Home Blog Page 21

2020 budget: Nigeria to spend N2.45trn servicing debt





2020 budget: Nigeria to spend N2.45trn servicing debt

The largest and most populous black African nation, Nigeria, will be spending N2.45 trillion, which represents 23.7% of the entire expenditure servicing debt. This is according to its 2020 budget, which has just been presented to the National Assembly.

Nigerian President, Muhammadu Buhari has presented the 2020 appropriation bill with total expenditure of N10.33 trillion to the national assembly.

While presenting the budget on Tuesday, Buhari said the federal government is targetting a revenue of N8.155 trillion; N2.64 trillion from oil revenue, N1.8 trillion from non-oil tax revenue and N3.7 trillion from other revenues.

Buhari says the appropriation bill is based on the new VAT rate “which will help finance health, education, and infrastructural programmes.”

Debt servicing in the budget is pegged at N2.45trn, out of which local debts would take N296bn, with N426.6bn set as overhead cost.

The oil benchmark is set at $57 at 2.18m barrels per day with capital projects gulping N2.46 trillion.

A breakdown of the budget’s statutory transfers show that the national assembly got N125 billion, the judiciary got N110bn, the National Human Rights Council (NHRC) got 2.5bn while constituency projects got N100 billion.

A total of N37.8bn was budgeted for the North-East Development Commission; N44.5bn for basic healthcare provision fund; N112bn for Universal Basic Education Commission (UBEC) and N80.8bn for the Niger Delta Development Commission (NDDC).

“MDAs are not allowed to admit new projects into their provisions unless adequate provisions are made for the completion of ongoing projects,” he said.

Other provisions include: N55bn for presidential amnesty programme, N262bn for ministry of works and housing, N127bn for ministry of power, N123 billion for ministry of transportation and N100bn for ministry of defence.

Others are N83 billion for ministry of agriculture and rural development, N82bn for ministry of water resources, N48bn for ministry of education and N46bn for ministry of health.

The ministry of industry, trade and investment got N40bn while the ministry of interior for N35bn with the social investment programmes and the federal capital territory got N30bn and N28bn respectively.

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

READ ALSO! PAYE: How to calculate personal income tax

READ ALSO! Skytrend Consulting: Financial services and accounting solutions company

READ ALSO! For failing to give out ‘adequate loans’, 12 banks fined N499bn

READ ALSO! Nigerian Central Bank Approves Disbursement Of Loans For Creative Industries At 9%

READ ALSO! How To Empower Yourself And Generate Income From Mutual Funds

READ ALSO! Is N-Power Truly Empowering Nigerian Youths?

READ ALSO! TraderMoni: Poverty Alleviation Or Political Leverage?

2020 budget calculated on proposed 7.5% VAT

2020 budget calculated on proposed 7.5% VAT

Do you know that our new budget for 2020 is calculated based on the proposed 7.5% Value Added Tax (VAT)?

Read this breaking report.

President Muhammadu Buhari says the 2020 budget is calculated on the proposed Value Added Tax of 7.5%.

The Federal Executive Council had recently approved the increment of the VAT from 5 per cent to 7.5 per cent.

The President said the additional revenue to be generated from the higher rate would be deployed in the health and education sectors as well as infrastructural programmes.

Skytrend Consulting recalls the Federal Government increased the Value Added Tax, (VAT) from 5 per cent to 7.5 per cent last month September. The minister of Finance had said then that consultations will begin at all levels on the review.

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

READ ALSO! PAYE: How to calculate personal income tax

READ ALSO! Skytrend Consulting: Financial services and accounting solutions company

READ ALSO! For failing to give out ‘adequate loans’, 12 banks fined N499bn

READ ALSO! Nigerian Central Bank Approves Disbursement Of Loans For Creative Industries At 9%

READ ALSO! How To Empower Yourself And Generate Income From Mutual Funds

READ ALSO! Is N-Power Truly Empowering Nigerian Youths?

