Tax Law in Review

1. Personal Income Tax Bill
   It should be made clear whether the consolidate relief of 40% also applies to investment income.
   
   Maximum rate under the tax table should remain at 25%
   
   
2. Company Income Tax bill
• S. 25 (bill) 100 (CITA)
• 34 (CITA)
• All provisions in CITA relating to the powers and functions of the Board should be transferred to the FIRS Bill in order to avoid duplicity;
• Bonus shared should not be taxable as dividends;
• Power to exempt companies from CITA should be vested in the Federal Executive Council and not the President; e.g. S.23 (z)
• The same profits should not be taxed twice under the commencement rules.
• All the outdated/antiquated provisions in the Act should be deleted.
• For instance, some of the provisions still relate to events that happened about 37 years ago, e.g. indigenisation policy.
• Typographical errors in the various Bills should be corrected.
  
  
3. VAT Bill
• Companies operating in the oil and gas sector should not be treated like government agencies and parastatals.
• VAT rate should remain 5%
• Exemption granted to goods and services should be limited to imported
• Goods and services purchase for use in donor funded agency should be zero rated
• Zero rates should be limited to those producing for export
• There should be consistency in the use of either “taxable person” or “taxpayer” to preclude any confusion
  
  
4. Petroleum Profit Tax Amendment Bill 2005
   • Typographical error in the word “Profit” in the title and other parts of the Bill should be changed to “Profits”;
   • The incentives granted to companies engaged in petroleum operation should be published in the official gazette.
   • Mere administrative matters such as monthly meetings by the AGF and the companies engaged in petroleum operation need not be in the Act;
     
     
5. FIRS Bill