Can Tax Office Unilaterally Impose Percentages Of Turnover As Any Person’s Income Tax. Daily Law Tips (Tip 417) by Onyekachi Umah, Esq., LLM. ACIArb(UK)
Surprisingly, Yes.
Personal Income Tax is a direct tax charged on income, salary, allowance, wage, fee, bonuses, dividends or any benefit of an adult individual, communities, families, executors and trustees being resident in Nigeria or outside Nigeria or that of any person resident outside Nigeria but deriving income or profit from Nigeria.
Where a tax office cannot for a certain year ascertain the true income of a person from his business(trade, Profession or vocation) because the business produced no assessable income or produced an assessable income that is in the opinion of the tax office is less than what might be expected to arise from that business or that the true assessable income of the person form the business cannot be readily ascertained, the tax office may assess and charge such person on such fair and reasonable percentage of the turnover of the business.
If the business of the person is carried on in Nigeria, tax office will assess and charge the person on such fair and reasonable percentage of the turnover of the business as the tax office will determine.
If the person is a non-resident but has a fixed base in Nigeria, from where he carried on such business, tax office will assess and charge that person on such fair and reasonable percentage of the turnover attributable to that fixed base.
If the person is a non-resident that operates a business through another person or persons, tax office will assess and charge that person on such fair and reasonable percentage of the turnover of business carried on through that person.
If the person is a non-resident that operates a business in Nigeria which involves a single contract for surveys, deliveries, installation or construction, tax office will assess and charge that person on such fair and reasonable percentage of the contract.
References:
Sections 1, 2, 3, 7, 108 and 109 of the Personal Income Tax Act 1993.
#DailyLawTips
#SabiLaw
#LearnNigerianLaws
Feel free to reach the author, ask questions or make inquiries on this topic or any other legal issues via onyekachi.umah@gmail.com or +2348037665878.
****************************************************************************************
This work is published under the free legal awareness project of Sabi Law Foundation (www.SabiLaw.org) funded by the law firm of Bezaleel Chambers International (www.BezaleelChambers.com). The writer was not paid or charged any publishing fee. You too can support the legal awareness projects and programs of Sabi Law Foundation by donating to us. Donate here and get our unique appreciation certificate or memento.
DISCLAIMER:
This publication is not a piece of legal advice. The opinion expressed in this publication is that of the author(s) and not necessarily the opinion of our organisation, staff and partners.
PROJECTS:
🛒 Take short courses, get samples/precedents and learn your rights at www.SabiLaw.org
🎯 Publish your legal articles for FREE by sending to: eve@sabilaw.org
🎁 Receive our free Daily Law Tips & other publications via our website and social media accounts or join our free whatsapp group: Daily Law Tips Group 6
KEEP IN TOUCH:
Get updates on all the free legal awareness projects of Sabi Law (#SabiLaw) and its partners, via:
YouTube: SabiLaw
Twitter: @Sabi_Law
Facebook page: SabiLaw
Instagram: @SabiLaw.org_
WhatsApp Group: Free Daily Law Tips Group 6
Telegram Group: Free Daily Law Tips Group
Facebook group: SabiLaw
Email: lisa@sabilaw.org
Website: www.SabiLaw.org
ABOUT US & OUR PARTNERS:
This publication is the initiative of the Sabi Law Foundation (www.SabiLaw.org) funded by the law firm of Bezaleel Chambers International (www.BezaleelChambers.com). Sabi Law Foundation is a Not-For-Profit and Non-Governmental Legal Awareness Organization based in Nigeria. It is the first of its kind and has been promoting free legal awareness since 2010.
DONATION & SPONSORSHIP:
As a registered not-for-profit and non-governmental organisation, Sabi Law Foundation relies on donations and sponsorships to promote free legal awareness across Nigeria and the world. With a vast followership across the globe, your donations will assist us to increase legal awareness, improve access to justice, reduce common legal disputes and crimes in Nigeria. Make your donations to us here or contact us for sponsorship and partnership, via: lisa@SabiLaw.org or +234 903 913 1200.
**********************************************************************************
One Response