READ ALSO! TraderMoni: Poverty Alleviation Or Political Leverage?

VAT on online purchases: 8 Critical things you must know

VAT on online purchases: 8 Critical things you must know

By Femi Adeoya

From Jan 1, 2020, any online purchase you make in Nigeria will attract a tax bill which will be debited directly to your account by your bank.

The government in its plans to raise more revenue to fund our escalating budget demands, says it be introducing a 5% Value Added Tax (VAT) specifically for online purchases.

VAT is a consumption tax imposed on the cost of goods and services supplied in Nigeria except items specifically exempted.

VAT rate is presently put at 5% though there are plans to increase it to 7.5%.

This means for a price of N1,000 you will pay an extra N50 as VAT to government making your total bill N1,050. If the item is for your use or consumption then that is where the VAT story ends.

However if you resell the item or use it to produce something else which you will sell at say N1,500 then you need to charge VAT of N75 so the buyer pays N1,575. Since you paid VAT of N50 (input VAT) when you bought the item then you are entitled to deduct it from the VAT of N75 you’ve just charged (output VAT) and only pay the difference of N25 (N75 – N50) to FIRS.

According to Quartz Africa, “The online purchase tax proposal appears at odds with Nigeria’s long-held ambitions for a cashless economy given the possible effect of disincentivizing online purchases. If launched, it also adds to a growing number of existing charges Nigerian bank card holders already face, including a card maintenance fee.”

According to the blog, another potential effect is that Nigeria’s fledgling startups and businesses, possibly the biggest success story in the country in the last decade, may be caught in the crosshairs of the policy.

At their core, some tech companies in Nigeria have attempted to engineer a broad change in local social behavior by getting more Nigerians to adopt online purchases and payments. And, so far, that goal has already faced stumbling blocks in general skepticism around online payments given fears of fraud and early-day struggles with failed transactions.

“This will lead to a decline in use of cards online,” says Oluyomi Ojo, founder of Printivo, an online design and printing company. “Merchants will opt for bank transfers and customers will opt for other options. There’s no other way to look at the proposed policy than to see it as a card payment killer.,” he adds.

Many other stakeholders and financial experts have also expressed their worries over the government’s enforcement of the tax, adding that that the move would constitute a threat to businesses that operate in the country, particularly those in the e-commerce industry.

Peter Nwaobi, a tax expert at KPMG, however says that the proposed 5% VAT on online purchase is not a double tax and there were no initial charges on purchases.

Nwaobi explains that for every online transaction, there is always a 5% VAT on every item.

“Before now, for every time you get online, the merchant already charged 5% VAT on it, either you see it on slip or not. it is there.”

He said the fee is what the FIRS is running after as majority of the funds have not been captured in the tax net. “This idea will allow the merchant to remit the 5% they have charged to the bank (acting an agent in this instance).”

Chairman of Federal Inland Revenue Service (FIRS), Mr Babatunde Fowler on Monday clarified the introduction of the online tax: “All we are saying is that those who use online facilities, we will give instructions to the banks that once they make the payment, they will just charge 5% VAT and remit it as an agent to FIRS.

“By the VAT Act, the minister has the right to change the rate but this government, I believe wants to carry every stakeholder along including those in the house and explain to them that this increase is for the benefit of all Nigerians. And it will only apply to what I call privileged items like buying a car or lunch in an expensive restaurant. The money will help the state look after the needy among us,” he adds.

The FOUR things every consumer in Nigeria should know

1. All payment providers, credit cards and other electronic payment schemes in Nigeria will hold back 5% VAT on any transaction between a consumer and an online seller. This is where e-commerce comes into play.

2. The growth of the country’s Financial technology, (often shortened to FinTech) industry will slow down. Presently, Nigerians are gradually responding to FinTech initiatives, and despite all the campaigns, quite a number of people are still not financially included.

