines of the 2019 annual meetings of the International Monetary Fund/ World Bank that the soft drink tax as well as additional Value Added Tax (VAT) on imported goods was meant to increase the government’s revenue generation.

NECA says the planned tax on non-alcoholic beverages by the Federal Government will kill many businesses in that sector.

Its Director-General, Timothy Olawale, specifically adds that the jobs of about 250,000 people working directly and indirectly in the industry would come under threat.

He said,

“In our considered opinion, reintroduction of excise tax on non-alcoholic beverages should not be the case. With the myriad of taxes and levies already being paid by businesses, the reintroduction of excise in a sector with high price elasticity means that government is desirous of killing businesses in the sector completely.

“Once prices are increased, consumers will push back, resulting in sharp decline in demand. With the planned increase in VAT, the introduction of excise will further burden operators in the sector with the following consequences: low demand leading to unsold products; incomes squeeze on businesses that are already struggling with low margin and massive staff layoff, which will affect over 250,000 direct and indirect employees in the sector among others.”

Call 0803 239 3958 for free financial consulting advice for your businesses.
Send your accounting articles to blog@skytrendconsulting.com.

READ ALSO!

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