So, the land is a chargeable asset as it becomes subject to capital gains tax where it is sold or disposed of in any other manner as long as there is a change in its value.
Capital Gains Tax (CGT) is imposed by the Capital Gains Tax Act (CGTA) Cap C1 LFN 2004 at a rate of 10% when Companies and individuals in Nigeria make gains from the disposal of capital assets.
A smart person once said, “The only thing that hurts more than paying Income Tax, is not having to pay Income Tax”.
After profits from all sources are added into the Tax basket, the exempted profits, deductions allowed and all allowances like Capital Allowances, Rural Investment Allowance, etc are removed from the basket. The remaining profits in the Tax basket – Taxable Income, are then subjected to Companies Income Tax rate of 30% in Nigeria.
To retain important control of resources and the economy, and because we also need what the IOCs have – Oil Exploration and Production Infrastructure, taxes are used to regularize the heavy production of our Oil and to reinvest into the economy.
A hearty congratulations, dear reader, you not only steadily pay a Federal tax called Value Added Tax (VAT), as the final consumer/buyer, you bear the burden of the tax to a large extent.
Trump’s tariffs may be described as some sort of protectionism for the purpose of boosting the country’s economy and defending it from foreign competition.
TAX SERIES BY ENIOLA – SEASON 3 VOLUNTARY ASSET AND INCOME DECLARATION SCHEME (VAIDS) Episode 1 – Redemption When a Convict on the death row is granted pardon or when an Amputee is given new limbs and can walk again, the only thing that can follow, is overwhelming bliss, a feeling of redemption, a new beginning. That is what VAIDS brings to the table – Redemption, from our Tax iniquities and a new Beginning of Tax compliance. VAIDS is a…
TAX SERIES BY ENIOLA- SEASON 2 TAX EVASION AND AVOIDANCE Episode 1 Effects of Tax Evasion and Avoidance “If the Lord loveth a cheerful giver, how he must hate the taxpayer!” – John Andrew Holmes. Everyone likes “awuf”.. Announce any treat to a group of people and the first, second, third and fourth questions will undoubtedly be: “Is it free???” The average human is wary of parting with any form of money. Everyone is ‘managing themselves’. The imposition…
TAX SERIES BY ENIOLA – SEASON 1 Episode 1- Canons of Taxation “You can have a Lord and you can have a King, but the man to fear is the Tax Collector.” Many of us today still share this sentiment of the Iraqi from almost 4 millennia ago that Tax is a necessary evil. Tax however, has a human face and is founded on important principles. Adam Smith in his work ‘Wealth of Nations’, propounded the Principles/Canons of an…