3. The VAT law has a list of goods and services that are not liable to VAT. Examples include educational materials like books, basic food items like raw yam, cassava, beans (once the food is cooked you may have to pay VAT), baby foods, fruits and vegetables, medical treatment, school education, etc. Also some transactions that are NOT subject to VAT because they don’t qualify as goods or services. Examples include land, company shares, borrowing etc

4. VAT applies equally to goods and services purchased online and offline. It does not matter whether you pay cash or through electronic means. If VAT is not being paid it is not an online problem, it is people choosing not to comply and FIRS not doing their job well.

Mondaq.com gave four categories of online transactions and the dynamics of VAT payment by the consumer.

1. Online sale of goods by local businesses (like buying a bag on Jumia)

2. Local services provided or ordered online (like Pay TV subscription to watch DSTV).

VAT is already being collected on categories 1 and 2 since the sellers are in Nigeria regardless of whether the transactions are done online or offline.

3. Online sale of goods by foreign sellers (like ordering a phone from Amazon)

On this category, VAT is already being collected by Customs at the point of importation except where the value of the item is small and legally exempt.

4. Foreign services provided or ordered online –

The challenge for Nigeria is this category 4. Examples include when you subscribe to Netflix or you pay for an advert to promote your post on Facebook or Instagram.

Mondaq.com further analyses why consumers and customers should care.
It says: “Government wants to ensure that online transactions don’t escape VAT but as demonstrated above only category 4 is really an issue and it constitutes a small percentage of online transactions in Nigeria.

So the FOUR questions for the government and its revenue agencies are:

1 How will the proposed measure by the FIRS address this problem?

2. How do we ensure that categories 1-3 don’t suffer double VAT?

3. If VAT is taken by the payment agent how will online sellers offset their input VAT?

4. How will the payment agents know if a transaction is exempt from VAT so they don’t charge VAT wrongly?

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

READ ALSO! PAYE: How to calculate personal income tax

READ ALSO! Skytrend Consulting: Financial services and accounting solutions company

READ ALSO! For failing to give out ‘adequate loans’, 12 banks fined N499bn

READ ALSO! Nigerian Central Bank Approves Disbursement Of Loans For Creative Industries At 9%

READ ALSO! How To Empower Yourself And Generate Income From Mutual Funds

READ ALSO! Is N-Power Truly Empowering Nigerian Youths?

READ ALSO! TraderMoni: Poverty Alleviation Or Political Leverage?

UPDATE: Why court barred VAT collection by FIRS from hotels

(NAN) Justice Rilwanu Aikawa of the Federal High Court in Lagos has barred the Federal Inland Revenue Services (FIRS), from enforcing VAT provisions on goods and services consumed in hotels, restaurants and event centres in Lagos State.

Justice Aikawa gave the order while delivering judgment in the suit seeking to restrain the Attorney General (AG) of Lagos State from enforcing the Hotel Occupancy and Restaurant Consumption (Fiscalisation) Regulations Law (HORC), 2017, in the view that VAT Act has covered the field.

In the suit the Registered Trustees of Hotel Owners and Managers Association of Lagos (HOMA) had sued the AG in Lagos State and FIRS in the suit no. FHC/L/CS/360/2018.

The HOMA had asked the court to declare that by virtue of Section 7, of the VAT Act, the second defendant (FIRS) was the only lawful and constitutional agency charged with the administration and management of consumption tax generally and particularly in Lagos state.

Justice Aikawa, in delivering the judgment, dismissed the suit and held that it was lacking in merit, adding that the plaintiff was obliged to comply with the HORC Law 2009 and the HORC Regulations 2017.

The court also raised two issues by herself; whether the Federal High Court had the jurisdiction to pronounce on the constitutionality of VAT. The court resolved that it has jurisdiction.

Aikawa also held that the issue of the powers of the minister to amend the schedule to the Taxes and Levies (Approved List for Collection) Act was not in dispute before the court and so no pronouncement could be made on it.

The court in dismissing the originating summons, as lacking merit and resolving the questions and reliefs sought in favour of the first defendant, held:

“That consumption tax is not stated in either the exclusive and concurrent legislative list, in the Constitution of Nigeria, therefore, the absence on the concurrent and exclusive lists, puts consumption tax on the residual list, which is within the legislative competence and powers of state governments.

“That VAT Act can’t cover the field over what the federal government has no power to legislate upon, under the constitution, therefore the determinant factor in the issue of covering the field, is whether there is power to make the Law.

“The provisions of VAT Act relating to consumption tax are inconsistent with the Nigerian constitution.

“The Minister of Finance has corrected the anomaly, by including consumption tax in the list of taxes collectible by state government, therefore, the responsibility for collecting consumption tax lies on the state government.

“The provisions of Sections 1, 2, 4, 5 & 12 of VAT Act are in breech of the 1999 constitution and the plaintiffs are obliged to comply with the HORC Law 2009 and the HORC Regulations 2017.

“FIRS are barred from enforcing VAT provisions as it relates to consumption tax on goods and services consumed in Hotels, Restaurants and Event Centres in Lagos State, ” the judgement read.

The Nigeria News Agency reports that the Registered Trustees of HOMA had filed an originating summons asking the court to determine the following:

“Whether the VAT Act regulating imposition of tax on consumption of goods and services has not covered the field on taxation of goods and services consumed in hotels, event centres and restaurant in Lagos State.

“Whether by virtue of Section 7 of the VAT Act, the second defendant (FIRS) is not the only lawful and constitutional agency charged with the administration and management of consumption tax generally and particularly in Lagos State.

“Whether the provisions of the Hotel Occupancy and Restaurant Consumption (Fiscalization) Regulations 2017 are of no effect, in view of the fact that VAT Act has covered the field”.

Consequently, the first defendant, (AG Lagos State), filed a counter-claim urging the court to determine;

“Whether the provisions of Sections 1, 2, 4, 5 & 12 of VAT Act by which the FIRS imposes tax on customers for goods and services consumed in hotels, restaurants and event centres in Lagos State is inconsistent with the provisions of Sections 4(2), 4(a) & (b) and 4 (7) (a) & (b) of the Constitution of the Federal Republic of Nigeria 1999 (as amended) and therefore unconstitutional and invalid?

“Whether by the provisions of Section 4 (7) of the 1999 Constitution of Nigeria, the provisions of the Taxes and Levies (Approved List for Collection) Act Cap T2 Laws of the Federation of Nigeria as amended by the Schedule to the Taxes and Levies order 2015) and the provisions of HORC Law 2009.

“Whether the counter-claimant is the only constitutional and lawful body empowered to assess, impose and collect taxes from customers of the Plaintiff for goods and services consumed in hotels, restaurant and event centres in Lagos State.

The first defendant sought some reliefs which included;

“A declaration that the provisions of Sections 1, 2, 4, 5 & 12 of VAT Act is inconsistent with the constitution and therefore invalid and unconstitutional.

“A declaration that the counter claimant (AG) is the only constitutional and lawful body empowered to assess, impose and collect consumption tax in Lagos State.

“A declaration that the plaintiff is obliged to comply and implement the provisions of the HORC Law, made pursuant thereto, in relation to good and services consumed in Hotels , Restaurant and Event Centres in Lagos State

“An order of perpetual injunction restraining the FIRS from implementing or enforcing the provisions of VAT Act on customers of the plaintiff for goods and services consumed in hotels, event centres and restaurant in Lagos State”.

All efforts by NAN to reach the Lagos Attorney General and the Director Legal Services of the Lagos State Internal Revenue for their comments on this judgment, as at the time of filing this report, has been abortive. (NAN)

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

READ ALSO! PAYE: How to calculate personal income tax

READ ALSO! Skytrend Consulting: Financial services and accounting solutions company

READ ALSO! For failing to give out ‘adequate loans’, 12 banks fined N499bn

READ ALSO! Nigerian Central Bank Approves Disbursement Of Loans For Creative Industries At 9%

READ ALSO! How To Empower Yourself And Generate Income From Mutual Funds

READ ALSO! Is N-Power Truly Empowering Nigerian Youths?

READ ALSO! TraderMoni: Poverty Alleviation Or Political Leverage?

Court stops FIRS from collecting VAT from Lagos hotels, restaurants

Court stops FIRS from collecting VAT from Lagos hotels, restaurants

A Federal High Court sitting in Lagos has granted an order of perpetual injunction to restrain the Federal Inland Revenue Service (FIRS) from collecting Value Added Tax (VAT) from customers for goods and services consumed in hotels, restaurants and Event Centres in Lagos State.

The court also declared the Lagos State Hotel Occupancy and Restaurant Consumption Tax Law and Regulation as constitutional, valid and operative.

“Lagos State is the only constitutional and lawful body permitted to assess, impose and collect tax from customers for goods and services consumed in hotels, restaurants and event centres in the state,” the court ruled.

The judgment was delivered in Suit No. FHC/L/CS/360/18 between the Registered Trustees of Hotel Owners and Managers Association vs. the Attorney General of Lagos State & Anor by Justice Rilwanu Aikawa on Thursday.

The judgment stated that since the Value Added Tax (VAT) by Federal Inland Revenue Service contains provisions relating to the consumption, it had ‘covered the field’ and as such, no State law can impose any similar tax.

The Court, therefore, invalidate sections 1, 2, 4, 5 and 12 of the Value Added Tax Act for being inconsistent with the provisions of the Constitution of the Federal Republic of Nigeria 1999 as amended.

The Registered Trustees of Hotel Owners and Managers had challenged the legality of the Lagos State Hotel Occupancy and Restaurant Consumption Tax Law and Regulation Law in 2018.

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

READ ALSO! PAYE: How to calculate personal income tax

READ ALSO! Skytrend Consulting: Financial services and accounting solutions company

READ ALSO! For failing to give out ‘adequate loans’, 12 banks fined N499bn

READ ALSO! Nigerian Central Bank Approves Disbursement Of Loans For Creative Industries At 9%

READ ALSO! How To Empower Yourself And Generate Income From Mutual Funds

READ ALSO! Is N-Power Truly Empowering Nigerian Youths?

READ ALSO! TraderMoni: Poverty Alleviation Or Political Leverage?

PAYE: How to calculate personal income tax

PAYE: How to calculate personal income tax in Nigeria

If you earn an income and you live in Nigeria, you are expected to pay tax on your earned income called PAYE.. Pay As You Earn every month.

The administration of personal income tax (PAYE) is managed by the State Inland Revenue Service, and this has to do with your state of residence.

If you live in Lagos State for instance, but work in Ogun State, you are expected to pay tax to Lagos State and not Ogun.

Nigerian Personal Income Tax Laws have evolved over the years with several amendments introduced to align with the income of Nigerians.

The latest amendment was in 2012 when the Goodluck Jonathan Administration signed into law an Amended Personal Income Tax Act, replacing several controversial sections of the act with a simpler and easy to calculate taxable income.

The new amendments affect several sections of the Personal Income Tax Act, particularly Section 33 which deals with Personal Relief and Relief for Children, dependants, etc. This has now being replaced with a Consolidated Relief Allowance (CRA) of N200,000 + 20% of gross income.

They have also reviewed the Minimum Tax upwards from 0.5% to 1% and the Tax Table has also been notably amended.

Let’s consider the example of a worker who earns N250,000 every month. That amounts to N3,000,000 per annum.

First Step

Let’s attempt to break down the N300,000 into basic, housing, transport and other allowances below:

Second Step

There are reliefs all tax payers are entitled to. The first one is the personal allowance which is 20% of earned income in addition to a fixed sum of N200,000. In our example of N3,000,000 annual earned income, this adds up to N800,000. Pension relief is 8% of total basic, housing and transport allowances. Whle NHF relief is 2.5% of basic allowance. Please note this relieves are only gotten if it is applicable in the organization in question.

Third Step

From the above calculations, total relief is N1,013,461.65 while taxable income is N1,986,538.35. The first N100,000 is taxed at 7%. The next 100,000 at 11%. The next 500,000 at 15% and the next 500,000 at 19% and the next 500,000 at 21%. The next 500,000 if any will be taxed ar 24%.

We can see from the above analysis that the worker will pay a monthly tax of N25,431.09.

READ ALSO! Skytrend Consulting: Financial services and accounting solutions company

READ ALSO! Why The North Remains Headquarters Of Poverty In Nigeria — Kingsley Moghalu

READ ALSO! For failing to give out ‘adequate loans’, 12 banks fined N499bn

READ ALSO! Nigerian Central Bank Approves Disbursement Of Loans For Creative Industries At 9%

READ ALSO! How To Empower Yourself And Generate Income From Mutual Funds

READ ALSO! Is N-Power Truly Empowering Nigerian Youths?

READ ALSO! TraderMoni: Poverty Alleviation Or Political Leverage?

For failing to give out ‘adequate loans’, 12 banks fined N499bn

For failing to give out ‘adequate loans’, 12 banks fined N499bn

The Central Bank of Nigeria (CBN) says 12 banks have been debited N499 billion for failing to give out 60% of their deposits as loans.

The cash reserve of the banks held by the CBN has been debited.

The CRR is a portion of the banks’ deposits kept with the CBN for regulatory reasons.

In July, the CBN had increased the loan to deposit ratio to 60% saying: “Failure to meet the above minimum LDR by the specified date shall result in a levy of additional Cash Reserve Requirement equal to 50% of the lending shortfall of the target LDR”.

The affected banks are:

Citibank – N100,743,055,321
First Bank of Nigeria – N74,668,880,480
FBNQuest Merchant Bank – N2,697,456,144
First City Monument Bank (FCMB) – N14,371,064,742
Guaranty Trust Bank – N25,147,933, 628
Jaiz Bank – N7,525,165,552
Keystone Bank – N4,162,938, 879
Rand Merchant Bank – N2,823,177,399
Standard Chartered Bank – N30,027,137,984
SunTrust Bank – N1,703,205,427
United Bank for Africa – N99,676,181,916
Zenith Bank – N135,629,337,625
On Tuesday, the CBN again raised the LDR to 65% and set a December deadline for banks.

The CBN said the newly revised LDR is informed by the noticeable growth in the level of the industry gross credit.

According to data provided by the CBN, the credit provided to businesses increased by N829.40 billion between the end of May and September 26.

The LDR policy is expected to encourage lending to small businesses and reduce banks’ appetite for investing in government securities like treasury bills.

Call us today on 0803 239 3958 for more information or inquiries. You can also send an email to us at info@skytrendconsulting.com; Send Accounting & Financial updates to us at info@skytrendconsulting.com.

READ ALSO! Senate Unveils Communication Service Tax

READ ALSO! TraderMoni: Poverty Alleviation Or Political Leverage?

READ ALSO! TraderMoni: Poverty Alleviation Or Political Leverage?

READ ALSO! Nigerian Central Bank Approves Disbursement Of Loans For Creative Industries At 9%

READ ALSO! Tony Elumelu To Empower 1,000 Northern Entrepreneurs With $5000 Each

READ ALSO! How To Empower Yourself And Generate Income From Mutual Funds

READ ALSO! How Nigerian Govt Can Lift 100million People Out Of Poverty — Tony Elumelu

Senate Unveils Communication Service Tax

Senate Unveils Communication Service Tax

The Nigerian senate has unveiled a communication service tax on all telecom consumers nationwide.

A bill to enact a legislative action to impose a communication service tax was on Wednesday presented in Senate for first reading.

The bill, according to Businessday, is to replace the 2.5 percentage point increase in the Value Added Tax (VAT) being planned by the Federal government. Finance minister, Zainab Ahmed had announced the proposed VAT increase.

Tagged “Communication Service Tax Bill, 2019” it is being sponsored by former Senate Leader, Ali Ndume.

The Bill stipulates that Tax shall be levied on Electronic Communication Services like Voice Calls; SMS; MMS; Data usage both from Telecommunication Services Providers and Internet Service as well as Pay per View TV Stations.

Ndume, while fielding questions from journalists after the bill was presented for the first time, explained that it would enhance distribution of wealth where ordinary Nigerians would benefit.

According to Ndume, it is unhealthy to increase VAT because it will greatly affect the economy by astronomically jacking up prices of goods and services.

A copy of the Bill sighted by journalists reads thus:

“There shall be” imposed, charged payable and collected a monthly Communication Service Tax to be levied on charges payable by a user of an Electronic Communication Service other than private Electronic Communication Services.”

“The tax shall be levied on Electronic Communication Services supplied by Service Providers.”

“For the purpose of this clause, the supply of any form of recharges shall be considered as a charge for usage of Electronic Communication Service.”

“The tax shall be paid together with the Electronic Communication Service charge payable to the service provider by the consumer of the service.”

“The tax is due and payable on any supply of Electronic Communication Service within the time period specified under sub-clause (5) of whether or not the person making the supply is permitted or authorized provide Electronic Communication Services.”

“The Federal Inland Revenue Service (FIRS) established under section 1 of the Federal Inland Revenue Service (Establishment) Act, 2007 shall be responsible for collection and remittance of tax, any interest and penalty paid under this Bill.”

“The FIRS shall pay the tax collected together with any interest and penalty into the Federation Account.” it added

The bill further stated that all service providers shall file a tax return to account for the tax.

“The tax return shall be in a form prescribed by the FIRS and shall state the amount of tax payable for the period and any related matters that may be required.

The return and the tax due to the accounting period to which the tax return relates shall be submitted and paid to the FIRS not later than the last working day of the month immediately after the month to which the tax return and payment relates.”

READ ALSO! Nigerian Central Bank Approves Disbursement Of Loans For Creative Industries At 9%

READ ALSO! Skytrend Consulting: Financial services and accounting solutions company

READ ALSO! How To Empower Yourself And Generate Income From Mutual Funds

READ ALSO! Is N-Power Truly Empowering Nigerian Youths?

READ ALSO! How Nigerian Govt Can Lift 100million People Out Of Poverty — Tony Elumelu

READ ALSO! TraderMoni: Poverty Alleviation Or Political Leverage?

READ ALSO! Is N-Power Truly Empowering Nigerian Youths?

READ ALSO! Gtbank 737 Disservice: How to Kick Your Customers in the Butt!

READ ALSO! Why The North Remains Headquarters Of Poverty In Nigeria — Kingsley Moghalu

READ ALSO! The Love Of Your Life Is An Illusion: It Doesn’t Exist Anywhere!

Skytrend Consulting: Financial services and accounting solutions company

Skytrend Consulting: Financial services and accounting solutions company

Welcome to Skytrend Consulting Ltd, a business development and accounting Solutions Company with head office at Lagos, Nigeria: 7 Obokun Close, Off Dipeolu Street, Allen Avenue, Ikeja. We offer a wide range of creative accounting and financial services to organizations geared towards planning and optimizing their cost, facilitating business growth and improving steady profitability with the use of tailored and well tested business strategy that identifies and build on the strength of our clients’ organisation.

Accounting Software Installation
Skytrend Consulting helps to install accounting software and solution for your business organizations whether product or service oriented. Our software solutions are easy to use, and quite simplified even with or without the basic accounting skills.

The software provides solution that helps organizations achieve more by simplifying everyday tasks so you can get more work done, helps you get to your data faster and provides tools to help increase organizational efficiency and financial recording accuracy.

It has features to get your business and finances more organized and more productive with its robust core accounting and customizable business management features that save you time and money.

More, once implemented, your labour intensive accounting task becomes automated, it accelerate tax preparation, and reduce the risk of human error in the workplace which eliminates critical bottlenecks such as inaccurate audit information.
Accounting Software Training. Our financial services include training programmes that build staff capacities in the following procedures:

1. Evaluation and strengthening of existing system of internal control if existent and creating a new one if non-existent; blocking all financial and stock wastages and pilfering.

2. Implementation of appropriate accounting solution to your business financial systems.

3. Entire setting up of a proper accounting system that includes charts of accounts appropriate for the organization, maintenance and updating of customers and vendors records, and setting up of a proper inventory recording and management systems.

4. Capacity building sessions for staff on appropriately and effectively using the newly installed accounting software to back up and restore company’s file, maintaining new customers and vendors and daily update of financial records and day to day usage of the solution.

If you invest time and money on training up, employees will be better equipped to handle their daily financial responsibilities. This will also make it easier for employees to train new hires on the system, and to assist one another with software questions and issues.

We will work with you to evaluate existing internal processes and explore how they can be enhanced or improved upon with the help of our software solution.

Accounting Systems Set Up and Implementation
Our accounting systems set up and implementation services include instituting a proper accounting system for your business, deploying a custom made accounting solution to all your service products and financial records.

This will in turn deliver the efficiency your organization requires whether you’re after rapid expansion, steady growth, or maintaining stability. Our set up and implementation effort allow you to easily manage customers, vendors, manage inventories, track income and payment, track your store and stock items, automate purchasing and supplies, track jobs, and properly maintain inventory and equally track their usage!

In effects, our implementation will achieve the following objectives:

1. Help to manage the company’s payments, collections, receivables, cash and bank balances by the use of the automated solution.
2. Gain insight with custom reporting for budgeting, cash flow management, and benchmarking.
3. Get a high-level view of your key metrics.
4. Track stock inventory movement and balances, plan purchases, or expand service offerings.
5. Reduce errors and deter fraud with screen-level security and a clear audit trail
6. Work more efficiently with customer, vendor, and inventory management centers
7. Save cash and reduce costs using “what if” scenarios and your real-time financial information.
8. Periodically produce income and expenditure reports for the business and analyse financial trend at a glance.

Financial Consultancy and Retainership
We provide retainership services for clients who prefer a long-range predictable financial solution and engagement. This makes it possible to meet clients call on demand depending on the terms of the retainership.
This allows us to meet personally with clients to assess their financial situation in order to present a financial plan that includes both short- and long-term financial goals. We thus help clients with financial planning decisions that will enhance and facilitate short, medium and long term financial goals.

Accounting Staff Outsourcing & HR Services
We provide outsourcing services for our clients. We can manage your entire accounting department and help you have a broad overview of what the figures are saying and their implication for your business growth.
We also hire staff for our clients. We have a robust database of qualified and professionally certified accountants in different areas across the country that can meet the demands of our clients at the nick of time.

Financial and Business Reviews
It is important to review the financial performance of the business on a regular basis.
We help identify how you can make the most of the market position you’ve established and decide where to take your business next. We revisit and update your business plan with your new strategy in mind and make sure you introduce new business opportunities and developments.
We also:
• Assess your core activities
• Assess your business efficiency
• Review your financial position
• Conduct a competitor analysis
• Conduct a customer and market analysis
• Use your review to redefine your business goals
• Models for your strategic analysis
• Break down your strategic review

Call us today on 0803 239 3958 for more information or inquiries. You can also send an email to us at info@skytrendconsulting.com; Send Accounting & Financial updates to us at info@skytrendconsulting.com.

READ ALSO! How To Empower Yourself And Generate Income From Mutual Funds

READ ALSO! Is N-Power Truly Empowering Nigerian Youths?

READ ALSO! How Nigerian Govt Can Lift 100million People Out Of Poverty — Tony Elumelu

READ ALSO! TraderMoni: Poverty Alleviation Or Political Leverage?